To ask the Secretary of State for Business, Innovation and Skills, what recent assessment he has made of the contribution of EU membership to business and the economy in the UK.

To ask the Secretary of State for Business, Innovation and Skills, what recent assessment he has made of the contribution of EU membership to business and the economy in the UK.

In the latest Office for Budget Responsibility forecast, while sterling is assumed to be stronger against the euro, the balance of trade is forecast to improve. I recognise that a strengthening pound can create pressure for some exporters, but any discernible impact on the balance of trade has been more than offset by other factors, such as demand conditions in overseas markets.

In the latest Office for Budget Responsibility forecast, while sterling is assumed to be stronger against the euro, the balance of trade is forecast to improve. I recognise that a strengthening pound can create pressure for some exporters, but any discernible impact on the balance of trade has been more than offset by other factors, such as demand conditions in overseas markets.

I have had a lot of discussions with both of them about this issue, but since the hon. Gentleman is an expert on the subject he will know that what really matters is the real effective exchange rate. We have devalued substantially against the dollar, by more than 10%, and that must be put into the mix. One lesson we learned from the 2008 financial crisis, when we had sterling devaluation of 25%, is that that does not automatically translate into improved trade.

I have had a lot of discussions with both of them about this issue, but since the hon. Gentleman is an expert on the subject he will know that what really matters is the real effective exchange rate. We have devalued substantially against the dollar, by more than 10%, and that must be put into the mix. One lesson we learned from the 2008 financial crisis, when we had sterling devaluation of 25%, is that that does not automatically translate into improved trade.

My Department plays and has played a key role in supporting the rebalancing of the economy through business to deliver growth while increasing skills and learning.

My Department plays and has played a key role in supporting the rebalancing of the economy through business to deliver growth while increasing skills and learning.

As it happens, I am going to Teesside today on my last ministerial visit. I look forward to hearing more about the detail on the ground. There is a very positive story in the adjacent seat of Redcar, which is what I shall be celebrating.

As it happens, I am going to Teesside today on my last ministerial visit. I look forward to hearing more about the detail on the ground. There is a very positive story in the adjacent seat of Redcar, which is what I shall be celebrating.

I thank the hon. Gentleman for his courteous question on the last day of this Parliament and, for once, I agree with him. It would indeed be disastrous if we were to leave the European Union. There would be a prolonged hiatus before the referendum was held and many options could follow it, all of which would be very damaging for employment in this country. I and my party will certainly not go along with that.

I thank the hon. Gentleman for his courteous question on the last day of this Parliament and, for once, I agree with him. It would indeed be disastrous if we were to leave the European Union. There would be a prolonged hiatus before the referendum was held and many options could follow it, all of which would be very damaging for employment in this country. I and my party will certainly not go along with that.

I have a longer memory than the hon. Gentleman; I first became involved in debates on the European Union in the mid-1970s, when I was campaigning in favour and the Labour party was against it. I am glad that it has finally seen the light, but my party has been consistent throughout.

I have a longer memory than the hon. Gentleman; I first became involved in debates on the European Union in the mid-1970s, when I was campaigning in favour and the Labour party was against it. I am glad that it has finally seen the light, but my party has been consistent throughout.

Of course we condemn threats to the rule of law. I simply point out that the level of strikes in this country is the lowest it has been for a generation.

Of course we condemn threats to the rule of law. I simply point out that the level of strikes in this country is the lowest it has been for a generation.

I am beginning to recognise a theme, albeit a very welcome one. I do not wish to spoil the harmony on the Government Front Bench, having worked very well with my Conservative colleagues on restoring the economy, but we happen to disagree fundamentally on the future of Europe.

I am beginning to recognise a theme, albeit a very welcome one. I do not wish to spoil the harmony on the Government Front Bench, having worked very well with my Conservative colleagues on restoring the economy, but we happen to disagree fundamentally on the future of Europe.

My hon. Friend is absolutely right. He refers to a recent decision by the Ministry of Defence to award a contract to a British company in Germany, rather than a German company in Britain. In general our industrial strategy has been widely adopted across Government, but we probably have not gone as far in integrated defence procurement in that process.

My hon. Friend is absolutely right. He refers to a recent decision by the Ministry of Defence to award a contract to a British company in Germany, rather than a German company in Britain. In general our industrial strategy has been widely adopted across Government, but we probably have not gone as far in integrated defence procurement in that process.

That process is already under way. I have met representatives of RBS to discuss it. They have acknowledged that there are failings in the way in which they operated the scheme, and they have given assurances that anyone who was a recipient of the loan and who has been disadvantaged by the way RBS handled it will receive recompense.

That process is already under way. I have met representatives of RBS to discuss it. They have acknowledged that there are failings in the way in which they operated the scheme, and they have given assurances that anyone who was a recipient of the loan and who has been disadvantaged by the way RBS handled it will receive recompense.

I thank the right hon. Gentleman for his kind comments. We worked extremely well together and I thank him for his contribution to that. One of the legacies was the creation of the catapult network. We built on the initial foundations of the Advanced Manufacturing Research Centre. It has now become internationally recognised as an excellent way to promote innovation.

I thank the right hon. Gentleman for his kind comments. We worked extremely well together and I thank him for his contribution to that. One of the legacies was the creation of the catapult network. We built on the initial foundations of the Advanced Manufacturing Research Centre. It has now become internationally recognised as an excellent way to promote innovation.

We are just missing the baby, and the family will be complete. I am aware of the difficulties that my hon. Friend has had with the AMSCI bid. I have taken a close personal interest in it and I hope it will be resolved within the next few weeks.

We are just missing the baby, and the family will be complete. I am aware of the difficulties that my hon. Friend has had with the AMSCI bid. I have taken a close personal interest in it and I hope it will be resolved within the next few weeks.

What plans his Department has to support aerospace engineering in Pendle constituency over the next five years.

What plans his Department has to support aerospace engineering in Pendle constituency over the next five years.

What steps his Department is taking to support small businesses.

What steps his Department is taking to support small businesses.

What assessment he has made of the effect on the balance of trade of depreciation of the Euro.

What assessment he has made of the effect on the balance of trade of depreciation of the Euro.

If he will make a statement on his departmental responsibilities.

If he will make a statement on his departmental responsibilities.

Government and industry are working together in the aerospace growth partnership to implement a long-term industrial strategy that benefits companies throughout the UK. This is backed by a £2 billion investment over seven years in aerospace research, and a £250 million sharing in growth supply chain improvement programme. ELE Advanced Technologies in Pendle is one company benefiting from that programme.

Government and industry are working together in the aerospace growth partnership to implement a long-term industrial strategy that benefits companies throughout the UK. This is backed by a £2 billion investment over seven years in aerospace research, and a £250 million sharing in growth supply chain improvement programme. ELE Advanced Technologies in Pendle is one company benefiting from that programme.

Perhaps I may preface my answer by reflecting on the fact that I think I have held this job, or its equivalent, for longer than anybody in 60 years, and I thank everybody in the House for their interest in the affairs of the Department for Business, Innovation and Skills over those five years. I thank you, Mr Speaker, for your impartial oversight of our proceedings, but I will stop short of wishing everybody well in the forthcoming election.

The hon. Member for Pendle (Andrew Stephenson) is right to say that the aerospace sector is booming, and I think his constituency contains the headquarters of the North West Aerospace Alliance. He is also right to say that despite its considerable successes, his constituency has lost 100 jobs out of the 1,000 at Rolls-Royce. We are supporting Rolls-Royce in many aspects of the industrial strategy, and in surrounding constituencies such as Burnley there is unalloyed success with Aircelle’s recent big investment supported by the regional growth fund.

Perhaps I may preface my answer by reflecting on the fact that I think I have held this job, or its equivalent, for longer than anybody in 60 years, and I thank everybody in the House for their interest in the affairs of the Department for Business, Innovation and Skills over those five years. I thank you, Mr Speaker, for your impartial oversight of our proceedings, but I will stop short of wishing everybody well in the forthcoming election.

The hon. Member for Pendle (Andrew Stephenson) is right to say that the aerospace sector is booming, and I think his constituency contains the headquarters of the North West Aerospace Alliance. He is also right to say that despite its considerable successes, his constituency has lost 100 jobs out of the 1,000 at Rolls-Royce. We are supporting Rolls-Royce in many aspects of the industrial strategy, and in surrounding constituencies such as Burnley there is unalloyed success with Aircelle’s recent big investment supported by the regional growth fund.

I have discussed Rolls-Royce’s long-term strategy with its chief executive on several occasions. We are well aware that it is a global company, and that to maintain its strength it invests internationally, including in India. It is also investing a great deal in the UK, and we work closely with it, not just in the aerospace sector. The talent retention scheme is ensuring that the vast majority of the unfortunate individuals who lost their jobs in the restructuring will be redeployed in high value jobs in the aerospace and related industries.

I have discussed Rolls-Royce’s long-term strategy with its chief executive on several occasions. We are well aware that it is a global company, and that to maintain its strength it invests internationally, including in India. It is also investing a great deal in the UK, and we work closely with it, not just in the aerospace sector. The talent retention scheme is ensuring that the vast majority of the unfortunate individuals who lost their jobs in the restructuring will be redeployed in high value jobs in the aerospace and related industries.