The Secretary of State was asked—
Post Office Network
I apologise on behalf of my right hon. Friend the Secretary of State for Trade and Industry, who is not able to answer questions today because he is on a trade trip to China. He has notified colleagues on the Opposition Front Benches.
The Government have invested more than £2 billion since 1999 in the post office network, because we know that post offices are an important part of British life, particularly in rural and deprived urban areas. We will announce shortly our proposals to ensure a long-term stable footing for a continued national post office network.
The village post office is on the edge of an abyss. Some 80 per cent. of those 8,000 vital businesses would collapse without the annual Department of Trade and Industry support subsidy, due to end in 16 months, and the Post Office card account, which will expire in 2010. To survive, the rural network needs the lifelines of post office-based banking products, preference in the distribution of Government services and an early White Paper to spell out a clear future framework. Does my hon. Friend—who is the most astute of Ministers—think that he is doing enough to tackle that most acute of crises?
My hon. Friend will be able to make his own judgment shortly, because, as the Secretary of State has said, he will make an announcement before the Christmas recess. Because of my hon. Friend’s long family association with the Post Office, he knows that the current position is unsustainable, with losses of £100 million per year, expected to rise to £200 million per year. Investment from the Government since 1999 has been £2 billion, including £150 million for the rural network, which, as my hon. Friend says, will continue until 2008. We know that POCA must have a successor, and that Government assistance will be required to maintain a viable national network. My hon. Friend will shortly be able to see the outcome of all the Government’s efforts, particularly over the past six months.
The remaining sub-post offices in Upminster are mostly also convenience stores, in which sub-postmasters have expanded the range of services to make businesses viable. Those provide an important service, especially for elderly people who do not drive and cannot get to the main shopping areas. Will the Minister review his decision to abolish the post office card account and enable post offices to expand the range of services that they provide, rather than slowly strangling them?
The hon. Lady accords me status above my station by saying that I made the decision to abolish the post office card account. First, that would not be my decision. Secondly, no such decision has been taken. The Department for Work and Pensions is in negotiations with Post Office Ltd. and others about a successor to the Post Office card account, and we have given assurances to the House that there will be a successor, as, regardless of what happens, more than 1 million people will be dependent on that to receive their benefits. As we all know, the vast majority of sub-postmasters and sub-postmistresses are small business people, and they sometimes trade jointly and service communities with other products. We are doing what we can to assist them, and we know how important they are to communities. When the Secretary of State makes his announcement shortly, the hon. Lady will see that we have made provision to do the best we can for the whole network.
I welcome what the Minister has said today, because Bexley has lost nearly half its post offices or sub-post offices in the past five years. Will he reaffirm that the coming statement will also take into account the needs of the suburbs, which require local post offices or sub-post offices to be viable, sustainable communities? Such facilities need to be near where people live.
We fully acknowledge the role that post offices play in communities and the essential services that they provide for many. We have also been helping them to develop new products over the years. For example, the Post Office is now the biggest supplier of foreign currency and the biggest provider of independent travel insurance, and has launched new saver accounts this year. It is looking to expand its business. Equally, however, 800,000 private vehicle owners bought their tax discs online last year, and more than 3 million have already done so this year. We know that internet banking, mobile phone technology and the rest are changing people’s habits, and the Post Office must expand its range of services. We have a dual job: to support the network to be as wide as possible, and, equally, to expand its range of services and products for a securer financial footing.
Later today, Labour Members have a meeting with Postcomm and Postwatch to discuss these important matters. Can my hon. Friend assure me that Ministers are in discussion with Postcomm and Postwatch, in order to benefit from their expertise when making a plan of action for a future viable network?
I assure my hon. Friend that we are in discussion with all the appropriate agencies. Postcomm and Postwatch have produced reports that are being studied as part of our exercise to arrive at a statement, which will be announced before Christmas. We have been in intensive discussions with Post Office Ltd. A number of Adjournment debates have taken place, especially over the past six months, in which right hon. and hon. Members have expressed their points of view. The Department has received a voluminous amount of correspondence, and national newspapers have run campaigns on the subject. The Prime Minister has established the Ministerial Committee on the Post Office Network, MISC 33, which has met several times. There have also been a number of bilateral meetings between the Secretary of State and other Cabinet Members, and between me and other Ministers. We have been working intensively to ensure that the outcome of the difficult decisions that we shall have to make shortly will not be a result of lack of effort or research.
The Minister rightly observed that the Post Office faces changing commercial challenges as the market develops, but as the Trade and Industry Committee concluded in its recent report, the problem is that the Government have accelerated the process with their own policies, as identified by the hon. Member for North-West Leicestershire (David Taylor). Will he reassure us that the proposals in the forthcoming statement will enable sub-postmasters and sub-postmistresses to enter into contracts with the Post Office so that they can compete by using their entrepreneurial flair in their own shops, and will also encourage the Post Office to produce a range of innovative products so that it can compete more effectively with the banking sector?
I apologise to the hon. Gentleman for having omitted to say that the Select Committee, which he chairs so ably, has submitted a report to the Secretary of State, which we will also be considering. The Secretary of State’s statement will refer to the ability of sub-postmasters and sub-postmistresses to offer better services to their customers. There are conflicts in respect of their ability to perform some of the functions that they have requested, but I assure the hon. Gentleman that all the options are being considered, and that there will be a full opportunity for further consideration when the Secretary of State makes his statement.
Is not some change inevitable, when 98 per cent. of new pensioners choose to take their pensions through the banks, and the 200 smallest post offices have fewer than 20 customers a week? Will the Minister ensure that maximum effort goes into maintaining as much of the post office network as possible?
My hon. Friend paints an accurate picture of the statistics showing the changing face of even the benefits business. Seventy-five per cent. of benefit recipients have bank accounts, and, as my hon. Friend says, 98 per cent. of new pensioners are choosing to have their benefits paid into a bank account. The way in which benefits are received is changing, but as I said earlier, at least 1 million people will still depend fully on the post office for their benefits. We know that we must provide for the most vulnerable, whether they are in the rural communities, the suburbs or deprived urban areas, and that will be a key consideration for the purposes of the Secretary of State’s statement.
When the Secretary of State eventually makes his statement, will he also explain why he wants to scrap Postwatch, the consumer watchdog that has helped to fight so many rural post office closures? Is it mere coincidence that Ministers are trying to muzzle an independent specialist watchdog and merge it with another body at the same time as proposing to cull rural post offices—or is it all part of the same plan?
As I have experience of misquotations by the hon. Gentleman from our last meeting on a public platform, he will forgive me if I do not acknowledge the accuracy of what he has said. We are in the business of strengthening consumer protection, as will become plain in due course as the new arrangements are introduced.
I am grateful to the Secretary of State for his courtesy in informing us in advance of his absence—but meanwhile, the Minister seems to be doing extremely well. Can he tell us how many post offices will close as a direct result of the withdrawal of the Post Office card account? Does he accept that a post office card account II that looks after only 1 million of the 4.5 million customers will not be enough to save many small post offices? Last week Postwatch said:
“the government, the regulator and other relevant stakeholders need to form a common strategic view of what social outcomes are desired from the post office network”.
Will the Minister assure us that when the Government statement is made later this month, it will address ways in which post offices can work with carriers other than Royal Mail, and also Royal Mail’s anti-competitive activity in poaching business from sub-post offices?
When the hon. Gentleman rises and makes such generous comments, I automatically smell a trap—but they were generous remarks, and I am grateful for them. He asked a very serious question, and he can, I think, be reassured that the Secretary of State’s statement will cover all the elements that he referred to. I must correct an impression that I might have given: when I said that the Post Office card account successor will have to look after 1 million people, what I meant to say was that 1 million people will be dependent on it. There will be others who choose to continue with the POCA regardless of the fact that other products will give them better service—for example, because they will be able to get interest on the money left in the account, which is the situation for more than another 1 million people. The POCA will not be restricted only to the people whom I have mentioned; there will be a successor that people can make a decision on. Issues to do with competitiveness will be covered in the Secretary of State’s statement.
My question must be set against the background of the situation being difficult. In rural communities, such as my Bolsover constituency, which is 25 to 30 miles long, most rural post offices have survived—with help—but in some cases people do not want to run the post office because they cannot make a profit. We did things about that: one of the things we did was to manage to get one set up in the miners’ welfare, and it is still there. When the Minister discusses great and grandiose plans, will he take into account the fact that imaginative ideas such as that should be continued with, because we can save quite a lot of post offices if people only put their minds to it?
My hon. Friend makes a very important point. The Department of Trade and Industry, Royal Mail Group and Post Office Ltd have spent £25 million on pilots over 18 months, examining operations such as personal banking, virtual banking, mobiles and hosting operations, and they have been enormously successful. In fact, we have returned post office services to some communities that lost them years ago. The Post Office has to be imaginative. There will be an opportunity for communities to examine the Secretary of State’s proposals and to see whether they fit with their profile, and for them to come up with their own ideas on how best to protect their network, which we want to make sure will be provided nationally. So the points made by my hon. Friend are very relevant to many communities.
Mailing Preference Service
The Mailing Preference Service is a voluntary response by the direct marketing industry to meet the concerns of consumers who do not wish to receive unsolicited mail. The number of complaints about the effectiveness of the Mailing Preference Service is small, and my Department has no proposals to introduce greater powers to take action against mailing companies that have failed to screen their customer listings effectively against the MPS, beyond those already possessed by the Advertising Standards Authority.
Every day, millions of people throughout this country receive unwanted letters, e-mails and telephone calls, many of which originate overseas. What action is the Department taking to combat that problem?
There are arrangements under the MPS for individuals to say that they do not want to receive such items of mail, and Royal Mail also operates an opt-out system. On the other hand, I must say that direct mailing works for many companies and organisations; it is a legitimate way to advertise products. Also, the revenue that Royal Mail gets from direct mailing helps to maintain the low cost of postage in this country. So there is a balance to be struck. For those who complain, there is a clear complaints procedure in place to allow them to have their complaints taken seriously. Last year there were 4,666 complaints, and up to November this year there were 4,000 complaints, but there are billions of pieces of direct mail, so we need to get the problem in perspective.
The credit card and financial industry seems to be one of the greatest users of junk mail. I am chairman of the all-party identity fraud group, and I am very concerned about the information sent out in junk mail relating to credit card application forms. Please will the Minister talk to the industry so that we can close down one area in which it seems that ID fraud is on the increase?
The Government take identity fraud very seriously, which is one reason why we are bringing forward our identity card proposal—about which I know that the hon. Gentleman is very supportive and sympathetic. We take such issues seriously. We are in discussions with the banks about the ability of individuals to get above their level of credit. We are also talking, via the Insolvency Service, to credit card companies. These are important issues and I know that the organisations that market such services take them seriously, but we always need to be vigilant.
Wind Farms
Power station applications in England and Wales of up to 50 MW capacity, including wind farms, are decided by the relevant local authority. Above that level on shore, applications are decided by the Secretary of State, who will take into account environmental impacts, other relevant matters and, of course, the views of the local community. That includes the views of the local planning authority, community groups and individuals.
I recognise the need to increase the amount of energy that we get from renewable sources, but does the Minister accept that there are many preferable alternatives to onshore wind farm development, and is he aware that the application to build 10 400 ft wind turbines at Bradwell-on-sea, in my constituency, is massively opposed by the local community and has been rejected by the local planning authority? If it is allowed to go ahead, it will spoil one of the most beautiful and historic areas of the country.
Obviously, it would not be for me to comment on a particular proposal or application, but there is a growing consensus in our society and in Parliament about the importance of renewable energy. Some 4 per cent. of our electricity now comes from renewables, and we want to see a fivefold increase to 2020. That does not mean that we should say yes to every application, but that we should look at local concerns very seriously before saying yes or no.
My hon. Friend will recall from our last energy debate the importance that we all attach to renewables. If I may, I will reduce the scale just a little, down to individual domestic wind turbine installations. Come April or May of the new year, will such installations be permitted for individual houses without any planning regulation, on the same basis as television antennae, for example, which are already free of such restrictions? Will my hon. Friend enlighten me on that point? The first such proposed installation in Coventry—it happens to be in my constituency—has already become ensnared in impossible bureaucracy.
I suspect that I should declare an interest, Mr. Speaker, as someone who is awaiting a decision from Croydon council on my own application for a wind turbine. I understand that the Department for Communities and Local Government is reviewing the very issue that my hon. Friend raises. There is a body of opinion that thinks that, just as there is some easement regarding Sky satellite dishes, there should be some easement for this, in respect of local planning strictures.
Wind farms are of course welcome, provided that they are in the right place. Back in May, the Minister acknowledged that there was an unfair bias toward wind under renewable obligations. Given that fact, does he agree with me that all too often, many current applications have more to do with availability of site than with sustainability of project?
I am not sure that I can agree with that. As I said, these issues need to be decided on a project-by-project basis. Various projects have come before the Secretary of State, including an important one at Whinnash, the answer to which, following an inquiry, we judged should be no. An equally controversial project was planned for Romney Marsh, which we thought should go ahead. However, we will not get very far if there is a wide body of consensus saying, “Yes, climate change is the big issue facing us, and yes, we need more renewable energy—but when it comes to my constituency, no, no, no.” There has to be some moderation.
We were very sorry when the hon. Gentleman was moved from his post as Minister for Energy, but it seems today that we can welcome him straight back to his previous responsibilities. What are the Government’s plans for publishing new legislation to govern the planning procedures for onshore and offshore wind? When do they expect to publish it, will it be separate from the energy White Paper expected in March, and what criteria does he think will be the most important in determining where these wind turbines will be permitted?
I should start by saying that there is widespread concern that, although we need to pay proper regard to local community concerns, it takes far too long to reach a decision on the energy infrastructure that we need, whether it be a wind farm or a new power station of whatever kind. We all understand that we need massive investment in energy infrastructure over the coming five, 10 or 15 years. The Government are therefore looking very seriously at those planning issues, so that we may achieve a better balance between local concerns and our energy security needs. That will be reflected in the White Paper that the Secretary of State has said will be published in March.
Consumer Credit
The university of Bristol personal finance research centre recently looked at what the effect of the equivalent of an increase of 0.5 per cent. on interest rates would be on consumers. They found that an additional 1 per cent. of households would be expected to struggle financially as a result of such an increase. The Government are committed to ensuring access to affordable credit and have allocated £36 million from the financial inclusion fund to promote the growth of credit unions. We are also committed to ensuring that those in financial difficulty have access to free debt advice, and are giving £45 million to fund new advisers in areas of high financial exclusion.
My constituent Mr. John Barrett of Scarborough was appalled to receive a letter offering him a loan of £7,500 at an annual percentage rate of 44.6 per cent. The suggestion was that he could use the money for a holiday. That generous rate is available only to those in full-time employment. Others, such as Farepak customers who may be on benefits or paid weekly, have to pay rates as high as 175 per cent. What more can be done to encourage credit unions, such as the one recently set up in Whitby, so that people can escape from the clutches of such predatory interest rates?
I thank the hon. Gentleman for that question. We have put £36 million into developing a national network of credit unions. In addition, we are insisting that the European directive, which will be produced soon, includes opportunities for growth in that sector. Without being too partisan, I would remind the hon. Gentleman that when the Tories were in government, they provided not a single penny for the extension of that sector—
I am not spoiling it; that is a fact. The Tories cannot lecture us about issues that they did not deal with when they had the opportunity. I give an absolute assurance that we will continue the development of that sector when resources are available, and I hope that in doing so, we will receive the support of the Opposition, who have voted against it in the past.
I congratulate my right hon. Friend on making available that additional funding for credit unions. Will he use the opportunity of next year’s 90th birthday of the Co-operative party—whose parliamentary group I chair—to promote the ideals of co-operation and mutuals, especially credit unions? For too long in England, credit unions have not been at the forefront of people’s thinking on our estates, as they have in Scotland and the United States. Will my right hon. Friend use that opportunity to drive home the message that credit unions are the right way forward?
I am prepared to do that, and I will also have a meeting with the Co-op to see what else we can do. In areas where credit unions work, we have an endemic problem of illegal money lending. The Government have set up two pilot projects, in Scotland and the west midlands, which in recent months have secured significant prosecutions and taken out of the community a group of people who have been a scourge in it. It is important not only to assist credit unions, but to take other action to undermine the criminal element who prey on the most vulnerable.
I welcome my right hon. Friend’s words about credit unions, but I agree with the hon. Member for Scarborough and Whitby (Mr. Goodwill) about the need for more regulation of money lenders—because that is what the people who push glossy leaflets about loans with 100 per cent. interest rates through doors are. Should we consider tougher regulations in that area to protect the vulnerable?
Next year, the Government will bring forward a directive in respect of unfair activity in that area. We will do that in a non-partisan way—[Laughter.] I cannot win. A few minutes ago I was accused of being too partisan. Now I make an offer to be non-partisan and the Tories burst out laughing. They just flip-flop everywhere. I reassure my hon. Friend that I will work with the whole House to ensure that legitimate operators remain in the market, but that we will deal with those who are not legitimate.
Farepak
The speed of the investigation will be determined by the thoroughness of the investigators, who act independently of Ministers. The investigation is being carried out by the companies investigation branch under powers in section 447 of the Companies Act 1985. Reports of investigations under section 447 may not be published, nor may information about their findings be disclosed except to prosecutors and regulators named in the Act. There is a public interest reason for preserving the confidentiality of the investigation. Premature disclosure of information would prejudice any action that was merited, whether that involved prosecution, the disqualification of directors, or regulatory action.
I thank the Minister for his response, although whether the inquiry will report before Christmas remains unclear, certainly to Farepak customers. Will he confirm that evidence of wrongdoing by directors will lead to criminal proceedings against them? The Secretary of State for Northern Ireland appears to have advocated a boycott of HBOS for its sad involvement in the affair. Does he support that?
As a politician, the hon. Gentleman is entitled to make clever remarks. However, if he wants me to do the same in respect of HBOS, he must accept responsibility for the fact that that would mean that any culpability on HBOS’ part found by the investigation could not be taken to court by the prosecutor. My job is not about taking sides; it is about ensuring that there is a proper investigation and action is taken if illegality is found. By all means let the hon. Gentleman seek a headline, but my job is better than that. My job is to seek the truth of the matter, and to take action if that is necessary. After all, the Government sent the investigation branch in within hours of Farepak’s collapse. In normal circumstances, the investigation branch does not go into a collapsed company until after the administrator’s investigation. The fact that the Government took the unprecedented step of sending the investigation branch in so soon, by agreement with the administrator, shows how seriously we take this matter. I hope that hon. Members realise that, and that clever off-the-cuff remarks are not helpful.
May I take this opportunity to thank my right hon. Friend and his private office for setting up the family fund, and for their tireless work in seeking justice for the Farepak victims? Does he agree that an early conclusion to the investigation would help to pave the way for early regulation for the Christmas savings sector, so that similar difficulties never arise again?
My hon. Friend has played a tremendous role in this matter. The time scale does not allow me to make an oral statement today, but I will issue a written statement setting out the details of the fund as they stood at 7.30 this morning, and the arrangements for its distribution by 18 December.
I hope that you will allow me, Mr. Speaker, to give the House a flavour of my written statement. I assure my hon. Friend the Member for South Swindon (Anne Snelgrove) that the investigation will not be strung out, but I do not want it to conclude early as a result of pressure from politicians. I want a proper, full-scale, detailed and complex investigation that will involve many people and the inspection of large numbers of records. Indeed, we will have to reconstruct much of the company’s record base, because we need a constructive approach to finding the money trail. The investigation will be completed as soon as possible, but to a time scale that is commensurate with determining the truth and the action that must be taken.
As at 7.30 am today, more than £6.4 million had been placed in the fund, including more than £340,000 of public donations. Gift aid will contribute an additional £30,000. The resources are still being counted as I speak, and I assure the House that more money will be available later today. We have agreed in principle with the administrator that a large number of hampers, with a substantial market value, will be secured. We are in discussion with a logistics company and a large national retailer to determine whether the hampers can be distributed before 18 December.
Help in kind is being provided by the Park group, Findel plc and others, with logistics for the distribution of vouchers. An estimated £500,000 of gift aid will ensure that administrative expenses do not eat up every pound that people have put into the fund. In addition, we have agreed with the administrator that he will go back to court to cover the period from 11 to 13 October for repayments in excess of £300,000, which we hope will be made by Christmas.
Using the Consumer Credit Act 1974, we have secured—[Interruption.]
Order. In fairness to the House, I must stop the Minister; there will be a written statement.
Does the Minister agree that compensation of 15p in the pound for Farepak customers is a national disgrace and will ruin many people’s Christmas? In my constituency, people have lost more than £100,000 and because of the poor rate of compensation, the Reading Chronicle has today launched a local appeal—[Interruption.]
Order. Let the hon. Gentleman speak.
In the investigation, will the Minister look into how many Farepak customers use debit cards to pay their bills, as they may be entitled to full compensation?
The hon. Gentleman does the exercise down; it is not a compensation scheme, but a good-will gesture. After three weeks, from a standing start, more than £12 million in one form or another will go to people before Christmas. No legislation covers debit cards, but Visa has given a commitment to refund debit cards, as well as credit cards, in full. I hope that others will do the same, as that will result in a considerable sum of money. Other factors are involved, as the hon. Gentleman will realise from my statement. The investigation is widespread and will look into all aspects of the company’s collapse. More information will be available to the House at an appropriate time, but for now I think we should allow the investigators to continue their work. The priority between now and Christmas is to ensure that at least some people’s Christmas can be saved. If we had not taken the initiative, nothing would have been saved.
The management of HBOS, the Royal Bank of Scotland, Farepak and European Home Retail have all come in for varying degrees of criticism throughout the crisis. Will my right hon. Friend assure us that the senior managers of each of those organisations will be interviewed in the DTI investigation to give the House a full and clear picture of what actually happened?
Some of the managers of those companies and others involved with the banks and financial services that had a working relationship with Farepak have already co-operated fully and have made it clear that they will continue to do so, and I am pleased about that. Companies—financial services and others—that had financial dealings and arrangements with Farepak will be part of the investigation.
We had spotted the fact that there was to be a written statement and the House is grateful to the Minister for giving us the gist of what will be in it when it is published later. Quite apart from the specific issues of the investigation, which we must respect, many of us find astonishing the background principle that savers’ deposits have been used to prop up a parent company as though they were cash flow from profits that would never need to be returned. What discussions has the Minister had about introducing immediate changes so that deferred purchase savings schemes such as Farepak are brought within the scope of the existing regulations that govern licensed deposits, so that in future vulnerable customers are protected and not abused as they have been in this case?
I take the hon. Gentleman’s comments in the spirit in which they were made. I immediately had discussions with the Office of Fair Trading, which is now in discussion with the regulators on the point the hon. Gentleman raised and other matters. Within a reasonable period, I expect them to come forward with proposals for Ministers to consider. In addition, I have to ensure that when the investigation is complete any proposals meet the needs not only in this case but in other financial transactions of a similar nature. The House can rest assured that after this debacle I want to ensure that arrangements in the future meet the needs of consumers and the retail sector. I am very much in favour of co-operation in this matter; it is in all our interests that consumers are protected and that legitimate retail businesses can continue to operate effectively. When it is appropriate, I will put information in the public domain for consultation, and we shall take action on whatever proposals result, to ensure—we hope—that a Farepak case can never happen again.
Manufacturing Sector
The Government are working with partners to improve skills levels across manufacturing. My right hon. Friend the Prime Minister recently announced approval of the new national skills academy for manufacturing, thus fulfilling yet another manifesto commitment. The academy will develop a genuinely employer-driven training opportunity, with training and education programmes that will set national standards for delivery, helping employers to raise skill levels and meet the demands of global competition.
I thank my right hon. Friend for that answer. I am particularly pleased about the element that involves partnerships with employers to ensure standards. In the centre of vocational excellence—in which I am a member of the steering committee—that is how we operate. I have recently been able to give awards from modern apprenticeship level right the way through to leadership and management level. We need a degree standard level in technical textiles. Will she help me to ensure that the regional development agency, which has promised £2 million for studies on technical textiles at degree level at Leeds university, fulfils that promise by March next year?
I congratulate my hon. Friend on the work that she has done in the textiles sector, arising from good provision in her constituency. The centres for vocational excellence ensure that provision exists. They are supply-side driven. We now have to ensure that the demand from manufacturers, employers and businesses matches that supply. I am happy to help her. I suggest that she should engage in discussions with the local learning and skills council, the supply agencies and the regional development agencies to ensure that the need in her constituency is met.
Last month, the deputy director of employment policy at the Engineering Employers Federation said:
“increased protectionism would be a grave mistake”.
What is the Department doing to lower tariffs to help British manufacturing?
One of the things that we could all do within the House is start talking up the success of British manufacturing. Too often people decry it; too infrequently they commend the very good record. For example, manufacturing output over recent times has been increasing consistently. The Government have a comprehensive strategy in place to support manufacturing across the piece. From investment in new technology and innovation, to the support that we give through our manufacturing advisory service, the contribution of regional development agencies, and the research and development tax credit—there is a plethora of support. That is contributing to the success of British manufacturing across the board. The hon. Gentleman would do well to join me in celebrating the success of British manufacturing.
Is my right hon. Friend satisfied with the restructuring of the Learning and Skills Council?
Through the development of skills academies, we are trying to make sure that the qualifications and training courses that are offered meet the demands of manufacturing. It is crucial that the Learning and Skills Council works with employers, through the sector skills council arrangements, or the skills academies, or the regional development agencies, to bring together that demand for skills with an appropriate supply of skills. That is what the reforms are all about.
I agree with the objectives to which the Minister referred, but I have just been told by an innovative British engineering company that it was not allowed to visit a local school to advertise its apprenticeships because that school did not wish to encourage its pupils to leave at 16. With 1.1 million manufacturing jobs having been lost since 1997, is it not the case that if we fail to ensure more joined-up thinking on skills and manufacturing, the only skills that will exist will be in China and India?
I would be grateful to the hon. Gentleman if he gave me the details of that particular instance, because I agree that if we are to encourage more young people to work in enterprise, in the widest sense, we must ensure a far closer relationship between industry, enterprise and schools. I have often gone on record saying that that relationship has to start when children are quite young, because they make their subject choices at a very early age. They should be inspired, and the enormous excitement that can come from a career in manufacturing and enterprise must be made visible to them, so I would be grateful if he gave me that information. I say to him, again, that he should not talk down manufacturing. Manufacturing output is up, quarter on quarter, and in the last quarter it went up yet again. In the automotive industry, for example, we are producing as many cars today as we did at the height of car production in the 1970s. It was when his party was in government that car production declined, because that Government failed to see the importance of manufacturing and enterprise to the economy.
Although I recognise why my right hon. Friend says that the national skills centre is employer-led, does she recognise that employers do not always have a good record of looking to the future and planning for skills needs? Will she make sure that there is an employee element, and employee guidance, too? In particular, will she ensure that trade unions have an important role in making sure that employees get the passportable skills that they need for the future of manufacturing?
I agree with my hon. Friend, and the Government have done a lot to ensure that trade unions are closely involved with education in the workplace. I have visited many schemes in which trade unions play an extremely positive role in ensuring that employees obtain greater skills and more qualifications at the workplace. The work that we have done through the sector skills councils, and the academies that we are establishing, will bring employers together, and with that joint experience, employers can ensure that the training, qualifications and expertise developed are fit for purpose, so that we can increase productivity and provide sustainable jobs and economic growth.
Environmental Technologies
The Government support the UK environmental industries sector, which has increased from £16 billion, employing 170,000 people in 2001, to £25 billion, employing 400,000 people in 2004. We have introduced a range of incentives for small and medium-sized enterprises, and the commission on environmental markets and economic performance, announced by the Chancellor in response to the Stern report, will make further recommendations to ensure that the UK makes the most of the opportunities arising from the environmental challenges of the present and the future.
As my hon. Friend the Member for Huntingdon (Mr. Djanogly) said, 1.1 million manufacturing jobs have been lost since 1997. Many of those jobs were in my constituency in Shropshire, and in the west midlands. What specifically are the Government doing to encourage environmental technologies for the national good, so that a renaissance in British manufacturing can occur on the back of environmental technologies?
I am rather tired of Opposition Members constantly proclaiming that jobs have been lost in manufacturing industry under this Government. If we look at the record, we see that this year up to September, we have lost 75,000 jobs because of increased productivity and new technology, not because of a reduction in manufacturing output. We should compare that with 1981, when we lost 673,000 jobs in one year alone, or with 1991, when we lost 422,000 jobs in one year alone. The record speaks for itself.
The right hon. Lady has made her point. I call Mr. Bob Blizzard.
Energy Reserves
Our latest estimates in September show that at the end of 2005, commercially recoverable reserves of UK oil and gas amounted to between 7 billion and 16 billion barrels of oil equivalent. In addition, it is estimated that between 4 billion and 18 billion barrels of oil equivalent could be found as a result of further exploration. My hon. Friend is a tireless and, indeed, giant champion of the industry, and he knows that while there is long-term decline, there nevertheless remains powerful potential for the future.
I welcome my hon. Friend to the energy portfolio today, and I hope that I can do so again in future. Is not the most secure source of energy our own oil and gas and, as we have just learned, there is plenty left? Most of it is in small fields, yet operators have to use the consents procedure that was devised for the large, early discoveries. Will he look at how those procedures can be streamlined without compromising their integrity to facilitate the development of those fields by small companies and, at the same time, make sure that the Department of Trade and Industry retains responsibility for the matter?
I agree that as the fields mature, as exploration west of Shetland, for example, becomes more difficult, and as more smaller companies move in, we must constantly review procedures, including those for consents. Fortunately, our PILOT partnership with the industry is an effective vehicle for the Government—both the DTI and other parts of Government—and industry to discuss those very issues.