Tuesday Volume 599 15 September 2015 No. 44 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 15 September 2015 £5·00 © Parliamentary Copyright House of Commons 2015 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 885 15 SEPTEMBER 2015 886 House of Commons Sajid Javid: My hon. Friend highlights an important issue. [HON.MEMBERS: “Shambles!”] Labour Members are talking about their EU policy, but my hon. Friend Tuesday 15 September 2015 wants to hear my answer. We want more free trade, which means that, at this point, we have to work with the EU. For example, if the free trade agreement being The House met at half-past Eleven o’clock negotiated between the EU and the US—the Transatlantic Trade and Investment Partnership—goes through as planned, it will add £10 billion a year to GDP, which is PRAYERS worth £400 for every hard-working family in Britain. [MR SPEAKER in the Chair] Kelvin Hopkins (Luton North) (Lab): I utterly reject the idea that TTIP will be beneficial, but that is another question. The head of Vauxhall has said today that he is fairly relaxed about whether Britain remains a member Oral Answers to Questions of the European Union. We still import twice as many cars as we export, so there is plenty of scope for Britain to expand its manufacturing sector. BUSINESS, INNOVATION AND SKILLS Sajid Javid: Under this Government, the manufacturing sector in Britain has been growing strongly, thanks to The Secretary of State was asked— our policies to reduce the deficit and bring back economic EU Membership: Business confidence. As I have said, working with our EU partners is hugely important to increasing trade, particularly 1. Huw Irranca-Davies (Ogmore) (Lab): What recent exports, and for sectors such as the automotive industry. assessment he has made of the UK’s membership of They are doing very well, but they could do better if we keep working with our partners. the EU on businesses. [901321] The Secretary of State for Business, Innovation and Neil Carmichael (Stroud) (Con): Given that so many Skills and President of the Board of Trade (Sajid Javid): of our firms are in supply chains that benefit from the The UK was the fastest growing major advanced economy single market, does the Secretary of State agree that it is in 2014. The OECD forecasts that that is to continue in absolutely necessary for the Prime Minister to make 2015. This Government’s ambition is for Britain to be sure that we reform that single market so that we can the most prosperous major nation in the world by the stay in the European Union and continue to thrive as a 2030s, and free trade with the rest of Europe has a very nation? important role to play in that. Sajid Javid: We are focused on delivering a successful Huw Irranca-Davies: I welcome those words. The renegotiation, and once that is done we will let the First Minister of Wales, Carwyn Jones, was in Japan British people make the decision in the referendum. only last week, building on our strong cultural, economic Having a better single market is at the heart of that and social ties with that country, which have developed renegotiation: it is about having more competition, less over a long time, and promoting our exports, which red tape and more free trade. increased by 27% in Wales last year, building on the work of established companies such as Toyota, Sony Michelle Thomson (Edinburgh West) (SNP): Firms and Sharp. Those companies view Wales and the UK’s such as Nestlé and automotive companies such as Hyundai membership of the European Union as key to the and Ford have indicated that a Brit exit could result in trading relationship and the thousands of jobs it underpins. their scaling back. The UK automotive industry employs Does the Minister agree with them? more than 700,000 people and accounts for 3% of GDP, according to KPMG. Does the Secretary of State really Sajid Javid: I respect the hon. Gentleman, but given believe that it is worth risking foreign investment in the the utter shambles of his party’s EU policy I am surprised UK to solve an ideological battle within the Tory party? that he wants to ask that question. It is clear that free trade is hugely important to the prosperity of our Sajid Javid: The hon. Lady will know that the debate nation, and that means working with our EU partners about the EU has been going on for many years and the on more free trade agreements. That is at the heart of right thing to do is to renegotiate. In order for that our renegotiation, because we want more free trade renegotiation to be successful, it is right to have a with an EU that is outward looking, not just inward referendum. That is exactly what this Government are looking. doing, and then the British people will decide. It is also Mr Peter Bone (Wellingborough) (Con): First, may I clear that this Government have many policies that help congratulate the new Leader of the Opposition on his industries such as the automotive industry to succeed, shift in policy in making Labour more Eurosceptic? such as our investment in skills. Is it not the truth that the European Union holds us back on free trade? Does our current account deficit of Apprenticeships some £50 billion not prove that we would be better off out of the EU, with more free trade, more jobs and 2. Kevin Foster (Torbay) (Con): What plans he has to more business? increase the number of apprenticeships. [901322] 887 Oral Answers15 SEPTEMBER 2015 Oral Answers 888 The Secretary of State for Business, Innovation and engineering. Will the Secretary of State tell the House Skills and President of the Board of Trade (Sajid Javid): how he hopes to close the skills gap when there are so The coalition Government have delivered over 2.3 million few apprenticeship opportunities in those subjects? apprenticeship starts since May 2010, and this Government will support 3 million new apprenticeship starts over Sajid Javid: May I again welcome the hon. Lady to this Parliament. We are developing a comprehensive her place and to her new position? I agree with her that plan for growth, including more work with large employers, there is a skills shortage. When we talk to employers more help for small businesses and a new funding across the country, that is one of the first issues that system supported by an employer levy. they bring up. That is why the Government have brought significant investment and focus to bear on the issue. Kevin Foster: I thank the Secretary of State for his For example, we launched our higher apprenticeships answer. Support for further education colleges, including earlier this year and I would like to see those increase; as South Devon college in Torbay, will be vital to delivering I have said, we are currently seeing record growth. We more higher level apprenticeships and, in particular, are also setting up a network of national colleges: there degree-level apprenticeships, which provide the highest will be seven national colleges, and I hope that they will level of training. What plans does he have to support all be operational by September 2017. FE colleges, including South Devon college, in delivering that type of training for employers? Ms Eagle: I thank the right hon. Gentleman for his second welcome in as many days. I hope that there are Sajid Javid: I know that my hon. Friend is very some things we can agree on, even though we started off passionate about this issue. I am happy to congratulate on very disagreeable terms with the Trade Union Bill South Devon college on its plans. Degree apprenticeships yesterday. are a fantastic route to higher level training. I assure my There are serious concerns that in the rush to meet hon. Friend that my Department is working hard with the Government’s artificial, politically driven target, colleges, universities and employers to support what is many apprenticeships are really little more than a rebranding an increasingly popular route. of entry level jobs. The latest Government figures show Jenny Chapman (Darlington) (Lab): I am afraid that that only 3% of new apprenticeships starts were at the there is an issue not just with quantity, but with quality. higher level. How can that be compatible with the With further education in a state that is getting close to Government’s aim of creating a highly skilled workforce? desperate, too few apprenticeships are of a high enough quality. I visited Mech-Tool in my constituency, where Sajid Javid: As the hon. Lady perhaps knows, we are apprenticeships are four years long and people get good starting to see a significant increase in the number of jobs afterwards. What will the Secretary of State do to people taking STEM-related apprenticeships and higher make sure that we improve quality for the rest of our apprenticeships. She will also be aware that, in the apprentices? recent Budget, we announced the introduction of the apprenticeship levy, which will help to make sure that Sajid Javid: The hon. Lady makes an important there is long-term sustainable funding not just for the point. No one wants an increase just in quantity; we at quantity of apprenticeships, but for their quality. I hope the same time want to see quality improve. I hope that she welcomes that. that the hon. Lady will, for example, support the Enterprise Bill, when it is introduced in the other place Mr Alan Mak (Havant) (Con): I welcome the on Thursday, which will for the first time protect the Government’s move to ensure that all big Government term “apprenticeship”.