Parliamentary Debates (Hansard)
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Thursday Volume 513 8 July 2010 No. 29 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 8 July 2010 £5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 503 8 JULY 2010 504 Gordon Henderson (Sittingbourne and Sheppey) (Con): House of Commons Does my hon. Friend accept that there are constituencies in the south-east that face economic and regeneration Thursday 8 July 2010 challenges as great as those elsewhere in the country? Will he— The House met at half-past Ten o’clock Mr Speaker: Order. I am sorry, but I must explain to the hon. Gentleman that the question specifically relates to the north-west and that although other parts of the PRAYERS country might share similar concerns, they are not relevant to this question. We all get used to these things; I have made these mistakes myself, I assure him. [MR SPEAKER in the Chair] Roberta Blackman-Woods (City of Durham) (Lab): The Minister will know that businesses in the north-west Oral Answers to Questions are very concerned about the loss of investment that could result from the abolition of the Northwest Regional Development Agency. Will he answer a question that I asked a few weeks ago? Is the £1 billion of additional BUSINESS, INNOVATION AND SKILLS growth money from the regional growth fund in addition to or instead of money that has already been allocated to RDAs and local authorities for economic growth? The Secretary of State was asked— Mr Prisk: The regional growth fund is entirely separate Inward Investment (North-west) from the RDA changes. We are keen to strengthen local economies, hence our move on local enterprise partnerships, 1. Mark Menzies (Fylde) (Con): What steps he plans but the regional growth fund will bring £1 billion to the to take to encourage inward investment to the hon. Lady’s region and the other selected regions. It will north-west. [6678] start in 2011 and I think it is good news. The Minister of State, Department for Business, Innovation Business Support (Wales) and Skills (Mr Mark Prisk): UK Trade & Investment works with local partners to support inward investors, and in 2008-09 it helped to create or safeguard more 2. Jonathan Edwards (Carmarthen East and Dinefwr) than 10,000 jobs in the north-west. The Government (PC): When he last met the Deputy First Minister in intend to publish a White Paper later this year, which the Welsh Assembly Government to discuss policy to will provide more detail on how inward investment can support businesses in Wales. [6679] best be supported by UKTI and the Government as a whole. The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk): As I gallop to Wales from Mark Menzies: I thank the Minister for his answer. I the north-west, let me make sure that I give the hon. am sure that many businesses in Fylde will welcome his Gentleman the right answer. response. In his recent speech, the Chancellor of the My right hon. Friend the Secretary of State has not Exchequer said that Britain was open for business. Can yet had the opportunity to meet the Deputy First the Minister give an example of a business that is taking Minister to discuss business support in Wales, but, as that on board? the hon. Gentleman will know, business support is a Mr Prisk: That is an excellent question; let me give an devolved activity. example. The Chancellor’s decision to simplify and reduce corporate tax rates will directly help to attract Jonathan Edwards: I am sure that the Minister would more investment. Indeed, by 2014, this country will like to join me in congratulating the One Wales coalition have the lowest corporation tax rates of any major in Wales on reaching its third anniversary this month, western country. That is good for investment and good with the Deputy First Minister’s Department having for jobs. developed innovative strategies such as ProAct and ReAct. The Department is also publishing, this week, Derek Twigg (Halton) (Lab): Is the Minister aware of its new economic renewal programme, which focuses the huge Mersey Gateway project in my constituency to efforts on improving business infrastructure, such as build a second bridge across the Mersey? Independent broadband provision, in Wales. Will the Minister make examination shows that it would probably create 4,000 representations to his colleagues in the Department for to 5,000 new jobs as well as hundreds of construction Culture, Media and Sport to ensure that the money that jobs. Will he remind the Transport Secretary of the would have been spent for the benefit of Wales, through importance to inward investment and jobs of that project, the independently funded news consortiums pilot, is which is currently postponed, pending review? released directly to the Welsh Assembly Government to help them to achieve their broadband objectives? Mr Prisk: I am more than happy to talk to my right hon. Friend the Secretary of State for Transport. The Mr Prisk: The economic renewal programme, which I hon. Gentleman is right that in order to encourage have had an opportunity to look at, has considerable investment we need to look at longer-term projects, and merit, not least because it moves away from the tinkering investment is an important part of that. and meddling of the last Labour Government and 505 Oral Answers8 JULY 2010 Oral Answers 506 towards infrastructure. Broadband investment is very Manufacturing Industry Investment important and the Ministers who deal with broadband will have heard his representations. The issue is important and we want to act on it promptly. 4. Mr William Bain (Glasgow North East) (Lab): What recent assessment he has made of trends in levels of investment by manufacturing industry; and if he will Sheffield Forgemasters make a statement. [6681] 3. Mr Clive Betts (Sheffield South East) (Lab): What The Minister of State, Department for Business, Innovation factors he took into account in deciding to withdraw and Skills (Mr Mark Prisk): In 2009, the volume of the £80 million loan facility to Sheffield Forgemasters. manufacturing investment in the UK declined by 21%, the [6680] largest annual fall on record, and it declined in 10 of the last 11 years. This Government believe that that trend The Secretary of State for Business, Innovation and can be reversed. In developing our plans to rebalance Skills (Vince Cable): The decision not to pursue the the economy, we are keen to ensure that we provide the loan was taken on grounds of affordability. best long-term environment in which manufacturing can grow. Mr Betts: Will the Secretary of State withdraw the entirely false accusations that were levelled at Graham Mr Bain: I am grateful to the Minister for that reply, Honeyman, the chief executive of Sheffield Forgemasters, but will he reflect on the comments from the Institute that he was not prepared to sell any shares in the for Fiscal Studies and the manufacturers’ organisation company? The reality is that the loan facility went the Engineering Employers Federation that the biggest alongside a private finance package involving equity beneficiaries of the Government’s changes to capital release. What Graham Honeyman and the workers, and investment allowances and corporation tax are 65% of whom own shares in Forgemasters, did not want low-investment and high-profit firms— to do was sell the company off to an absentee owner, “Banks and supermarkets rather than manufacturers”, given that they had rescued it from an absentee owner as the IFS put it? What practical help can the Minister and near-bankruptcy in 2005. Will the Secretary of offer to manufacturing industry today? State withdraw the accusations against Graham Honeyman and recognise that he has resurrected that company and that it would do even better in future if it had the loan Mr Prisk: I must correct the hon. Gentleman and alongside a package involving equity release? give him the correct facts. We have had to reduce capital allowances to enable us to fund the corporate tax cuts, but the net result of the changes is that manufacturing—and Vince Cable: The Government’s decision has absolutely not the industries to which he referred—will still be nothing to do with the issues that the hon. Gentleman better off. Indeed, by 2014-15, it will be better off by has raised. We regard Mr Honeyman and his team as £250 million per annum. I think that that is a very good having produced an excellent project. We have no criticism policy, although I detect that the Labour party may of him or the company. Officials in the Department are now be opposed to it. now working to try to help to achieve a private sector solution. Lorely Burt (Solihull) (LD): We accept that the coalition Government have put many good things in place to help Miss Anne McIntosh (Thirsk and Malton) (Con): I industry generally, but I have a specific question about yield to no one in my admiration for Graham Honeyman, manufacturing. Will the Minister say whether the having visited Sheffield Forgemasters when I was shadow Government are planning any particular help for Minister following the floods that devastated the company. manufacturing to restore it to its rightful place, which is However, will my right hon. Friend explain why, of all leading the world? the grants and loans issued by Yorkshire Forward, north Yorkshire gets less than the 11% share to which it would be entitled and— Mr Prisk: Indeed we are, and our plans include the changes to corporation tax that mean that manufacturing industry is better off by £250 million, the reduction of Mr Speaker: Order.