Dame Chi Onwurah
MP for Newcastle upon Tyne Central and West · Labour · United Kingdom
“An extraordinary debate is going on right now inside and outside AI companies about whether the possibility of AI destroying humanity is more or less than 10%. The European Union is moving ahead with a comprehensive AI regulatory framework, but the UK continues to rely on existing regulation.”
“The Pope also highlighted how the billions of online digital twins constitute an unprecedented concentration of power in the hands of a small number of men. Among the many consequences of the 40 years of neoliberalism repeatedly called out by the Prime Minister is a libertarian attitude to technology.”
“But this stealth digital twinning violates the integrity, uniqueness and very personhood of our constituents and of all of us. Digital twins can take many forms, from content creation algorithms and deepfakes to chatbots that reflect aspects of our personalities back at us. It is particularly worrying when children are the target.”
“The automated version of our kids will grow with them, using the power of AI to target advertising and products at them, and worse. The Science, Innovation and Technology Committee has heard about some of the tragic consequences of online grooming by algorithms and chatbots—a vulnerable boy persuaded to kill himself; a vulnerable girl fed…”
“In the arts, entertainment and tech industries, many performers are agreeing to the creation and use of digital replicas as part of their work—think of ABBA Voyage. But performers increasingly encounter unauthorised digital replicas of themselves, which pose a threat to their career, livelihood and reputation.”
“Since then, deepfakes have proliferated. The hon. Member for Mid Norfolk (George Freeman) was shown crossing the Floor in Parliament to join Reform, to his constituents’ consternation and his own—it was a fake. Then there were the horrendous photos of naked women and girls that Elon Musk’s AI created on demand.”
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“It is difficult for the council to plan for the future of the hub when adult social care nationally is chronically underfunded, there is no clarity regarding the long-term funding of adult social care, and there is no information from the Government about what will happen at the end of the current rounds of the adult social care grant, the improved better care fund and the social care precept. Moreover, the council is under acute pressure because its central Government grant has been slashed in half since 2010. It told me: “Clearly we are unable to adequately plan for the future when adult social care nationally is chronically underfunded and there is no clarity regarding the long term funding of adult social care”. Does the Minister expect a council whose budget has already been decimated to fund the hub?”
“I thank my hon. Friend for her intervention. The Spicer review’s recommendations require funding, but this has been difficult to secure. The sexual exploitation hub previously received £1.7 million through the police innovation fund, but this ran out in March 2017. Since then, funding has been drawn from local sources, with the police, the clinical commissioning group, Newcastle City Council and voluntary organisations enabling its work to continue. The council has provided temporary funding of £250,000, which should last until March 2019, and this includes staffing as well as the council’s contribution to the building and utilities, which is paid for from the social care precept.”
“I thank the Minister for giving way, for the tone of her comments and for the way in which she recognises the importance of the issues that I have tried to raise on the behalf of my constituents. I have listened carefully to what she says, and I appreciate the offer of a meeting and the commitment to some sort of response to the Spicer review. However, I get the impression that funding for the hub and the multi-agency approach will come from the police and crime commissioner and potentially the sexual violence support grant as part of any future strategy, or is that something that we can discuss in detail in a meeting?”
“On Monday, I shall join Newcastle volunteers on a litter-pick, but they cannot be expected to deal with the vast tubs of oil waste left by fast food outlets or mattresses left by landlords when their tenants change. What additional powers and resources will the Minister give to local authorities so that my constituents can live in the environment that they deserve?”
“Such a significant expansion in aviation capacity raises major environmental and ethical concerns, but given the recommendations of the Transport Committee, I believe that this is the right option, provided that it delivers for regional economic growth. Businesses and residents in Newcastle deserve just as much access to direct flights as those in the south, but given that network economics make that impossible, what additional capacity will the Secretary of State guarantee for Newcastle airport and for how long, regardless of how he makes that work?”
“I apologise that a prior speaking engagement means I cannot stay for the whole debate, although I will try to return. My hon. Friend makes an important point in setting out the humanitarian situation in Gaza. Does she agree that that situation legitimately demands protest—that it is legitimate to protest against it, regardless of the responsibility of Hamas or others for stoking the protests? Does she agree that the failure of the Israeli Government to allow and enable peaceful protest is not only causing the mental health issues, but ensuring that the situation grows worse and that there seems to be no other way but violent protest?”
“Transport for the North estimates that we need £27 billion invested in our transport infrastructure. Did it justify the huge costs involved in designing multiple tenders and the exposure to legal challenges? Did it justify the uncertainty that has been so bad for staff and passengers? Absolutely not. The Conservatives are ideologically constipated on free markets to the extent that they cannot see the reality of our rail network and its needs.”
“The Office of Fair Trading states: “Competition is a process of rivalry between firms seeking to win customers’ business over time by offering them a better deal.” What better deal was there under Virgin? Were there more trains? No. Were there better trains? No. Were there better services? No. People could argue that the uniforms and the advertising slightly improved, but does that justify the huge costs involved in bailing out the private sector three times in 10 years? Does that justify the huge costs involved in regulating private sector companies to stop them exploiting their monopoly positions? Private sector companies always abuse monopoly positions. They cannot help it. Did it give us the investment in transport in the north-east that we need for our economic development?”
“As part of that, I spent a lot of time looking at the economics of networks and the benefit of competition, which is where I shall focus my remarks. Free markets require competition. Without competition, markets become monopolies. I hope we can all agree that private sector monopolies are bad—there are no interventions, so we agree. On the other hand, public sector monopolies can be run in the interests of the many, not the few. Many believe that rail is a natural monopoly. I agree. Railways were born in my region. The Rocket—the first commercial locomotive—was built in Newcastle by the Stephensons, and will return to Newcastle for the Great Exhibition of the North this summer. From the very start, it has been impossible to run railways competitively in the private sector.”
“If he wants to play ideology at dinner parties around the country, that is his decision, but here he is playing ideology with the east coast main line, a critical piece of national railway infrastructure serving more than 20 million passengers per year and contributing more than £300 billion annually to the UK economy. Also, independent research shows that investment in it could generate more than £5 billion in additional GDP for our country and our region. The Secretary of State’s ideology is destroying jobs in my constituency, for which he must be held accountable. Hon. Members may have heard me mention that before entering Parliament I spent 23 years as an engineer. My last job was for Ofcom, the communications regulator.”
“I am pleased to be allowed to speak in this very important debate. I start by thanking the staff on east coast rail who, during the eight years I have been in the House, have been unfailingly helpful on my twice-weekly journeys to and from Newcastle. They have been unfailingly cheerful and unfailingly efficient despite the turmoil that successive Conservative-led Governments have put them through. Speaking of the workers, I would not normally support singling out one worker—in this case, the Secretary of State for Transport—for criticism and in effect a fine for a collective failure of this Government, but if anyone is responsible for that failure, it has to be him. What is more, it is not only a failure of competence; more importantly, it is a failure driven by ideology—the Secretary of State’s extreme free market ideology.”
“We need a Government who recognise the role that the private sector can play in many industries and many businesses, but also recognise the importance of delivering natural monopolies through the public sector in such a way that citizens, consumers and passengers benefit. We need a Government who are not in hock to the private sector. As this Government are clearly incapable of understanding the very basics of network economics, I hope they will give way for a Labour Government who will do.”
“My hon. Friend and neighbour is absolutely right, which shows why this idea that this is a competitive market is a travesty. There is really no investment. More importantly, what little investment does take place is not at these companies’ own risk, because they are bailed out. Yet so infatuated are this Government with private sector monopolies that they do not seem to see that. We see the same thing when they deal with the tech giants: this Government are happy for private sector monopolies to walk all over UK citizens and yet the Government continue to stuff these companies’ mouths with gold.”
“The hon. Gentleman is saying that the issue with the east coast line is that there is competition and that Virgin could not handle that competition so should be bailed out. Does he realise that he is undermining the entire argument, because he is saying that when there is competition, franchising fails?”
“Q12. A successful start-up forced into bankruptcy by Government delays in paying out European regional development funds, and a tech company’s expansion plans stalled because the Government will not guarantee it access to the native European language speakers that it needs—these are businesses that I have spoken to in Newcastle in the last few weeks. In the absence of any guidance from Government on businesses preparing for Brexit, will the Prime Minister agree that Tory infighting is costing us jobs in Newcastle?”
“I thank the Minister for that clarification, but I am not sure that it is clear enough. She will undoubtedly be aware that the Windrush documents were supposedly destroyed as a result of data protection requirements. There remains a significant possibility that there will be a wholesale destruction of data, some of which might be important, useful and legitimately kept, unless the Government take further action.”
“My right hon. Friend makes an excellent point. Does he share my astonishment that the Government are not taking the opportunity to update our rights for the digital age? Does he think that that is because they are too captured by the tech giants, because they are too confused by Brexit to invest in change, or because they are too ideologically constipated regarding the free market that they can do nothing about it?”
“Since 2010, transport spending in London has been more than twice that in the whole of the north, and the Government’s own northern powerhouse says that underinvestment stops us exploiting strengths in manufacturing, energy, health and digital, which could transform the lives of my constituents. The Minister’s own Transport for the North says that it will cost £27 billion to transform the north’s economy by taking advantage of those strengths: will he commit to funding it?”
“The Secretary of State has already borrowed from our approach to an industrial strategy on more than one occasion—imitation is the sincerest form of flattery—and I urge him to do so again for the good of our economic future.”
“Friend the shadow Secretary of State laid out earlier, our industrial strategy is based on a platform of strong horizontal policies—from our national education service making lifelong learning free at the point of use, to our £250 billion national transformation fund to deliver much-needed infrastructure improvements across our country and our diversity charter challenges to ensure that businesses draw on a wide range of talents. Our approach is positive and practical. It speaks to the student who is anxious about their future, the single mum working two minimum wage jobs and the Redcar steelworker wanting a job to be proud of. It addresses the crisis in productivity, skills and wages that keeps us poorer, even with unemployment relatively low.”
“Friend the Member for Birmingham, Erdington emphasised, the sale of GKN to Melrose demonstrated that this Government are not prepared to step into defend our long-term economic industrial assets when they are under threat. Every time, short-term interest takes precedence. We need a real industrial strategy that lays out a vision for the high-wage, high-skill, high-productivity economy that we want to build. As well as the two existing missions that my hon.”
“The first is the way in which the financial sector has stopped resourcing the real economy. Instead of investing in companies that produce stuff, finance is financing finance. Why would someone lend money for a manufacturing plant that can take years to yield a return and cannot easily be sold on when they could bet on some options hedged with other options and virtually guarantee a return in a few weeks? With so much financial engineering demanding investment, real engineering does not stand a chance. The second is the financialisation of the real economy. With industry driven by short-term returns, this results in less reinvestment of profits and rising burdens of debt, which in a vicious cycle makes industry even more driven by short-term considerations. As my hon.”
“We need an industrial strategy that maintains our current centres of excellence, while ensuring that other areas can grow successful innovation-intensive economies as we move outside the European Union. Unlike the Government, we are not just focusing on headline-grabbing tech trends. We are committed to putting innovation at the heart of the lowest-paid and least productive sectors, for example by creating a retail catapult to support the 2.8 million people in our retail sector. The Government’s industrial strategy has no strategy to it and it has nothing to say about the fundamental workings of our economy. As the world-leading economist Mariana Mazzucato argues in her new book, “The Value of Everything”, at the heart of capitalism’s fundamental failure is the two faces of financialisation.”
“As Sheffield Hallam University researchers found last year, the Government’s pledges would have an impact on only 10% of our manufacturing base and only 1% of the whole economy. Many Members, including my hon. Friends the Members for West Bromwich West and for Luton North, considered the implications of this disparity for their constituencies. As my hon. Friend the Member for Stockton North implied, this is not so much about picking winners as rewarding those who have already won. Let me take one example: Cambridge, a city that has contributed so much to the country’s innovation economy. With a population of 285,000, it has as many private R&D jobs as the whole of the north, which has 50 times more people. This must not be an either/or.”
“The White Paper, while lengthy—it was generously padded out to 256 pages with glossy pictures and large type—did little to turn that rhetoric into reality. To take just one example, my hon. Friend the shadow Secretary of State pointed out that the Government’s target of spending 2.4% of GDP on research and development by 2027 is inadequate. By contrast, Labour would raise investment in R&D to 3% by 2030, ensuring that the UK has the greatest proportion of high-skilled jobs in the OECD as a consequence. My hon. Friends the Members for Aberavon and for Glasgow North East called for just such an economy. The Government’s strategy is not only under-resourced but sectoral, favouring sectors and areas that are already well organised and can push to the front of the queue.”
“Member for Cleethorpes (Martin Vickers), my hon. Friend the Member for Aberavon (Stephen Kinnock), the hon. Members for Berwickshire, Roxburgh and Selkirk (John Lamont), for Kilmarnock and Loudoun (Alan Brown) and for Stoke-on-Trent South (Jack Brereton), my hon. Friend the Member for Glasgow North East (Mr Sweeney), and the hon. Members for Boston and Skegness (Matt Warman), for Chippenham (Michelle Donelan), for Chelmsford (Vicky Ford), for Redditch (Rachel Maclean), for Stirling (Stephen Kerr) and for North East Derbyshire (Lee Rowley). Given the Secretary of State’s predecessor’s refusal to utter the words “industrial” and “strategy” in sequence, the current Secretary of State’s rhetoric is to be welcomed. But it is just that: rhetoric from a Government forced to accept the reality facing working people.”
“This has been a timely, well-attended and generally well-informed debate. Members on both sides of the House have come together to call for an industrial strategy that brings good jobs to every region in our post-Brexit world. I listened with considerable respect to the contributions made by the hon. Members for Spelthorne (Kwasi Kwarteng), for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) and for Copeland (Trudy Harrison), my hon. Friend the Member for West Bromwich West (Mr Bailey), the hon. Member for Fylde (Mark Menzies), my hon. Friend the Member for Luton North (Kelvin Hopkins), the hon. Member for Wells (James Heappey), my hon. Friend the Member for Stockton North (Alex Cunningham), the hon. Member for Rugby (Mark Pawsey), my hon. Friend the Member for Birmingham, Erdington (Jack Dromey), the hon.”
“The African continental free trade area agreement was recently signed. Will the Secretary of State assure me that economic development and fair trade will be at the heart of the free trade agreements he looks for?”
“In order to choose STEM subjects at university, girls need to have seen what fantastic careers STEM and engineering can offer. I know that many engineering companies want to go into schools and show that, but there is no co-ordination and no signposting of how they can do that. Will the Minister commit to ensuring that there is a central point where companies and schools can come together to get engineering into girls’ lives?”
“18. Thank you, Mr Speaker. Let me take this opportunity to tell the Secretary of State that in three of the eight wards in my constituency, child poverty is at over 50%. Universal credit has only just started to be rolled out, and it will only make things worse. Her Government are also going to take away free school meals— [ Interruption. ] In the future, there will not be the access to free school meals that there is now. What is the level of child poverty that she is willing to support?”
“T10. My constituent, Emily Johnson, having worked all her adult life, gave birth to a baby daughter in December. Because she moved into an in-work training programme in September, she has been denied maternity pay and maternity allowance. Because her husband is self-employed, universal credit assumes he earns enough to support all three of them, although this is demonstrably not the case. Why is a woman who has paid into the benefits system all her adult life denied any support at this time?”
“T5. The Secretary of State complains about the data protection legislation that he inherited eight years ago, when Facebook had one tenth of the number of users it has now. Just last year, when I asked him whether he thought that the collection and use of data by Facebook was abusive, he said it was not for his Government to have a view, but that it was an interesting question. Does he now agree that it was abusive, and given that this has happened on his watch, will he agree to bring forward a digital bill of rights which we are pressing for?”
“I congratulate the hon. Gentleman on securing the debate. He set out some of the reasons why today is a good day to have this debate. As vice-chair of the all-party parliamentary group for the Commonwealth and chair of the all-party parliamentary group for Africa, I want to add that today Cyril Ramaphosa is signing an Africa free trade agreement. Does the hon. Gentleman not think that the potential for free trade within Africa, combined with forward-looking trade agreements with the UK that put economic development at the heart, are real opportunities for the Commonwealth?”
“I thank the hon. Gentleman for being generous with his time. Does he agree that improving the regulatory capacity in Commonwealth countries is an important factor in supporting and increasing trade in services? Although most businesses want to make a positive impact, some are looking to exploit the lower regulatory barriers in some developing countries. The Commonwealth can make a real difference in ensuring that the legal and regulatory frameworks in Commonwealth countries enable a free and frank negotiation of regulatory agreements.”
“I hope the Secretary of State saw last night’s “Panorama”, which highlighted the link between the low pay of careworkers and the gender pay gap. We all know about the amazing work careworkers do, particularly in difficult circumstances such as when there is severe weather or where there are 15-minute appointments, so what is the Secretary of State going to do to ensure they are properly rewarded?”
“Today is St Cuthbert’s day, so it is right to celebrate the wonderful seafood of Northumberland, from Craster kippers to Lindisfarne oysters, which are enjoyed by my constituents and exported all over the world. However, should the coastal communities that depend on them ever have believed that a Tory party funded by the City would prioritise a deal on fishing as highly as a deal on finance?”
“The Secretary of State knows that I have long called for a comprehensive forward-looking review of data sharing and abuse, so that our citizens can have the data rights they deserve. The Data Protection Bill does not achieve that. It does not define property rights or market power in data, or algorithmic abuse. Facebook is on the wrong side of history on this and its share price is crashing as a result of the great work of the journalist Carole Cadwalladr. Will the Secretary of State take action or go down as the last dinosaur in an age of data ethics?”
“Investing in innovation is a long-term bet; Melrose is a short-term player. Do the Government have the will to build a high-skill, high-wage, high-productivity economy, or is casino capitalism what our future holds?”
“Only this morning, Unilever announced that it will relocate its headquarters from London to Rotterdam. One key factor in that decision was the greater protection afforded to the company by Dutch takeover law. Will the Government look at improving the protection offered by takeover rules to British companies? Both Dana and Melrose have questions to answer with regard to the future of pension schemes that GKN is currently responsible for. Will the Minister explain what assessment has been made of the schemes and what assurances the Government have sought? The Secretary of State talks of building an economy for the long term, just as his predecessor did. This is a litmus test for his industrial strategy. It cannot hold if time and time again our most successful and innovative companies are taken over and then taken apart.”
“For example, one amendment would have allowed the Secretary of State to consider the effects of the proposed merger on the long-term competitiveness of the UK economy as part of the public interest test. I sat and watched as the Government voted down amendment after amendment that would have provided them with a framework to act. Will the Government now explore and legislate for the expansion and broadening of the public interest test, which they failed to do six years ago? That would not be without precedent—for example, the financial stability clause, added in 2008 during the financial crisis. Can we tighten the financial stability test to include considerations of long-term financial viability, as suggested by the hon. Member for Paisley and Renfrewshire South (Mhairi Black)?”
“The Secretary of State also praised his Government’s corporate governance reforms, which “have ensured that GKN had longer to prepare its defence, preventing the kind of smash and grab raid that Cadbury’s was subjected to under the previous Government”. —[ Official Report , 13 March 2018; Vol. 637, c. 711.] That has been mentioned in the debate. Kraft’s takeover of Cadbury in January 2010 did prompt changes to the takeover code in 2011 and further amendments to the takeover regime with the Enterprise and Regulatory Reform Act 2012, which set up the Competition and Markets Authority. I served on the Bill Committee, when Labour proposed amendments to strengthen the new CMA and broaden the scope of the public interest test.”
“When I mentioned that in the Chamber to the Secretary of State, he said, correctly, that according to the Enterprise Act 2002 he could intervene “only in mergers that raise public interest concerns on the grounds of national security, financial stability or media plurality.” —[ Official Report , 13 March 2018; Vol. 637, c. 711.] As others, including Unite and the BEIS Committee have made clear, the proposed takeover raises national security concerns, given GKN’s close involvement with sensitive defence projects. While the Minister cannot answer in detail, will he answer in principle whether the Government believe that Melrose’s proposed takeover could raise public interest concerns on the grounds of national security? Will he explain what process the Government will go through in reaching a conclusion?”
“That was very much the point made by Tom Williams, the chief operating officer of Airbus, when he said it would be practically impossible for his company to give new work to GKN after a Melrose takeover. The debate is not about Melrose alone but about how our country’s economy works. As the Leader of the Opposition said last month at the EEF conference: “The next Labour Government will be the first in 40 years to stand up for the real economy. We will take decisive action to make finance the servant of industry, not the masters of all.” In the immediate term, as Members on both sides have said, there are powers that the Government can use to stop the Melrose takeover.”
“Such finance is not neutral but changes the nature of what it finances. As we have seen in Melrose’s approach to managing Brush, its short-termism has led it to neglect the difficult, costly business of maintaining sunk assets such as factories or developing new technologies, such as those we heard about in the automotive sector. Melrose’s expenditure on R&D is proportionally less than a fifth of GKN’s. Melrose’s track record indicates that it will focus on strategies such as offshoring jobs that neglect people and places but provide an immediate financial return. A Melrose takeover would therefore lead to the financialisation of GKN, placing UK jobs under threat and eroding our industrial base.”
“The Secretary of State for Business, Energy and Industrial Strategy hosted and attended the first meeting of the University College London commission for mission-oriented innovation and industrial strategy, chaired by world-leading economist Mariana Mazzucato. In her new book, she argues that the “two faces of financialisation” are at the heart of capitalism’s fundamental failure. The first is the way in which the financial sector has stopped resourcing the real economy—making stuff. Instead of investing in companies that make stuff, finance is financing finance. The second aspect is the financialisation of the real economy, with industry driven by short-term returns, which results in less reinvestment of profits and rising burdens of debt in a vicious cycle, which makes industry ever more driven by short-term considerations.”
“Friend the Member for Birmingham, Erdington emphasised, Melrose’s record does little to assuage those concerns. It does not make purchases for the long term. The biggest example is its stewardship of Brush Turbogenerators, bought as part of FKI in 2008. Since then, the firm has had five different managing directors, and just last month it announced that it would cut up to 270 jobs in Loughborough and shift production overseas, despite the fact that last year Melrose paid out bonuses worth £160 million to only four people. My hon. Friend the Member for Redcar (Anna Turley) remarked earlier this week that meeting representatives from Melrose was like “meeting neoliberalism in person.” However troubling we might find Melrose’s practices, this is not about just one company; it is about how our economy works.”
“It calls for the Government to halt the bid, as does the Chair of the Business, Energy and Industrial Strategy Committee, my hon. Friend the Member for Leeds West (Rachel Reeves). Melrose contests that, but admits that it would cut GKN’s management, deliver a “fundamental” culture change, sell sections of the company and boost the firm’s profitability through what its CEO calls “the catharsis of a change of control.” It sounds like Melrose is an advocate of Schumpeterian creative destruction, but with little regard for what is destroyed or, indeed, created. In practical terms, that could mean the closure of sites and divisions across the UK, the loss of jobs, a threat to pensions, as we heard, and the disappearance of crucial engineering expertise. As my hon.”
“Friend the Member for West Bromwich West set out the significance of its economic contribution, and my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) emphasised the significance of its investment in R&D in the United Kingdom. As the shadow Minister for industrial strategy and a chartered engineer, I believe that all those factors make GKN an important part of our future innovation economy. As my hon. Friends the Members for Birmingham, Northfield (Richard Burden) and for Caerphilly emphasised, it plays an important part in our national security, too. Members on both sides of the Chamber critiqued the Melrose bid. Unite, which represents most GKN workers, has called the bid “predatory” and Melrose an “asset-stripper”.”
“It is a pleasure to serve under your chairmanship, Mr Stringer. I thank my hon. Friend the Member for West Bromwich West (Mr Bailey) for calling this important debate and acknowledge the many impressive contributions by Members on both sides of the Chamber. We heard that GKN is one of the world’s oldest and most prestigious engineering firms. As an engineer myself, I can imagine people’s pride at knowing they are following in such an illustrious tradition. I appreciate the pride of the hon. Member for Redditch (Rachel Maclean) and my hon. Friend the Member for Caerphilly (Wayne David) at having GKN in their constituencies, and that of other Members, too. GKN is at the centre of the fourth industrial revolution, boasting of strengths in defence, aerospace, automotive, batteries and the internet of things. My hon.”
“GKN was forged in our country’s first industrial revolution. It built the tanks used in the D-day landings, and its innovative battery technology will power our future economy. The Government’s industrial strategy identifies batteries as a key technology and manufacturing as a priority sector, yet the Secretary of State has nothing to say about the hostile takeover of that great firm. Why is it that all too often, as with Arm and Unilever, his industrial strategy seems to leave great British success stories less great or less British?”