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Parliamentary Debates (Hansard) Thursday Volume 549 6 September 2012 No. 38 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 6 September 2012 £5·00 © Parliamentary Copyright House of Commons 2012 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 361 6 SEPTEMBER 2012 362 former Minister for Further Education, Skills and Lifelong House of Commons Learning, the hon. Member for South Holland and The Deepings (Mr Hayes)—who has now moved on to Thursday 6 September 2012 higher things—and to welcome his excellent replacement, who is, indeed, part of an excellent BIS team. The Holt study, which the hon. Member for Gloucester The House met at half-past Ten o’clock (Richard Graham) mentioned, does acknowledge that there are barriers to SMEs’ access to the apprenticeship PRAYERS programme. We are trying to address them, most notably by channelling resources through employers rather than trainers: that will increasingly be the emphasis of the [MR SPEAKER in the Chair] programme. Damian Hinds: The Jason Holt reforms present great opportunities for the hospitality sector, which has Oral Answers to Questions considerable potential for employment export earnings and economic growth, but in which we need to drive productivity gains. As the quantity of apprenticeships BUSINESS, INNOVATION AND SKILLS continues to increase, how can we ensure that their quality keeps pace with it, or does better? The Secretary of State was asked— Vince Cable: The hon. Gentleman is absolutely right to say that we need to maintain quality standards. I Apprenticeships have asked Doug Richard, an entrepreneur with a background in this area, to give careful consideration to 1. Richard Graham (Gloucester) (Con): What the quality issues and how we can shape the apprenticeship assessment he has made of the level of satisfaction of programme around genuine skills training, particularly participants and businesses with the apprenticeship at skill level 3 and above. system. [119391] A great deal is happening in the hospitality sector. For instance, Hilton recently offered 100 new apprenticeship 6. Damian Hinds (East Hampshire) (Con): What places. The Department will shortly hold a round-table assessment he has made of the level of satisfaction of discussion about the sector, and apprenticeships will be participants and businesses with the apprenticeship an important element of that. system. [119396] 10. Simon Kirby (Brighton, Kemptown) (Con): What Simon Kirby: The number of apprenticeship starts assessment he has made of the level of satisfaction of in Brighton and Hove was up by 83% last year, with participants and businesses with the apprenticeship many digital media businesses taking that important first step. Does the Secretary of State agree that that system. [119400] the digital media sector is an important part of the The Secretary of State for Business, Innovation and apprenticeship scheme? Skills (Vince Cable): The Department recently completed the biggest ever survey of apprentices and their employers, Vince Cable: Yes. Apprenticeships increasingly cover which revealed the best ever satisfaction rates. Overall, the service sector as well as the traditional manufacturing almost 90% of apprentices were satisfied with their and construction sectors, and the digital sector is an training. Employer satisfaction is also high: 88% are important part of that. It depends on high technology satisfied with the relevance of their training, and 80% and high skill levels, and as a result is absolutely crucial. remain committed to offering places. Mr Geoffrey Robinson (Coventry North West) (Lab): Richard Graham: I welcome the evidence from the May I put it to the Secretary of State—as I did on the Holt review that we need to do more to make last occasion when I questioned him on this issue—that apprenticeships accessible to small and medium-sized while the overall numbers are very good, there are enterprises. I know from my own apprentices’ business certain problems in individual sectors such as the and administration non-vocational qualifications that construction industry? If we do not ensure that the they are not all user-friendly to the smallest businesses, number of apprenticeships in that important sector is which are the driver of future jobs. Does the Secretary much greater than it is now, we shall find when the of State agree that employers in, for example, the Federation national infrastructure plan takes off, as it must of Small Businesses should have more say in the content eventually—indeed, with the new team behind it, it will of courses and in the setting of a reassuring series of no doubt do so in the very near future—that we do not national standards? have the apprenticeships and the manpower skills in the industry that would enable us to benefit from it. Vince Cable: I do agree, but let me preface my remarks by saying what a success story the apprenticeship Vince Cable: The hon. Gentleman is right. The programme is. Not only has there been a big increase in programme must be demand-led and business-led. When scale—more than 60% over the last two years—but a sector is struggling, as the construction sector currently there is a very high satisfaction rate. Let me also take is, that affects the demand for training; but, as the hon. this opportunity to pay tribute to the work of the Gentleman knows, the sector is well organised, with a 363 Oral Answers6 SEPTEMBER 2012 Oral Answers 364 levy system and a skills training board. We certainly start of last year—an increase of over 270,000 since want to see a substantial number of additional trained 2008—and the proportion of people involved in setting specialists in the construction sector, so that we do not up and running new businesses has increased to over have to rely on people coming from overseas to do the 7.5% in 2011, up from under 6% in 2009. work, as we often have in the past. Ann Clwyd: I am afraid that is not true in the Cynon Kate Green (Stretford and Urmston) (Lab): Although Valley. Earlier this week I was talking to small businesses, the number of members of ethic minorities who are who said the failure of the banks to lend has made it taking up apprenticeships is improving, there are still very difficult for them to expand and take on new patterns of occupational segregation, and ethnic minorities workers, such as the former Remploy workers in my are less likely to be represented in the industry sectors constituency who were so disgracefully sacked by the with the best long-term career prospects. What specific Government last month. We have had enough of the steps are the Government taking to ensure that members donkey talk of carrots and sticks. Is it not time to hold of ethnic minorities have the chance to take up the best the bankers’ feet to the fire and get some movement on possible apprenticeships? this matter, because it is not happening now? Vince Cable: I have not had that case made to me Vince Cable: I have never been shy of criticising bank before. Certainly if there is some element of discrimination, performance in lending to SMEs, and I am not going to that is unacceptable. I guess there might be a correlation change on that. None the less, I think we should be a with other patterns in the labour force, but I will undertake little more positive about what is happening. One of the to see whether there is any evidence of there being a real most interesting figures of the last two-and-half years is problem that we need to address. that the number of private sector jobs has increased by 900,000 in conditions of economic difficulty. Almost all Mr Gordon Marsden (Blackpool South) (Lab): May I of those jobs are in SMEs, despite the difficulties they congratulate the Secretary of State on all his new Ministers? face. We are taking action to ensure we get a better flow I am delighted that he paid strong tribute to the former of funds from the banks, particularly through the new Further Education and Skills Minister, the hon. Member funding for lending arrangements, over and above the for South Holland and The Deepings (Mr Hayes). guarantee scheme. There are new challenger banks such Given his commitment to vocational education and the as Aldermore and Handelsbanken that are specialising personal warmth he brought to his task, he will, as I am in that sector and meeting some of the unmet need. sure his successor knows, be a hard act to follow. We now know that over the past year the number of Mr Speaker: Order. I gently remind the House that 16 to 18-year-olds starting apprenticeships went down we have a lot of questions to get through, so some in the south-west, the north-west and north-east England, pithiness would be appreciated. yet the Secretary of State’s colleagues elsewhere in Government have so far ducked out of doing anything George Freeman (Mid Norfolk) (Con): Does the practical to implement Jason Holt’s excellent report to Secretary of State agree that what the small business get more small businesses to take on those young people. sector in this country needs is confidence, not carping Will the Secretary of State now change that course, with from those on the Opposition Benches? The fact that an active Government response to help small businesses the Government have created over 900,000 jobs since to take on young people for the extra apprenticeships the election suggests they are doing a lot of good. Does that we desperately need, given the failures to deliver he also agree that the World Economic Forum report of growth by No.
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