Bill Esterson
MP for Sefton Central · Labour · United Kingdom
“As the Prime Minister said on Tuesday, our energy supply and our energy security are not a question of having either oil and gas, or renewables; they are about both. It is a great pity that proper process was not followed in 2022 or 2023. [ Interruption.”
“I warmly welcome my right hon. Friend’s commitment to continuing Britain’s global leadership on climate action, including by going to COP31. I also welcome his focus on breathing space for people and businesses, but, as he said, it will take a lot more than that to deliver the growth and reindustrialisation that he is so committed to.”
“Last week the Committee heard from Claire Dykta, the director of strategy and policy at NESO, who told us: “Operational decisions are taken by authorised, trained personnel only.” Her comments were confirmed by Alastair Martin, the chief strategy officer at Flexitricity, who, in the same session, said: “I do not think the idea that the he…”
“As the Minister has just said, new nuclear is essential for energy security. It is also essential as an alternative career for workers in oil and gas.”
“Paul and Susan Robinson each worked for the Health and Safety Executive for more than 40 years. They have not been able to plan for their retirement since finishing work last year; they have been living off their savings and the small loan that they have had. They are typical of the dozens of constituents who have contacted me.”
“Hudson primary school in my constituency does a brilliant job. It is a family hub, it specialises in support for children with SEND and autism, and it has a nursery, but its building, which is 80 years old, suffers from a high water table that brings damp, mould and structural problems for the building—as does occasional flooding.”
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“The Government’s own figures show a 9% drop in the number of new jobs created through foreign direct investment projects and a record trade deficit in goods exports. In the real world, that means thousands of workers losing their jobs, as we have seen at BAE Systems. Does the Minister accept that it will take a fully aligned trade and industrial strategy to protect jobs in this country? The current policy of relying on a falling pound is simply not good enough.”
“The Leader of the House spoke about universal credit just now. I have constituents who have waited more than 20 minutes, many of them more than once, to get through before they can even ask for a call-back. Will she please get a Minister to come to the House as soon as possible and announce the scrapping of the 55p charge? These people are in desperate need of money, which is the only reason why they are having to make the calls in the first place.”
“Under this Government, there has been an unprecedented fall in the number of nurses: the NHS is short of 40,000 nurses and more than 6,000 have gone since 2010, under this Conservative Government. When will the Secretary of State acknowledge that he is failing the NHS and failing patients, and when will he do something about it?”
“Competition is vital to our economy, the success of our businesses and the prosperity of the people of our country, and the encouragement of healthy competition is vital. National Governments have a vital role in ensuring that a fair market exists, and not just a free market. The way in which Governments work together is also crucial in determining whether markets are free, fair or otherwise. The decision of the Trump regime to impose punitive tariffs on Bombardier will have a disastrous effect on the workers and communities of Northern Ireland, and on the economy. Such tariffs, if they are allowed to stand, exemplify the use by companies such as Boeing of market dominance to destroy competition.”
“As the Europa website states, the agency advises EU institutions and national Governments on fundamental rights, particularly in the areas of discrimination, access to justice, racism and xenophobia, data protection, victims’ rights and children’s rights. The agency’s areas of work have been determined through a five-year framework, and the main priority areas include the fight against racism, xenophobia and related intolerance. EU candidate countries can participate in the FRA as observers. The Bill approves two draft decisions on the participation of the Republic of Albania and the Republic of Serbia as observers in the FRA’s work. We support the draft decisions concerning the participation of Albania and Serbia in the FRA.”
“The European Union (Approvals) Bill is a two-clause Bill, as the Minister has said. It will approve four draft decisions of the Council of the European Union in relation to the participation of the Republics of Albania and Serbia as observers in the work of the Agency for Fundamental Rights, and the signing and conclusion of a new agreement between the EU and Canada regarding competition law, including the exchange of information between the EU and the Canadian Competition Bureau. Approval of those decisions by means of an Act of Parliament is necessary under the European Union Act 2011 in order for a Minister to vote in favour in the Council. The Fundamental Rights Agency replaced the European Monitoring Centre on Racism and Xenophobia in 2007.”
“I do not think there is any danger of confusing Donald Trump’s Administration or regime with anything of the hard left. That Boeing can act as it has done—initiating trade disputes in a segment in which it does not compete—with the full support of a protectionist US Administration demonstrates the need to ensure that every effort is made to deliver healthy and fair competition. The reliance of some Ministers on the US for trade and for our own economic success has been brought into sharp focus by the actions of the Department of Commerce. Notably, this applies to the International Trade Secretary, who seems to think that our relationship with the US is the answer to all our prayers, but it clearly is not.”
“Peel Ports has announced a massive investment of £750 million in rail freight at the Port of Liverpool. Will the Leader of the House ask Transport Ministers when the Government will match that investment in much-needed rail freight across the whole of the north of England? The private sector is playing its part; it is time for the Government to do the same.”
“One headteacher in my constituency told me, “The current funding situation means that sixth forms and colleges across the country will find it increasingly difficult to offer the range of subjects they used to and provide the number of teaching hours recommended to deliver courses over the two years.” A situation that leaves sixth forms unable to offer students what they need does not sound very fair because it is not fair. How is such an inadequate funding system in the interests of young people, employers or the economy?”
“The big challenge, therefore, is to maintain our attractiveness as we leave the EU—hence the need for strong transitional arrangements, the avoidance of a cliff edge and a seamless move to post-transitional arrangements. A link with trade policy and a robust industrial strategy are also essential.”
“Their research also shows that investors like to return profits to their home countries, so a low-cost investment may be of less interest than might appear at first glance. The UK has traditionally been seen as a relatively easy place to do business, ranking seventh in the latest World Bank Doing Business ranking. That is in part due to a skilled and educated workforce, the dominance of English as the global business language, a robust regulatory framework, a strong legal system and a wide array of supporting service industries, but the main reason in recent decades has been our access to the largest free-trading area in the world.”
“It might be an idea to see exactly how the Department allocates investment projects to specific annual statistics, so we can avoid what happened in January this year, when the Secretary of State was widely ridiculed for including projects unveiled years ago. The Government will concentrate on the success stories, but it is important to learn from the failures as well. The recent decision by Nestlé to relocate some 300 jobs making Blue Riband biscuits to Poland is a case in point—I have pointed out elsewhere that failure to find £1 million to save 300 jobs. The fall in the value of sterling has of course made it cheaper to invest here, but as Nigel Driffield and his colleagues point out, the benefits of a favourable exchange rate are set against the uncertainties of changes in our access to the EU.”
“Celebrating the number of investment projects is all well and good, but what really matters is the value of those projects and their wider contribution to the economy. Figures from fDi Markets investment monitor suggest that in the 10 months before the referendum, investment flows were $42.7 billion, and in the 10 months after, the figure dropped dramatically to $28 billion. If we are to evaluate fully the vital work that the Department for International Trade undertakes, we need to see the economic value—really drill down into those figures and look at the value of the projects for each financial year, notwithstanding commercial sensitivities that might prevent the release of information on a case-by-case basis.”
“After both those events, it took an average of four years for the level of FDI to recover. If anyone in this room or elsewhere thinks that there might be just a short-term blip or no blip at all, the evidence from history suggests that we need to think very carefully. The uncertainty caused by Brexit is cause for concern. Let us look at some of the figures behind our FDI position. In 2016, the UK remained the premier preferred destination for inward investment projects, but despite a rise in the number of projects, the UK’s market share in Europe fell from 21% to 19%. Meanwhile, we are losing ground in emerging growth industries, high-growth markets and in the attraction of investment from emerging powerhouse economies such as China.”
“It is a pleasure to serve under your chairmanship, Mr Gray. We should celebrate the United Kingdom’s long-standing success as the premier destination for EU inbound investment, but we should also be under no illusions about the scale of the challenge facing the UK in retaining current investment, let alone building on it. As research from Michail Karoglou, David Bailey and Nigel Driffield of Warwick Business School shows, of all relevant recent events only two positively affected the long-term trend for FDI: entry to the European Economic Community and entry to the single market in 1992. Only two events caused a reduction in the long-run level of inward investment flows: Britain leaving the exchange range mechanism under John Major, and Harold Wilson’s devaluation of sterling.”
“Europe was the leading origin for projects into the UK…Cross-border investments in Europe grew in 2016, with Central and Eastern Europe becoming an important area for higher value-added FDI such as R&D. As European value chains become increasingly integrated, investors appear concerned about the UK’s future access to these value chains.” The EY 2017 global survey of investors’ perceptions “reveals a split between current plans and future expectations…Some 31% of investors expect the UK’s FDI attractiveness to decline over the next three years, while 33% expect it to improve.” Before we get too excited about the net positive figure, EY states that those figures are “significantly worse than the long-term average, and 50% of investors based in Western Europe expect the UK to become less attractive.””
“The view of our investors is set out starkly in EY’s UK attractiveness survey. EY said that it has been a “mixed year” and that it is “difficult to make a clear assessment of the UK’s performance attracting foreign direct investment and maintaining its appeal to investors since our 2016 attractiveness reports, because every positive indicator is offset by an equivalent negative development.” It added that, “the UK’s share of European R&D projects slumped from 26% to 16%, its lowest since 2011. With software projects also slipping despite a Europe-wide increase, these results raise concerns over the UK’s future performance in key growth sectors.”
“The evidence is mixed on whether the fall in corporation tax since 2010 has had benefits in attracting inward investment. Under our proposals, we would still have the lowest corporation tax in the G7. Although investors like the idea of a low-tax economy, they equally dislike the consequences. Recent research by the London School of Economics shows that the downside implied by a low-tax economy of poor public services is profoundly unattractive. The approach that the Prime Minister set out at Lancaster House may be the preferred route for many Conservative MPs who want to shrink the state, but as well as continuing to damage our NHS, schools and pensions, such a policy will restrict the Government’s ability to deliver the very infrastructure and skills that foreign investors want and need.”
“Mr Carney’s comments go alongside AIB’s decision to suspend investment in the UK due to uncertainty about the UK’s future. Two Japanese banks are establishing European bases in Frankfurt, and reports suggest that JP Morgan and Goldman Sachs are considering relocating significant business operations. Japan is a major investor in the UK, with some 1,000 UK businesses under Japanese ownership generating an estimated £72 billion of turnover last year. The Japanese ambassador estimates that 10,000 Japanese firms operate in the UK, employing 140,000 people. Many of those jobs are in the UK’s flagship automotive industry with big players such as Nissan, Toyota and Hitachi.”
“Of course we have to be positive and do everything we can—some of my questions for the Minister are along those lines—but it is worrying that the EY report shows a sharp fall in how global investors rank the UK’s attractiveness on key criteria, such as education, transport infrastructure, local labour skills, political stability and access to the European market. There has been a year-on-year decline of up to 30% in some of those criteria, which is unprecedented in the past decade. Bank of England Governor Mark Carney said just last month, as the Bank reduced its growth forecasts, that Brexit uncertainty was holding back investment. Of course, in the past year we have grown more slowly than our competitors—a fact that supports that comment and some of the other analysis I have described.”
“I read out the key point about the mixed picture. We must do everything we can to retain our existing successes as well as build new ones—that is the thrust of what I am saying—but there is no point in the hon. Gentleman or any of his colleagues pretending that there are not great challenges and causes for significant concern. I was tempted to say in response to his earlier comment that he has rose-tinted glasses half full. [ Interruption. ] It is too early in the morning for that, isn’t it? That one is a work in progress—I will leave it in the locker. The hon. Gentleman is quite right about a positive attitude; I do not disagree with him.”
“The hon. Gentleman is absolutely right to raise that point. Japanese firms have already invested here, as have other foreign firms. They need to do everything they can to maximise their existing investments and to be in a position where it makes sense for them to build on those investments. That comes back to what the Minister has to say and what the Department has to do to enhance our position so that those investments continue to deliver and attract additional investment.”
“Piecemeal deals for one business at a time are not an industrial strategy, however much they are welcome to the businesses, workers and communities in which such businesses are located. The future of FDI is vital to our national interest. The Government must intervene now.”
“Now the Government need to minimise uncertainty and set out how they will reassure and support investors and deliver an attractive strategy that encourages foreign investors to continue to come here and to invest more. Many investors come here precisely because of our access to the EU. The Government need to set out how they will maintain that access in financial and professional services, in manufacturing and across the economy. Time is fast running out. Investors are worried—remember those SMMT figures for the car industry and the actions of Japanese banks. Those are not isolated examples. Businesses want to know how their investments will be supported and enhanced; they need to know that trade policy is linked to an industrial strategy.”
“What efforts will the Government make to ensure that standards are maintained in order to prevent unfair market distortion as a result of imports from markets with less stringent regulations and standards? What efforts will the Government make to maintain regulatory equivalence with key markets? What investment dispute settlement mechanisms does the UK intend to pursue in future trade agreements? Labour has been clear about what our trade priorities will be and how we will seek to ensure that all of Britain benefits. We have addressed that in our manifesto. We recognise that the UK’s ability to continue to be a premier destination for FDI is essential to our future prosperity and to creating the jobs and economic growth we need.”
“Investors need to know what the Government will do to encourage investment across the United Kingdom, including the devolved Administrations and regions; whether the Government intend to prioritise support for certain industry sectors in preference to others; to what extent those industries will be able to continue to operate within global and, in particular, intra-EU supply chains, and what impact the rules of origin regulations will have on their capacity to continue to participate therein. Furthermore, what trade defence mechanisms do the Government intend to introduce and how will they use trade remedies to address any unfair practices undertaken by foreign competitors?”
“The Government have finally decided to produce a trade White Paper in advance of the upcoming trade Bill. The fact that they have taken more than a year to do so may well have had a significant impact on investment appetite—often, decisions are made years in advance of committing capital to investment projects—and the trade White Paper must address the critical issues faced by domestic and foreign investors alike.”
“Figures from the Society of Motor Manufacturers and Traders quoted in the Financial Times suggest that investment in the UK car industry fell to just £322 million in the first half of 2017, compared with last year’s £1.66 billion. The Secretary of State has repeatedly referenced the UK’s service sector in his various speeches and appearances before the House, but the Government have been largely silent on how they intend to ensure the future strength of this sector, which is vital to our economic success. The passporting regime is critical to the ongoing ability of UK-based banks to engage with EU-based customers, and it has been essential to decisions by US and Swiss banks to use London as a centre of operations, but uncertainty about its future continues; as a result, decisions are being taken to relocate to the continent.”
“The previous Labour Government helped to establish the Automotive Council UK, which turned around the struggling UK car sector and has contributed so much to making it a success story. Labour intervened to boost that vital industry—the 2009 car scrappage scheme played a key part in increasing demand for new cars. In contrast, the Government’s current inaction is a serious threat to the industry’s ability to compete. The threat to UK car industry jobs is very real, and is compounded by the recent sale of Vauxhall to PSA Group, with the possibility of job losses as a consequence of any restructuring of UK operations. The Prime Minister is alleged to have told PSA that her Government are committed to the UK car industry, but the investment figures show a very worrying picture and serious concern on the part of investors.”
“Yes. I am grateful to the hon. Lady for showing that there is a balance between two viewpoints: our foreign investors’ desire to continue their investments, make the most of them and build on them is set against their very real concerns. I am glad that she touched on the challenges with respect to skilled workers’ ability to come here and stay here, given that we have such serious skills shortages. Nissan’s car plant in Sunderland employs 6,100 staff and an estimated 24,000 additional jobs are linked to it through the domestic supply chain. That fact and the hon. Lady’s point about Mitsubishi demonstrate just how important Japanese investment is for our car industry.”
“I do not want to wander too far from FDI, but most businesses I talk to tell me that improving the incentives in taxation is more important to them than dealing with the taxation of the results and successes. It is the tax level in business rates that needs reform, not the rate of corporation tax. Does the Minister agree?”
“The Minister is right about JLR, the value of the FDI from Tata and the partnership between Government and investor in achieving that. Is he aware of comments from the head of JLR last week who said that, should we end up paying the tariffs implied by the WTO, that would cost his business £1.1 billion extra a year? Does he share my concern? I urge him and his colleagues to do everything they can to avoid ending up in that situation.”
“One pound is spent per person on transport infrastructure in Cheshire and the north-west for every £7 spent per person in London and the south-east. Can we have our extra £6 per person, please, to spend on things such as rail and road links to the port of Liverpool, which will help jobs and growth across the north-west?”
“Why have the Government done nothing to stop Nestlé moving production from the United Kingdom to Poland, with the loss of 300 jobs? The Government confirmed this week in a written answer that Ministers met Nestlé in April. Nestlé has said that it would take an investment of £1 million to keep production in the UK. The Government found £1 billion to save one job in Downing Street, but they cannot find £1 million to save 300 jobs at Nestlé. Unbelievable!”
“Member for South Suffolk (James Cartlidge) was clearly with the Chancellor— [ Interruption. ] I think he was, anyway. He gave a good example from his constituency of the dangers of a cliff-edge exit and spoke about the importance of transitional arrangements. The right hon. Member for Carshalton and Wallington (Tom Brake) made a good speech, and the hon. Member for Hitchin and Harpenden (Bim Afolami), who I think was backing the Chancellor, gave another good short speech. The debate finished with a great speech by my hon. Friend the Member for City of Chester (Christian Matheson), who reminded us of the importance of fair and free trade and how it engenders prosperity and peace. He, like me, will be supporting a Brexit that promotes jobs and retains environmental and consumer protections—”
“Member for Gloucester (Richard Graham) clearly backed the Chancellor. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) reminded us of his late friend, Charlie Kennedy, who was much respected by Members from all parties. I congratulate him on his confident maiden speech; I enjoyed his story about his predecessor, Charles James Fox. The hon. Member for Bromley and Chislehurst (Robert Neill) was with the Chancellor. My hon. Friend the Member for Midlothian (Danielle Rowley) made an excellent maiden speech in which she reminded us that she is the first woman to represent her constituency. She comes from a family of miners and is keeping that Midlothian tradition going. I was pleased to hear her remind us that she was elected, as I was, on a platform of hope for the many, not the few. The hon.”
“Friend the Member for Bishop Auckland (Helen Goodman) spoke about her commitment to her constituents and their need for a Brexit that supports exports and jobs. She also spoke about the importance of the European Medicines Agency to this country and about the need to support the hill farmers in her constituency. I think the hon. Member for Rochford and Southend East (James Duddridge) spoke in support of the Secretary of State for Exiting the European Union. My hon. Friend the Member for Lincoln (Ms Lee) made an excellent and passionate speech and spoke about the importance of the transport hub delivered by the Labour council of which she was part. Support for transport infrastructure is of course crucial to backing the businesses and jobs of her constituents, including those involved in international trade. The hon.”
“Member for Livingston (Hannah Bardell) spoke about the transitional arrangements and the question of how to deliver frictionless trade. The right hon. Member for Wantage (Mr Vaizey) gave the first of the many speeches that we could call pro-Chancellor, given the interesting interrelationship between the Chancellor and the Secretary of State for Exiting the European Union. My hon. Friend the Member for West Bromwich West (Mr Bailey) spoke about the car industry’s importance to the UK economy and the need to ensure that we continue to support car exports. He also spoke of the damage that no deal would do to that industry. The hon. Member for Hornchurch and Upminster (Julia Dockerill) made her maiden speech; I congratulate her on the enthusiastic way she spoke about her constituency. My hon.”
“Labour’s manifesto stated: “Labour is pro-trade and pro-investment. The UK’s future prosperity depends on minimising tariff and non-tariff barriers that prevent us from exporting and creating the jobs and economic growth we need.” The negotiations for the UK’s exit from the EU have already begun, and our future prosperity as a nation is vitally dependent on our international trading relationships. Of those relationships, the UK-EU trade deal must be the Government’s priority. A no-deal with the EU is the worst possible deal and must be ruled out. Anyone who has run a business knows that you look after your existing business relationships first—if you do anything else, you do so at your peril. We have heard many speeches today. The hon.”
“They need to bring forward the White Paper and say what their view is of transitional arrangements, how they will deliver frictionless trade outside the EU with the EU and, above all, to put forward the priority of jobs and British businesses first.”
“British small and medium-sized enterprises and trade bodies have repeatedly called on the Government to do more to deliver real support to potential exporters. The Government have ignored them, focusing instead on the big corporations and on arms sales. They have systematically delayed SME funding for overseas trade shows and have, over the years, decreased the budget for such funding. They should be maintaining the tradeshow access programme and, crucially, delivering it on time—not delaying it by four months as has just happened. The Government need to maximise support for those wishing to export and make it clear what their mission is and what their vision of trade is.”
“The spring Budget statement revealed that this Government are out of ideas when it comes to boosting exports and tackling the productivity slump forecast by the Office for Budget Responsibility. This is a Government who talk big on trade and Brexit, but who have failed to provide the support for British businesses wishing to export and grow into new markets. The latest Office for National Statistics figures show that the UK’s trade in goods deficit has increased by £2.6 billion. Our imports are on the rise while our exports are failing to catch up. Despite the Government’s bombastic talk of Britain leading the world as a trading nation, our trade performance on their watch has been weak.”
“Such a plan must be presented to and properly scrutinised by the British people and their elected representatives in Parliament. A White Paper must set out what the Government’s plans are for future international trade, outlining negotiating principles and trade policy objectives, including which industry sectors will be prioritised and which will not. Clarification of what was meant in the Lancaster House speech by hybrid customs arrangements needs to be set out. The Government say that they intend to pursue closer trade links with Commonwealth partners to make up for any lost trade with the EU, which currently accounts for 44% of our exports. However, none of the UK’s top 10 export partners is a Commonwealth country.”
“I thank the Minister for the correction. No doubt the fee note will be in the post. The Government have promised to deliver the “exact same benefits” as we currently have inside the single market and customs union, and Labour will hold them to account on that commitment. We recognise that once we leave the EU a transitional period is vital to avoid a cliff-edge for the UK economy. The Government have still failed to set out a coherent international trade strategy for when the UK has formally left the EU. We have called on them to publish an international trade White Paper. The UK needs clarity on this issue as never before. It is unacceptable to take the country into an uncertain future that includes our exiting the EU without a comprehensive plan on international trade.”
“The prompt payment code simply has not done enough to address the scourge of late payment, with £26 billion owed and an average of 72 days being taken to pay invoices across the country. May I say to the Minister that she should stop paying lip service to the problem and take the action needed for smaller businesses, which just want to be paid on time?”
“Members of the Cabinet and members of the Conservative party are now doing that, and quite an argument seems to be going on, but we could have been debating the subject in the House today.”
“The Bill was included in the Queen’s Speech. The background notes refer to helping to grant Serbia and Albania observer status at the EU’s Fundamental Rights Agency, and an agreement for enhanced co-operation between competition regulators in the EU and Canada. However, I will not be the only one who was somewhat surprised that it was chosen as the second Bill to be given a Second Reading in the new Parliament. Why was it given such a high priority, given what might have happened, and given what was, at one point, in the Conservative party manifesto? We could have suggested some alternatives. For instance, the Government could have addressed the pay cap.”
“Of course the hon. Gentleman is absolutely right, which was why it was right for the Bill to be in the Queen’s Speech. I was merely questioning why it had been given such prominence. Given that it consists of only two lines, why was something weightier not presented first? I have mentioned the pay cap, the turmoil in the Conservative party, and the agonising over whether public servants should be given a pay rise. There is also the debate about tuition fees, the debate about whether there should be more police and firefighters—”
“Member for Esher and Walton (Dominic Raab), who was then and is now a Ministry of Justice Minister, said that the Government support Serbia and Albania becoming observers in the European Union Agency for Fundamental Rights, agreeing that it would assist their accession to the EU which the UK also supports subject to “firm but fair conditionality”. Albania and Serbia will both make a contribution to the EU budget in order to participate, ranging from €160,000 to €183,000 a year. The draft decisions have been cleared by the European Scrutiny Committee and the Lords European Union Select Committee. The Minister said that this is an opportunity for us to support the progress being made on human rights in the two countries in question, and I completely agree on that.”
“The decision will not in itself confer observer status on Albania and Serbia, but it will establish that the Stabilisation and Association Councils for Albania and Serbia can determine the conditions of the two countries becoming observers. As the House of Commons Library explains, under the draft Council decisions, Albania and Serbia would both appoint an observer and alternate observer in the work of the agency’s management board, on an equal footing with the member and alternate members appointed by EU member states, but without a right to vote. They would also participate in initiatives undertaken by the agency and make a financial contribution to it. In an explanatory memorandum to the European Scrutiny Committee on 22 March 2016, the hon.”