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BACKBENCH BUSINESS
20 October 2016
Lead MP
Frank Field
Debate Type
General Debate
Tags
EconomyTaxationBusiness & Trade
Other Contributors: 104
At a Glance
Frank Field raised concerns about backbench business in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Notes the joint Report by the Business, Innovation and Skills Committee and the Work and Pensions Committee on BHS; endorses criticisms of company governance and sale for £1; highlights failure to resolve pension fund deficit; calls for Sir Philip Green to address the issue forthwith.
Frank Field
Lab
Birkenhead
Emphasises that nothing happened in BHS without Sir Philip Green's approval; describes him as a Napoleonic figure; highlights that BHS was prosperous when acquired but ended with £571 million deficit due to poor governance.
Torfaen
Asks whether the debate should look more broadly at corporate governance given Sir Philip Green's conduct and the pension fund deficit left behind.
Frank Field
Lab
Birkenhead
Responds to concerns about Sir Philip Green not fulfilling promises; highlights issue of corporate governance.
John Glen
Con
Salisbury
Pays tribute to Frank Field's cross-party inquiry; expresses concern over lack of concrete proposals to fix the pension fund deficit despite promises from Sir Philip Green.
Frank Field
Lab
Birkenhead
Responds by linking corporate governance issues with actions taken early on in BHS's operation, such as artificial boosting of profits and subsequent transfer of funds.
Dennis Skinner
Lab
Attercliffe
Draws a parallel between Sir Philip Green and Robert Maxwell, suggesting similar unethical practices; mentions legal threats from Sir Philip Green over comments made during the debate.
Frank Field
Lab
Birkenhead
Discusses early years of BHS operations, highlighting artificial cost reduction methods that boosted profits; explains how these actions led to acquisition of Arcadia and subsequent financial transfers.
Charlie Elphicke
Con
Dover
Stresses the need for reform to prevent corporate bandits from asset-stripping companies, leaving employees and pensioners in a precarious situation.
David Winnick
Lab
Walsall North
My right hon. Friend should consider the criticism of him made by Green as a badge of honour. He has carried out his duties with distinction and that should be recognised by the House.
Frank Field
Lab
Birkenhead
I am grateful to my hon. Friend for recognising our work. However, let me return to the theme of Greek tragedy: Sir Philip Green has everything in life and risks losing his standing by not surrendering a modest part of his fortune which would make a difference to pensioners awaiting their fate.
Charlie Elphicke
Con
Dover
Philip Green says he is sorry, but it comes across as crocodile tears because he will not put his money where his mouth is. He ought to make recompense given the legal and moral issues.
Frank Field
Lab
Birkenhead
What is being tested through our report is how two of their Committees have carried out their work, questions about the Pensions Regulator's powers, staff and culture, lessons for the Government on corporate governance as per the Prime Minister’s wish to protect vulnerable groups, ensuring independence of bodies recovering assets of failed companies like BHS, addressing staffing, powers and approach of the Serious Fraud Office.
Barry Sheerman
Lab
Huddersfield
My right hon. Friend touched on professional advice given to Sir Philip Green involving issues with how big consultancies operate in our country like Grant Thornton, and the fact that the Serious Fraud Office increasingly depends on these consultancies.
Margaret Ferrier
SNP
Glasgow Cathcart
Supports the amendment, agreeing with a constituent's view that Philip Green does not deserve his honour after the financial issues faced by British Home Stores employees and pensioners. Emphasises the tangible impact on workers.
Richard Fuller
Con
North Bedfordshire
Reiterates support for Irene’s and Margaret Ferrier's views, highlighting the need to address both tangible issues such as pension deficits and job losses, and the symbolic importance of questioning an honour based on conduct. Discusses governance issues and questions the integrity of board members who did not attend crucial meetings.
Barry Sheerman
Lab
Huddersfield
The hon. Member for Huddersfield echoed concerns about the failure of professional oversight in BHS's collapse, citing employees’ frustration over repeated lapses by auditors and consultants since the banking crisis.
George Howarth
Lab
Makerfield
The hon. Member for Makerfield supported the motion put forward by Iain Wright, expressing doubt about whether it was the right time to accept an amendment proposed earlier and questioning if other issues should be addressed first.
Iain Wright
Lab
Hartlepool
Parliament needs to urgently address the pension problem related to BHS. Despite Sir Philip Green's promise to resolve it, he has yet to take action four months later, suggesting a failure in fulfilling his duties and responsibilities towards those affected.
Jeremy Quin
Con
Haltemprice and Howden
The hon. Member for Haltemprice and Howden initially doubted the efficacy of the Committee inquiry but appreciated its outcome, highlighting concerns over BHS's dividend payments and questioning whether generous dividends paid out of free cash flow could undermine a company’s sustainability.
Ian Blackford
SNP
Ross, Skye and Lochaber
The hon. Member for Ross, Skye and Lochaber questioned the propriety of paying out dividends in excess of free cash flow, suggesting this could raise red flags about a company’s financial health.
Michelle Thomson
Scottish Conservative and Unionist
Gordon
The hon. Member for Gordon observed that it was somewhat ironic for Sir Philip to finance an 81-page legal opinion by two eminent QCs, while the affected pensioners and employees lacked similar resources.
Jeremy Quin
Con
Bedford
Critiqued the legal opinion provided by learned counsel, emphasising that the report does not help understand the circumstances of BHS's demise. Discussed corporate governance issues, questioning the sufficiency of the dowry and the choice of partner in the sale. Highlighted concerns about ownership transparency, strong codes for private companies, and pension fund management practices.
David Winnick
Lab
Walsall North
Supported an amendment to revoke Philip Green’s knighthood as a form of censure against him. Criticised the tax arrangements in Monaco, suggesting that it is unfair for someone with such arrangements to receive a knighthood. Emphasised that Green should be seen as a billionaire spiv who has shamed British capitalism.
Richard Graham
Con
Gloucester
Clarified that the debate is not about placing full blame on one individual but rather addressing the unique circumstances around BHS's pension fund crisis. Noted that the deficits of pension funds are influenced by macroeconomic factors and investment policies.
Ian Blackford
SNP
Ross, Skye and Lochaber
Agreed with previous speakers but added that part of the difficulty in managing defined-benefit schemes is due to Government policy, specifically the quantitative easing programme which has led to significant pension deficits.
Andrew Bingham
Con
Weaver Vale
Mr. Bingham echoed his support for Mr. Graham's position, stressing that Philip Green should deal with the situation as he promised, including potentially losing his knighthood. He highlighted the uncertainty faced by pensioners and the need for resolution to protect their interests.
Ian Blackford
SNP
Ross, Skye and Lochaber
Mr. Blackford criticised the Government's lack of action regarding the BHS pension crisis, arguing that there was a systemic issue with defined-benefit pension schemes which needed urgent attention. He emphasised the need for stronger regulation to protect citizens from undue risks.
Ian Blackford
SNP
Ross, Skye and Lochaber
Philip Green’s weak apology is a case of too little, too late. He lined his pockets and did not stop to think about his employees. The Government must address the responsibilities to regulate business and pension schemes in the UK.
Jeremy Quin
Con
Richmond Park
The hon. Gentleman is finally addressing BHS, the employees who have lost their jobs, and the pensioners who have been left with less benefits than they should rightly have expected. The Government looks forward to the rest of his speech.
Margot James
Con
Stretford and Urmston
The Government is concerned about corporate governance issues highlighted in the report, including executive pay and pension schemes. They will review these issues as part of their work to build an economy that works fairly for everyone. The Government also welcomes the inquiry into corporate governance announced by the Business, Energy and Industrial Strategy Committee.
Richard Graham
Con
Gloucester
The Minister is not scurrying away from anything. It is disappointing to see the SNP spokesman acting agitatedly about monetary policy during a debate on corporate governance and pension schemes.
I sympathise with the strength of the hon. Gentleman’s feeling, but certain legal aspects may or may not arise in future, so I must be a little guarded in what I say... If evidence is uncovered that indicates that the standards of any of the directors’ conduct fell below what was to be expected, action will be taken... That is all that I propose to say this afternoon.
Karen Buck
Lab
Westminster North
I am proud to be a member of a Select Committee that was part of the joint Select Committee process that led to the reports that have brought us here today... What concerns me is what happened to the pension scheme after it moved from the surplus that it was in when the company was bought in 2000 to a deficit of £345 million in 2015 and £571 million by the time of its collapse. Dr Margaret Downes told us that she was sufficiently worried about the declining state of the scheme during the second part of the last decade to seek assurances from the company about its long-term commitment to the scheme... I hope that the lesson will be learned by all the agencies concerned, by Government, and by business.
Martin Docherty
SNP
Falkirk East
The hon. Lady mentions due diligence. When I attended the Committee sessions, it seemed as though the blind were leading the blind. This was bigger than just Green; the trustees’ lack of governance was extraordinary.
Amanda Milling
Con
Harrow West
As a member of the joint Committees that conducted the inquiry into the collapse of BHS, it is a pleasure to speak in the debate. The irresponsible behaviours of a few endanger the reputations of the majority that operate responsibly. Therefore, I fully support the position of the Prime Minister and the Government that we need to make our economy work for everyone. We need to protect the reputation of business from irresponsible practices such as those seen at BHS and Sports Direct. The collapse of BHS raised questions about the corporate governance framework, especially concerning large private businesses. It is crucial to review the regulation on corporate governance, particularly with regard to large private companies. The Government are committed to reforming corporate governance, and I welcome their remarks.
Michelle Thomson
SNP
Dunfermline and West Fife
I note something on the banking crisis and refer to the Minister’s earlier remarks. Does the hon. Lady agree that how quickly agencies deal with issues such as RBS and the Global Restructuring Group is pivotal? The hon. Member acknowledges the importance of addressing matters swiftly.
Richard Fuller
Con
North Bedfordshire
I echo what my hon. Friend is saying. My right hon. Friend mentioned to me that the BHS store in his constituency was for many years one of the most profitable stores, but no due regard was given to employees or pensioners. The impact has been felt throughout the country.
Alison Thewliss
SNP
Glasgow Central
Not just the people in the stores who were directly employed by BHS, but the catering and cleaning staff and everyone in the supply chain will be adversely affected. The hon. Lady agrees with this point.
Lisa Cameron
SNP
East Kilbride, Strathaven and Lesmahagow
In July of this year, the BHS shop in my constituency closed after avoiding initial closures but faced huge uncertainty. The closure was a sad day for staff and constituents. Former owner Sir Philip Green reportedly continued his holiday while staff were left with uncertainties. Questions must be answered by this House on corporate governance structures and pension regulation to prevent such situations in the future. We need to tackle asset stripping and ensure that regulators have the power to deal effectively with individuals like Sir Philip Green.
Margaret Ferrier
SNP
Rutherglen and Hamilton West
Does my hon. Friend agree that we also need to address the issue of how Philip Greens are able to treat workers? They should be made an example by the Government.
Michelle Thomson
SNP
Edinburgh North and Leith
Thanked the Chairs of the combined Select Committees for their robust, detailed inquiry into BHS. Supported the view that Sir Philip Green saw cash extraction as his primary purpose from early on. Raised concerns about the legality but moral irreproachability of certain actions. Criticised the lack of judgment in addressing pension deficits and selling to unsuitable third parties. Emphasised the dangers of concentrated power leading to a personal fiefdom, exclusion of independent directors from key decisions, and bullying of weak managers.
Roger Mullin
Con
Huntingdon
Thanked Michelle Thomson for her contribution and agreed that Adam Smith's assertion on the connection between business practice and human behaviour was pertinent. Suggested that Sir Philip Green’s actions undermined corporate governance.
Joanna Cherry
SNP
Edinburgh South West
Supported Michelle Thomson, citing constituent concerns about Sir Philip Green retaining his knighthood given the circumstances of BHS's failure and its impact on employees and pensioners.
Martin Docherty
Lab
West Dunbartonshire
Expressed gratitude to Select Committee Chairs for their work. Highlighted the closure of a BHS store in Clydebank affecting community and staff, including nearly 40 years of service. Criticised the handling of pension funds leading to significant deficits. Praised local organisations’ support for finding alternative employment but called out Sir Philip Green’s cohort for their irresponsible behaviour.
Alan Brown
SNP
Kilmarnock
My hon. Friend has encapsulated the human element of this situation fantastically well in his description of the people working for BHS. I commend him for that. I too had a BHS store in my constituency, and many staff members lost their jobs and had their pensions affected. Another aspect of this involves the buildings. Kilmarnock now has another building on its high street with a “To Let” sign on it. That affects the surrounding shops and the footfall to them. The effect on surrounding businesses is another consequence that has not been considered.
Martin Docherty
SNP
West Dunbartonshire
I agree with my hon. Friend that this situation affects constituencies the length and breadth of the UK... We cannot allow business to mess about with the people’s future income, and the UK Government must up their game on pension regulation, and indeed on pensions altogether—but that is for another debate entirely... I fully support the strengthening of the regulator’s powers as a means of ensuring that no one is able to avoid their pension responsibilities. Following my participation in the debate on the House of Lords debate last night, it should come as no surprise that I am no fan of an honours system.
Hannah Bardell
SNP
Livingston
Having listened to colleagues and read the conclusions of the report by both the Work and Pensions and the Business, Innovation and Skills Committees, two principles come to mind that cut to the core of the debate. What we have seen from Sir Philip Green and the collapse of BHS is a lack of responsibility and, moreover, a lack of respect... Our constituents are bearing the brunt of that recklessness and greed... Many have asked that Mr Green be stripped of his knighthood, which seems only fair given that many have been stripped of their jobs and pensions under his leadership.
Joanna Cherry
SNP
Edinburgh South West
BHS was a much-loved institution on Edinburgh’s Princes Street for many years. I remember visiting it with my mum as a wee girl in the days when there was even a food hall, which was quite a long time ago. Does my hon. Friend agree that this House owes it to the staff of BHS, who served their communities so loyally for many years, to ensure that sanctions are imposed for what occurred and that this cannot happen again?
Alison Thewliss
SNP
Glasgow Central
My hon. Friend makes an excellent case. Would workers’ rights be enhanced if employees were allowed on company boards?
Hannah Bardell
SNP
North East Fife
Agrees with the idea of stripping Sir Philip Green of his knighthood and criticises his management of BHS, emphasising responsibility and respect towards employees. She calls for a proper regulatory framework to prevent such failures in the future.
Liz McInnes
Lab
Wirral West
Thanking her colleagues for their work on the investigation of BHS, she criticises Sir Philip Green's attitude during his appearance before Select Committees and expresses concern about the pace of negotiations regarding the pension fund. She calls for a commitment to find a solution soon.
Clive Lewis
Lab
Norwich South
Expressing gratitude for the debate and the work done by his colleagues, he criticises Sir Philip Green's management of BHS and his retention of a knighthood despite causing significant damage to employees and pensioners. He emphasises that while stripping Sir Philip of his title won't solve problems, it is important to ensure proper regulatory laws are in place.
Ian Blackford
SNP
Ross, Skye and Lochaber
Expresses disgust at the Government's failure to learn from past failures like BHS and calls for new legislation.
Jim Cunningham
Lab
Coventry South
Recalls a recent incident where City Link lost nearly 1,000 jobs in Coventry and expresses the need for tough legislation to prevent such occurrences.
Clive Lewis
Lab
Norwich South
We need action to address scandals like BHS, not just words. The system allows good businesses to be undercut by bad ones that extract wealth rather than create it, hurting everybody. We must change the rules of the game for a fairer economy.
Frank Field
unknown constituency
The House will follow up on reports such as the one on BHS to gain maximum justice for those affected. There is a full agenda on how to reform pension and company law, and we have already started that task.
Chris White
Warwick and Leamington
We need an industrial strategy to support our economy's challenges, especially in the manufacturing sector. We should encourage investment and long-term planning for advanced manufacturing, supporting regions like the Midlands, North and South with strong tangible policy.
Jim Cunningham
unknown constituency
The hon. Member Chris White mentioned Jaguar Land Rover employing around 5000-6000 people in Coventry, demonstrating the importance of manufacturing for our economy.
Jeremy Lefroy
Con
Stafford
Asked if the German model of Kreditanstalt für Wiederaufbau could be replicated in the UK.
Chris White
Con
Warwick and Leamington
Argued that a cohesive document outlining policies to support manufacturing for 10 years would allow public and business to hold the Government accountable. Emphasised the need for intervention before sectors fail and the importance of planning for STEM education.
Barry Sheerman
Lab
Huddersfield
Questioned if Germany was an outdated model, highlighting that manufacturing can be done anywhere due to smart technology. Suggested a practical maths GCSE could help with apprenticeships.
Mark Tami
Lab
Alyn and Deeside
Asked if the Government supports successful sectors early enough before they fail, suggesting that current approaches are too reactive.
Iain Wright
Lab
Hartlepool
Welcomed the Prime Minister's rhetoric about a proper industrial strategy but questioned how to ensure long-term certainty for businesses. Criticised the tendency of Governments to announce reviews without real action.
Richard Fuller
Con
North Bedfordshire
Argued that technology changes too quickly for Government intervention and planning, questioning how they can keep up with entrepreneurs.
Richard Fuller
Con
North Bedfordshire
The hon. Member for North Bedfordshire questions whether Iain Wright's stance on buying British products is a form of protectionism.
Barry Sheerman
Lab
Huddersfield
The hon. Member for Huddersfield agrees with Iain Wright's concerns and provides an example of the takeover of Imperial Chemical Industries by ChemChina, questioning what action the Government is taking.
Stephen Hammond
Con
Wimbledon
The hon. Member for Wimbledon acknowledges that past connotations of industrial strategy were negative among some on the right of the political spectrum due to excessive government intervention and anti-market practices.
Stephen Hammond
Con
Wimbledon
To meet the challenges of the 21st century, especially in post-Brexit Britain, industrial strategy should be about four things: creating an ecosystem for industry success and increased national productivity; ensuring skills availability; access to finance; and boosting industries with competitive advantage. Infrastructure is key, including transport, energy, housing, broadband communications, and smart procurement practices to reduce costs and improve project delivery.
Andrew Bingham
Con
Billericay
Agrees that state aid rules have hindered development in his constituency. The removal of such regulations will allow for more investment and job creation, highlighting the need for flexible regulatory frameworks post-Brexit.
Stephen Hammond
Con
Wimbledon
Outlines opportunities to re-examine regulatory regimes post-Brexit, emphasising skills shortages due to restricted labour movement. Recommends initiatives like specialist academies and vocational qualifications to attract young people into engineering. Advocates for exploring private sector funding options beyond sovereign debt.
George Kerevan
SNP
East Lothian
Notes the Scottish Government's creation of a Scottish investment bank, which has increased equity investment in small businesses.
Stephen Hammond
Con
Wimbledon
Welcomes George Kerevan’s comment and suggests regional infrastructure bonds or schemes as potential mechanisms for private sector funding. Advocates for universities to play a role by setting up accelerators to support the growth of businesses beyond the incubation phase.
Michelle Thomson
SNP
Edinburgh West
I welcome the Prime Minister’s decision to implement an industrial strategy, acknowledging that a coherent approach can set foundations for economic growth. However, questions arise about its effectiveness given the complexities of Brexit and past policy inconsistencies. The debate needs to consider timescales and certainty for businesses, especially regarding European trade rights. There's also concern over the impact of political priorities on infrastructure decisions such as airport expansion. Furthermore, there’s criticism towards previous short-sighted policies like scrapping carbon emission reduction funding or cancelling the post-study work visa which harmed Scotland's economic potential. Emphasising corporate governance to promote ethical business practices could be a principle that remains despite other political pressures.
Steven Baker
Con
Wycombe
Competition on the merits is a reasonable industrial strategy, proven to lift people out of poverty through entrepreneurship and market freedom. Reducing anti-competitive market distortions (ACMDs), which can increase costs and push more into poverty, should be prioritised. The author Singham et al., in their paper 'The effect of anticompetitive market distortions on global markets', classify ACMDs into six areas including type 1 that eliminate competition completely and type 2 that lessen it by elevating company costs.
George Kerevan
SNP
East Lothian
Questions the notion of a complete hands-off approach to industrial strategy, highlighting examples such as Catapult centres which demonstrate Government encouragement can foster competition and innovation. By offering prizes for technical problem-solving, an ecology conducive to competitiveness can be created.
Steven Baker
Con
Wycombe
Stressed the importance of profit in a free market and introduced types of anti-competitive distortions, including state-owned enterprises and competition agency failures. Emphasised that Government interventions can harm economic efficiency.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Questioned the idea that a lack of competition is solely due to government action, suggesting that companies themselves may be responsible for market distortions.
Peter Kyle
Lab
Hove and Portslade
Critiqued the current approach to industrial strategy, highlighting inconsistencies in Government policy over time. Emphasised the need for clarity and consistency in business strategy implementation.
Peter Kyle
Lab
Hove and Portslade
Mr Kyle argued that the right industrial strategy should focus on infrastructure, support businesses by listening to their needs, and highlighted the importance of skills development. He mentioned the need for Government initiatives such as mapping the human genome which can inspire future innovations.
Jo Johnson
15:31:00
Mr Johnson, responding on behalf of the Government, acknowledged the contributions made and indicated that a detailed industrial strategy paper would be published around the time of the autumn statement this year. He outlined the principles guiding the development of an industrial strategy, including engagement with stakeholders and reflection of their views.
Iain Wright
15:40:00
Mr Wright inquired about the timing for publishing a discussion paper on the industrial strategy. He emphasised the need to address issues such as low productivity and wage stagnation.
George Kerevan
15:40:00
Mr Kerevan questioned the Government's export performance, highlighting that exports have flatlined over five years. He also inquired about how the government would respond to risks posed by leaving the EU for research and innovation.
Kelvin Hopkins
15:40:00
Mr Hopkins raised concerns about low productivity, suggesting that cheap labour discourages investment and efficiency. He also questioned how the Government would address issues such as trade deficits within the EU.
Steven Baker
Con
Wycombe
I hope that the Minister will join me in celebrating this country’s excellence in not only manufacturing, but research in Formula 1. We have a number of teams in the UK. We are also the world’s second biggest aerospace manufacturer after the mighty United States. We do tremendously well, and Opposition Members are far too downbeat.
Jo Johnson
Con
North Hendon
Another globally competitive sector is satellite technology, with a quarter of all satellites launched into space currently being made in Stevenage. Science and advanced manufacturing are not the only examples of excellence. We can point to other parts of our economy such as financial services, accountancy, law, consulting and creative industries that also set the global standard. We have worked hard over the years to make Britain one of the best places in the world to start and grow a business. We must identify and support the sectors that can drive future growth without picking winners or propping up failing industry. It is about identifying industries with strategic value and supporting them through policies for trade, tax, infrastructure, skills, training and R&D.
Kelvin Hopkins
Lab
Luton North
I am pleased to participate in this important debate, and I congratulate the hon. Member for Warwick and Leamington on securing it. British industry has suffered from neglect and diminution for too long, but now we are seeing a shift with the reintroduction of the term “industrial strategy”. We have allowed an enormous trade deficit to emerge, above all in manufacturing, primarily with the European Union. The pound has been grossly overvalued against the euro, causing our manufacturing weakness. I urge the Government to give serious thought to recreating the National Economic Development Council for indicative planning, bringing together representatives of business, Government and trade unions. An appropriate exchange rate is a vital condition for success in industrial strategy.
Alan Mak
Con
Havant
I congratulate my hon. Friend the Member for Warwick and Leamington on securing this important debate... Mastering and leading the fourth industrial revolution should be at the heart of the new industrial strategy for our own country.
Hannah Bardell
Lab
unknown constituency
It is somewhat ironic that we discuss industrial strategy following a debate on the scandal and tragedy of the collapse of BHS... The UK Government say they are taking back control—
Kelvin Hopkins
Labour Co-operative
unknown constituency
The hon. Lady and many other hon. Members talk of losing EU funding, but if we simply replace EU funding with British funding, we still make a £10 billion profit by not paying into the budget.
Kirsty Blackman
SNP
Aberdeen North
On that point, does my hon. Friend agree that the studies that came out recently about the motherhood penalty are particularly concerning, and something the Government need to tackle as soon as possible?
Hannah Bardell
SNP
Livingston
Agrees with the hon. Friend that these issues transcend party politics, criticises the Conservatives for not doing enough to increase female board representation despite their efforts. Cites statistics from the Equality and Human Rights Commission on FTSE 100 and FTSE 250 companies regarding female executive roles. Emphasises the importance of closing the gender pay gap, where Scotland is outperforming the UK. Calls for skills and innovation to be at the heart of the industrial strategy, expressing concern over the Department for Education’s jurisdiction over apprenticeships. Supports the Scottish Government's labour market strategy focusing on fair work convention and living wage employers. Welcomes the Prime Minister’s commitment to putting employees on company boards but asks the Minister to follow through. Requests a review of the apprenticeship levy as it affects co-operative companies.
Amanda Milling
Con
Bognor Regis and Littlehampton
Congratulates her hon. Friend on securing the debate, focusing on the role of local bodies in delivering industrial strategy at a regional level. Discusses the closure of Rugeley B power station as an end to the region’s energy industry heritage and calls for a strategic vision for economic development. Advocates for considering multiple land sites for redevelopment, encouraging innovation in digital and technology industries given existing infrastructure. Highlights the potential for data centres and advanced manufacturing sectors. Emphasises the importance of coal-fired power station closures being addressed with the construction of gas-fired power stations to maintain energy supply stability.
Kirsty Blackman
SNP
Aberdeen North
Argues that oil and gas should be a priority in the UK’s industrial strategy, citing significant tax revenue contributions. Discusses challenges faced by the industry due to low oil prices and job losses but asserts its importance for economic benefits. Advocates for continued support of innovation in Aberdeen and the export potential of supply chain companies. Highlights Aberdeen's status as an international gold standard for the oil industry and emphasises the need to maximize North sea oil extraction.
Patrick Grady
SNP
Garscadden
Responds with a brief statement suggesting that independence would alter current conditions, implying potential changes in the relationship between Scotland and the UK's industrial strategy.
Kirsty Blackman
SNP
Aberdeen North
We need UK Government support to incentivise investment in the oil and gas industry, which is crucial for Aberdeen, the north-east of Scotland and the wider UK. Companies are struggling with cash-flow issues, and private equity people should invest to inspire confidence. The industrial strategy must express the UK Government’s confidence in the future of the oil and gas industry. Initiatives like ‘Developing the Young Workforce North East’ should be incorporated into the industrial strategy.
Richard Fuller
Con
North Bedfordshire
The definition of 'industrial strategy' is unclear, and it could lead to disagreements among Members. The term suggests a centralised approach akin to Soviet planning which is undesirable. Instead of an industrial strategy, the government should focus on promoting innovation through lowering taxes, ensuring market flexibility, regulatory sunsets, and improving corporate governance. Additionally, free trade should be encouraged while maintaining appropriate protection against dumping.
George Kerevan
Ind
East Lothian
There is a need for an industrial strategy to provide competitive advantage to UK companies. The state must support its industries in partnership with them, as seen in countries like Germany and the US. Catapult centres have been successful in providing resources and fostering innovation for small companies, but their budget (£600 million) should be increased significantly. The RAF's current procurement practices are concerning, highlighting the importance of state backing for domestic industry.
Roger Mullin
SNP
Kirkcaldy and Cowdenbeath
Argues that the purpose of an industrial strategy should be to support economic growth for people's wellbeing. Criticises the government for pulling out of a carbon capture project in Scotland, highlighting it as an example of turning away from long-term economic growth. Emphasises the role of state intervention in education and skills development. Suggests that Scottish Investment Bank can play a key role in bridging the gap between technological innovation and market commercialisation. Stresses the importance of confidence for private investment following Brexit.
Steven Baker
Con
Wycombe
Responds to Roger Mullin's comment about Adam Smith, stating that he was wrong about the labour theory of value but looks forward to hearing further remarks.
Kelvin Hopkins
Lab
Luton North
Argues that confidence has been driven down by those who lost the Brexit argument rather than due to any inherent problems with leaving the EU, citing Ashoka Mody's view that Brexit is proving beneficial.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Called for an industrial strategy that addresses pressing issues such as climate change, youth unemployment, and the gender pay gap. Criticised the Conservative government's lack of concrete measures and its impact on communities through austerity policies.
Responded to Chi Onwurah, clarifying that assurances for job security are legally binding in cases like ARM Holdings being sold to Japanese investors. However, the response was brief and did not provide a comprehensive industrial strategy.
Chris White
Con
Warwick and Leamington
Acknowledged the diverse interpretations of an industrial strategy but suggested that the debate is essential for forming a well-rounded approach. Emphasised the importance of defining strategy as getting the most with the least.
Agreed with Chris White's comments and added that low wages and overflooding the market with cheap labour do not help investment or productivity, urging for higher wages to promote modern technology investment.
Government Response
The Government will review corporate governance, including executive pay reforms. The Minister urges Sir Philip to sort out the BHS pension deficit quickly. She acknowledges that neither the Government nor the regulator is complacent regarding the regulation of schemes or the powers needed to tackle and deter misbehaviour. The Minister outlined the principles guiding the development of an industrial strategy, including engagement with stakeholders and reflection of their views. He highlighted areas like science and innovation, advanced manufacturing (specifically automotive), and the need for a globally competitive approach to research. Clarified that assurances given in the case of ARM Holdings' sale were legally binding.
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