Asked by Lord Haskel To ask Her Majesty’s Government what is
their response to the Made Smarter Review on the benefits of
applying digital technology to the manufacturing industry,
published on 30 October. The Parliamentary Under-Secretary of
State, Department for Business, Energy and Industrial Strategy
(Lord Henley) (Con) My Lords, Her...Request free trial
Asked by
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To ask Her Majesty’s Government what is their response to
the Made Smarter Review on the benefits of applying digital
technology to the manufacturing industry, published on 30
October.
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The Parliamentary Under-Secretary of State, Department for
Business, Energy and Industrial Strategy (Lord Henley)
(Con)
My Lords, Her Majesty’s Government welcome the Made Smarter
report and thank Juergen Maier and the industry team for
their work in outlining the huge potential that
digitalisation offers to United Kingdom manufacturing. We
look forward to working closely with industry to ensure
that the United Kingdom can capitalise on the massive
benefits of digital technology, which this report makes so
clear, and realise its potential to be a global leader in
the industrial digital technology revolution.
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(Lab)
My Lords, I am pleased that the Government welcome the
report, as I do. As the report says, digitalisation can
deliver a much-needed boost to our productivity. However,
the report also points out that it is a disruptive
technology for jobs and businesses. In implementing the
report, what arrangements will the Government make for
those who are displaced? Will there be a safety net? What
procedures will the Government implement to ensure that
people are not damaged by this?
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As the noble Lord will be aware, the report is quite
big—246 pages. It was published on Monday. I arrived in the
department on Monday, so I cannot claim to have read it
from cover to cover at this point. No doubt he will
criticise me for that, but I will start on it over the
weekend. We recognise that this technology presents great
challenges, including for raising productivity. The noble
Lord is right to talk about the challenges of the fact
that, in creating new, higher-paid and higher-skilled jobs,
it creates a threat to other jobs—something we went through
in the first Industrial Revolution when the spinning jenny
and other things came in. It also creates opportunities for
new jobs, which is what we want. I think he will accept
that at this stage, with a 246-page report having been
published only on Monday, it is a bit early for the
Government to make any pronouncements on it.
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(Lab)
My Lords, while the Government may not want to make
pronouncements, I hope that the Minister will take the
opportunity for a quiet weekend, and perhaps to snuggle up
with a cup of cocoa and read the report. He mentioned the
Industrial Revolution; he will be aware of the huge social
unrest that followed it. While the report states the number
of new jobs—a net gain of 175,000—jobs will change. Some
people will lose their jobs; some will work shorter hours.
The technology has to benefit those who are working, and
not cause an increase in unemployment and reduce incomes.
While I do not expect him to have read the report, will the
Minister give some thought to how we ensure both that those
people whose jobs change get the adequate training and
support they need, and that those who lose employment get
alternative employment so that we do not lose the income of
those currently in work?
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I can only agree with everything the noble Baroness said,
other than her comments on cocoa. I will read the report
over the weekend. It is too early to say, but she will be
aware that we have the industrial strategy coming out later
this month. If she is a little patient, she will hear more
from the department and my right honourable friend about
what we plan to do, particularly on the challenges that
these changes present to the United Kingdom and the
Government—challenges that both she and her noble friend
have highlighted.
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(LD)
The Minister talks about challenges. He has not had a
chance to read the report, but does he agree that its
proposals will be relevant only if manufacturing has access
to a high-quality digital network, and that this will be
even more critical when—if—Brexit happens? When will we
have a meaningful and effective universal internet service?
Without that service being universally available in the
whole UK, we will not be able to compete internationally.
Does the Minister agree?
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My Lords, again, I can only agree with the noble Lord. We
are doing well. There is more to be done and he will hear
more in due course. Again, if he is patient he will see the
industrial strategy later this month.
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(Lab)
My Lords, there are huge benefits in digital technology,
but I skimmed the review wearing the old hat I used to have
on security. Sadly, this marvellous digital revolution
opens up vulnerabilities. I could not see anything
mentioning any concerns on that. We need to be very wary
because it will often open up people to losing their
identities and all sorts of things. We need to be very
aware that, as well as all the benefits we get from
digitalisation, there are some real risks. We need always
to bear those in mind.
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Again, I can only agree with the noble Lord. I have not even
got as far as skimming the report. I intend to take the
advice of the noble Baroness and read it over the weekend.
Any big changes that come to us can obviously be big threats
to other fields. That is why my right honourable friend
originally commissioned this report, welcomed it and thanked
Professor Juergen Maier for producing it. We want to make the
right response—not just of the Government, but of United
Kingdom industry and the whole of the United Kingdom—in due
course.
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(CB)
My Lords, I am sure the Minster realises that, on the
positive side, this will grow exports. If we do not have our
products adequately defined in digital terms we will not
compete internationally. It is essential that we drive this
forward.
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My Lords, I can only say how much I agree with the noble
Lord. We have to look at what digitalisation offers to us
while also bearing in mind what the noble Lord, Lord West,
said about threats. That is why we want to make the right
response. I note what has been said.
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(Lab)
My Lords, one of the real benefits of digitalisation is on
the railways. As the Secretary of State recently said, we can
get many more trains on the line more safely with digital
signalling. The Minister’s predecessor will have recently
received a report from the railways on digitalisation. Will
he say something about how the finances for the railways will
change so that there is enough investment in both the tracks
and the cabs and locomotives, including freight, to make sure
this happens quickly and safely? I declare an interest as
chairman of the Rail Freight Group.
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I am grateful to the noble Lord for mentioning the railways.
I will be heading back north again on the west coast main
line. I know quite how good that is at the moment, but I have
also been told just how much it could be improved with
digitalisation of the signalling and what improvements we can
see on that front. I look forward to improvements there over
coming years. The noble Lord asked about finances for the
railways. He would not expect me to make any response at this
stage. I hope he will be patient and wait for what comes out
of the industrial strategy later this month.
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