Thursday Volume 510 3 June 2010 No. 9 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 3 June 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] 555 3 JUNE 2010 556 Vince Cable: The Secretary of State does understand House of Commons the importance of RDAs, which of course will be changed but in a way that makes them more effective. I am sure that the hon. Lady noticed that in my first Thursday 3 June 2010 comments on RDAs very shortly after I took office I recognised that several parts of the country were especially The House met at half-past Ten o’clock vulnerable. I mentioned the west midlands as one. Alison McGovern: In my constituency of Wirral South PRAYERS there are a great many people who are very concerned about the coalition Government’s proposals, and specifically those with special relevance to the projects that have [MR SPEAKER in the Chair] been progressed by the Northwest Regional Development Agency. Will the Secretary of State give me some reassurance that this vital business support will continue? Oral Answers to Questions Vince Cable: Within days of taking up this job I went to the north-west of England. I visited the RDA and talked to the chairman and chief executive and to businesses in the region. I reassured them that we are BUSINESS, INNOVATION AND SKILLS well aware of the problems faced by Merseyside and the north-west, and that it is an area of priority in terms of resources. The Secretary of State was asked— Steve McCabe: I too congratulate the Secretary of State, and I heard what he said about not tinkering too Regional Development Agencies much in the west midlands. How many jobs would have to be lost in the west midlands before he considers this 1. Emma Reynolds (Wolverhampton North East) (Lab): policy to be a failure? What plans he has for the future of regional development agencies; and if he will make a statement. Vince Cable: I congratulate the hon. Gentleman on [000766] being returned to the House. I remember that he was a formidable force in the Government Whips Office in his 9. Alison McGovern (Wirral South) (Lab): What day. He has already noted the acceptance that the west plans he has for future support for businesses in midlands has particular structural problems, and they Merseyside and the north-west; and if he will make a will be taken into account in the reordering of the statement. [000775] RDAs. In my first answer, I stressed that the changes depend very much on the reaction of local business and 12. Steve McCabe (Birmingham, Selly Oak) (Lab): local authorities. I am sure that he will make representations For what reasons his Department plans to replace to Birmingham city council and local businesses, and I regional development agencies with local economic hope that they will reflect the priority that he wishes to partnerships. [000778] give. 15. Sir Alan Beith (Berwick-upon-Tweed) (LD): Sir Alan Beith: I thank my right hon. Friend for the What plans he has for the future of the regional part that he played in securing a very clear assurance development agency in the north-east; and if he will from the Prime Minister yesterday that One NorthEast make a statement. [000782] will continue to have a key role as a regional development agency. Will that role and the way in which it is structured The Secretary of State for Business, Innovation and enable it to continue to assist existing and new firms to Skills (Vince Cable): The Government intend to replace develop the private sector, for example in assembling RDAs with local enterprise partnerships and to bring land where needed? together business and local authorities to establish local Vince Cable: I hope that it will continue to play a accountability. Where they enjoy clear public support, positive role. My right hon. Friend has been extensively the partnerships may take a similar form to existing involved in supporting the north-east, and I talked to RDAs. In making the necessary reductions in RDA him about these things on the several occasions I visited budgets and reviewing their functions, we will seek to Newcastle and the region. He knows that one of the mitigate the impact on economically vulnerable parts of early decisions that came to me was to appoint the new the country. chairman of One NorthEast, and appointing someone to manage the transition was a statement of a wish to Emma Reynolds: I thank the Secretary of State for his maintain an element of continuity. I do not pretend that answer, and congratulate him and his team on their new the RDAs will not change: they will, but I recognise that positions. I wish them well. the north-east is a particular case because of its very Advantage West Midlands brings an economic benefit high dependence on public sector employment and the to the regional economy of over £7 for every £1 spent. generally very positive feedback I get about One NorthEast. Does the Secretary of State understand that the cuts that his Government have announced will put jobs at Margot James (Stourbridge) (Con): I congratulate risk in my constituency and critical projects such as the my right hon. Friend and his team on their new positions. i54 business park? Is he aware of the Richard report commissioned by the 557 Oral Answers3 JUNE 2010 Oral Answers 558 Conservative party in opposition? It found that a third Vince Cable: I thank the right hon. Gentleman for his of RDA money was spent on administration and that welcome and congratulate him on his elevation to the much of the rest was spent on signposting to other shadow Cabinet. He is quite right: we both greatly sources of information. I beseech him to ensure that in respected John Smith, for whom we worked. I should the new policy businesses and locally elected authorities also like to thank the right hon. Gentleman for what he can get together to avail themselves far more directly of did as a very hard-working Minister. He has made the all that taxpayer money. life of this Government easier as a result of all the preparatory work that he did preparing for private Vince Cable: Yes, I am aware of that report. There capital to come into Royal Mail. But in relation to cuts, was a happy coincidence of thinking between my colleague’s I am sure he acknowledges that the fiscal position does party and my own on the future of RDAs. She is quite demand drastic action. When I joined the Department I right to say that there was a lot of administrative waste, was already aware that this process was being undertaken— some of which we are now removing as a result of the cuts were already being taken in science laboratories, changes that have been made in the last week. There will and further education lecturers were being made redundant be parts of the country—including, I think, the part as a result of cuts made under his Government. that she represents—where we will have a substantial cutback in RDAs. However, they will be refocused and Flexible Working made more effective. Philip Davies (Shipley) (Con): I thank the Secretary 2. Harriett Baldwin (West Worcestershire) (Con): of State for last week coming to visit Pace International, What plans he has to extend the right to request an excellent company in my constituency. Following on flexible working to all employees. [000768] from the excellent question from my hon. Friend the Member for Stourbridge (Margot James), I have been The Parliamentary Under-Secretary of State for Business, concerned that the Secretary of State has indicated that Innovation and Skills (Mr Edward Davey): I welcome the Yorkshire Forward may be given a reprieve. May I tell hon. Lady to the House and congratulate her on her him that it is just as unacceptable for the unelected and election. The coalition agreement commits the Government unaccountable Yorkshire Forward to spend £300 million to extending the right to request flexible working to all a year of public money as it is for similar organisations employees. We will be consulting businesses and listening in the south of England? to their views, and we hope to bring proposals to the House later in the year. Vince Cable: The language of “reprieve” is not quite right. All the RDAs will change their nature; they will Harriett Baldwin: Thank you very much for that become local partnerships. answer, and I am pleased to welcome all of you to the team. It is so nice to have you in this House. Mr Speaker: Order. May I very gently say to the Secretary of State that he must turn to address the I want to ask about flexible working arrangements in House? particular. I know from my own experience how valuable it can be to an employer to have employees on flexible Vince Cable: What I said is that Yorkshire, together working arrangements, but I realise that small businesses with the north-east, the north-west and the west midlands, are very concerned about the potential impact of extending has particular structural problems that do need to be this regulation and I wondered what steps the team will addressed.