T1. If he will make a statement on his departmental responsibilities. (905335)

Let me begin by paying tribute to three former ministerial colleagues who have left the Department. Appropriate cross-party tributes have already been paid to the right hon. Member for Havant (Mr Willetts), but as I worked with him very closely for four and a half years, I can say that he was a superb colleague who has left a major and constructive legacy. I also pay tribute to the right hon. Member for Sevenoaks (Michael Fallon), who is now the Defence Secretary, and to my noble Friend Viscount Younger of Leckie.

I welcome a series of new colleagues. The new Minister for Universities, Science and Cities is the right hon. Member for Tunbridge Wells (Greg Clark). The new Minister for Culture and the Digital Economy, the hon. Member for Wantage (Mr Vaizey), will be responsible for digital industries and related activities. The Under-Secretary of State for Business, Innovation and Skills, the hon. Member for Mid Norfolk (George Freeman), will be responsible for life sciences, and Baroness Neville-Rolfe is the new Minister responsible for intellectual property.

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

I thank my right hon. Friend for that helpful information. What assessment has he made of the effect of a yes vote in the Scottish referendum on science and research in Scotland?

My Department published some detailed analysis, which I think enjoyed wide consensus. It was objective in relation to the potentially damaging effects not just on business and the British single market, but on research in the United Kingdom. As I said earlier, Scottish university institutions have attracted a disproportionate share of finance for the very good reason that they do excellent research, but that arrangement clearly could not be guaranteed in an independent Scotland.

Sir David Barnes, former chief executive officer of AstraZeneca, told us that while companies should manage their tax affairs efficiently, it should not have been the driving force for Pfizer’s proposed takeover of AstraZeneca because it was

“a narrow basis on which to build an enduring and constructive business partnership.”

Does the Business Secretary agree with that general principle in respect of the takeover of important British companies?

Yes, I do agree with that, and I made that very clear at the time. I think that the response of the Government, as well as of the shareholders of AstraZeneca, was a factor in persuading Pfizer not to pursue that bid.

The tax avoidance mechanism—tax inversion—that Pfizer sought to use through that takeover has been one of the main driving forces behind this year’s surge in cross-border deals. However, this week US Treasury Secretary Jack Lew said the Obama Administration would crack down on inversions pending further action by Congress. Does the Business Secretary share my concern that if we see takeovers of British firms being primarily driven by the desire to avoid US tax, there is a real risk of a large flight of capital back to the US when the threatened crackdown comes, leaving important UK companies high and dry?

Again, I agree with the hon. Gentleman’s basic proposition. As it happens, much of the alarm that was raised some months ago about large American companies taking over British companies or British-based companies on the back of those tax provisions have proved wholly unfounded. He is quite right that takeovers, although they are generally beneficial to the UK economy, should not be driven by artificial short-term tax considerations.

T3. Businesses in Rugby tell me that the changes this Government have made to the employment tribunal system have encouraged them to expand and take on more staff, and the growth in employment demonstrates that. Does the Secretary of State share my concern that Labour’s proposals to scrap our reforms would mean a return to the bad old days when companies were discouraged from taking on that extra person through fear of getting tied up in a weak or vexatious tribunal claim? (905337)

Indeed, and the world competitiveness report acknowledged that Britain ranked number four in the world in overall attractiveness in labour markets. My hon. Friend is right that the reforms we have introduced are certainly one factor in that we have had a growth of 2 million in private sector jobs since May 2010. One factor that has not been noted, and certainly has not been noted by Opposition Members, is the very large number of cases now being dealt with by ACAS that would otherwise have gone through an expensive and frustrating legal procedure.

T2. In asking my question, I want to make it clear that I want the Scots to remain our countrymen and women and not to become our competitors. The Government set up the UK Green Investment Bank in 2012 to boost investment in green technology and enterprise across the United Kingdom. With Hull and the Humber area emerging as a major UK centre for green energy and renewables, we would have extended a very warm welcome to having the bank in Hull. However, as we all know, its main headquarters is in Edinburgh, so can the Secretary of State just confirm that the UK Green Investment Bank can only be located within the United Kingdom? (905336)

I think we all share the views that have been expressed across the House: that the United Kingdom is better together for a whole variety of reasons. The green investment bank is functioning very successfully with its current headquarters and operations. I think it has disbursed approaching £1 billion in a wide variety of projects from offshore wind to street lighting systems in Glasgow. It is a very successful initiative of this Government and I trust it will remain so.

T4. Given the importance of superfast broadband to businesses in both rural and urban communities, what is the Department doing about BT’s near-monopoly in contracts, which is leading to BT now missing out whole villages and even sections of Lancaster city in my constituency of Lancaster and Fleetwood? (905338)

I am happy to meet my hon. Friend to talk about the specific circumstances in his constituency. I would say to him that our broadband roll-out programme has now covered more than 1 million homes, and we are covering about 40,000 homes a week. We are going flat-out on this, and we are achieving great success.

May I say that I lament the moving of the right hon. Member for Havant (Mr Willetts)? One of the weaknesses of the parliamentary system is this stupid churn of Ministers, especially the good ones who should have been in the Cabinet and doing their job right through to the election.

May I push the Secretary of State on the subject of entrepreneurs? We need more of them in our country, along with more business start-ups. There are some very good tax incentives at the moment, so will he speak to the Chancellor about spreading the tax relief incentives out beyond the private sector? Let us give equal status to social investment and social enterprises. He will know that, at the moment, the cap is much lower.

That has been an active subject of discussion with the Chief Secretary to the Treasury. Indeed, we have had a social enterprise day supporting worker-owned enterprises, and a consultation is taking place at the moment on how such activity can be facilitated through the tax system. I note the hon. Gentleman’s comment about the churn of Ministers. I should point out that I have been in my present job longer than anyone since someone called Peter Thorneycroft in the early 1950s.

T5. As my hon. Friend knows, Plymouth is the host of the Peninsula medical school. In the light of the Ashya King case, in which Ashya’s parents had to flee to another country to get treatment for him that was not available in the UK, what plans does he have to accelerate research into new drug and medical technology? (905340)

My hon. Friend makes an important point. That case highlights the importance of Britain remaining at the forefront of medical innovation. To that end, we have set out our groundbreaking 10-year life science strategy, and I pay tribute to my predecessor, my right hon. Friend the Member for Havant (Mr Willetts), for that. My central mission in this new role is to ensure that Britain leads the world and is the best place in the world to develop 21st century medicines and health care technologies.

From his talks with north Staffordshire MPs the Secretary of State knows the importance of the proposed European directive on origin marking. People need to be able to find out exactly where a plate has come from by turning it over, and the directive will be of great importance to the competitiveness of the ceramics sector and to public health standards. The next meeting of the working party on consumer protection and information will take place on either 16 September or 1 October. Will the Minister review his position before that meeting and abandon his opposition to this proposal? Will he also ensure that his officials are working on a full appraisal in order to enable the proposal to go forward?

The hon. Lady and her colleagues from the ceramics industry constituencies have been very effective in pursuing this issue with me. When she last raised the matter with me, I reopened the question and we have been looking at it carefully. I will report back to her on where we will be positioned in relation to the latest discussions in the European Union.

The Department announced the local growth fund recipient projects in July, and, for some bizarre reason, the A64 was left off the list. This has put a real question mark over the chances for rural economic growth across Ryedale and North Yorkshire. Will the Secretary of State review that decision at the earliest opportunity?

North Yorkshire did pretty well out of the local growth fund. It has the BioVale campus, which I know my hon. Friend is strongly in favour of. Such was the calibre of the projects that we were able to allocate £6 billion of investment. I am now keen to move on to the next set of allocations, and she has just made a strong pitch for investment in her area.

I wonder if the Secretary of State would care to amend the reply he gave to me about when the pits closed. Just for his information, between the end of the pit strike in 1985 and the onset of the Labour Government in 1997, 170 pits were closed, out of less than 200. Those are the figures. They cannot be denied, and if he checks the record he will see that I am speaking the truth. On a second issue, is it not stupid to be getting rid of 3,000 mining jobs in the three pits that I have referred to while at the same time importing more coal from Russia when there are supposed to be sanctions? Is there not a stench of hypocrisy here?

The hon. Gentleman is, of course, right on the figures. When we came into office there were only three pits left and none of the 170 he mentioned had been reopened, although there was a long period of Labour government during which that could have happened if the economics had been as he describes them. We have been actively involved in the case of these three pits; we have no wish to see a sudden closure and mass redundancies, and we continue to talk to potential commercial parties about it.

Businesses in my region really welcome proposals in the Small Business, Enterprise and Employment Bill on prompt payment. However, £46 billion is currently owed to businesses in the UK—that is an increase of £10 billion on last year’s figure—so as the Bill goes forward will Ministers consider making the code even tougher and broadening it to more companies?

The hon. Lady is right to say that, particularly given the overall problems with access to finance for small and medium-sized companies, the issue of late payment is crucial and that this is happening on a massive scale. We will, in the course of this Bill, be making it much more transparent how larger companies, in particular, make their payments—we will be helping small companies in that way. I am happy to look at how we can strengthen the code, and indeed we are talking to the Institute of Credit Management about how we can do that.

Two years ago, figures were released showing that the green economy, although representing only 6% of the wider economy, was responsible for 30% of the growth in the economy. Will the Secretary of State tell us the current figures and, in his new line-up, which Minister has been specifically appointed to be responsible for green economic growth?

There is a green economy group operating through government. I serve on it, together with the Secretaries of State for Environment, Food and Rural Affairs and for Energy and Climate Change—I believe it has Treasury representation on it, too. We put enormous importance on having a green thread in policy and we have taken major initiatives in that respect, notably through renewable energy innovation, supply chain development and the establishment of the green investment bank.

What is the Department doing to make the UK a better place to do business for our already strong pharmaceutical sector? I am particularly thinking about encouraging clinical trials and bringing forward new medicines, which of course will benefit not only our economy, but patients receiving treatment in our NHS?

My hon. Friend makes an important point. As a Minister in the Department of Health and in BIS, it is my job to make sure that we are building a landscape in which the UK is the best place to get quick access to patients, tissues, data and trials. Unless we can get innovations to patients more quickly, not only will we let them down, but, more importantly, we will not attract the investment into 21st century health technologies that we and our patients need.

The Secretary of State rightly highlighted the importance of re-shoring to revitalising our manufacturing and rebalancing our economy. Innovative companies such as Gloucestershire’s Future Advanced Manufacture Ltd discussed with aerospace customers how to manufacture locally parts previously made in the far east, and has done this with success. Does he think that there are more opportunities, with his Department leading, to discuss with the aerospace industry how the big contractors can look at their supply chains and consider re-shoring opportunities through small and medium-sized enterprises?

The hon. Gentleman is right to say that the aerospace industry is one in which the British supply chain had been badly depleted over the years, and it is now being rebuilt. When I was last in India on a departmental trip I did visit an Indian aerospace company that was relocating to the UK, so this does happen. Through the aerospace growth partnership, which is a key element of the industrial strategy, re-shoring and building up the supply chain is a key element in the long-term planning of the sector.

May I ask the Secretary of State about the remuneration of university vice-chancellors, because the entry level appears to be about £160,000 a year? There are 127 vice-chancellors receiving more than £200,000 annually, 33 receiving more than £300,000 and four receiving more than £400,000. What is it about running a university that makes it so much more difficult and so much more remunerative than running the country?

The robust tradition among universities is that they are independent institutions; Ministers do not have the ability to direct them. Universities are now in a competitive environment: they compete for students and with each other for research funds. I am sure that vice-chancellors across the country who are meeting today in Leeds at their annual conference will have the hon. Gentleman’s message relayed to them.

Ah, universities and the running thereof, Mr David Willetts.

I was hoping to ask the Minister about Glasgow and to confirm that in a nationwide competition, Glasgow city won the funding to get £25 million of investment in smart city technologies. Do we not think that the best way for Glasgow to remain a smart city is for it to remain part of the United Kingdom?

My right hon. Friend is absolutely right. Not only did Glasgow win that investment, but I was delighted to sign a city deal with it during the summer that involved the establishment of a new centre for stratified medical imaging in that great city. It is one of the advantages of being part of the United Kingdom that the excellence of Scottish institutions allows them to punch above their weight in terms of population and GDP. The question that is being asked in the Scottish research community is why spoil such a huge success story.

rose—

Last but not least, Mr David Nuttall.

Thank you, Mr Speaker. When university tuition fees were increased, some feared that it would result in a fall in the numbers applying to enter higher education, particularly those from poorer backgrounds. Will the Minister tell the House whether those fears have proved justified?

I am grateful to my hon. Friend for giving me the chance to point out that those fears have been completely unjustified. Since 2010, there has been a 17% increase in students from the poorest backgrounds, including an 8% increase in the past year. More students from disadvantaged backgrounds are going to university than ever before, and the gap between the richest and the poorest has never been smaller.

On a point of order, Mr Speaker.

Points of order come after business questions rather than during questions.

The Secretary of State will not be here very long and I would like him to hear my point of order.

The hon. Member for Colchester (Sir Bob Russell) may be able to persuade the Secretary of State to return for his important point of order. I am afraid that procedure must take precedence over convenience.