Thursday Volume 585 11 September 2014 No. 37 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 11 September 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/. 1057 11 SEPTEMBER 2014 1058 Sir Peter Luff (Mid Worcestershire) (Con): Does my House of Commons hon. Friend think that the public sector itself is setting a good enough example when it comes to offering apprenticeships? Thursday 11 September 2014 Nick Boles: Some parts of the public sector set a fantastic example—the Ministry of Defence is a very The House met at half-past Nine o’clock good example and the NHS is another—but not all Government Departments and, I suspect, not all of us as Members of Parliament, are doing everything we PRAYERS could. I urge every part of the public sector to do everything it can to create apprenticeships so that more young people can get on the ladder to a successful [MR SPEAKER in the Chair] career. Mr Liam Byrne (Birmingham, Hodge Hill) (Lab): It is very bad news that the number of apprentices under the age of 19 is falling and that the number of apprentices Oral Answers to Questions who go on to study degree-level skills is just 2% and rising at a very slow pace. The Opposition are clear that our priority for expanding university level education is for technical degrees so that more apprentices can earn BUSINESS, INNOVATION AND SKILLS while they learn up to degree-level skills. May I ask the Minister about the expansion plans? In the autumn statement, the Chancellor said that he The Secretary of State was asked— would sell the student loan book to expand the number Apprenticeships of degree-level places. On 20 July, the Secretary of State said that he and the Deputy Prime Minister had put that plan in the bin. Will the Minister tell the House 1. Heidi Alexander (Lewisham East) (Lab): What what the story actually is? Are we going to expand changes there were in the number of apprenticeship degree-level places, and how on earth are we going to starts for under-19s in the academic year 2012-13 pay for them? compared with the previous academic year. [905308] Nick Boles: Frankly, what is regrettable is that the The Minister for Skills and Equalities (Nick Boles): Government of which the right hon. Gentleman was a Over the past two years, we have removed 54,000 major part created entirely phoney, Mickey Mouse apprenticeships for under-19-year-olds that had a planned apprenticeships, called programme-led apprenticeships, duration of less than 12 months, so the overall number which involved no employment at all, no job and lasted of apprenticeship starts for that age group has fallen by less than a year. We make no apologies for culling those 15,000. The number of apprenticeships for under-19- qualifications, which were a fraud on employers and year-olds including a real job and lasting for more than young people. We are increasing the funding for higher 12 months increased by 25,000. apprenticeships and the plans have been set out. Heidi Alexander: On a recent visit to Bromley college, Stephen Mosley (City of Chester) (Con): Since May I was told by a construction skills tutor that in the eight 2010, more than 3,000 young people in Chester have years he had worked there, not once had he taught a started an apprenticeship scheme, and those fabulous bricklaying apprentice. When I asked him why, I was opportunities have become available only because more told that the qualification associated with such an than 600 local employers are offering apprenticeships. apprenticeship is very rigid, making it neither attractive Does my hon. Friend have any intention of changing nor appropriate for employers. If we want to reduce the the incentives that companies receive for taking on reliance of the UK’s construction sector on migrant apprentices in order to encourage more companies to labour, should we not be doing more to make skills and get involved and for more young people to have this experience available to our young men and women, so fabulous opportunity? that they can go on to get jobs in the construction industry? Nick Boles: I thank my hon. Friend for his comments. Chester is just one example. The truth, contrary to what Nick Boles: I actually agree with the hon. Lady about the right hon. Member for Birmingham, Hodge Hill many of the old standards for apprenticeships, which is (Mr Byrne) has said, is that in 2012-13 more people why we have introduced the trailblazer programme so were in an apprenticeship—that is, at the start, middle that groups of employers are putting together relevant or end of one—than ever before. The more than and demanding but accessible standards for young people. 830,000 young people that year is a number that the I visited a fantastic new further education college the previous Government never even came close to, despite other week—Prospects college of advanced technology their Mickey Mouse apprenticeships. in Basildon—where I met a few apprentices who are My hon. Friend is right about incentives, particularly doing a bricklaying apprenticeship and find it very for young people to take apprenticeships and, more worth while. The hon. Lady is right, however, that many importantly, for employers to take them on, because often of the old apprenticeship standards were inadequate they are the ones who require the most supervision, and and unattractive to young people and employers. that is exactly what our funding reforms will deliver. 1059 Oral Answers11 SEPTEMBER 2014 Oral Answers 1060 Regulation on Business and I also enjoy the fact that so much of the innovation that this Government come up with is now being copied 2. Richard Graham (Gloucester) (Con): What steps by our European partners. he is taking to reduce regulation on businesses. [905309] UK Competitiveness The Minister for Culture and the Digital Economy (Mr Edward Vaizey): I am delighted to say that we are 3. Mr Robin Walker (Worcester) (Con): What recent the first Government in modern history to reduce the assessment he has made of the competitiveness of the overall burden of domestic regulation on business. Our UK as a place to do business. [905312] one-in, two-out approach has cut the annual cost of regulation for businesses by £1.5 billion so far, and the The Secretary of State for Business, Innovation and red tape challenge has identified more than 3,000 regulations Skills (Vince Cable): Last week, the World Economic that we are planning to scrap or improve. Forum released its annual assessment of international competitiveness. The UK rose in the rankings to ninth Richard Graham: One of the Government’s most place, and in relation to the responsibilities of my encouraging steps has been to speed up payments by Department, to fourth place for labour markets and to Government to suppliers that are small and medium-sized second in the world for technological readiness and enterprises, but the Federation of Small Businesses and innovation. This is further evidence that our economic others estimate that the problem of late payment by policies are delivering a more competitive economy. We businesses to businesses has increased significantly. Will are delivering on our commitment to make Britain the my hon. Friend therefore work with business groups, best place in the world to start and grow a business. such as the CBI, to encourage all their members to settle within 30 days, and will he consider establishing a Mr Walker: I am grateful to the Secretary of State for kitemark for businesses that live up to that? that answer. I congratulate him and the Department on that progress. This Government have put making the Mr Vaizey: I agree with my hon. Friend. We really UK the best place in the world to start a business right need much greater openness about the payment practices at the heart of that strategy, and businesses in Worcester of businesses. Knowing who are good payers and bad are embracing that challenge. Does my right hon. Friend payers is essential in deciding with whom to trade. We agree that it is a huge achievement that, since 2010, will therefore bring forward legislation to require large about 2,800 new businesses have been started in Worcester? and listed companies to publish their payment practices and performance. We will also work with business groups Vince Cable: And not only in Worcester. Indeed, one to strengthen the prompt payment code. of the most rapidly growing programmes, operating through the British business bank, is the start-up loans Simon Danczuk (Rochdale) (Lab): There have been a scheme. My hon. Friend may be aware that approximately number of attempts to amend the Deregulation Bill to 19,000 start-up loans have now been made, with a value reform retransmission fees for public sector broadcasters of over £100 million. in the UK. Will the Minister look at the report published on Monday, which argues that reform could provide Mr Dennis Skinner (Bolsover) (Lab): One business millions of pounds for the creative industries in the that is not growing—the Business Secretary knows that United Kingdom? Does he agree that the reform of as well as me, because we met him a few weeks ago to retransmission fees should be included in the Deregulation talk about its demise—is the deep-mine coal industry. Bill? There are only three pits left now.