Parliamentary Debates (Hansard)
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Thursday Volume 576 6 March 2014 No. 132 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 6 March 2014 £5·00 © Parliamentary Copyright House of Commons 2014 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 1023 6 MARCH 2014 1024 support more experienced companies and companies of House of Commons all sizes with advice, information and practical support to build their exports. Thursday 6 March 2014 Richard Burden (Birmingham, Northfield) (Lab): The Minister will know that one sector in which exports are The House met at half-past Nine o’clock great for Britain is the motorsport sector. That is to be applauded. However, does he share my concern that some of the exporting that appears to be going on is the PRAYERS exporting of jobs? That is what is happening at Dunlop Motorsport in Birmingham. It seems to be exporting some jobs abroad, when it has been offered alternative [Mr SPEAKER in the Chair] sites in Birmingham and when his Department has been pressing it to stay in Birmingham. Will he redouble his BUSINESS BEFORE QUESTIONS efforts to persuade Dunlop Motorsport to stay in Birmingham, where it should be? STEPHEN LAWRENCE INDEPENDENT REVIEW Resolved, Michael Fallon: My right hon. Friend the Secretary That an humble Address be presented to Her Majesty, That of State has met the company and it was the subject of she will be graciously pleased to give directions that there be laid a debate in the House recently. We will continue to do before this House a Return of the Report, dated 6 March 2014, of what we can. However, motorsport is an important and the Stephen Lawrence Independent Review: Possible corruption large business sector. I attended the Autosport exhibition and the role of undercover policing in the Stephen Lawrence in Birmingham recently, as the hon. Gentleman probably case.—(Mr Gyimah.) did. More than 45,000 people work in the industry Resolved, across the country and it has a total value of more than That an humble Address be presented to Her Majesty, That £8 billion. We must do everything that we can to ensure she will be graciously pleased to give directions that there be laid that the sector continues to grow. before this House a Return of the Report, dated 6 March 2014, of the Stephen Lawrence Independent Review: Possible corruption Mr Mark Prisk (Hertford and Stortford) (Con): and the role of undercover policing in the Stephen Lawrence case, Exporting in the modern economy requires sustained Summary of Findings.—(Mr Gyimah.) financial support, yet the law in this country restricts to individual transactions the financial support for exports. I urge the Government to change the law so that we can Oral Answers to Questions have the support that is needed for exporters, small, medium and large. Michael Fallon: I will certainly look at the point that BUSINESS, INNOVATION AND SKILLS my hon. Friend raises. I pay tribute to his efforts at the Department over two and a half years to back companies of all sizes in their export drive. The Secretary of State was asked— Export Support Services (SMEs) Bank Lending 1. Karen Lumley (Redditch) (Con): What steps he is 2. Robert Flello (Stoke-on-Trent South) (Lab): What taking to raise awareness of export support services recent assessment he has made of the availability of among small and medium-sized businesses. [902858] finance and the level of lending by banks to small businesses. [902859] The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): UK Trade & Investment The Secretary of State for Business, Innovation and has an extensive programme of awareness-raising activity Skills (Vince Cable): Gross lending to small businesses that is directed at small and medium-sized businesses. for the 12 months to January was 14% higher than in That includes a national marketing campaign, “Exporting the same period a year ago, although net lending continues is GREAT”. More than 10 million people are expected to contract. The Bank of England’s credit conditions to see the campaign and it should lead to about 3,000 survey reported, however, that: additional businesses working with UKTI. “The overall availability of credit to the corporate sector increased significantly” Karen Lumley: Will my right hon. Friend join me in in the final quarter of 2013. congratulating Clifford Springs in Redditch, which has a great record in exporting springs, for which Redditch Robert Flello: I am really surprised by the answer that is renowned? Will he tell Clifford Springs and other the Secretary of State has given, because small businesses companies what more they can expect from UKTI? in my constituency tell me that they are finding it almost impossible and often totally impossible to access Michael Fallon: I, too, congratulate Clifford Springs the finance that they need. Lending to business is down on its export success, particularly to the United States. after the failure of the Government’s Project Merlin, UKTI has a team of 39 international trade advisers credit easing and funding for lending schemes. It now based in the west midlands. They have supported more emerges that the business bank is just a rebadging of than 1,400 companies across the region, including many existing schemes. Why has the Secretary of State failed companies in my hon. Friend’s constituency. They also to learn from the Department’s mistakes and failures? 1025 Oral Answers6 MARCH 2014 Oral Answers 1026 Vince Cable: Of course, there is a continuing credit year before. How does he think those businesses will problem for many small companies. That is very clear. respond to the news that in the past year, Barclays and There is a very different pattern among the significant Lloyds made 508 people millionaires due to the bonuses banks. Lloyds is greatly expanding its lending, as is they paid, at the same time as many small businesses are Santander. Some of the new banks, such as Shawbrook struggling to get access to finance? Is there a discrepancy and Aldermore, are beginning to make an impression. between the Government’s performance on small business That has been cancelled out by RBS, although its new lending and the bonuses that continue to be paid by management have indicated that they wish to expand its those banks? net lending considerably. The business bank is beginning to make a significant impact. It is not a rebadging. It is Vince Cable: There are often bonus levels that are already out in the market, supporting new forms of extreme, but it is important to recall that at the peak of non-conventional business finance. the financial crisis when the Labour party was in charge, Andrew Bridgen (North West Leicestershire) (Con): there was a bonus pool of well over £12 billion. That Business intentions rely on confidence, and with business has now shrunk to a tiny fraction of that, and at least confidence at a 22-year high, figures from the Office for one bank to which the hon. Gentleman referred— National Statistics show that business investment is up Lloyds—is making a significant improvement in the 8.5% on the previous year. Does that not show that supply of small business lending. business is not only confident about the economy, but about the policies of this Government? EU Regulation Vince Cable: Yes, there is a high level of confidence, and it is reinforced by fact. Indeed, the output and 3. Bob Blackman (Harrow East) (Con): What steps he spending figures are reinforcing the trend that the hon. is taking to reduce the amount of EU regulation which Gentleman describes. There is, however, a continuing affects businesses. [902860] problem regarding credit to the small and medium-sized business sector. We are not complacent about that, and The Minister of State, Department for Business, Innovation the interventions we are making will help. and Skills (Michael Fallon): The Government continue to press the European Union to reduce burdens on business. Meg Hillier (Hackney South and Shoreditch) (Lab/ We are focused on delivering the business taskforce’s Co-op): Many businesses in my constituency tell me report, their 30 specific recommendations for reforming that their biggest problem is the withdrawal of overdrafts, EU law, and the “compete” principles that should apply and they are sometimes offered big and unwanted loans to all new EU legislation. We have already achieved instead. Is the Secretary of State monitoring that trend, good progress on seven of the 30 recommendations, to ensure that banks are not fiddling the system to and we are seeing growing recognition of the “compete” benefit themselves, and to attack small businesses that principles among major European business organisations have cash-flow issues but do not need big loans? and in the European Parliament. Vince Cable: One positive thing is that we are now getting a growth of specialist institutions that provide Bob Blackman: I thank my right hon. Friend for that small businesses with a type of finance—Aldermore answer. Businesses in my constituency complain not provides asset-based financing or new kinds of invoice only about EU regulations, but about the fact that other financing to deal with cash flow or investment as required. countries do not play by the same regulations, and that However, the hon. Lady is right to say that there is a when our civil servants implement regulations, they particular problem in that area of the market. gold-plate them. What action is my right hon. Friend Lorely Burt (Solihull) (LD): I recently had the privilege taking to remove that gold-plating and ensure that we of opening the first bank in my constituency to be do the minimum possible to abide by the rules? approved under the new Government fast-track system— Paragon bank—and it was full of praise for the help it Michael Fallon: I think there was too much gold-plating received from my right hon.