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Proceeding contribution from John Penrose (Conservative) in the House of Commons on Thursday, 9 July 2009. It occurred during Topical debate on UK Manufacturing.


UK Manufacturing

I take the hon. Gentleman's point, but it is also true to say that in the past 10 years, this country's tax code has become incredibly baroque, long and involved. I think that it is one of the longest in the developed world. It is now incredibly difficult to enact any measures, other than simplification measures, that will have a practical effect on investment decisions, because people cannot understand the tax code, which is supposed to encourage them to do one thing or the other. Simplicity is far more important, as a way of getting people to focus on customers. I am conscious of the time, so I shall move on and talk about skills improvements. I think that there is a degree of agreement across the parties on the aim and importance of improving skills throughout the economy, although I suspect that we would disagree on how the Government are going about that. I should like to correct one point made, doubtless unintentionally, about the Conservative party's policies on Train to Gain. The Minister for Business, Innovation and Skills said that we plan to reform Train to Gain, but he did not say how we planned to spend the money thus freed up. Just to make sure that he understands, I point out that our policy is not a cut, but a redistribution of the money so that it is used in a way that we hope is rather more productive. Some £775 million will go to reform Train to Gain. That will create 100,000 extra apprenticeship places, fully fund 77,000 existing places that are currently only partly funded, create a £2,000-per-job bonus for new apprentices in small and medium-sized enterprises and boost group training associations. That is not a cut; it is, we believe, a better way of spending the existing money. Other factors that are vital for manufacturing are simplifying and speeding up the planning process. It is extremely difficult for anybody who wants to build a new factory in this country to find a site and battle their way through the thickets of our planning law, and in that regard it is difficult for us to compete with many other countries. That puts off many potential investors. The system needs to be simplified and made quicker. Equally, we have a problem in our energy sector. Many manufacturers—particularly those at the heavier end of manufacturing, who inevitably use a great deal of energy—have come to me and, I am sure, many other Members present in the Chamber, and said, "Look, the problem with Britain's energy prices is not only that they can be high, but that they are particularly volatile." Volatility makes planning extremely difficult, and is particularly difficult to cope with for those in heavy industries; it therefore needs to be dealt with.


Secondary information

Type
Proceeding contribution
Reference
495 c1207 
Session
2008-09
Chamber / Committee
House of Commons chamber
Subjects
Costs Coal Competition Employment Innovation Economic situation Manufacturing industries Mining Regional planning and development Skilled workers Shipbuilding Economic recession World economy
Link
View this Proceeding contribution on www.publications.parliament.uk