Business, Energy and Industrial Strategy ministers were answering
questions in the Commons. Subjects covered included... Marine
Energy Smart Meters Carbon Reduction Targets
Electric Vehicle Charge Points Oil and Gas Industry
Electric and Autonomous Vehicles Automotive Sector
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Business, Energy and Industrial Strategy ministers were answering
questions in the Commons. Subjects covered included...
To read any of these in greater detail, click on the link or read
below.
Marine Energy
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1. What discussions he has had with the Welsh
Government on the place of marine energy in the
industrial strategy; and if he will make a
statement. [904324]
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My ministerial colleagues and I have regular
discussions with our counterparts in the Welsh
Government on all aspects of the industrial strategy.
Last week, my officials were in Cardiff to discuss with
the Welsh Government the proposed Swansea bay tidal
lagoon.
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At the heart of the industrial strategy is spreading
prosperity across the whole of the United Kingdom, and
working with devolved Administrations in our nations
and regions will help to achieve that. The Welsh
Government are working with practical
developers—Minesto, an international company, and local
company Morlais—to develop marine energy in my part of
the world. The Secretary of State mentioned the Swansea
bay tidal lagoon. Will he now make a decision and work
with the Welsh Government and with developers so that
we can roll that out, maximise our potential, and
spread prosperity in this part of the United Kingdom?
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I share the hon. Gentleman’s enthusiasm for green
energy, as he knows, and I am proud of our
achievements. Since 2010, we have quadrupled the
proportion of our electricity that comes from renewable
sources. However, as the hon. Gentleman understands
from being on the Select Committee, we also have a
responsibility to minimise the impact on consumers’
bills. The Swansea proposal was very much more
expensive—more than twice as expensive—as the Hinkley
nuclear power station, for example. As I said, though,
we are in discussions with our colleagues in the Welsh
Government. I do not want to close the door on
something if it is possible to find a way to justify it
as being affordable to consumers.
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I, too, say to the Minister that making a decision on
the Swansea bay tidal lagoon is important for Wales as
a whole. There is huge potential for future lagoons
around Newport following the Swansea pathfinder. It is
really important that we do not pass up these
opportunities.
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I take the hon. Lady’s point. I think that everyone
recognises these issues. In fact, the First Minister
wrote to me yesterday and acknowledged the
“genuine challenges in…considering a proposal involving
untried technology with high capital costs and
significant uncertainties.”
That is why the best way to do this is to explore all
the possibilities and to recognise the constraints.
That is what I have committed to with colleagues in the
Welsh Government.
Smart Meters
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2. What assessment he has made of the level of
consumer satisfaction with smart
meters. [904325]
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20. What assessment his Department has made of the
effect of smart meters on consumer energy
behaviour. [904343]
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Government research on consumer satisfaction published
in August last year shows that satisfaction with smart
meters is high. Eighty per cent. of consumers are
satisfied with their smart meters and 80% would
recommend them to friends and family. Smart Energy GB
found that nearly 90% of people with a smart meter made
energy savings and changed their behavioural patterns.
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I thank the Minister for his response. It is good to
hear that so many people are reaping the benefits from
smart meters. No system is ever perfect, however, and
that is the case for a small number of customers such
as a club in my constituency, Killamarsh juniors
athletics club, which is now on its third smart meter
and is getting really unhelpful responses from its
electricity provider. Can he provide any advice to the
club in my constituency?
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My hon. Friend has made a point about the Killamarsh
juniors club in his constituency. I would be very happy
to meet him on that specifically. However, I have not
found this generally to be the case. The roll-out of
smart meters is a very important national modernisation
programme that brings major benefits to consumers
generally and to his constituents specifically.
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Smart meters are good for consumers and suppliers
alike, but the roll-out relies on there being a good
mobile phone signal for them to be effective, and in
many parts of rural Scotland that is simply not the
case. Can the Minister reassure me that he is working
across the Government and with relevant stakeholders to
ensure that residents in rural areas benefit from smart
meters?
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I agree entirely with my hon. Friend. We are working on
that, and the Arqiva radio solution provides
communications services for the north region. That
covers Scotland, and it is contracted to cover nearly
100% of premises by the end of 2020.
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Does the Minister accept that his statistics are based
on surveys that are carried out about 10 weeks after
installation? My own survey found that 54% of
constituents would currently refuse a smart meter, 97%
want to see the costs of the programme shown on their
bills, and 74% said that receiving one had not yet made
any difference to the size of their bills. Will he also
take those findings into account?
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The hon. Gentleman knows me well enough to know that I
am very interested in anything he has to say. He
contributed a lot to the passage of the Smart Meters
Bill in the House of Commons. I would be very
interested to receive those statistics, but we do
receive them from quite a few different places, and I
do not just quote one sample.
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I am sure the Minister is speaking in good faith, but I
have come across constituents who find that bills are
not reducing, but increasing. Has he had discussions
with the utility companies about keeping an eye on this
and making sure that the effect of smart meters is to
reduce costs for constituents, many of whom are poor,
not raise them?
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I am very surprised to hear what the hon. Gentleman
says. As he said—I am grateful for it—I am talking in
good faith; I know he is too. I would be pleased to
hear of those examples, but I cannot quite understand
why bills would go up, because nearly 90% of people
with smart meters say that it is changing their energy
patterns and that bills are going down.
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Can the Minister update us on where we are with the
roll-out of SMETS 2 smart meters?
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As my hon. Friend, who also contributed a lot to the
passage of the Bill, knows, SMETS 2 is the newer type
of meter which at the moment is in its trial phase. As
the months go on, SMETS 1 meters will be converted
through software that is being developed by the Data
Communications Company, and all new meters will be
SMETS 2.
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How satisfied are consumers when they realise that a
smart meter becomes a dumb meter when they switch
suppliers? Can he put an accurate timeline on the
roll-out of SMETS 2 meters?
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As I explained, the software that is being developed
now and will be in place shortly after the summer will
ensure that that does not happen. The comparatively
small number of SMETS 1 meters that do not operate as
smart meters when suppliers change will suddenly become
compliant, and they will all be able to speak to one
another electronically, which is what we all want.
Carbon Reduction Targets
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3. What assessment he has made of the UK’s ability
to meet its carbon reduction targets. [904326]
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7. What assessment he has made of the UK’s ability
to meet its carbon reduction targets. [904330]
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We should all be proud of the progress the UK has made
in meeting its carbon reduction targets. The current
statistics show that we have met our first budget, are
on track to exceed our second and third budgets and are
97% and 95% of where we need to be to meet our fourth
and fifth budgets—[Interruption.] I hear groaning, but
I think those are decent numbers, given that we are 10
and 15 years away from achieving those budgets.
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The lack of commitment, focus and ambition from this
Tory Government mean that we are set to miss our
legally binding carbon targets. Three easy wins could
be to repeal the ban on onshore wind, prioritise energy
efficiency measures and zero-carbon homes and commit to
the Swansea bay tidal lagoon. When are this Government
going to get their act together, demonstrate their
commitment to future generations and get on with it?
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I think the hon. Lady perhaps wrote that before hearing
my answer. Let me share two facts with her. First,
Britain has led the world in decarbonising our economy
while growing it at the same time, not delivering
carbon cuts with recessions, as other parties would
like. Secondly, there are two countries in the world
considered to be doing enough to meet even a 2° C
target, and those are China and the UK. We have set out
what has been described as the most ambitious set of
policies and proposals ever seen from a Government in
the clean growth strategy. We are bringing that
forward, and it would be nice to feel we had a
cross-party consensus on doing something that is so
vital for both this country’s future and the future of
the world.
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I was interested to hear the Minister say that we are
on target for three carbon budgets but will miss the
fourth. The Committee on Climate Change said that the
fourth carbon budget will not be met unless policies
are supplemented by “more challenging measures”. She
spoke about ambition. Can she tell us what those
challenging measures will be?
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As I answered before, the calculations for the fourth
and fifth carbon budgets—which, I repeat, end in 10 and
15 years’ time and which we are 97% and 95% of the way
to meeting—are based on an analysis of only 30% of the
policies and proposals in the clean growth strategy.
[Interruption.] My right hon. Friend the Secretary of
State says he thinks that that is quite good; I agree.
We are bringing forward further work on those policies
and proposals and also spending an unprecedented amount
on research and development in this space—more than
£2.5 billion over this Parliament. I am extremely
confident that we will meet our budgets, with our
ambitious policy, the ingenuity of British businesses
and the science base, the strong campaigning and the
structure of the Climate Change Act 2008—the Act that
we were the first country in the world to pass.
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Does the Minister agree that improving home energy
efficiency measures would help us to meet our carbon
budgets?
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My hon. Friend led an excellent debate on this in
Westminster Hall, where we had a very strong outbreak
of cross-party consensus. I entirely agree, and that is
why we have set our home efficiency targets at band C
for 2035. We are keen to do that in a cost-effective
way, and I will shortly be bringing forward the
consultation on ECO—the energy company obligation—and
how to target it at fuel-poor households. In addition,
we need to create a route to market for some of our
best British technology to solve that problem.
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Nuclear power will clearly be central to us reaching
our carbon targets. Is the Minister confident that
enough progress is being made to see the construction
of nuclear plants in Anglesey and Cumbria?
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As the hon. Gentleman knows, making these long-term
decisions and creating costs for consumers over
decades—whether in tidal lagoons or in nuclear—are
matters that we have to take extremely seriously. We
have to reduce the carbon emissions of our power
supply, cut costs for consumers and create innovation
that we can export around the world, and all of those
considerations are being taken into account.
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To meet carbon reduction targets, the Government will
need to support, among other technology, offshore wind
projects. In Scottish waters, Dounreay Tri, Kincardine
and Forthwind are working to deliver first generation
projects with an immediate value of £200 million for
jobs and the supply chain, yet due to factors outwith
their control, they will struggle to hit the UK
Government’s October deadline. Will the Minister meet
me to discuss how we might support these projects in
making their contribution to carbon reduction?
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We have worked very hard on the wind industry in
Scotland—the hon. Gentleman and I both welcome the
recent announcement about remote island wind, which is
a really positive step forward—but the challenge is
that the phasing out of the renewables obligations was
set over four years ago. People have been fully aware
of them, and we are currently not intending to extend
the length of the grace periods. However, as he knows,
I am always happy to try to build cross-party consensus
on this vital agenda for this country.
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I am sure it is absolutely not the intention of the
Minister to mislead the House in any way, but her
statements about our being 96% of our way towards
meeting our fourth and fifth carbon budgets need to be
put in the context of the fact that we are committed to
reducing CO2 emissions by 225 million
tonnes, but the Government proposals will reduce the
amount by only 116 million tonnes, which is only just
over half the requirement between the fourth and fifth
carbon budgets. What are the Minister’s proposals under
the clean growth plan to make sure that we reduce the
amount by the outstanding 109 million tonnes?
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The hon. Gentleman is a clever scientific fellow, and
he knows that those numbers refer to the baseline
numbers of 1990. I would be very happy to sit down with
him and go line by line through the carbon budgets and
the policy proposals. Again, he and I both need to be
absolutely clear that regardless—[Interruption.] There
is an awful lot of shouting from the hon. Member for
Blyth Valley (Mr Campbell), who wants to bring back
coal. Regardless of what this and future Governments
do, those budgets must be fit for purpose, and we have
to be absolutely clear and transparent about how we are
going to meet them, and that is exactly what the clean
growth strategy has done.
Electric Vehicle Charge Points
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4. What recent steps he has taken to improve
electric vehicle charge point
infrastructure. [904327]
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Britain is building one of the best charge point
networks in the world, and our £400 million charging
infrastructure investment fund, announced at the
Budget, will see thousands more charge points installed
across the UK.
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Yesterday, the Business, Energy and Industrial Strategy
Committee visited the London Electric Vehicle Company
in my constituency. The Secretary of State will
remember opening it a year ago, and it is great that we
are now seeing electric taxis on the streets of London.
We also went to the Electric Vehicle Experience Centre
in Milton Keynes, where we heard concerns about the
fact that the lack of compatibility between chargers
and connectors is in danger of putting people off
buying an electric car. What will the Secretary of
State do to encourage the industry to adopt a standard?
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I am delighted that the Committee went to see the
electric taxi company. The opening, at which my hon.
Friend accompanied me, was a fantastic event. Having
such compatibility is a very important matter. The
recently introduced Alternative Fuels Infrastructure
Regulations 2017 set minimum standards for publicly
accessible charge points. In addition, the Automated
and Electric Vehicles Bill, which is currently before
Parliament, will give the Government new powers to
regulate these technical standards.
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Many supply companies are worried that if there is a
high uptake, which I think we would all support, the
infrastructure will not be there to support it. It is
just not true that electric vehicles do not use a great
deal of power, so there are concerns about strain on
the system as a whole.
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I am grateful to the hon. Gentleman for those comments.
Our access to the network is one of the best in the
world, especially for fast chargers. He is absolutely
right that electric vehicles can contribute to the
electricity grid’s resilience, because their batteries
can store electricity generated by renewables for a
time when it is needed, which is very much part of the
smart systems plan.
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Batteries, of course, are one of the constraints that
people consider before buying electric cars, because of
their limited range. Does my right hon. Friend
therefore welcome the initiative of the Mayor of the
West Midlands, along with the Government, for
introducing a battery research centre in the west
midlands?
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Not a Question Time goes by without me welcoming an
initiative from the Mayor of the West Midlands. We have
worked very closely with the Mayor, and with the
automotive industry, to ensure that we are investing at
the cutting edge of research into battery technology,
precisely so that we can build the cars of the future.
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What comfort can the Secretary of State give the people
of Bristol, who wish to see the number of electric
charging points massively increased?
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I am delighted that there is such enthusiasm in
Bristol. The hon. Lady will be aware that the funding
for charging infrastructure is available especially for
city-centre authorities that can put it into public car
parks.
Oil and Gas Industry
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5. What progress has been made on a sector deal
for the oil and gas industry. [904328]
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The Government remain committed to supporting the
industry and building on the £2.3 billion package
announced in recent Budgets. My right hon. Friend the
Minister for Energy and Clean Growth greatly enjoyed
her recent visit to Aberdeen—as did I, when I
visited—when the industry presented its initial
proposals for a deal. My right hon. Friend is meeting
the sector deal champion, Trevor Garlick, tomorrow.
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I thank my hon. Friend for that answer. The oil and gas
industry based in the north-east of Scotland has
contributed over £330 billion to the economy, supports
over 330,000 jobs across the United Kingdom and has a
supply chain worth nearly £30 billion. With an
estimated 20 million barrels of oil still to get out of
the North sea, the industry has huge potential to drive
this country’s growth, but of course there is still
uncertainty, so I know that the Minister will welcome
the response—
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Order. I am sorry to interrupt the hon. Gentleman, but
we need a single-sentence question, not a preamble.
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Will the Minister pledge to work continually with the
industry to develop and deliver the sector deal?
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What discussions has the Minister had with the Treasury
about the impact of Her Majesty’s Revenue and Customs’
new end-use procedure changes on the gas and oil
industry?
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I will give a very succinct answer, as you have
requested, Mr Speaker. I do not know, but I will
happily meet the hon. Gentleman to discuss it.
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What consideration is my hon. Friend giving to the
downstream sector? Our remaining oil refineries are
important national assets and major centres of
employment, and they could benefit from clear,
long-term thinking.
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As my right hon. Friend will be aware, the whole sector
is important to us, and specifically the supply chain.
I have met various players involved, and it is of
critical importance to us.
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The UK Government have so far failed to announce a
sector deal for oil and gas, and there was no mention
of one in their industrial strategy. There is a need
for a sector deal approach to the industry. The
Scottish Government have been calling for such action.
Will the Minister finally rectify this glaring omission
and commit that vital support for the industry and the
jobs and investment it relies on?
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The hon. Gentleman should be aware that this is a
priority for us. We are working very hard with the
sector to come up with a sector deal, and I expect
those talks to come to fruition very soon.
Electric and Autonomous Vehicles
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6. What steps he is taking to support the
development of electric and autonomous
vehicles. [904329]
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The automotive sector deal will ensure that the UK
continues to reap the benefits from leading the
transition to zero-emission and autonomous vehicles.
Last month that drew in £33 million of investment into
the UK-based connected and autonomous vehicle
programmes, with participation from across the
industry.
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Jaguar Land Rover recently developed the I-Pace, its
first all-electric performance SUV, and, as my hon.
Friend the Member for Rugby (Mark Pawsey) mentioned,
the London Electric Vehicle Company has developed the
world’s first purpose-built electric taxi. Will my
right hon. Friend join me in congratulating those great
British manufacturers on the world-leading role they
are playing in the sector?
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I certainly will. The Jaguar and the London taxi are
iconic images, and to see them leading the way into the
future is a matter of great delight. I congratulate
both companies on choosing to manufacture those
vehicles in the UK.
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What is the Secretary of State doing to help
development in the transition from diesel to electric
vehicles? In particular, how is he helping with
infrastructure?
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We are working very closely with the industry to ensure
that as it develops the new technologies of the future,
it is able to plan a smooth transition to a world in
which all vehicles will be compatible with our climate
objectives.
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All the new electric vehicles will need batteries, of
which lithium is an essential element. Recent
discoveries of large deposits of lithium in Cornwall
open up the possibility of the UK securing a domestic
supply for this vital element. What support can the
Secretary of State give to this exciting new emerging
sector?
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Through our industrial strategy, we have highlighted
the potential for new developments in battery storage.
If Cornwall can supply the lithium to power that new
industry then I am delighted to hear it. I will discuss
the possibilities further with my hon. Friend.
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At yesterday’s Select Committee visit, mentioned by the
hon. Member for Rugby (Mark Pawsey), it became very
apparent that the market for electric vehicles is
maturing at a much faster rate than many people
realise. Is it possible that the ambition of the sector
itself is outstripping the ambition of the Government,
and should the 2040 target not be brought forward,
perhaps even by a decade?
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When it comes to the new generation of automotive
technology, the ambition of this Government is not
outstripped by anyone. We are working very closely—hand
in glove—with the industry, through the Automotive
Council, to make sure that we are the best placed in
the world not only to research the new technologies,
but to manufacture them in this country.
Automotive Sector
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9. What financial support his Department makes
available for manufacturers in the automotive
sector. [904332]
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The Government’s long-term partnership with the
automotive industry is an exemplar of our industrial
strategy. Only a fortnight ago, I went to Derbyshire to
welcome Toyota’s decision to build the new Auris in
Burnaston, helping to secure 3,000 jobs between
Burnaston and Deeside in north Wales.
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I am sure that, while welcoming that investment, the
Secretary of State will have been alarmed by the
comments made by the chief executive of the PSA Group,
which owns Vauxhall in my constituency, about the lack
of certainty, with Brexit affecting investment
decisions. Will the Secretary of State meet the PSA
Group and me to give us confidence in terms of
investment in the future of that plant?
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I regularly meet with chief executives of car
companies, including Mr Tavares. It is very clear that
we are determined, as the Prime Minister set out in her
Mansion House speech, to make sure that this very
important integrated supply chain is able to continue
to operate. It is worth bearing in mind that since my
team have been in the Department every single major new
model decision has gone our way. I am determined to
keep up that advocacy.
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The automotive sector is crucial to UK industry. It
employs 814,000 people and we are all proud of British
car manufacturers, including the iconic Rolls-Royce and
Jaguar. In recent weeks, however, President Trump has
revealed an appetite for a trade war that began with
the announcement of steel tariffs and now includes
threats to put tariffs on EU cars, which could hit our
industry hard. Will the Secretary of State tell this
House what he is doing to avoid a trade war with the
US? Should such tariffs come into play, what will he do
to protect our steel and automotive sector?
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I am sure the hon. Lady was in her place yesterday when
the Trade Secretary gave a very comprehensive
statement. There was some welcome for the cross-party
approach that went into defending the international
system of free trade. It does no one any good if we
have tariffs in place that impede trade. Her
endorsement of the approach being taken by the Trade
Secretary would be welcome.
Carillion
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10. Whether he is taking steps to safeguard the
employment of people who were working under private
sector Carillion contracts at the time of that
company’s liquidation. [904333]
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19. What steps he has taken to support and engage
with businesses affected by the liquidation of
Carillion. [904342]
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The official receiver and special manager are working
to ensure an orderly transition by facilitating the
transfer of contracts. As of 12 March, 8,521 jobs have
been safeguarded and 1,536 people have been made
redundant, sadly, through the liquidation. My right
hon. Friend the Business Secretary has set up a
taskforce, bringing together trade associations,
bankers and representatives of Government to ensure
that we support the Carillion supply chain. The
taskforce has delivered a range of supportive measures,
including more than £900 million of support from UK
lenders.
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Let me seek some further clarification. If there is any
doubt that TUPE applies, can the Government confirm
that they will instruct the official receiver to
transfer employees on private sector contracts as if
TUPE applied? Will the Government also ensure that
trade union recognition is transferred with those
staff?
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I thank the hon. Gentleman for that question and refer
him to the recent Westminster Hall debate, when we
discussed at some length the legal responsibilities in
relation to TUPE, which do not apply in many cases
during a liquidation. Transferring employers may well
decide to offer terms to transferring employees that
recognise existing employment rights, terms and
conditions. The Government are focused on ensuring that
transferred employees are no worse off, and the
official receiver is doing all he can to facilitate
this wherever possible.
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The Carillion collapse has exposed what can only be
described as market abuse by lead contractors, with
subcontractors in Cheltenham suffering as a result of
the failure to adhere to best practice schemes such as
the prompt payment code. What steps are the Government
taking to ensure compliance with the schemes and more
generally to stamp out market abuse?
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My hon. Friend, who has met me on a number of occasions
to defend the interests of businesses in his
constituency, will know that the Government had two
priorities: to protect the provision of vital public
services and to do what we could to protect jobs in
Carillion and jobs in the supply chain. We are clear
that we must learn the lessons from the collapse of
Carillion. This could be a catalyst for change for the
good. We are concerned to ensure that we do all we can
to learn the lessons on procurement, and we also want
to do more to ensure that the supply chain is promptly
paid and that small businesses are paid speedily.
Looking at the prompt payment code is an important part
of that.
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Following on from the question from the hon. Member for
Cheltenham (Alex Chalk), when Carillion went bankrupt,
many of the subcontractors had not been paid for 120
days. The money coming to Carillion was from the
Government, so what are the Government doing to ensure
that when they give contracts to big businesses, those
businesses pay their subcontractors on time? Small
businesses are the lifeblood of our economy and they
have been destroyed by the collapse of Carillion.
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I thank the hon. Lady for that question and
particularly for the work that her Select Committee is
doing in getting to the bottom of exactly what happened
in Carillion. That is very important work. The
Government are clear that with public sector contracts
we pay in 30 days, and we expect tier 1 contractors to
ensure that they pay their supply chain in 30 days too.
We are determined to take action to ensure that this
happens, and we are looking at what we can do to make
sure not only that small businesses in the public
sector supply chain get paid within 30 days, but that
we do more to support private sector suppliers as well.
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What support has been given to British nationals
working abroad who were with Carillion?
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The main priority for this Government has been to
protect jobs here in the UK and the continuation of
public sector contracts and services. The special
manager, of course, has a responsibility to wind up the
business to get the best value for creditors, but he is
responsible for dealing with businesses overseas.
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For the Carillion workers who were not transferred
under TUPE, what was the degradation of their terms?
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I have met the hon. Lady several times, and I know that
she is working hard to ensure that her constituents
employed by Carillion get all the protections possible.
The Secretary of State has had conversations with the
special manager to ensure that wherever possible when
contracts are transferred employees get like conditions
so that they are no worse off. As she will understand,
this is a very complex and complicated business, and I
do not at the moment have the specific statistics she
requests.
Self-employed People
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11. What steps he is taking to support
self-employed people. [904334]
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We want people to be self-employed when it is the right
thing for them, which is why the Government have
introduced new measures to ensure they are even better
supported. These include improved support for embarking
on self-employed careers, encouraging pension saving
and supporting people to pay the right tax. From 6
April 2016, we have also given self-employed people the
ability to build their entitlement to the new state
pension at the same rate as employed people.
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Morley is lucky to have a thriving high street, which
matters to me as an ex-retailer. During the recent cold
weather, Apollo Fisheries in Morley handed out free
food to cold residents. What are the Government doing
to support our businesses on the high street, and will
the Minister take this opportunity to congratulate
Apollo Fisheries on its fine example of Yorkshire
hospitality at its best?
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I think the House will recognise that I am no stranger
to a fish supper, and I would like to join my hon.
Friend in congratulating Apollo Fisheries on the
community spirit it showed. It clearly demonstrates
that businesses contribute not just to the economy but
to our society. The future high streets forum provides
joint business and Government leadership to enable our
high streets and town centres to adapt and compete in
the face of changing consumer and social trends, but we
want to go further, so last week I announced the
establishment of the Retail Sector Council, which will
bring together leaders in retail to help to develop
policies and support for the vital retail sector.
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We all want self-employment to grow, but we also want
to crack down on apparent self-employment, where people
are forced to become self-employed by exploitative
employers who then save on national insurance
contributions while putting all the risk of that
employment on often vulnerable individuals. What are
the Government doing about that?
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I am sure the hon. Lady will be delighted to know that
the Government are taking forward the proposals set out
by . We recognise
that employment status—whether workers are employed or
self-employed—is key to their getting not only the
payments but the protections they deserve. That is why
we have embarked on a full consultation with the
intention of clarifying the status of workers, giving
them extra protections and ensuring that if it looks
like work and feels like work, it is work and they are
paid properly.
-
The Government’s response to the Taylor review did
virtually nothing to tackle the challenges and
insecurity that self-employed people face. Equally poor
was the Government’s response to the treatment of gig
workers.
“Don has died and they should be making changes”.
Those were the words of DPD gig worker Don Lane’s
widow, Ruth. With this in mind and with himself last
week rating the Government’s response to the Taylor
review a shocking four out of 10, what score would the
Minister give himself?
-
Seven weeks in, I think I would give myself 10 out of
10. The hon. Lady quotes . He has said
quite clearly that this is a complex and complicated
matter. He wants us to get the definition of status
right, because the rights of thousands of gig workers
depend on it. That is why in the passage the hon. lady
quotes he also said that when we have finished our
consultation, if we deliver what we have promised he
would give us seven or eight. I want to go further; I
want it to be 10.
-
Ten out of 10 indeed! The Chancellor today might
attempt to laud employment figures as positive news,
but he will fail to state that over 3 million people
are in insecure work, and, according to a recent report
by the Centre for Labour and Social Studies, over a
third of all workers do not even earn enough to live.
There are also real fears, despite the Prime Minister’s
assurances, that the quality of work will worsen still,
with reports that the Foreign Secretary and other
Ministers are pushing for major employment law
deregulation. Will the Minister confirm whether his
Department is carrying out any work looking at the
deregulation of certain employment rights?
-
The hon. Lady must have missed the intention behind
what the Government were doing with the report. Not
only are we committed to continuing the existing
employment rights and protections, but we are going
further and faster than anyone else—further and faster
than our European colleagues—to give gig workers and
others in vulnerable conditions, such as agency
workers, greater protections than ever before. We are
not just talking about it; we are protecting those
workers.
Small Business Sector
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12. What steps he is taking to support growth in
the small business sector. [904335]
-
-
Apologies, Mr Speaker. I was congratulating myself too
much!
The Government-owned British Business Bank provides £4
billion to support more than 60,000 UK small and
medium-sized enterprises. We plan to unlock more than
£20 billion of investment in innovative and
high-potential businesses, including a new £2.5 billion
investment fund with the British Business Bank. The
Small Business Commissioner helps with payment issues,
dispute resolution, and the sourcing of advice
throughout the UK. Through the industrial strategy, we
are continuing to invest in 38 growth hubs across
England, as well as the business support helpline.
-
Of course I join in the congratulations to the
Minister, but he will know that one of the crucial
requirements for the success of the small business
sector is access to and understanding of finance, and
there is considerable evidence that there is currently
a knowledge gap in the market. What are the Government
doing to address that?
-
My hon. Friend has hit the nail on the head. We are
concerned by reports that businesses, particularly
small businesses, are reticent about coming forward to
access finance that could help them to invigorate and
grow. That is why the British Business Bank produces
“The business finance guide”, in partnership with the
Institute of Chartered Accountants in England and Wales
and industry bodies. The guide explains the different
sources of finance that are available to smaller
businesses, and is also published online. The British
Business Bank will launch a new digital platform in the
spring to raise awareness even further.
-
Small businesses in Cumbria, particularly those
involved in farming and tourism, were integral to the
Lake district’s gaining world heritage site status last
summer, a designation that could lead to a massive
increase in the number of visitors to what is already
Britain’s second-biggest visitor destination. Will the
Government back those small businesses with the
infrastructure investment that they need in order to
cope and to grow? Will they, for instance, electrify
the Lakes Line?
-
I am delighted to support the small businesses to which
the hon. Gentleman has referred. He will be pleased to
know that we are boosting infrastructure, including
digital infrastructure, with more than £1 billion of
public investment, including £176 million for 5G and
£200 million for local areas to encourage the roll-out
of full-fibre networks. I should also be delighted to
meet him to discuss what more we can do for lakeside
businesses.
-
Hitchin and Harpenden, which are both small towns, have
a thriving independent retail sector, but in recent
months they have reported that things are getting
harder for them. Will the Minister reassure me that the
Government are doing everything they can to help
independent small retailers in thriving market towns?
-
As the retail Minister, I recognise the real challenges
faced by our high streets and, in particular, by
independent businesses. In his spring Budget statement,
the Chancellor announced a package of measures for
business rate relief, including a £1,000 discount for
pubs with rateable values below £100,000, £300 million
for local authorities to fund discretionary rate
relief, and a cap on rate increases, which means that
businesses that lose their small business rate relief
will not see their bills increase.
-
The Minister should stop being quite so complacent.
Carillion was a signatory to the prompt payment code;
Interserve still is. Carillion suppliers were paid on
terms of 120 days, while Interserve subcontractors say
that they are being absolutely hammered by late
payment. Yesterday the Federation of Small Businesses
again highlighted the damage done to growth by late
payment. When will Ministers support smaller firms in
the public sector supply chain, and enforce the prompt
payment code?
-
We are certainly not complacent, which was why we set
up the trade body group to assess the impact of
Carillion. The hon. Gentleman will be delighted to know
that yesterday I spoke to Phil King, who runs the
prompt payment code, and I will be meeting him later
this week to discuss how we can tighten up the code and
give it real teeth. We are determined to help small
businesses.
Local Enterprise Partnerships
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13. What plans he has for the future of local
enterprise partnerships. [904336]
-
We remain firmly committed to local enterprise
partnerships. As announced in the industrial strategy,
we are currently reviewing the roles and
responsibilities of LEPs so that they are able to play
an important role in developing local industrial
strategies and driving growth across the country as we
prepare to leave the European Union.
-
Hertfordshire LEP has been a disaster for Stevenage
people. Does the Minister agree that it is shameful
that growth deal round 1 money is being used to build
new council offices and sell off public sector land for
developers to build luxury flats, with less than 10%
being affordable homes?
-
Some £15 million of growth deal round 1 money has
already been invested in Stevenage, and that has helped
to leverage a commitment of £350 million of private
investment into the town. My hon. Friend raises an
issue of concern, and I urge him to speak to the
Secretary of State for Housing, Communities and Local
Government to resolve it.
-
May I invite the ministerial team to step out of its
bubble by coming to Yorkshire and talking to our local
enterprise partnerships to respond to their pessimism
that while London and the south might survive post
Brexit, the midlands, the north and the regions will be
in bitterly disappointed territory?
-
The hon. Gentleman talks manufacturing down, but
manufacturing is doing incredibly well in the north of
England. He will also be aware that “place” is one of
the five pillars of our industrial strategy, and we are
determined to deliver across the country.
Euratom
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14. What assessment he has made of the effect of
the UK leaving Euratom on (a) the economy and (b)
scientific research in Oxfordshire. [904337]
-
I know that the hon. Lady has a keen interest in this
subject, and we have met to discuss the impact on many
of her constituents working at the Culham Centre for
Fusion Energy. As she knows, our assessment was
detailed in the “Nuclear Sector Report” at the end of
December last year, and in an impact assessment for the
Nuclear Safeguards Bill, which was first published on
18 December. We continue to engage with stakeholders,
and the hon. Lady knows that my door is always open if
she wishes to discuss this matter further.
-
I thank the Minister for his response. We know that the
Government are seeking a close association with
Euratom, but with just 109 days until Austria takes up
the presidency, Oxfordshire needs clarity now to plan
for the future. Can the Government categorically say
they are seeking an associate agreement, and can they
guarantee that they will kick-start the process before
1 July?
-
I can confirm that, as the hon. Lady knows, we are
seeking the closest possible association with Euratom.
We are working very hard to achieve that objective.
-
Does the Minister agree that at the recent meeting of
the all-party group on nuclear fusion, which I chair,
the Government’s attitude to expanding their
collaboration in nuclear activity was greatly evident?
-
I thank my hon. Friend for that question. He also has a
keen constituency interest in this, and I am very keen
to represent the interests of his constituents.
Topical Questions
-
T1. If he will make a statement on his departmental
responsibilities. [904349]
-
Since our last questions, Toyota has announced, as I said
a few moments ago, that it would build its new model in
Derbyshire, with most of the engines coming from the
Deeside factory in north Wales. We also published our
response to the Taylor review on modern employment
practices. A million more vulnerable consumers will be
protected by the extension of the Ofgem safeguard tariff
cap and, as Members know, the Domestic Gas and
Electricity (Tariff Cap) Bill has been introduced into
Parliament. Yesterday, as part of our industrial
strategy, we announced a major £300 million research
programme into technologies to serve the ageing
population and to ensure that we can benefit from this
encouraging global trend.
-
What engagement is the Secretary of State having with a
Canadian company called Brookfield, the likely buyer of
Springfields nuclear fuels in my constituency, which
manufactures nuclear fuel for the UK and provides over
1,200 well-paid jobs?
-
My hon. Friend is a champion of this sector. The
Under-Secretary, my hon. Friend the Member for Watford
(Richard Harrington), has met the vice-president of
Brookfield and expressed our continuing support for
Springfields to have a future in providing fuel for
plants in this country and overseas.
-
GKN was forged in our country’s first industrial
revolution. It built the tanks used in the D-day
landings, and its innovative battery technology will
power our future economy. The Government’s industrial
strategy identifies batteries as a key technology and
manufacturing as a priority sector, yet the Secretary of
State has nothing to say about the hostile takeover of
that great firm. Why is it that all too often, as with
Arm and Unilever, his industrial strategy seems to leave
great British success stories less great or less British?
-
I would have thought that the hon. Lady would have
informed herself as to the responsibility of Ministers
under the Enterprise Act 2002. That Act, which was passed
under the previous Labour Government, states that
Ministers can intervene only in mergers that raise public
interest concerns on the grounds of national security,
financial stability or media plurality. She should know
that the Government’s corporate governance reforms have
ensured that GKN had longer to prepare its defence,
preventing the kind of smash and grab raid that Cadbury’s
was subjected to under the previous Government, and that
provision has been made for legally binding undertakings
to be given in takeover bids. Those are intended to be
used, and I would be surprised and disappointed if any
bidder did not make their intentions clear, extensive and
legally binding.
-
T2. Can my hon. Friend assure me that protected
status for Cornish produce such as the Cornish pasty will
not be compromised post-Brexit? [904350]
-
It is said that I am no stranger to the fish supper, and
I also have knowledge of the Cornish pasty and, indeed,
Cornish clotted cream. All those products will achieve UK
geographical indications and will continue to be
protected in the UK after our EU exit. As negotiations
are ongoing, I cannot give my hon. Friend a cast-iron
assurance right now that UK products will remain
protected in the EU after exit, but I can categorically
state that that is the Government’s clear objective.
-
T5. I am grateful to Carl Webb, my Communication
Workers Union regional political officer, for bringing to
my attention the BT Sport call centre in my constituency,
which is paying the minimum wage to agency workers beyond
12 weeks using the Swedish derogation. The Taylor report
talked about getting rid of the Swedish derogation, so
when are the Government going to act to protect some of
our lowest paid workers? [904353]
-
I assure the hon. Gentleman that we are acting right now;
a consultation is under way with regard to the Swedish
derogation. Firms and businesses should be in no doubt
that this Government expect everyone to be paid either
the national minimum wage or the national living wage.
That is why we have doubled the amount of enforcement and
protected the pay of 98,000 workers. We are absolutely
committed to everybody getting paid the national minimum
wage.
-
T3. Late and non-payment of retention payments in
the construction industry is affecting small firms in
Moray and across the UK. When will Ministers deal with
that issue? [904351]
-
The Government are determined to improve payment
practices, and we understand that retentions have caused
problems for contractors in the supply chain. We
consulted on the contractual practice of cash retention
and we are now considering the responses to assess the
extent of the issues and to determine what further
intervention is required.
-
T9. Does the Minister agree that there is
overwhelming evidence that migrant workers, including EU
nationals, make a hugely positive contribution to
business, the economy and our public finances, and that
they do not undermine wages? [904357]
-
I think that we all recognise the extremely positive
contribution made by workers from the EU, whether in
business or in our public services, and I endorse that.
-
T4. According to the tidal energy industry leader
Tidal Lagoon Power, Southport is considered to be one of
the best locations in the United Kingdom for a tidal
lagoon. Will my right hon. Friend therefore meet me to
discuss the possibility of bringing tidal energy to
Southport? [904352]
-
My hon. Friend is, as ever, assiduous in promoting the
interests of his constituency, and I would be delighted
to meet him. I should point out that the lagoon project
in his constituency is currently not part of the proposal
being put forward by the company promoting other tidal
projects.
-
The Government raised business rates on rooftop solar
schemes by up to 800% last year, and it now appears that
on-site battery storage is likely to go the same way.
Given that gas combined heat and power has been exempted
from business rates, should not the Government do the
same for solar and battery storage to support clean
energy?
-
Our solar capacity has increased by more than 30% in the
past two years, so we clearly are bringing forward such
schemes. The hon. Gentleman will know that we are looking
closely at ways of reducing some of the disincentives,
particularly around on-site storage, but I am happy to
meet him to discuss things further.
-
T6. Does the Minister agree that the south-west is a
great region in which to do business? Will he join me in
recognising the work of the Barnstaple and District
chamber of commerce, which I met on Friday, in promoting
North Devon as, without doubt, the region’s economic
powerhouse? [904354]
-
The south-west is indeed a great region in which to do
business. Chambers of commerce including Barnstaple’s,
which has been serving its community since 1911, have a
valuable role to play in supporting local businesses and
ensuring that their voice is heard. That is why I have
met chambers of commerce 11 times in the seven weeks in
which I have been the Minister for small business.
-
Solar power is the most popular source of clean energy
and one of the cheapest, so why has it been excluded from
clean power auctions for the past three years? Why oh why
does it continue to be excluded, putting the industry at
a clear competitive disadvantage?
-
We continue to look at ways of bringing forward all forms
of renewable energy. Indeed, up to 30% of energy
generation in this country now comes from renewables. We
have not yet taken decisions about future contract for
difference allocation rounds, but we intend to do so.
-
T7. The banking scandals at RBS destroyed thousands
of businesses, but the owners of those businesses have no
means of seeking justice or recompense. Will the Minister
support the proposal of the all-party group on fair
business banking and finance for redress through an
independent tribunal system? [904355]
-
I pay tribute to the work of the all-party group, of
which my hon. Friend is a vice-chair. I met it just last
week to explore the options. I share his aim that small
businesses should have an accessible and impartial forum
through which to seek redress when things go wrong. There
is work to be done on how that would be paid for and on
whether legislation would be required, but I look forward
to seeing the research and to working with him.
-
The 220 people who work at GKN Aerospace in my
constituency produce windshields for military and
commercial aircraft, so is that not another indication
that the hostile takeover bid raises national security
implications? The Secretary of State has the power to
intervene under the Enterprise Act 2002.
-
As we have met to discuss this matter, the hon. Gentleman
knows that I must ensure that I do not prejudice any
assessment. I set out to the hon. Member for Newcastle
upon Tyne Central (Chi Onwurah) the constraints under
which I have to operate.
-
T8. Last October’s “Made Smarter” review set out how
manufacturing businesses in East Renfrewshire and across
the UK can be transformed through the adoption of
industrial digital technology. How will the Government
support “Made Smarter” now that it has been announced as
a deal in development in the industrial
strategy? [904356]
-
I have met Juergen Maier, the chief executive of Siemens
UK, to discuss that. At a recent dinner, my right hon.
Friend the Secretary of State announced a “Made Smarter”
commission and asked Sir Mark Walport to work with
Juergen on the development of an industrial strategy
challenge for the digitisation of our manufacturing
industry.
-
The number of electric vehicles on our roads is likely to
increase significantly over the next few years. What work
is being done to ensure that charging points are more
frequently powered by renewable sources over that period?
-
The hon. Gentleman makes an excellent point. Part of our
industrial strategy is about bringing together the energy
and automotive sectors, so that one reinforces the other.
That is the Faraday challenge, which is attracting so
much attention in both industries.
-
T10. Given our close defence and trading
relationship with the United States, will the Minister
reassure the House that he is making efforts to secure an
exemption for UK-produced steel and aluminium products
from next week’s imposition of tariffs? [904358]
-
I was in Brussels yesterday to meet other European Union
Ministers, trade union leaders and representatives of
employers to ensure that we do exactly that.
-
The Business, Energy and Industrial Strategy Committee
has heard powerful evidence on why the Government should
call in the Melrose bid for GKN on national security
grounds, and the Secretary of State for Defence has
written to the Business Secretary about the matter. Will
the Business Secretary use his powers, before it is too
late, to protect this great British engineering giant?
-
I will look very carefully at the report of the Committee
and that will be one of the pieces of evidence that I
will seriously consider.
-
The Secretary of State has said that his door is still
open to discussions about the benefits of green energy,
so will he commit today to seeing —the author of
the Hendry review, which is still awaiting a response
from the Government 14 months on—me, as chair of the
all-party group on marine energy and tidal lagoons, and
representatives of Tidal Lagoon Power and TidalStream?
-
It is always a pleasure to respond to my hon. Friend, who
is an assiduous campaigner for this form of energy. We
continue to commit to supporting our marine energy
industry. I refer him to the answer that my right hon.
Friend the Secretary of State gave at the start of
questions. We continue to exchange information with the
Welsh Government, and we have to understand what is on
offer. We want to reach the right decision on behalf of
low-carbon technologies, but also British bill payers and
taxpayers.
-
The county in which I live, Flintshire, has only two
electric charging points. Given the earlier exchanges,
can the Secretary of State set targets for charging
points in rural areas as well as urban ones?
-
The right hon. Gentleman makes an excellent point. It is
true that the charging network needs to extend right
across the country if people are to have the confidence
that they will be able to recharge their vehicle, and we
have the rural aspect very much in mind.
-
According to the press, the Secretary of State gave a
presentation to a Sub-Committee of the Cabinet about the
automotive sector and how important it is that we do not
have a hard Brexit. That seems to have persuaded members
of the Cabinet who had thought that a hard Brexit might
be a good idea that it would, in fact, be a very bad idea
for British business, notably the automotive sector. On
that basis, will the Secretary of State make that
presentation available to all right hon. and hon.
Members?
-
It would be wrong of me to disclose conversations that
took place in Cabinet—my right hon. Friend understands
the requirements of collective responsibility—but it is
no secret to anyone in this House that I regard the fact
that the success of the automotive sector depends on
integrated supply chains as good evidence of what type of
trade agreement is needed. That was highlighted in the
excellent speech made by my right hon. Friend the Prime
Minister at the Mansion House.
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