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House of Commons

Thursday 6 September 2012

The House met at half-past Ten o’clock


[Mr Speaker in the Chair]

Oral Answers to Questions

Business, Innovation and Skills

The Secretary of State was asked—


1. Richard Graham (Gloucester) (Con): What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system. [119391]

6. Damian Hinds (East Hampshire) (Con): What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system. [119396]

10. Simon Kirby (Brighton, Kemptown) (Con): What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system. [119400]

The Secretary of State for Business, Innovation and Skills (Vince Cable): The Department recently completed the biggest ever survey of apprentices and their employers, which revealed the best ever satisfaction rates. Overall, almost 90% of apprentices were satisfied with their training. Employer satisfaction is also high: 88% are satisfied with the relevance of their training, and 80% remain committed to offering places.

Richard Graham: I welcome the evidence from the Holt review that we need to do more to make apprenticeships accessible to small and medium-sized enterprises. I know from my own apprentices’ business and administration non-vocational qualifications that they are not all user-friendly to the smallest businesses, which are the driver of future jobs. Does the Secretary of State agree that employers in, for example, the Federation of Small Businesses should have more say in the content of courses and in the setting of a reassuring series of national standards?

Vince Cable: I do agree, but let me preface my remarks by saying what a success story the apprenticeship programme is. Not only has there been a big increase in scale—more than 60% over the last two years—but there is a very high satisfaction rate. Let me also take this opportunity to pay tribute to the work of the

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former Minister for Further Education, Skills and Lifelong Learning, the hon. Member for South Holland and The Deepings (Mr Hayes)—who has now moved on to 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 (Richard Graham) mentioned, does acknowledge that there are barriers to SMEs’ access to the apprenticeship 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 programme.

Damian Hinds: The Jason Holt reforms present great opportunities for the hospitality sector, which has considerable potential for employment export earnings and economic growth, but in which we need to drive productivity gains. As the quantity of apprenticeships continues to increase, how can we ensure that their quality keeps pace with it, or does better?

Vince Cable: The hon. Gentleman is absolutely right to say that we need to maintain quality standards. I have asked Doug Richard, an entrepreneur with a background in this area, to give careful consideration to the quality issues and how we can shape the apprenticeship programme around genuine skills training, particularly at skill level 3 and above.

A great deal is happening in the hospitality sector. For instance, Hilton recently offered 100 new apprenticeship places. The Department will shortly hold a round-table discussion about the sector, and apprenticeships will be an important element of that.

Simon Kirby: The number of apprenticeship starts in Brighton and Hove was up by 83% last year, with many digital media businesses taking that important first step. Does the Secretary of State agree that that the digital media sector is an important part of the apprenticeship scheme?

Vince Cable: Yes. Apprenticeships increasingly cover the service sector as well as the traditional manufacturing and construction sectors, and the digital sector is an important part of that. It depends on high technology and high skill levels, and as a result is absolutely crucial.

Mr Geoffrey Robinson (Coventry North West) (Lab): May I put it to the Secretary of State—as I did on the last occasion when I questioned him on this issue—that while the overall numbers are very good, there are certain problems in individual sectors such as the construction industry? If we do not ensure that the number of apprenticeships in that important sector is much greater than it is now, we shall find when the national infrastructure plan takes off, as it must eventually—indeed, with the new team behind it, it will no doubt do so in the very near future—that we do not have the apprenticeships and the manpower skills in the industry that would enable us to benefit from it.

Vince Cable: The hon. Gentleman is right. The programme must be demand-led and business-led. When a sector is struggling, as the construction sector currently is, that affects the demand for training; but, as the hon. Gentleman knows, the sector is well organised, with a

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levy system and a skills training board. We certainly want to see a substantial number of additional trained specialists in the construction sector, so that we do not have to rely on people coming from overseas to do the work, as we often have in the past.

Kate Green (Stretford and Urmston) (Lab): Although the number of members of ethic minorities who are taking up apprenticeships is improving, there are still patterns of occupational segregation, and ethnic minorities are less likely to be represented in the industry sectors with the best long-term career prospects. What specific steps are the Government taking to ensure that members of ethnic minorities have the chance to take up the best possible apprenticeships?

Vince Cable: I have not had that case made to me before. Certainly if there is some element of discrimination, that is unacceptable. I guess there might be a correlation with other patterns in the labour force, but I will undertake to see whether there is any evidence of there being a real problem that we need to address.

Mr Gordon Marsden (Blackpool South) (Lab): May I congratulate the Secretary of State on all his new Ministers? I am delighted that he paid strong tribute to the former Further Education and Skills Minister, the hon. Member for South Holland and The Deepings (Mr Hayes). Given his commitment to vocational education and the personal warmth he brought to his task, he will, as I am sure his successor knows, be a hard act to follow.

We now know that over the past year the number of 16 to 18-year-olds starting apprenticeships went down in the south-west, the north-west and north-east England, yet the Secretary of State’s colleagues elsewhere in Government have so far ducked out of doing anything practical to implement Jason Holt’s excellent report to get more small businesses to take on those young people. Will the Secretary of State now change that course, with an active Government response to help small businesses to take on young people for the extra apprenticeships that we desperately need, given the failures to deliver growth by No. 11 Downing street?

Vince Cable: The Jason Holt report was published just six days or so ago, so it is perhaps unsurprising that it has not yet been fully implemented. We are certainly going to be working on it, however. There clearly is an issue with 16 to 18-year-olds who need to have a ladder into apprenticeships rather than going straight into a demanding skill course associated with a job. We recognise that there is that transition issue, therefore, and I am working with the Secretary of State for Work and Pensions in particular on how we address it.

Recession (Small Businesses)

2. Ann Clwyd (Cynon Valley) (Lab): What assessment he has made of the effect of the recession on small businesses. [119392]

The Secretary of State for Business, Innovation and Skills (Vince Cable): These are tough economic conditions for all sorts of businesses, including small and medium-sized businesses, but the small business sector is showing signs of considerable resilience. The number of small and medium-sized enterprises grew to 4.5 million at the

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start of last year—an increase of over 270,000 since 2008—and the proportion of people involved in setting up and running new businesses has increased to over 7.5% in 2011, up from under 6% in 2009.

Ann Clwyd: I am afraid that is not true in the Cynon Valley. Earlier this week I was talking to small businesses, who said the failure of the banks to lend has made it very difficult for them to expand and take on new workers, such as the former Remploy workers in my constituency who were so disgracefully sacked by the Government last month. We have had enough of the donkey talk of carrots and sticks. Is it not time to hold the bankers’ feet to the fire and get some movement on this matter, because it is not happening now?

Vince Cable: I have never been shy of criticising bank performance in lending to SMEs, and I am not going to change on that. None the less, I think we should be a little more positive about what is happening. One of the most interesting figures of the last two-and-half years is that the number of private sector jobs has increased by 900,000 in conditions of economic difficulty. Almost all of those jobs are in SMEs, despite the difficulties they face. We are taking action to ensure we get a better flow of funds from the banks, particularly through the new funding for lending arrangements, over and above the guarantee scheme. There are new challenger banks such as Aldermore and Handelsbanken that are specialising in that sector and meeting some of the unmet need.

Mr Speaker: Order. I gently remind the House that we have a lot of questions to get through, so some pithiness would be appreciated.

George Freeman (Mid Norfolk) (Con): Does the Secretary of State agree that what the small business sector in this country needs is confidence, not carping from those on the Opposition Benches? The fact that the Government have created over 900,000 jobs since the election suggests they are doing a lot of good. Does he also agree that the World Economic Forum report of this week showing that Britain’s competitiveness has risen from 10th to eighth in the world league, because, it says, of our more efficient labour market reforms, suggests we are doing exactly the right thing?

Vince Cable: I thank my colleague for reminding me of that. It is a very positive report, and it is striking that it puts such emphasis on the fact that we have very flexible labour markets, which is one of the reasons why the private sector has been able to take on so many more people. That is publicly appreciated by many of the large manufacturing companies as well as by SMEs.

Chi Onwurah (Newcastle upon Tyne Central) (Lab): Two and a half years in, this Government still offer no significant support for small, innovative, high-growth businesses, which are exactly the kind that we need to get us out of this double-dip recession made in Downing street. The National Endowment for Science, Technology and the Arts has called on the Government to expand the small business research initiative. Started by Labour, it uses Government procurement to help to turn innovative small businesses into world beaters—we support that call. Is it any wonder that business confidence is low when the Government plan to spend 10 times more on

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subsidising local weekly bin collections than on innovative small business procurement? Can the Minister tell me whether they will now change—

Mr Speaker: Order. I am sorry but the questions and answers are far too long today. A quick sentence and we are done.

Chi Onwurah: Will the Government now change course and bring forward proper support for small, innovative businesses?

Vince Cable: Small, innovative businesses are absolutely crucial, and the CBI, in particular, has focused on what it calls the “gazelles” in that space. One specific initiative that we introduced—I launched it—and which the hon. Lady may not be aware of is the growth accelerator, which is a system of providing high-quality coaching for 26,000 small and medium-sized enterprises of exactly the kind she has described. All our evidence so far suggests that it is appreciated and is working extremely well.

Skills (Young People)

3. Mary Macleod (Brentford and Isleworth) (Con): What steps he is taking to ensure that young people leave further and higher education with the skills that employers need. [119393]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Matthew Hancock): I am very pleased to answer this as my first question because it highlights a vital problem that Britain must address in order to compete in the world. The number of apprenticeships has increased by two thirds, and by 97% in my hon. Friend’s constituency. I join the tribute paid to my predecessor, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who brought passion and drive to this programme. He would say that we must do more and we will do more, and that is exactly what I hope to do.

Mary Macleod: I welcome my hon. Friend to his new role. Even though he has been in it for only a few days, what discussions is he planning to hold with businesses to understand where the current recruitment skills gaps are? Will incentives be given to students to study the subjects that we believe are critical to the future growth industries in the UK?

Matthew Hancock: My hon. Friend is exactly right; I have already been in contact with the Institute of Directors and various employers. Britain must have a skilled work force that meets the needs of employers if we are to compete against the hungry and driven rising nations of the east, and I will do all I can to deliver that.

Mr Barry Sheerman (Huddersfield) (Lab/Co-op): I welcome the new Minister and the new ministerial team. May I say that some of us will miss not only the old Skills Minister, but the old manufacturing Minister? May I also push the new Minister on work-readiness, which is vital to young people seeking jobs? At a time when 1 million young people are unemployed, we have to look at best practice. There is good practice out there in further education and in higher education. We need to identify it and spread it, and to do so quickly.

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Matthew Hancock: One of the things that my predecessor brought to this job was a cross-party focus. I agree with the hon. Gentleman on the importance of FE colleges and the excellent work that they do in ensuring that people are ready for work when they join the work force and in continuing to improve people’s skills once they are in the work force, so that we can compete with the best in the world.

Employment Law (Low-paid and Vulnerable Workers)

4. Anas Sarwar (Glasgow Central) (Lab): What assessment he has made of the likely effect of proposed changes to employment law on low-paid and vulnerable workers. [119394]

22. Gemma Doyle (West Dunbartonshire) (Lab/Co-op): What assessment he has made of the likely effect of proposed changes to employment law on low-paid and vulnerable workers. [119415]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): We are conducting a Parliament-long employment law review to remove unnecessary burdens on businesses and give them the confidence to grow and create more jobs. Of course, we also remain committed to providing protection for low-paid and vulnerable workers.

Anas Sarwar: I welcome the hon. Lady to her new job and congratulate her. I advise her to take more advice from the Business Secretary and a little less from the Chancellor’s prodigy, the hon. Member for West Suffolk (Matthew Hancock), who is sitting two up from her.

Obviously, there is genuine concern as taking away employment rights from low-paid workers is not a substitute for a proper economic growth strategy. At a time when we should be looking at ways to encourage growth and hire people, rather than fire them, what assessment has been made of the positive impact on GDP of the proposed changes?

Jo Swinson: I thank the hon. Gentleman for his question and his kind words. It is a particular delight that my first questions at the Dispatch Box come from my near neighbours in the west of Scotland. I also thank him for his advice. Of course he is right to point out that just removing employment rights is not the way forward. However, impact assessments have been published in respect of the Enterprise and Regulatory Reform Bill. It is still progressing through this House and the Government intend to make further announcements next week on employment law reform.

Gemma Doyle: I, too, am delighted to welcome the hon. Lady to her new role, particularly as she is my constituency neighbour. I do not know whether she is aware that on average women workers in my constituency earn £180 a week less than they do in her constituency. What does she think the impact of the Government’s proposals will be on women workers, who are more likely to be in lower paid, less secure jobs in the first place?

Jo Swinson: I thank my parliamentary neighbour for that question, in which she highlights the discrepancy between our constituencies. Of course, women are being hugely helped by many of this Government’s reforms,

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particularly our taking low-paid workers out of paying income tax. That is especially helpful for part-time workers, who are disproportionately women. She also raises the issue of the pay gap between men and women, which the Government are committed to addressing.

Sir Tony Baldry (Banbury) (Con): It is very good to see my hon. Friend at the Dispatch Box. Adrian Beecroft identified in his report a number of ways in which current employment legislation is impeding the creation of new jobs. Will my hon. Friend assure me that the coalition Government will act to implement those parts of the Beecroft report that will enhance the creation of new jobs?

Jo Swinson: I thank my hon. Friend for that question. Contrary to many of the headlines, the Beecroft report contained a wide range of proposals, many of which the Government were already committed to bringing forward. A call for evidence on one of the more controversial issues mentioned in it closed on 8 June and the Government are committed to progressing on an evidence-based policy. It is worth bearing in mind that some business organisations have expressed concerns about that policy, but the Government will respond formally shortly.

Lorely Burt (Solihull) (LD): I welcome my hon. Friend to her new post and I know that she will make an effective and assiduous Minister. Does she share my pride as a Liberal Democrat Member of this coalition Government that we are introducing measures such as flexible working and shared parental leave and rejecting the specific Beecroft proposal of a fire-at-will policy, all of which will disproportionately affect low-paid and vulnerable workers?

Jo Swinson: My hon. Friend makes her point very forcefully. I am very enthusiastic about the coalition agreement proposals for flexible working and shared parental leave and I very much look forward to taking them on.

Ian Murray (Edinburgh South) (Lab): I, too, add my congratulations to the hon. Lady. As I did with her predecessor, I wish her just a smidgen of success. Given the number of Scots who have already spoken, we should all know that “smidgen” is a Scottish term for “a very little”. In the past two and a half years, Ministers have dithered on creating opportunities to get people back to work and have presided over a package of measures that make it easier to fire rather than hire employees. Given that the hon. Lady has backed her Secretary of State in saying that the watering down of employee rights, especially for low-paid female workers, is the wrong approach, will she now change course and put in place a proper strategy for growth, or will her new right-wing ministerial colleagues pressure her to follow the same failed approach?

Jo Swinson: I thank the hon. Gentleman for his congratulations in person, having received them on Twitter yesterday. The Government are announcing a range of different measures today that will support the economy and improve competitiveness. They are on the right track and I am very committed to ensuring that we make them a success.

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Andrew Bridgen (North West Leicestershire) (Con): More than 900,000 private sector jobs have been created since this Government came to power. Will the Minister guarantee that her Department will deliver growth and that we will continue to see a rise in private sector job creation?

Jo Swinson: The hon. Gentleman is right to point out the success in the creation of private sector jobs. Members on both sides of the House share a concern about the problems of unemployment, which is why it is vital that the Government continue with our measures to kick-start the economy.

Start-up Businesses

5. Graham Jones (Hyndburn) (Lab): What support his Department is providing to start-up businesses expanding in developing areas of industry. [119395]

The Minister for Universities and Science (Mr David Willetts): We aim to make the UK the best place in the world to start and run a business. That is why we are reintroducing the Smart awards for innovative new businesses, creating 24 new enterprise zones and committing a further £200 million to enterprise capital funds.

Graham Jones: CN Creative in Accrington in my constituency is a growing company that designs and manufactures the best electronic cigarettes in the world. It is planning to move its entire production from China back to the UK, to my constituency, but the banks will not lend it the money it needs, which is preventing the move and jobs coming to Britain. Does the Minister realise how damaging it is to start-up companies when they cannot access credit?

Mr Willetts: We agree; it is very important that banks are encouraged to lend to successful businesses. That is what the coalition is doing. Incidentally, the old pessimism that manufacturing will always go east is clearly now being reversed. We are optimistic about the prospects of manufacturing in this country.

Justin Tomlinson (North Swindon) (Con): Following today’s fantastic announcement of a further £267 million investment programme in the Honda plant in my constituency, what measures will the Minister take to help start-up businesses to take advantage of the potential opportunities in the supply chains of Honda and the UK automotive industry?

Mr Willetts: Immediately after these questions my right hon. Friend the Secretary of State is going to Swindon to join Honda in this very welcome announcement. The Department absolutely understands the importance of the supply chains behind these large companies. Of course, the commitment to the supply chain is one of the many reasons why Britain is moving up the competitiveness league table.

Graduate Employment

7. Steve Brine (Winchester) (Con): What recent assessment he has made of the employment outcomes of graduates. [119397]

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The Minister for Universities and Science (Mr David Willetts): University remains a great route to a rewarding career: 90% of full-time, first degree leavers are in work or further study six months after graduating, and graduates earn on average £100,000 more over their working lives. We recognise the need to do all we can to help universities and businesses to prepare students for the labour market.

Steve Brine: The Minister might be interested to know that in 2010-11 the university of Winchester recorded that 96% of its full-time teacher training graduates had gone into teaching jobs, but is he satisfied that higher education institutions are doing enough to focus prospective students on the employment prospects they can expect if they choose to study and spend significant sums of money at their institutions?

Mr Willetts: I congratulate the university of Winchester on that excellent achievement. That is why this month we are introducing, for the first time, a requirement that universities release the information on the percentage of their leavers who are in work after six months, course by course, so that prospective students can assess their performance on that crucial measure.

Jonathan Ashworth (Leicester South) (Lab): The Minister is well aware that going to university improves employability, but he will also be well aware that tuition fees are acting as a disincentive for many students. Specifically, I have been approached over the summer by Muslim students who are concerned about sharia-compliant financing for their tuition fees? I know that the Department is looking at this, so will he update us on progress towards achieving a model for those students?

Mr Willetts: The encouraging evidence from the UCAS application data is that people from poorer backgrounds are not being put off going to university. There is no evidence that changes in patterns of university applications are affecting poorer students in particular. I have been considering the issue of sharia-compliant student loans, and we continue to do so.

Employee Ownership

8. Jane Ellison (Battersea) (Con): What steps he is taking to increase levels of employee ownership. [119398]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): The Government have welcomed the excellent report by Graeme Nuttall, which provided a series of recommendations on how we can promote employee ownership. We will publish a full Government response to his recommendations this autumn. We have already published a call for evidence on the right to request employee ownership, and I encourage any Members who have ideas on it to get in quick as it closes tomorrow.

Jane Ellison: I thank the Minister for that answer and warmly welcome her to her new role. The German and US economies have a much greater diversity of corporate ownership structures, so I wonder whether the Minister, in addition to looking at excellent British companies such as the John Lewis Partnership, will be looking abroad for useful lessons.

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Jo Swinson: We certainly will. We are always happy to learn from and share experiences with other countries. Indeed, my right hon. Friend the Business Secretary has been looking at the issues of corporate governance. I know that my hon. Friend has had a strong career with the John Lewis Partnership, which is one of the better known examples of employee ownership, but of course there are many other great examples of British companies that do that, and we are looking forward to promoting that more widely.

Regional Growth Fund

9. Ian Mearns (Gateshead) (Lab): When he expects all bidders from the first round of the regional growth fund to receive the funds allocated to them. [119399]

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): The regional growth fund is a three-year fund and we expect all the £2.4 billion allocated to be fully spent in that time. In round 1, 44 of the 67 contracts awarded have been finalised, totalling some £340 million, of which £220 million has already been drawn down. Of the other 23, 11 have been withdrawn and the remaining 12 are being processed.

Ian Mearns: I welcome the Minister of State to his new role. Having formerly been the MP for Darlington, at least he knows where the north-east is.

The regional growth fund has been mired in delay, chaos and confusion and, for some companies, no little uncertainty. How can we be certain, despite yet more reassurances, that winning bidders will receive their long-awaited awards?

Michael Fallon: My predecessor, the hon. Member for Hertford and Stortford (Mr Prisk), can be proud that rounds 1 and 2 of the fund now involve some 149 projects and programmes, delivering about 330,000 new jobs and drawing in nearly £5 billion of private investment. The bid for Gateshead college in the hon. Gentleman’s constituency was successful in round 2. A final offer letter was sent to the college at the end of July, and the money is there waiting for the college to take it up.

Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): I welcome the Minister to his new role and look forward to having the opportunity to question him at some stage in the BIS Committee. May I draw his attention to the fact that in the black country some companies that were successful applicants in round 2 of the RGF have still not had contracts issued, with some waiting for as long as 10 months, and that business opportunities are being lost as a result? Will he undertake to look at this rigorously in order to speed things up?

Michael Fallon: I certainly look forward to appearing in front of the hon. Gentleman’s Select Committee.

I am happy to look at any specific examples of delay that the hon. Gentleman can produce. I want in round 3 to accelerate the process—in particular, to shorten the gap between announcement and conditional offer and between conditional offer and completion of due diligence. He will understand that it is necessary, when public money is involved, for those due diligence checks to be

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carried out. However, I will look at what he has said and we will do everything we can to accelerate the approval process.

Community Learning

11. Sarah Newton (Truro and Falmouth) (Con): What steps he is taking to protect and promote access to community learning. [119401]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Matthew Hancock): This Government are committed to community learning. We have protected the budget, and I want to see funding increasingly targeted at the most disadvantaged people. Community learning trust pilots across England are testing new ways of better involving local communities in how that money is delivered.

Sarah Newton: I thank the Minister for that response. Does he agree that it is vitally important that there are opportunities to learn throughout life, and that having protected the community learning budget, it should be focused on those with ambitions to gain new skills throughout their life but not a great deal in the way of formal qualifications?

Matthew Hancock: I do agree. I have already heard of the work that my hon. Friend has been doing in supporting Truro and Penwith college and Cornwall college. Improving our nation’s skills is vital for our economic prospects, but learning has intrinsic value in its own right. Henry Ford said:

“Anyone who stops learning is old, whether at 20 or 80. Anyone who keeps learning stays young”,

so I hope that I have discovered the secret of eternal youth.

Stephen Timms (East Ham) (Lab): Community learning flourished under the previous Government and is at risk under this one. In warmly welcoming the new Minister to his role and congratulating him, may I ask him to look at my recent letter to his predecessor about LymeNet community learning centre in Lyme Regis, which was set up in 1999? I saw its great work on visiting the Axminster Methodist church job club over the summer. Rural areas cannot afford the loss of community learning that is now on the cards.

Matthew Hancock: I look forward to reading that letter, but I would say this: the budget for community learning has been protected in difficult fiscal times, and that shows the Government’s intentions in this area.


13. Christopher Pincher (Tamworth) (Con): What recent progress he has made in supporting small and medium-sized businesses. [119405]

20. Annette Brooke (Mid Dorset and North Poole) (LD): What recent steps he has taken to support small and medium-sized businesses. [119413]

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): In total, 450,000 new businesses were registered last year compared with 360,000 in

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2009-10. We have cut corporation tax rates to an all-time low, we continue to cut red tape, we are incentivising bank lending, and we have a range of other schemes to support high-growth businesses in particular.

Christopher Pincher: I welcome my hon. Friend to his post and I welcome his answer. One of the concerns that SMEs in my constituency have is that, whereas previously they had access to overdraft extensions, which represent cheap credit, banks now insist on collateralised loans, which are repayable over a term at a rate over base, which represents more expensive credit. Will the Government’s innovative reforms result in not just an extension of credit, but a reduction in its price?

Michael Fallon: I am grateful to my hon. Friend. He is exactly right: cheaper credit is the key for many small companies. The whole aim of the funding for lending scheme is to ensure that banks pass on the reduction in the cost of the money that they themselves are accessing. The Bank of England will monitor that, but my Department will check that each bank continues to do it.

Annette Brooke: I welcome the Minister to his post. Undoubtedly, many small firms are getting a raw deal from the banks, with increased charges and limited credit. The board of Wimborne business improvement district is exploring the possibility of setting up a “bank” of Wimborne in conjunction with a local credit union, the idea being to go back to old-style banking with strong local relationships. What comment would the Minister make about that?

Michael Fallon: I know that my right hon. Friend the Secretary of State has already met my hon. Friend’s constituents to discuss the issue, and I believe that he has already met the founder of the Bank of Dave as well. One of the recommendations of the Independent Commission on Banking was that the Financial Services Authority should look again at the requirements for a banking licence, to see whether they are too onerous and disproportionate for the providers of very small credit. We expect the FSA to publish its recommendations shortly and I would be very happy to discuss them with my hon. Friend.

Mr Mike Weir (Angus) (SNP): Many small businesses in my constituency run a post office as part of their business, and they are very worried about the chipping away of business and, particularly, the threat of losing the DVLA contract. What is the Minister’s Department doing to encourage the DVLA to stick with the Post Office?

Michael Fallon: I cannot comment on any specific contract that may be up for renewal. Of course, the Post Office has to live in a competitive world, but I will certainly look at what the hon. Gentleman has said.

Seema Malhotra (Feltham and Heston) (Lab/Co-op): Late payments affect the confidence of SMEs to make purchases and to pay bills and even staff salaries. In this time of a double-dip recession, does the Minister agree that implementing the European Union directive on late payments would be a great help to SMEs?

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Michael Fallon: It is extremely important, particularly for small companies, that their bills are paid promptly. In Government, we have taken steps to encourage Government Departments and public agencies to pay their suppliers promptly. It is also important that we look very carefully at any specific target that may encourage people to pay on the final day set in the target, rather than earlier as they would otherwise have done. I will certainly have a look at what the hon. Lady has suggested.

London Metropolitan University (Visas)

14. Heidi Alexander (Lewisham East) (Lab): What recent discussions he has had with his ministerial colleagues on the UK Border Agency’s decision to revoke the licence held by London Metropolitan university to teach international students. [119406]

The Minister for Universities and Science (Mr David Willetts): I am in regular contact with colleagues in the Home Office. The decision to revoke the licence was a matter for the UK Border Agency.

Our priority now is to ensure that the university’s legitimate overseas students are given the help and advice they need to continue their studies. To deliver this, I set up a taskforce within hours of UKBA’s decision, which has already started work.

Heidi Alexander: I am grateful to the Minister for his reply. He mentions the taskforce, but the direct experience of one of my constituents is that it is anything but useful. She went as far as saying that it told her nothing that could not be found on the UKBA website. What steps will the Minister take to ensure that the help and advice given by the taskforce really enable legitimate students to access alternative courses?

Mr Willetts: The crucial task in which the taskforce is now engaged is preparing a kind of mini-clearing system in which there will be firm information about places available at specific universities and on specific courses that would have been available for suitably qualified overseas students at London Met. I can tell the hon. Lady and the House that that matching process will open and start on 17 September. We also know that the UKBA will not send out any letters about their 60-day limit to apply to the overseas students affected until 1 October.

Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab): I have a registered interest.

I put it to Ministers that although enforcement is critical, the message that needs to go out from the Government is that Britain is open for business in higher education, and that we care greatly about it for students, universities and our economy. What message is being sent by this Department to ensure that the world knows that we welcome higher education students and are proud of our record?

Mr Willetts: I very much agree with the right hon. Gentleman, as do the Government. Of course Britain is open for business. That includes being open to attract students from around the world who have a legitimate entitlement to study here. There is no cap on the number of overseas students who can come to study in Britain.

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Through our Foreign Office posts around the world, we have re-emphasised that message in the light of the experience of London Met.

Shabana Mahmood (Birmingham, Ladywood) (Lab): The attitude of the Minister and his Government to the international reputation of the UK’s higher education sector and its importance to our economic growth is shockingly complacent. May I press the Minister on the legitimate international students at London Met who are partway through their studies? Will he guarantee that no such student will be financially worse off as a result of the licence revocation? If that is not possible, will he reconsider with his colleagues in the Home Office alternative routes by which legitimate international students may complete their studies at London Met?

Mr Willetts: I understand that one feature of the offers of places in the matching process that will be launched in 10 days’ time is that many of the universities will offer courses at the same or lower fees than the students would have experienced at London Met.

Port of Liverpool

15. John Pugh (Southport) (LD): What support his Department is providing to the port of Liverpool; and if he will make a statement. [119407]

The Secretary of State for Business, Innovation and Skills (Vince Cable): I understand the importance of the port of Liverpool to the city region’s ambitions for growth. Under round 2 of the regional growth fund, the Government are supporting the port’s bid to build a terminal capable of handling the largest container ships. Key features of the city region deal have regard to the local potential for logistics and offshore technologies.

John Pugh: Liverpool port is thriving under the management of Peel Holdings. What can the Government do to ease transport arrangements to and from the dock?

Vince Cable: The starting point is the recognition that Liverpool docks, having declined for many decades, now have enormous potential as a result of the £35 million that has been put in to dredging for the deep-water terminal and the support for offshore technologies. There is a major problem of access. A report has been carried out and is being followed through as part of the city region bid. We are working with the Department for Transport. We recognise that there are transport bottlenecks and there is a commitment to act on that.

Automotive Industry

16. Stephen Mosley (City of Chester) (Con): What recent assessment he has made of the health of the British automotive sector; and if he will make a statement. [119408]

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): The British car and truck industry is strong and growing. More than £6 billion of investment has been committed to it by global investors including BMW, Nissan, Jaguar Land Rover and, as we

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have heard today, Honda. More than 80% of the vehicles made here are exported, and exports now exceed imports in value for the first time since 1975.

Stephen Mosley: I welcome my hon. Friend to his post and thank him for the welcome news that he has just given. Will he assure us that he will use his new post to encourage exports by taking every opportunity to talk up and promote UK plc, unlike Opposition Members, who seem to delight in constantly talking down the success of British industry and talking down our economy?

Michael Fallon: I will certainly do what my hon. Friend suggests. I met some of the key players in the industry yesterday. The Government provide significant support for research and development, training, and improving the UK’s sourcing of the supply chain in this important industry. I announced a further £9 million yesterday for a research and development centre for energy storage to capitalise on the growing electric and hybrid vehicle battery market. The Secretary of State will today visit Honda to welcome the 500 new jobs that it is creating in Swindon. I hope that the Labour party will welcome that vote of confidence in what the Government are doing.

21. [119414] Meg Munn (Sheffield, Heeley) (Lab/Co-op): Automotive companies and many other companies rely on skilled engineers. Whenever I raise the issue, the Government talk a great deal about the importance of getting women engineers into such companies. However, they have entirely cut the grant to the UK Resource Centre for Women in Science, Engineering and Technology, which was ensuring that good engineers got into jobs, and have given a minuscule amount of their budget to the royal societies and the Royal Academy of Engineering. I welcome the Minister and the rest of the team to their posts. Will he ensure that this matter is looked at again so that some of the jobs in these companies go to women engineers?

Michael Fallon: I am grateful to the hon. Lady for what she says, and I am happy to look again at the matter. The Government are working with the Royal Society to see what can be done to encourage more women into engineering, and specific help is available from Government to help with engineering training, particularly for the automotive industry.

Mr Speaker: The hon. Member for Sheffield, Heeley (Meg Munn) has provided an object lesson to new Members in how to shoehorn one’s own question into someone else’s, and we are greatly obliged to her.

Bioethanol Industry

17. Ian Swales (Redcar) (LD): What recent assessment he has made of the future of the UK bioethanol industry. [119410]

The Secretary of State for Business, Innovation and Skills (Vince Cable): The Government’s bioenergy strategy makes it clear that sustainable first-generation biofuels such as bioethanol are cost-effective in reducing carbon emissions and are an important source of renewable energy. We have sent a clear signal to the industry that

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there is a market for biofuels in the UK by setting it a target of creating 10% of road transport fuel from renewable energy by 2020.

Ian Swales: I thank the Secretary of State for the work that he has done to help with the restarting of the Ensus plant in my constituency, which supports 2,000 jobs. Will he continue to work with his colleagues in the Department for Environment, Food and Rural Affairs, the Department for Transport and the Treasury to ensure that conditions remain right for that exciting, sustainable growth business?

Vince Cable: I would like to reciprocate by congratulating my hon. Friend on the work that he has done on campaigning for the Ensus plant, which was mothballed but has now been reopened, creating substantial employment. I believe that a significant number of other bioethanol plants are also in gestation, encouraged by the clarity of policy. One key element was the success that we had in persuading the European Union on the subject of unfair competition from overseas. That loophole has now been closed and there is a good business environment.

City Deals

18. Rehman Chishti (Gillingham and Rainham) (Con): What discussions he has had with the Secretary of State for Communities and Local Government on the effects on business of city deals. [119411]

The Secretary of State for Business, Innovation and Skills (Vince Cable): Local enterprise partnerships were at the heart of the eight deals with the core cities that were concluded in July, to ensure a strong focus on the growth priorities of business. An estimated 175,000 jobs over the next 20 years, and 37,000 apprenticeships, could result from those deals.

Rehman Chishti: When will the second round of city deals open, so that excellent local authorities such as mine can apply?

Vince Cable: The cities Minister, who is now in the Treasury, has been discussing with me and the Secretary of State for Communities and Local Government how we will launch the second phase and the criteria that should be employed. I believe there will be an announcement very soon.

Topical Questions

T1. [119416] Harriett Baldwin (West Worcestershire) (Con): If he will make a statement on his departmental responsibilities.

The Secretary of State for Business, Innovation and Skills (Vince Cable): My Department has a key role in supporting the rebalancing of the economy and supporting business to deliver growth while increasing skills and learning.

Harriett Baldwin: The whole new ministerial team will already be aware that Malvern is the capital of cyber-valley owing to the cluster of private cyber-security firms that are located there, close to GCHQ. Will the

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Minister update me and the rest of the House on the steps that the Department is taking to encourage growth in that important sector, and will he visit Malvern?

The Minister for Universities and Science (Mr David Willetts): My hon. Friend is absolutely right about the strength of the cyber-cluster in Malvern. Yesterday evening we held a major conference at the Foreign Office, at which I and colleagues briefed representatives of FTSE 100 companies on the threat to cyber-security, the practical steps that they could take to ensure it and the strength of the British cyber-security industry.

Mr Chuka Umunna (Streatham) (Lab): May I first welcome the Secretary of State’s new team of minders to their positions on the Front Bench? I note that he is so irrepressible that he needs not one but three minders to keep him in check. His new minder of state, the hon. Member for Sevenoaks (Michael Fallon), told the Financial Times yesterday that he would

“make sure business feels it has a senior champion in the department.”

Does the Secretary of State not feel that he himself has been a sufficient champion of business across Government of late?

Vince Cable: I certainly regard myself as a champion of business, and the success that we have had in private sector job creation and in some of our main strategic industries, such as the car and aerospace industries, with both of which I have worked closely, is evidence of that. I very much look forward to working with my colleague, and we have exactly the same aspirations for British business.

Mr Umunna: The fact is that business simply does not believe that the Government are doing enough. Last month, the head of the British Chambers of Commerce said that he would give key politicians—presumably the Secretary of State is one of them—three out of 10 for delivery. A couple of weeks before, members of the Institute of Directors went further, stating that Government policies to support business were ineffective in every single area, and who can blame them? The Government have failed to deliver on their infrastructure plan, they have failed to get finance to businesses that need it, and they have failed to meet the delivery targets in their 2011 plan for growth. The Government are ridden with indecision. Three marks out of 10 was generous. How many marks would the Business Secretary give the Government given their litany of failure?

Vince Cable: Whenever I talk to business groups—which I do frequently—they unreservedly support the Government’s emphasis on financial stability That is something that the Labour party takes lightly, although we have emphasised it. There is a major agenda to revive the British economy, but in his question the hon. Gentleman made no reference to this morning’s housing statement. At the moment, construction is the most difficult sector in the British economy, because of the collapse that took place in the wake of the boom that his party created when in office. This morning, the Government have proposed a series of businesslike initiatives to free up sites for private development, to

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put substantial guarantees and resources behind social housing, and to revive a sector that was destroyed in the false bubble created by the hon. Gentleman’s Government.

T2. [119418] Andrew Selous (South West Bedfordshire) (Con): How much does the UK earn from overseas students, and what assessment has the Minister for Universities and Science made of the potential for further export growth from that sector?

Mr Willetts: We estimate that overseas students in higher education bring £8 billion to the British economy, which shows what a major export industry it is. We can be very proud of the success of our higher education sector, and that is why Britain has no limit on the number of suitably qualified overseas students who can come here to study.

T3. [119419] Mr William Bain (Glasgow North East) (Lab): This morning the OECD predicted that the British economy will shrink by 0.7% this year. When will the Secretary of State get on and set up a proper British investment bank, and follow the example of institutions in Germany and Brazil that between them invested nearly £100 billion last year?

Vince Cable: The hon. Gentleman is being a little churlish in not even acknowledging that on Sunday, the Chancellor made it clear that we wished to proceed with a business bank. We are discussing the range of its activities and the resources that will be available. The hon. Gentleman knows well that growth prospects in all European countries are extremely depressed at the moment, not only in the UK.

T4. [119420] Richard Graham (Gloucester) (Con): As secretary of the all-party group for post offices, I strongly support the Government’s commitment to ensuring that there are no further post office closures, as well as the ambition to develop post offices to carry out more front-office Government services. I am, however, slightly concerned about the pace of progress in making new services available through post offices, and sub-postmasters in Gloucester are concerned about the possibility of losing the DVLA contract. I appreciate that the Minister has only just arrived in her post, but will she give that issue priority in the future?

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): I thank my hon. Friend for his comments; he is a strong campaigner for post offices which we all recognise lie at the heart of many of our communities. He asked me to comment on a live procurement contract, which I hope he will understand I cannot do. There are, however, some reasons to be cheerful. Over the past year, the Government’s services revenue for Post Office Ltd increased for the first time in 10 years, reversing the trend of decline that we saw under the previous Government.

John Healey (Wentworth and Dearne) (Lab): May I welcome the new Minister responsible for further education and skills to one of the most important economic posts in the Government? Will he confirm his backing for the successful union learning fund that helps 100,000 people a year get on to courses? It is strongly backed by

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employers who claim that staff with little history of learning are helped to take up training because of the unions’ work.

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Matthew Hancock): I am grateful for that question. It is clear that we have not only supported the union learning fund, but we will be driven by the evidence of what works to ensure that we increase the skill levels of the British population, both for its own sake and so that we can drive our competitiveness in the years ahead.

T5. [119421] Dr Sarah Wollaston (Totnes) (Con): I know the Front-Bench team are totally committed to promoting growth in our economy. Will the Minister set out how he will boost employment and growth in rural areas while balancing the need to protect the environment from unrestricted development?

Vince Cable: Several local enterprise partnerships are specialising in developing the rural economy—the hon. Lady’s LEP is one of them. Such development should be dealt with properly at that level. At my level, I look forward to talking to the new Secretary of State for Environment, Food and Rural Affairs about how we integrate economic development and rural development.

Nick Smith (Blaenau Gwent) (Lab): Three hundred and sixty of my constituents have told me that they value our local post offices. May I press the Minister to allow the post office network to allow the DVLA to have that contract for the future? Why will she not commit to doing that?

Jo Swinson: As I said in answer to my hon. Friend the Member for Gloucester (Richard Graham), that is a live procurement contract—I hope the hon. Gentleman also understands that. However, he makes his point clearly. His points are on the record and it has been noted that he is standing up for his local post offices.

T6. [119423] Eric Ollerenshaw (Lancaster and Fleetwood) (Con): What is being done to assist exporters, particularly in the north-west, to achieve results that match those of the best, such as Fisherman’s Friend in my constituency, which exports 97% of its products to more than 100 countries?

Vince Cable: Until I heard the hon. Gentleman’s question, I thought Fleetwood was primarily famous for its football team, which has just got back into the Football League. I will make an effort to visit Fleetwood. I am delighted to hear of the success of Fisherman’s Friend, which I consume a great deal of. I had not realised it was an export firm, but we will do everything we can to promote it overseas.

John Cryer (Leyton and Wanstead) (Lab): The Enterprise and Regulatory Reform Bill will, in effect, introduce no-fault dismissal by the back door through the system of protected conversation, which was debated extensively in Committee. Monitoring will be difficult, but what plans do the Government have to monitor the system to ensure that it is not abused by bad employers?

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Vince Cable: There is no question of introducing no-fault dismissal by the front or the back door. The proposal in the Bill relates to settlement agreements. We are proceeding in consultation with both employers and the trade unions—there is a wide area of consensus on the matter.

Mr Robert Buckland (South Swindon) (Con): I am delighted that my right hon. Friend is going to Honda Swindon today to help to mark 20 years of investment of more than £2 billion. Will he take the opportunity to discuss how trade barriers between the EU and Japan can be further removed and improved so that Honda’s position can be strengthened?

Vince Cable: I pay tribute to the hon. Gentleman’s work, and to the workers and managers in Swindon who have made a success of the plant. As many of us remember, many of them went on to part-time working and long vacations to keep the plant alive, and it is now succeeding. I have discussed trade barriers with the Keidanren in Japan and with others. There are a lot of non-tariff barriers in the automotive industry. We must deal with them if we are to have a genuine free trade agreement with Japan.

Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): The green investment bank was first announced in the coalition agreement. Why, two and a half years later, is it not up and running properly?

Vince Cable: The green investment bank is up and running properly. The parliamentary legislation is being put in place, and the hon. Lady has the opportunity to debate it. The team in my Department that is overseeing the bank has already disbursed significant amounts of money to energy conservation and waste projects. The bank is a success, and it will expand considerably over the next few years when it has achieved state aid approval.

Roger Williams (Brecon and Radnorshire) (LD): Business investment in research and development is absolutely essential for growth, and yet UK business invests less in R and D than our international competitors. What can the Department for Business, Innovation and Skills do with the Treasury to encourage more investment in R and D in our businesses?

Mr Willetts: The hon. Gentleman is absolutely right about the importance of R and D. We are improving the tax reliefs available to businesses, and especially to small businesses, when they invest in R and D to encourage them to do so.

Kevin Brennan (Cardiff West) (Lab): The Secretary of State mentioned the importance of growth in his Department’s mission, and yet, as we have heard, the OECD has this morning revised its growth forecast for the UK economy from plus 0.5% to minus 0.7%. Does he not see the need to change course?

Vince Cable: We recognise the economic difficulties faced by most of the western democracies, including our own, and the hon. Gentleman knows the reason for them. We had a boom in this country that got out of control and left a substantial legacy; we have broken banks; we have a very serious consumer debt problem;

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and we have major problems in our export markets. Those are the factors that contribute to the current difficulties, but we have a range of policies, several of which have been announced today, that are designed to counter those areas of weakness in growth, especially in construction.

Alun Cairns (Vale of Glamorgan) (Con): UK Trade and Investment has scored some excellent results in attracting foreign direct investment, with a particular upturn over the last two years, but the spread of that investment is not necessarily equal. What action can we take to ensure that all parts of the UK benefit from UKTI activity?

Vince Cable: As my hon. Friend says, there has been a considerable increase in inward investment, much of it as a result of the hard work done by UKTI and indeed by Ministers. There was a particular success at the British embassy alongside the excellent Olympic games, which is attracting more inward investment to this country. In terms of regional distribution, we are drawing up agreements between the local enterprise partnerships and UKTI on how to ensure that parts of the country that currently do not receive very much inward investment get a proper opportunity to lobby for it.

Paul Blomfield (Sheffield Central) (Lab): I am pleased that the Minister of State has had the opportunity to spell out the importance of international students to the UK economy, and his Department has estimated that the contribution could double. I am sure that he will share my frustration at the way those prospects are being undermined by the Home Office. What is he going to do about it?

Mr Willetts: We completely understand the importance of the Home Office maintaining the integrity of our immigration controls, but BIS—and the whole Government—believe that legitimate students who have a visa entitlement to come and study in Britain should be welcome. There is no cap on those numbers and we are making every effort through UKTI and British embassies abroad to continue to communicate the message that Britain is a great place to come and study at our colleges and universities.

Andrew Stephenson (Pendle) (Con): There has been a series of positive announcements from the aerospace industry in the last few months, especially from companies such as Rolls-Royce, which employs more than 1,000 people in my constituency. Will my right hon. Friend say more about what he is doing to support the aerospace sector?

Vince Cable: Within the last few months I have been to Sheffield to open a new centre developing frontier research on materials. There is in addition work on

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aerodynamics, which we developed through a new grant under the leadership programme that we have in relation to the aerospace sector. Aerospace is an excellent example of how Government and industry can work together to create growth and world-leading industries.

Alison Seabeck (Plymouth, Moor View) (Lab): I welcome the new team, who will be very aware that the Government’s stated policy is to improve UK growth through exports. Will they therefore explain why there is only one UK delegate to the NATO delegation supporting British defence industry and exports to that particular market? The US have got 40, the French and Germans have several—can we please have a bit of joined-up government and will he talk to his colleagues in the Foreign and Commonwealth Office?

Vince Cable: I can explain what happened at that conference. My ministerial colleagues and I spend a great deal of time promoting defence exports, which are one of the main success stories in the rapid growth of our exports and one of the main features of the rebalancing that is taking place.

Tim Farron (Westmorland and Lonsdale) (LD): In my constituency, 3,000 people are waiting desperately for a council house. Perhaps one answer to that problem, both in my area and across the country, might be to consider quantitative easing through social housing bonds, to ensure that there is an explosion in council house building in this country.

Vince Cable: I know how passionately my colleague feels about this. I was with him a few weeks ago in his constituency and there is an acute shortage of affordable housing. The issue he raises of how to get resources into affordable housing was partly met this morning by the substantial increase in guarantees of £10 billion to housing associations, which is direct funding support for social housing. I am sure that he will see a good deal of activity in the wake of this.

Mr Speaker: Last but not least, I call Ann McKechin.

Ann McKechin (Glasgow North) (Lab): Further to the Minister of State’s comments about overseas students, can he explain why there has been such a substantial decrease in applications, given the consequent substantial impact that will have on the British economy?

Mr Willetts: The evidence from UCAS—admittedly it is imperfect—does not show a fall in overseas applications. Indeed, more students are either coming to Britain to study or remaining overseas and studying for British degrees. That adds up to more than 1 million people who want to come and study for British university qualifications. That is a fantastic effort, and we can increase that number.

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Business of the House

11.34 am

Ms Angela Eagle (Wallasey) (Lab): Will the Leader of the House please give us the business for next week?

The Leader of the House of Commons (Mr Andrew Lansley): The business for next week will be:

Monday 10 September—Consideration in Committee of the European Union (Approval of Treaty Amendment Decision) Bill [Lords] (day 1).

Tuesday 11 September—Opposition Day (6th allotted day). There will be a debate on tuition fees, followed by a debate on a subject to be announced. Both debates will arise on an Opposition motion.

Wednesday 12 September—Remaining stages of the Defamation Bill, followed by a motion relating to the appointment of a new Parliamentary Commissioner for Standards.

Thursday 13 September—A debate on a motion relating to oil markets, followed by a debate on tax avoidance and evasion. The subjects for these debates have been nominated by the Backbench Business Committee.

Friday 14 September—Private Members’ Bills

The provisional business for the week commencing 17 September will include:

Monday 17 September—Second Reading of the Infrastructure (Financial Assistance) Bill.

Tuesday 18 September—Motion on the conference recess adjournment, the format of which has been specified by the Backbench Business Committee.

I should also like to inform the House that the business in Westminster Hall for 13 September will be:

Thursday 13 September—Debate on the dairy industry.

May I say how privileged I am to be appointed Leader of the House? I pay tribute to my predecessor, my right hon. Friend the Member for North West Hampshire (Sir George Young), and to the former Deputy Leader of the House, the hon. Member for Somerton and Frome (Mr Heath), who takes on important new Government responsibilities. Throughout the House, my predecessor was held in the greatest respect and affection, and continues to be. He saw through important reforms, and I can hope to do no better than to emulate him in how he demonstrated that he understood the importance of being not only Leader of the House but a leader for the House, speaking for the House and representing it in government and beyond, and balancing that with the important responsibility of representing the Government within the House. I look forward to these new responsibilities.

Ms Eagle: I welcome the new Leader of the House and join him in paying a warm tribute to his distinguished predecessor. The right hon. Member for North West Hampshire (Sir George Young) has given long and distinguished service both in government and to the House. Over the years, he has surprised political pundits with his Lazarus-style tendencies, and perhaps even this time he is merely on a sabbatical and will be back. I also welcome the new Deputy Leader of the House of Commons, and pay tribute to his predecessor, the hon. Member for Somerton and Frome (Mr Heath).

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I also welcome the Chief Whip to his new and extremely challenging job. One of the first things he will have to do is console his colleagues who have been sacked in the reshuffle—and not given knighthoods. If it is any help, I can tell them that, in my experience, being sacked from government does not necessarily mean the end of a Member’s ministerial career. I returned to government in a subsequent reshuffle—under a new Prime Minister.

Over the summer, the Olympics and Paralympics have shown the best of our country, and I salute the tremendous achievements of all our athletes and those who volunteered during the games, who contributed to making it such an inspirational summer. I pay particular tribute to those at the London Organising Committee of the Olympic Games and Paralympic Games and my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell), who did so much to bring the games to this country and make them a success. Also, in the spirit of cross-party unity and wanting, as always, to be helpful, may I single out the part played by the Mayor of London? No one has asked him whether he is a man or a mouse.

Speaking of the Prime Minister, after his disastrous summer, it is hardly a surprise that we have had yet another Government relaunch. After the reshuffle, we have a new right-wing Justice Secretary, an Environment Secretary who is a climate change sceptic and an Equalities Minister who has voted against almost every piece of equality legislation. So now we know: at the end of the rose garden, turn right. Given her record, can the Leader of the House arrange for an urgent statement from the new Equalities Minister, so she can inform the House of her unique approach to her brief?

The new Secretary of State for Health said before the election that a Conservative Government would “crowd-source” ideas, because Conservatives believe in collective wisdom. Will the Leader of the House commend the Chancellor for going to the Olympics stadium the other night to do his own little experiment with crowd-sourcing, and can he tell us what the Chancellor will be doing with the answer he got?

What the British people want is not yet another Government relaunch, but a real plan for jobs and growth, because the Chancellor’s economic policies have failed spectacularly. We now have an economy in the longest double-dip recession since the second world war. Growth forecasts have been cut and borrowing is up by a quarter. The Prime Minister has been on “Daybreak” this morning making announcements that should have been made to this House. When will he learn that cosy chats on the “Daybreak” sofa are no substitutes for a statement to this House? We should not have to rely on urgent questions.

The Deputy Prime Minister said in an interview with The Guardian over the recess that, given the economic situation, it was right to increase taxes on the very wealthy. The next day the Chancellor rubbished the idea. After the reshuffle, does the new roving Economic Minister, the right hon. and learned Member for Rushcliffe (Mr Clarke), have the casting vote? With the excitement of the Olympics, I thought I must have forgotten about the Liberal Democrats joining us in the Lobby to vote against a Budget that gave a huge tax cut to millionaires, but according to Hansard the Liberal Democrats voted for it. After the Deputy Prime Minister’s disastrous performance at the Dispatch Box this week, the new

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Leader of the House might find it difficult to coax him back to the Chamber any time soon, but can he try to get us an urgent statement? The impression at the moment is that the Deputy Prime Minister is saying one thing in public and voting the opposite way in this House.

I look forward very much to working with the Leader of the House. I hope that he can set out his views soon on the proposed House business committee. In the meantime, will he put all our minds at rest, on this first occasion at the Dispatch Box, and rule out a top-down reorganisation of the House of Commons?

Mr Lansley: I am grateful to the hon. Lady for her welcome. I am also grateful for her very warm tribute to my predecessor. I know that the House will very much appreciate the intention that he should be further honoured, as a Companion of Honour. It is a rare honour, but one that reflects the regard in which we all hold him.

The hon. Lady is quite right: I recall at the last business questions before the recess that the House was looking forward to the Olympics and Paralympics. In truth, I think all our expectations have been wonderfully exceeded. It has been a most inspirational event, and not only inspirational for a generation, as it was intended to be, but a fabulous showcase for what this country can achieve. We, the Government and the people of this country will be able to depend on that reputation across the world in years to come.

The hon. Lady asked a number of questions and made a number of points. Let me tell her that the changes in the Government are all about ensuring that we take forward our reforms and our focus on growth. All of us, as the Prime Minister absolutely said, recognise the difficulties that we encountered when we came into government. We know—and have known for two and a half years—how difficult they are. In a sense, they have been added to by the problems in the eurozone and the international economic situation. We are not alone in the problems we have to face, so we are focused on growth, and that will be true, as the Prime Minister has rightly said, in every Department—whether in the Department for Education, in developing the skills, the qualifications and the standards that are required; in the Foreign Office, which has been focused on delivering trade and investment, and business relationships across the world; or in the Department for Communities and Local Government, in using the powers that the Localism Act 2011 gave to local authorities and the new planning arrangements to deliver increased growth and build jobs. That is what it will mean in all those Departments. The difference between the Government and the Opposition is that the Labour Government were responsible for the mess that the country was in in 2010, whereas this Government are focused on getting the country out of that mess.

Margot James (Stourbridge) (Con): Millions of law-abiding citizens will be outraged that Mr and Mrs Ferrie spent three days in custody after defending themselves against burglars, one of whom turned out to be a violent career criminal out of prison early on licence. May we have a statement from the Home Secretary on the urgent need to include common sense in the training of police officers, and may we have a debate about the rights of householders to defend themselves and their property?

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Mr Lansley: I completely understand how strongly my hon. Friend feels about that, and I think many Members of the House feel the same. I hope she sees that there is an opportunity for her on the 18th of this month to raise that issue at Justice questions. I am sure that Ministers will feel as strongly as she does on this.

Natascha Engel (North East Derbyshire) (Lab): Before I welcome the new Leader of the House to his new role, I too would like to put on record my thanks to his predecessor, the right hon. Member for North West Hampshire (Sir George Young). Without his help and good advice, the Backbench Business Committee would not be what it is today, and the Back Benches are a more interesting and more powerful place as a result of his time in office.

I am sure that the Backbench Business Committee will continue to enjoy a good and strong working relationship with the Office of the Leader of the House, and I look forward to working closely with him. May I take this opportunity to say to the House that the closing date for submitting subjects for the mini-recess Adjournment debate on the final Tuesday is Wednesday 12 September?

Mr Lansley: I am grateful for the hon. Lady’s kind words. I was pleased that in my first announcements on the business of the House I was able to include not only the pre-recess Adjournment debate but a day for the Backbench Business Committee which is not a Thursday. I want to follow what my predecessor achieved in improving the opportunities for debates for Back-Bench Members and in bringing a sense to this House of being a forum for the nation on issues of importance. I hope that we will continue to do that.

Jake Berry (Rossendale and Darwen) (Con): For more than 100 years the Bacup and Britannia Coco-nutters have been dancing the boundaries of Bacup on Easter weekend. May we have a statement about the cost of road closure orders, as the Coco-nutters face the prospect of not being able to dance this Easter because it will cost £1,000 to close the road? It is endangering our morris dancing tradition.

Mr Lansley: I am grateful to my hon. Friend for giving me an early opportunity to understand the encyclopaedic nature of business questions. The limits of my knowledge I have always been aware of, and it does not extend to morris dancing. I will draw the point that he raises on behalf of his constituents to the attention of my colleagues at the Department for Communities and Local Government, and ask them to respond to it.

Mr Ben Bradshaw (Exeter) (Lab): May we have a clear statement from the Government on their policy on regional pay? In May the Deputy Prime Minister said:

“There is going to be no regional pay system. That is not going to happen.”

Yet 20 health trusts in south-west England have announced that they intend to abandon the NHS’s national “Agenda for Change” pay structure and adopt just such a regional pay system. This is causing great concern and anger among thousands of NHS workers and their families across the south-west.

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Mr Lansley: I am grateful to the right hon. Gentleman for the opportunity further to reiterate—we have discussed it in the past—that we were not proposing regional pay. I made it clear in my previous role as Secretary of State for Health that we were proposing pay that was more reflective of local labour market circumstances, marketplace and pay. That is capable of being achieved through the “Agenda for Change” framework, and to that extent it is consistent with national frameworks for pay. The consortium of trusts has made it clear that its frustration is borne of the lack of progress in the national pay frameworks.

Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con): The Leader of the House will be fully aware that the 2nd Battalion the Royal Regiment of Fusiliers is due to be cut. That decision is wrong on many levels. It is a fully recruited, highly motivated regiment, in whose 6th Battalion I served. May we please have time in this Chamber to discuss what is blatantly a wrong decision and to put forward the reasons why the 2nd Battalion the Fusiliers should be kept as a line regiment doing the phenomenal job that it has been doing and wants to continue to do for this country?

Mr Lansley: I completely understand the strength of feeling that my hon. Friend expresses. He will have heard, as I did, the Prime Minister’s response to a question from my hon. Friend the Member for Basildon and Billericay (Mr Baron) yesterday. The Prime Minister explained how the reshaping and the changing character of the armed forces were being developed under the Army 2020 arrangements. He was willing to arrange a meeting to discuss that matter, and I simply reiterate that.

Mr Barry Sheerman (Huddersfield) (Lab/Co-op): I welcome the new Leader of the House to his post. We will miss the old Leader of the House, who was essentially a great parliamentarian. He was full of wit and wisdom, and he will be a hard act to follow, but I am sure that the right hon. Member for South Cambridgeshire (Mr Lansley) will have a good go at it.

May I raise an important question as the Member of Parliament for Huddersfield? It relates to Pakistan and extradition. Criminals and suspected criminals who flee to Pakistan are almost impossible to track. Ten years ago, eight members of the Chishti family were killed in an arson attack, including the mother, the older children and tiny babies. Three of the gang that did it were arrested, tried and convicted, but one of the prime suspects, Shahid Mohammed, fled to Pakistan. People in Pakistan know where he is. What can we do to track him down, bring him back to face justice and give comfort to the Chishti family?

Mr Lansley: The hon. Gentleman raises an issue that is clearly of great importance to his constituents. I do not know the answer to his question, but I will gladly raise it with my Foreign and Commonwealth Office colleagues and ask them to respond to him.

Dr Julian Lewis (New Forest East) (Con): May I say to my former chief at the Conservative research department what a pleasure it is to see one of the most decent people in political life now occupying one of the most distinguished positions in Parliament? In return for

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that, may we have a statement from a member of the new Defence ministerial team on the situation of Commonwealth soldiers who would normally be in a good position to apply for citizenship at the end of their service, but who are being prevented by the UK Border Agency, on very questionable grounds such as minor military disciplinary infractions? We owe those soldiers a debt of honour, and they should not be discriminated against in that way.

Mr Lansley: I am grateful to my hon. Friend, and I will raise that issue. I know that people feel strongly that service personnel who serve this country should be treated with the greatest respect and honoured as a consequence. My colleagues at the Ministry of Defence will want to reply to him on that matter.

Mr John Spellar (Warley) (Lab): May I also welcome the Leader of the House to his new position? I should like to take him back to his previous incarnation as Health Secretary. Is he as shocked as I was to find out how much typing work is now being outsourced abroad by hospitals? My freedom of information request has revealed that West Middlesex outsourced 230,000 letters in one year, that Whittington outsourced 90,000, that Epsom outsourced 11,000 in a quarter, and that Kingston outsourced 17,000 in a pilot. Medical secretaries are being laid off as a result. May we have a debate so that the Secretary of State for Health can justify taking away British jobs from British workers?

Mr Lansley: I will of course raise that issue with the Department of Health on the right hon. Gentleman’s behalf, but he might also like to raise it himself in the pre-recess Adjournment debate, which will give Members the opportunity to mention issues of that kind. I was interested to see, in my own constituency a few years ago, that Addenbrooke’s—a major hospital—had outsourced activities of that kind, but that it brought them back to this country as a consequence of seeing the quality of service that could be delivered here.

Dr Matthew Offord (Hendon) (Con): In July this year, the Prime Minister said that he fully supported the right of people to wear religious symbols at work. That position was supported by the Attorney-General and the Equalities Minister. Will a Minister therefore come to the Dispatch Box to explain why lawyers acting on behalf of the Government are contradicting the Prime Minister in bringing a case against Shirley Chaplin for wearing a crucifix at work?

Hon. Members: Hear, hear!

Mr Lansley: I think that that response to my hon. Friend’s question demonstrates the fact that we feel strongly about this matter. People should be able to wear crosses and to reflect their faith and beliefs. The law allows for that, and employers are generally good at being reasonable in accommodating people’s religious beliefs. We believe that the law as it stands strikes the right balance between the rights of employees and employers. We also believe that it is better for the UK to look after its own laws, rather than being forced into a change by a European court. We believe that UK law strikes the right balance, and losing that case would place extra restrictions on how employers treat their work forces. We are not seeking that.

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Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab): I congratulate the Leader of the House on his new position. May I also express my disappointment that the Government reshuffle did not deliver a Minister for Teesside? I say that because figures from the Office for National Statistics have today shown that South Teesside has moved from 14th to second in the country for its number of households with no work. May we have a statement on why the number of workless households in Teesside has increased so desperately in the past year?

Mr Lansley: I am surprised that the hon. Gentleman did not put that in the context of the overall reduction in the number of households with nobody in work, which I believe is very much to be applauded.

Philip Davies (Shipley) (Con): May we have a debate on the appointment of judges, and on how to make them more reflective of public opinion? A great deal of concern has been expressed about lily-livered judges by many people, not least me, and yesterday we heard a judge saying that it took a huge amount of courage to burgle a house, and refusing to send a persistent burglar to prison. How can we ensure that idiots like that do not remain in the judiciary, and that the people who are appointed to the judiciary do not reflect the views of that individual?

Mr Lansley: I am conscious that, in my new privileged position, I stand at a constitutional juxtaposition between the legislature and the Executive. One of the last things I would want to do, on my first occasion at the Dispatch Box, would be to trespass on the relationship between the legislature, the Executive and the judiciary, and in particular on the independence of the judiciary, so I will avoid commenting on that. However, my hon. Friend’s observations are on the record.

Alex Cunningham (Stockton North) (Lab): Yesterday, 500 Teessiders, many of them from my constituency, lost their jobs with Direct Line, which is part of the state-owned RBS Group, not long after apparently having been cajoled into signing new contracts. That means that their redundancy payments will be considerably less; they will lose thousands of pounds as well as their jobs. I am sure that the Leader of the House will agree that such actions are abhorrent, and that the managers must be held to account. Does he know whether the Business Secretary plans to make a statement on the decisions of this state-owned business, and would the Leader of the House allow a debate on the issue?

Mr Lansley: I share the hon. Gentleman’s view, as I am sure all Members do, that the prospect of losing one’s job can be difficult and that we should all sympathise and do everything we can to help. Indeed, the Government will do everything they can to help, and Governments have done a great deal in the north-east. For example, the Deputy Prime Minister and the Chancellor were there recently to see how new investment was going to the north-east as a result of the enterprise zones. I confess that I was in the House only for the latter part of Business, Innovation and Skills questions, so I do not know whether the hon. Gentleman was able to raise this matter then. That would have been a good opportunity to do so.

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Mike Crockart (Edinburgh West) (LD): Six hundred and fifty million silent calls were made in the UK last year, many of them to vulnerable older people. Forty-five million spam texts are sent in Europe every single year, 92% of which are estimated to be fraudulent, and 3 million UK adults will be scammed out of £800 each this year by fraudulent marketing calls. May we therefore have an urgent debate on the effectiveness of the powers of the Information Commissioner’s Office, as it is now clear that we have an industry in crisis and a country under siege?

Mr Lansley: I am interested to hear what the hon. Gentleman has to say. I think that all Members and people outside the House will, almost without exception, have been the recipients of such nuisance calls, which can be very distressing, particularly for older and vulnerable people. He will know that this is exactly the sort of issue that it is helpful to raise, for example, in the pre-recess Adjournment debate, not least because that will focus the mind of the Information Commissioner. In any case, I will make sure that the issue, which touches on the responsibilities of Ofcom and the ICO, is raised with the Department for Culture, Media and Sport.

Paul Flynn (Newport West) (Lab): When can we debate the apparent ambition of the Prime Minister to rival the work of King James I and David Lloyd George in degrading the honours system? A Select Committee has already criticised the Prime Minister for setting up in March this year, without the knowledge or consent of Parliament, a new Committee dominated by the Whips, which exists to give honours to MPs. The distribution of consolation prizes to sacked Ministers is likely to bring the honours system into further disrepute and ridicule.

Mr Lansley: I do not welcome what the hon. Gentleman says. In this House as elsewhere, we should honour public service. This is a mechanism for honouring public service, and I see absolutely no reason why this Members of this House should be debarred from having access to that kind of honour.

Jason McCartney (Colne Valley) (Con): For the first time in ages, all the shop premises in Holmfirth, a market town in my constituency, are actually let, which is really good news. I know that the Government have been doing their bit to support our town centres with their high street strategy, but could we have a debate on the many “shop local” campaigns, which are working hard to support our local shop centres and businesses and our local producers?

Mr Lansley: I am pleased to hear what my hon. Friend has to say, and I welcome what he said about Holmfirth high street. Indeed, we have accepted and implemented virtually all Mary Portas’s review recommendations. I hope that the pilots will show how we can extend some of the lessons further to invigorate high streets across the country—something that, as my hon. Friend illustrates, can be achieved.

Valerie Vaz (Walsall South) (Lab): I welcome the Leader of the House to his new position and place on record my thanks to the right hon. Member for North West Hampshire (Sir George Young) for the helpful and courteous way in which he dealt with Back Benchers. I hope that that will continue.

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Can we have an urgent debate on the Sunday trading laws, given that the announcements outside this House are at variance with the undertakings given inside it? If there is any consultation, will the Leader of the House ensure that retail staff, the unions, the Churches and the Association of Convenience Stores are included?

Mr Lansley: I am grateful to the hon. Lady for her kind words about my predecessor. I do hope to emulate in many respects the way in which he fulfilled his responsibilities so wonderfully. As to Sunday trading legislation, however, I do not accept the premise of her question. I do not think there is any variance between what the Government said when we introduced the legislation about the extension of Sunday trading hours during the summer and what has been said subsequently.

Mr David Nuttall (Bury North) (Con): In welcoming my right hon. Friend to his new position as Leader of the House, I would like to reiterate and add my voice to the calls for a debate on the proposal to disband the 2nd Battalion the Royal Regiment of Fusiliers? In particular, we should consider how that decision will affect recruitment opportunities in my Bury North constituency, which has a long and proud history of providing new recruits to the Fusiliers.

Mr Lansley: I am grateful to my hon. Friend, who reiterates on behalf of his constituency a point that is particularly important to it as a location for recruitment. My colleagues in the Ministry of Defence are, through Army 2020, setting about the process of changing not the size but the shape of the armed services, particularly the Army. In that context, they are looking for something that is sustainable, not least because the Army recruits from across the country. I have already mentioned the opportunity for Members to talk to Ministers about this, but in addition, I hope that Members will recognise that this is the sort of issue that is worth raising in the pre-recess Adjournment debate on Tuesday week.

Kelvin Hopkins (Luton North) (Lab): It was reported yesterday that 50,000 more patients suffering from alcohol problems had been admitted to A and E, bringing the national annual total to a staggering 1.2 million. Again, according to experts, cheap alcohol is to blame. Will the Leader of the House press his Government colleagues to bring forward comprehensive measures to deal with Britain’s growing and serious alcohol problems, including a minimum price for alcohol?

Mr Lansley: The hon. Gentleman will no doubt be aware of the alcohol strategy that the Government published several months ago. In itself, that reflected a comprehensive strategy to address the severity of the problem he describes. In that context, data were published only last week on alcohol-related admissions to hospital showing that the previous rates of increase in those hospital admissions under the last Government were considerably greater than those under this Government last year.

Bob Stewart (Beckenham) (Con): I was in the House a lot yesterday, and have been here a lot during the week, but I cannot recall any tribute being given to our

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armed forces for how they rescued the security of the Olympics. I may be wrong, but I would like to place on record everyone’s thanks to our armed forces. When watching the Olympics on my big television, I often noticed the red and white hackle of the Royal Regiment of Fusiliers. These soldiers were brought in quickly in an emergency to sort out a problem. I reiterate what colleagues and friends on both sides of the House have said: we need to debate what is happening to English regiments, which may well be needed quickly in the future. I would very much like to have a debate on the 2nd Battalion the Royal Regiment of Fusiliers and on my own old regiment, the 2nd Battalion the Mercian Regiment, called the Staffordshire Regiment.

Mr Lansley: I am grateful to my hon. Friend. I will not reiterate my earlier points, as the importance of his points is recognised, as are the opportunities to debate the matter before the House rises for the pre-conference recess. I entirely share his view about the fabulous job done at the Olympics by members of our armed services, as I noted from my experience of visiting the Olympic park on one occasion. It is not just that they provided security, but that they did so in such a friendly, welcoming and engaging way.

Wayne David (Caerphilly) (Lab): Can we have a debate on multiple and double jobbing? I am thinking particularly of the large number of Conservative MPs who now have more than one job in government. For example, the hon. Member for Preseli Pembrokeshire (Stephen Crabb) is not only a Wales Office Minister, but a senior Government Whip. Leaving aside the convention that senior Whips do not normally speak in the Chamber, how do we know which job has his priority?

Mr Lansley: I am absolutely clear that there is no conflict between having a responsibility as part of the Government’s business management and having responsibilities on policy and administration. I understand that there is no conflict, because I have such a role: I have responsibilities to this House and I have responsibilities in government, and I see them as equally important.

Several hon. Members rose

Mr Speaker: Order. I remind the House that there is a further statement to follow. I am keen to accommodate the interest of colleagues in business questions, but if I am to be successful in doing so, brevity from both Back Benchers and Front Benchers alike is now vital.

Robert Halfon (Harlow) (Con): Can we have a debate on intellectual insanity? The Labour-supporting Institute for Public Policy Research is now arguing that motorists are not suffering enough from high petrol taxes, and is calling for more taxes. Is that not surprising, given that high petrol taxes hit the poorest Britons twice as hard as the rich?

Mr Lansley: I am interested by what my hon. Friend has said. I seem to recall that, according to Einstein, one of the definitions of that kind of insanity was “to keep doing the same thing while expecting a different result”. I am afraid that that is what we see from the Labour party day by day.

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Chris Bryant (Rhondda) (Lab): I, too, pay tribute to the former Leader of the House. I think it is a bit of a shame that he has not been given a knighthood. I know that he is already a baronet, but I thought he could prove that at the age of 70 it was still possible to do “twice a knight”.

Let me now ask a question of real importance. Given that the Government have a massive hole in their programme for the autumn because we lost the House of Lords reform Bill, which was carried by a three-to-one majority, can the Leader of the House do something on behalf of all the Back Benchers in the House, and ensure that the days that would have been allocated to that Bill—10 days, perhaps—can be allocated to Back-Bench business, particularly private Members’ Bills, so that some of the good ideas on the Back Benches can inform the Government?

Mr Lansley: I must confess that I am slightly staggered that the hon. Gentleman now seeks to make a virtue of the fact that he and his party voted by a substantial majority for the principle of House of Lords reform, and then effectively sought to obstruct any progress. My definition of opposition is not obstruction. It may be his definition, but it is not mine.

Henry Smith (Crawley) (Con): I warmly welcome my right hon. Friend to his position. Will he consider arranging a debate on over-zealous health and safety regulation? Apparently my local authority, Crawley borough council, has been told to remove all park benches that are under trees.

Mr Lansley: I hope my hon. Friend will not be surprised to learn that we in the Government have been working actively over the last two and a half years to ensure that common sense is at the heart of the way in which we apply health and safety regulations. It must be evidence-based, common-sense and proportionate. Measures have been taken, but I will certainly draw my hon. Friend’s comments to the attention of my colleagues in the Department for Business, Innovation and Skills so that they can continue the process.

Helen Jones (Warrington North) (Lab): This week, in Westminster Hall, Members held a debate on the shambles that is Atos. When will the Secretary of State for Work and Pensions come to the House to make a statement on what is going on in that organisation? In my constituency I have seen a woman undergoing chemotherapy passed as fit for work, and a veteran who was classed as being more than 40% disabled for the purpose of industrial injuries benefit lose his disability living allowance following an Atos report which referred to him as a woman throughout. When are we going to get some answers in relation to what this organisation is inflicting on disabled people?

Mr Lansley: In terms of business, the hon. Lady is right. The House had an opportunity to debate Atos Healthcare, and I think that she may have received replies from the then Minister of State, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling). I personally know that the work done as a consequence of the Harrington reviews, and what we announced in

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July about the recording of tribunal judges’ reasons for overturning decisions on appeal, will enable us continuously to improve the process.

Mr John Baron (Basildon and Billericay) (Con): I welcome the Leader of the House to his new post. May I ask him to consider one further fact relating to the 2nd Battalion the Royal Regiment of Fusiliers? It is the only infantry battalion that is being axed for political rather than military reasons, in order to save the more poorly recruited Scottish battalions ahead of the referendum. In fact, no Scottish battalions are being axed. I am married to a Scot and I believe in the Union, but discriminating against the English is not the way for us to achieve our goal.

Mr Lansley: My hon. Friend had an opportunity to raise that with the Prime Minister at Prime Minister’s Question Time, and I hope that he will take the opportunity that the Prime Minister gave him to make his points at a meeting. However, I do not recognise his description of the way in which decisions were made. They were made on the basis of an assessment of how the armed services could be sustainable for the future, and could secure representation and maintain recruitment throughout the United Kingdom.

John Healey (Wentworth and Dearne) (Lab): It is good to see that the Leader of the House is still in the Cabinet, and especially good to know that he will not be steering any legislation through the House in his new position. He will know that the number of university applications from young people in Britain has dropped by nearly 10% for this year, as a direct result of the disastrous decision to raise tuition fees to £9,000. Why will the Government not find time for a debate on the subject—in Government time—rather than leaving it to the Opposition?

Mr Lansley: When the Opposition have wished to present an issue for debate and have chosen the issue of tuition fees, I have announced it as a consequence.

I am grateful to the right hon. Gentleman for his reference to legislation. I wonder whether he meant by it the piece of legislation which, shortly after its introduction, he described as “consistent, coherent and comprehensive”.

Sir Tony Baldry (Banbury) (Con): It is clear from what the Prime Minister said yesterday at Prime Minister’s Question Time, and will be clear from the statement that we shall hear shortly, that a considerable number of initiatives are being taken throughout Whitehall to promote growth and jobs. Indeed, it is sometimes quite difficult to keep up with what is being done. Could the Leader of the House arrange for a quarterly statement to be deposited in the Vote Office, in which every Whitehall Department reports to the House on the initiatives that it is taking to promote growth and the progress of those initiatives?

Mr Lansley: I will of course reflect on my hon. Friend’s suggestion. However, although he says that it is difficult to keep up, the connection between the things that are being done is often very straightforward. For example, our announcement in July of funding for lending that would allow increased access to mortgages at more affordable rates will be followed up by my right

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hon. Friend the Secretary of State for Communities and Local Government in his statement shortly. While we wish to create more demand for new housing, we also wish to ensure that some sites that have not been developed can be developed in future.

Luciana Berger (Liverpool, Wavertree) (Lab/Co-op): For the second time in 12 months, the Department for Work and Pensions is planning to close the Old Swan jobcentre. Unemployment in the Old Swan ward has risen by 3% in the last month. Will the Leader of the House find time for the employment Minister to make a statement to the House explaining why he is making it more difficult for my constituents to find jobs?

Mr Lansley: The hon. Lady will have an opportunity to raise that issue during questions to the Secretary of State for Work and Pensions next Monday.

Mr Graham Stuart (Beverley and Holderness) (Con): I, too, welcome the new Leader of the House, who I am sure will do an excellent job. May I take him back to his old brief for a moment, and ask for a debate about the gross distortions in health care funding that we inherited from the last Government? For instance, in Dorset, which I believe has the largest elderly population in the country, £4,000 is being spent on each cancer patient, while in Tower Hamlets, which contains very few elderly people, the figure is £13,000. We have a grossly distorted inheritance from Labour. In the name of deprivation, Labour distorted health funding and cheated people of the health care that they deserve.

Mr Lansley: A consultation is taking place on the mandate of the NHS Commissioning Board. It will deal with, among other topics, the board’s responsibility to allocate NHS resources on the basis of equal access for equal need. If my hon. Friend wishes to make his points again, the board will be able to take them into account when it receives recommendations from the Advisory Committee on Resource Allocation.

Alison Seabeck (Plymouth, Moor View) (Lab): I welcome the members of the new team. They will be as surprised as I was to hear what happened to a constituent of mine, a victim of domestic violence. Her screams and the breaking of a window from the inside attracted the attention of the police, but it is she who is now subject to antisocial behaviour powers. Will the Leader of the House please ask the new Home Office team to come to the House and engage in a debate about the way in which domestic violence victims are supported—or not—by police forces around the country?

Mr Lansley: I am surprised, and like the hon. Lady, I am obviously disappointed. I will of course ask whether my colleagues in the Home Office can respond to her on the issue.

Rehman Chishti (Gillingham and Rainham) (Con): When I spoke recently to Bishop Michael Nazir-Ali, I was informed that there was persecution of Christian and minority communities in 130 out of 190 countries. May we have an urgent debate on tackling this growing problem?

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Mr Lansley: My hon. Friend makes an important point. This matter has exercised Foreign Office Ministers. They have made substantial representations in a number of countries about such situations. I will gladly raise the matter with Foreign Office Ministers and ask them to respond to him.

Diana Johnson (Kingston upon Hull North) (Lab): I welcome the new Leader of the House to his post. Will he explain why only sacked male Ministers received honours, while none of the women who were sacked received honours, despite their having been more senior Ministers?

Mr Lansley: Matters relating to honours are matters for the Prime Minister.

Steve Brine (Winchester) (Con): I welcome the new Leader of the House to his post. I know he will do well for the House, as he did day in, day out for the health service in the last two-and-a-half years in government.

My right hon. Friend was present for the end of Department for Business, Innovation and Skills questions, and he will have heard the representations made about the Post Office. May we have a statement from the new Minister with responsibility for the Post Office about the Driver and Vehicle Licensing Agency contract? The Government say they support post offices and making them viable front-office businesses. We need to put our money where our mouth is, so we are not at the mercy of a Europe-wide tendering process. Kings Worthy post office and its customers have made many representations to me over the summer, and this decision could very well close the business.

Mr Lansley: I did, indeed, hear the answer rightly given by the new Department for Business, Innovation and Skills Minister. I should put this matter in context. The post office local model is an excellent model, and we are seeing substantial take-up, which is in many instances reviving post office services. The Government are absolutely clear that we will not entertain a process of post office closures, which is what happened under the last Government. On the specific point, this contract process is currently live and it would not be proper for Ministers to comment or interfere during the course of that.

Kevin Brennan (Cardiff West) (Lab): I welcome the new Leader of the House and his deputy to their posts, and as the right hon. Member for East Yorkshire (Mr Knight) is on the Treasury Bench, may I also congratulate him on his appointment to his new post of Vice-Chamberlain of Her Majesty’s Household, prompting the headline “MP4 drummer joins Queen”? May we have the debate on the honours system that has just been suggested, because is not giving honours to losers in a reshuffle to console them an example of the “all shall have prizes” culture that the Prime Minister claims to denigrate?

Mr Lansley: I will give the hon. Gentleman the prize of best joke of the day, if I may. I merely reiterate the point I made earlier: in this House, people give public service. It is not simply a job; it is much more than that. People do far beyond what I think people in most jobs would expect to do. They give of themselves and their

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time, and their families and their lives, especially when they are in government, as many Opposition Members will know from their past experiences. Being in government is an onerous and demanding task. For example, my parliamentary neighbour, my right hon. Friend the Member for South East Cambridgeshire (Mr Paice), has had Front-Bench responsibilities for over 22 years. That is a dramatic contribution to public service, and I think it is right that it is properly recognised.

Andrew Stephenson (Pendle) (Con): Has the Leader of the House had time to see early-day motion 337, standing in my name, welcoming the success of Pendle borough council in promoting tourism over the summer?

[That this House welcomes the success of Pendle Borough Council in promoting tourism; notes that 2012 is the 400th anniversary of the Pendle Witch trials and the 100th anniversary of the sinking of the Titanic, whose Bandmaster Wallace Hartley came from Pendle; commends the opening of the Titanic in Lancashire Museum to remember the many Lancastrians caught up in the tragedy; further notes that over the summer events will include the Trawden Agricultural Show and Barrowford Show, the Trawden Garden Festival, the Pendle Cycle Festival, including the Colne Grand Prix Cycle Race, the Pendle Pedal and the Tour of Pendle; further notes that the highlight of the summer for music lovers has to be the Great British Rhythm and Blues Festival in Colne, spanning four days and featuring some of the greatest names in blues, and that the event was named the Best British Blues Festival in the British Blues Awards 2011; further notes that September brings the annual Pendle Walking Festival, which is now the largest in the UK; believes that promoting tourism is vital for economic development across the north of England; and encourages hon. Members to visit Pendle during 2012.]

I hope that my right hon. Friend agrees that the tourism sector is vital in the north of England. May we therefore have a debate on this vital sector of the economy?

Mr Lansley: I will perhaps now become more familiar with early-day motions than I have been in the recent past. I will certainly pay attention to the one that my hon. Friend mentions, and he might like to reiterate his important point about tourism at the soon-forthcoming Department for Culture, Media and Sport questions.

Nick Smith (Blaenau Gwent) (Lab): The “rockets and feathers” strategies employed by oil companies are crucifying motorists in Blaenau Gwent, so I welcome the Office of Fair Trading plans to investigate petrol pricing. May we have a debate on how to help our road hauliers and logistics industries to get our economy moving again?

Mr Lansley: I, too, take an interest in this issue, and welcome the OFT call for evidence. I note that the Backbench Business Committee has selected the oil market as a subject for debate, and it would probably be entirely in order for the issues the hon. Gentleman has just raised to be discussed in the course of that debate.

Andrew Bridgen (North West Leicestershire) (Con): May we urgently have a debate about the effectiveness

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of the Government’s bursary scheme for 16 to 19-year-olds? The latest figures show that the proportion of 16-year-olds classed as NEETs—not in education, employment or training—has fallen year-on-year in the second quarter of 2012. Given that this is the first cohort to be affected by the transition from education maintenance allowance to the bursary scheme, does this not show that, despite the hysterical reaction of the Opposition, the scrapping of EMA has not had a negative impact on the number of NEETs, and that the money is now being better spent and better targeted?

Mr Lansley: My hon. Friend makes important points. The coalition Government have put £180 million into the 16-to-19 bursary fund this year, to enable the most financially disadvantaged young people to participate in education. The most vulnerable young people receive, as a standard amount, £1,200 more than they would have received under EMA.

John Cryer (Leyton and Wanstead) (Lab): May I welcome the dear Leader to his new Front-Bench post? I suspect he will be a very effective Leader of the House—probably more effective than the Prime Minister would strictly want. Is there any sign of a Bill to create a register of lobbyists, which we have been promised for over two years? The Prime Minister said this would be the next big scandal in British politics and he has been proved right. When will a Bill be on the statute book?

Mr Lansley: I am grateful to the hon. Gentleman. I never expected to be called “Leader”; to be called “dear Leader” was beyond my expectations.

At yesterday’s Cabinet Office questions, the Minister of State, Cabinet Office, my right hon. Friend the Member for West Dorset (Mr Letwin), explained the current situation and noted that there have been many responses to the consultation on this matter. They are being seriously considered and he will make a statement in due course.

Alun Cairns (Vale of Glamorgan) (Con): I congratulate the Leader of the House on his appointment. From his previous post, he will be acutely aware of the different approaches to cancer care across the UK. Sadly, my constituents in Wales have less money spent on drugs, longer waiting times and higher mortality rates than those in other parts of the UK. May we have a debate on cancer treatment and the merits of the various approaches, so we can at least show that Wales is getting a worse deal on cancer drugs?

Mr Lansley: I understand, and greatly sympathise with, my hon. Friend’s point, and I will ask my colleagues at the Department of Health to respond to him. The coalition Government should be especially proud of tackling directly the issue of access to new cancer medicines. As a consequence of the Cancer Drugs Fund, more than 12,500 people with cancer have received access to the latest medicines over the last two-and-a-half years who would not have done so under the arrangements the last Government left us.

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Speaker’s Statement

12.27 pm

Mr Speaker: I thank the Leader of the House and other colleagues. Before I call the Secretary of State for Communities and Local Government to make his statement, I myself have a brief statement to make.

Mr Greg Knight has written to me in accordance with Standing Order No. 122C giving notice of his wish to resign from the Chair of the Procedure Committee. I therefore declare the Chair vacant. The following will be the arrangements for electing a new Chair of the Procedure Committee. Nominations should be submitted in the Lower Table Office by 12 noon on Tuesday 16 October. Following the House’s decision of 26 May 2010, only members of the Conservative party may be candidates in this election. If there is more than one candidate, the ballot will take place on Wednesday 17 October from 11 am to 1 pm, in a Committee Room to be announced. A briefing note with more details about the election will be made available to Members and published on the intranet.

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Housing and Planning

12.29 pm

The Secretary of State for Communities and Local Government (Mr Eric Pickles): With permission, Mr Speaker, I would like to make a statement on housing and planning. The coalition Government inherited a legacy where house building had fallen to its lowest rates since the 1920s, and there was a top-down planning system that built nothing but resentment and a regime of regional planning quangos that created paralysis and confrontation. After six years of preparation, by the general election fewer than 60 councils had completed local plans. The result was no development, no regeneration and no community benefit.

This Government want to get the economy growing, to remove unnecessary red tape and to support locally led sustainable development. In November, the Government published a comprehensive housing strategy to support a thriving, active and stable housing market. In March, we published a national planning policy framework that condensed 1,000 pages of central planning guidance into just 50. House building is up; it was 29% higher in 2011 than in 2009. However, there is much more to do. So, my Department is announcing a further series of common-sense measures to promote house building and support locally led economic growth. The technical details were set out in a written statement that I laid before the House, but I will now summarise the key points for hon. Members.

Following on from Sir Adrian Montague’s independent report on supporting the private rented sector, we are providing £200 million of new funding to support institutional investment in high-quality rented homes. Thanks to the action we have taken to tackle the previous Government’s deficit, we are passing on lower costs of borrowing. We will be issuing a debt guarantee for up to £10 billion to support private investment in the private rented sector and in new affordable housing. We will support up to an additional 15,000 affordable homes through the use of loan guarantees, flexibilities and capital funding. We also intend to extend our successful refurbishment programme to bring an additional 5,000 existing empty homes back into use. The previous Government wanted to demolish Victorian terraces, through John Prescott’s pathfinder programme. By contrast, we are getting homes back into productive use. In total, we will invest another £300 million in these measures to support new affordable homes and to bring empty homes into use.

We actively want to support home ownership, which fell under the last Parliament, despite a Labour pledge to increase it by 1 million. We are extending our successful FirstBuy scheme for first-time buyers, with an additional £280 million of funding helping up to 16,500 first-time buyers to purchase a home. To free up more brownfield land for development and regeneration, we will accelerate the release of surplus public sector land and empty offices through a targeted programme of transfers from other Government Departments. We will work with local authorities and developers to unlock locally supported large sites. Just last week, we were able to unblock the Eastern Quarry in the Ebbsfleet valley, a major ex-industrial site that had been stalled for more than a decade.

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We are working with local communities and councils, by strong contrast with the previous Government’s top-down plans for the so-called “eco-towns”, which failed to deliver a single home. But some councils need to raise their game, as they are failing to make planning decisions in a timely way. Planning delays create uncertainty, both for local residents and local firms. We will introduce a series of practical measures to help speed up planning decisions and appeals, and major infrastructure. Some complex developments take time to assemble, so we are allowing for developers to extend the duration of existing planning permissions. We will make it easier for developers to change unrealistic section 106 agreements negotiated at the height of Labour’s unsustainable economic boom; these are houses built on foundations of sand which are no longer economically viable after Labour’s bust. A development that is not built means no section 106 payments. Common-sense reform will result in more regeneration, more housing and more community benefits.

Sustainable development should go hand in hand with environmental safeguards, so I can confirm that we will protect the green belt, in line with our commitment in the coalition agreement. It has always been the case that councils can amend local green belt boundaries should they wish, and we support councils that choose to do so. They can introduce new green belt protection around new large developments. There is considerable previously developed land in many green belt areas. We encourage councils to make best use of that land, while protecting the openness of the green belt, in line with the requirements of the national planning policy framework.

If we are to protect our countryside, we need to focus more growth in our town centres. So we are introducing measures to make it easier to turn empty commercial buildings into housing. Our high streets will benefit from a greater resident population increasing footfall and supporting local shops. As a nation, we have great pride in our homes. We want to make it easier for families to undertake home improvements, such as building a new conservatory. So we will be seeking to simplify and increase permitted development rights for households. Cutting back municipal red tape in this way should provide a particular boost for small traders and builders. By contrast, the Labour Government wanted to tax conservatories with a council tax revaluation on family homes. The difference could not be clearer.

These practical measures build on the housing, local government finance and planning reforms already in play. They give more power to individuals, to communities and to councils. They provide new incentives to support local shops, local firms and local economic growth. They deliver sustainable development and get the business of building under way. I commend this statement to the House.

12.38 pm

Hilary Benn (Leeds Central) (Lab): I thank the Secretary of State for advance sight of his oral statement and for the fact that he graciously offered one after my urgent question had been granted. But, once again, Mr Deputy Speaker, we have major changes in policy being announced first to the media and not to the House. We also notice that the Secretary of State has been uncharacteristically silent in recent weeks, while the Prime Minister, the Deputy Prime Minister and the Chancellor have all been busy changing policy that we all thought he was responsible for.