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Parliamentary Debates (Hansard) Thursday Volume 555 20 December 2012 No. 90 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 20 December 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/. 973 20 DECEMBER 2012 974 a staggering 7,200,000%. Given that Which? has indicated House of Commons that more than 48% of those who take out payday loans believe that they will not be able to repay them, is it not Thursday 20 December 2012 now time for the Minister to commit to firm statutory regulation in 2013 rather than relying on wishy-washy The House met at half-past Nine o’clock voluntary codes? PRAYERS Jo Swinson: The hon. Lady raises two specific issues in her question. Although there is concern about high [MR SPEAKER in the Chair] interest rates, just as when someone hires a car for three days they do not look at the annual cost of doing so, BUSINESS BEFORE QUESTIONS with short-term credit the APR is not necessarily the most relevant statistic. The hon. Lady’s second point CANTERBURY CITY COUNCIL BILL was on affordability assessments and the detrimental Motion made, That the Lords amendments be now effect of people being lent money they should not be considered. lent when debt advice would be much more appropriate. That is a significant concern. The Government are Hon. Members: Object. considering the OFT’s review and the OFT is already Lords amendments to be considered on Tuesday 8 January. taking action—it has opened formal investigations into several payday lenders. We expect the final report early LEEDS CITY COUNCIL BILL in the new year and the Government are committed to Motion made, That the Lords amendments be now ensuring that we take action on this issue. considered. Hon. Members: Object. Green Manufacturing Jobs Lords amendments to be considered on Tuesday 8 January. 2. Alex Cunningham (Stockton North) (Lab): What NOTTINGHAM CITY COUNCIL BILL recent discussions he has had with the Secretary of Motion made, That the Lords amendments be now State for Energy and Climate Change on investment in considered. green manufacturing jobs. [134534] Hon. Members: Object. Lords amendments to be considered on Tuesday 8 January. The Secretary of State for Business, Innovation and Skills (Vince Cable): I regularly meet the Secretary of READING BOROUGH COUNCIL BILL State for Energy and Climate Change to discuss energy Motion made, That the Lords amendments be now and climate change policies, including investment in considered. green manufacturing jobs in the north-east and elsewhere. We are committed to supporting green technologies Hon. Members: Object. including offshore wind, for which a sector strategy is to Lords amendments to be considered on Tuesday 8 January. be published in the spring. Alex Cunningham: On Teesside and elsewhere in north- Oral Answers to Questions east England we have seen tremendous investment in green industries, but we have also seen billions of pounds- worth of contracts for British offshore wind farms BUSINESS, INNOVATION AND SKILLS placed abroad in Germany and Holland. I had hoped there would be provisions in the Energy Bill, which had The Secretary of State was asked— its Second Reading yesterday, to ensure that British Payday Lenders firms got British jobs. There are no such provisions. Has the Secretary of State suggested any amendments to the 1. Ann McKechin (Glasgow North) (Lab): What Energy Bill to ensure that we get British jobs? assessment he has made of the effect of payday lenders in areas of social deprivation. [134533] Vince Cable: We are pursuing this not through legislation but through practical action and we are working with The Parliamentary Under-Secretary of State for Business, the developers’ forum to try to ensure that at least 50% Innovation and Skills (Jo Swinson): The Government of supply chain work comes back to the UK. We are not aware of any robust research that quantifies the cannot do that unless we have the capacity, which is why effect of payday loans on areas of social deprivation, we have established the catapult centres in the north-east but I expect that there are links. We are very concerned and Glasgow to develop basic technology as well as the about the findings of the interim report from the Office six renewable engineering centres, which will develop of Fair Trading’s payday compliance review and strongly our engineering capacity. support any enforcement action that the OFT takes. Payday lending can work for some people in some circumstances, but it is not a solution to long-term Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): financial difficulty. A small business in my constituency conveyed to me that it has considerable doubts about the implementation Ann McKechin: Scotcash, which represents many of the green deal and is therefore reluctant to invest vulnerable families in Glasgow, has brought to my in training for new employees and to make any other attention a payday loan agreement in which the APR is investment that might be appropriate to meet the demands 975 Oral Answers20 DECEMBER 2012 Oral Answers 976 of the green deal. What reassurance can the Minister Jo Swinson: The hon. Lady makes an important give that the green deal will be implemented and that point. It is also worth noting that strikes and industrial those opportunities will be there for small businesses? action at present are at historically low levels. That is a sign of positive industrial relations and is to be welcomed. Vince Cable: I know that my colleague the Secretary Trade unions play a very important role, and although of State for Energy and Climate Change attaches enormous the headlines generally focus on industrial action and importance to the green deal. It is, as I understand it, strikes, the excellent work that they do on training and completing its state aid clearance in Brussels. When it is resolving workplace disputes often does not hit the launched there will be a major incentive for people to headlines and should be commended. We always keep improve their homes and to develop jobs on the back of issues under review, but it is fair to say that the industrial that. action laws and situations are generally working well. Mr Iain Wright (Hartlepool) (Lab): The Minister of Small and Medium-sized Enterprises (Exports) State tells the Institute of Directors that his Secretary of State sometimes escapes his electronic tag, while the Energy Secretary has to slap down his Minister of State 4. Mark Pawsey (Rugby) (Con): What steps he is over wind energy, so investors no longer know what taking to increase the number of small and medium- Government policy is and Business, Innovation and sized enterprises which export to international markets. Skills Ministers are too busy tracking the Secretary of [134538] State to help create clarity and green manufacturing jobs. Given that this is the season of good will, cannot 8. Mary Macleod (Brentford and Isleworth) (Con): the hostilities cease? Will the Secretary of State ask for What steps he is taking to increase the number of permission from his Minister of State at least to undo small and medium-sized enterprises which export to his electronic tag a notch or do, and will not BIS and international markets. [134543] DECC Ministers snuggle up together to watch “Strictly”, eggnog in hand, and promise to come back in 2013 determined to focus on British enterprise and industry, The Minister of State, Department for Business, Innovation not departmental infighting and ministerial surveillance? and Skills (Michael Fallon): Exporting is a key part of the Government’s plans to return the economy to sustained Vince Cable: While we are on our links with the and balanced growth. That is why we have increased criminal underworld, perhaps I should explain to the funding to UK Trade and Investment in the autumn House that I have responsibility for offender learning, statement—an extra £140 million over the next two and one of my plans for the new year is to lay on a years—enabling UKTI to double the number of small basics economics class for the hon. Gentleman and his and medium-sized firms supported from 25,000 to 50,000 colleagues. by 2015. Strike Action Mark Pawsey: Automotive Insulations is a supplier to the motor industry based in my constituency and has 3. Mr John Baron (Basildon and Billericay) (Con): increased turnover from £3 million to £14 million over What plans the Government have to make it a requirement the past few years, expanding its business to supply that more than 50% of the eligible membership must European motor manufacturers as well as those based approve strike action for it to take place. [134536] in the UK. The current advice and support from UKTI is to focus on fast-growing markets outside Europe, but The Parliamentary Under-Secretary of State for Business, does the Minister agree that starting to export is a very Innovation and Skills (Jo Swinson): We have no such big step for a small or medium-sized business and it is plans. often easier to start exporting by supplying to our closest neighbours? Mr Baron: With tube strikes planned for this Christmas, I suggest that it is not right that a minority of employees, particularly in the public services, can hold employers Michael Fallon: I congratulate Automotive Insulations and the public to ransom. May I urge the Government on its extraordinary success over the past few years. Of to revisit this one? course for an automotive company it may make sense to start with helping to penetrate the European supply Jo Swinson: I hear what my hon.
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