18 September 2013

BPIF met with Brooks Newmark MP (Con - Braintree) at the Trade Association Forum CEOs Lunch on 12 September.

In the Q&A session that took place over lunch, the following topics were covered:

Reference was made to a Daily Telegraph article entitled  "Brussels fears European industrial massacre sparked by high energy costs"(http://www.telegraph.co.uk/finance/financialcrisis/10295045/Brussels-fears-European-industrial-massacre-sparked-by-energy-costs.html) in nwhich EU Commissioner Antonio Tajani warns that Europe's dash for renewables is pushing up European energy costs to untenable levels. Newmark shared this view and said that most Conservatives and Liberals would too, though he had doubts whether Labour MPs would.

Against a background of rising oil prices, surely there was a case for cutting fuel duty, not just freezing it? Newmark argued that the Chancellor would take the view that he had done enough by holding it steady. Cuts could not be afforded unless taxes were raised on something else. Cutting consumption taxes was a difficult thing to do. It was better to focus on reducing the cost of running vehicles through the development of more efficient energy technologies.

Reducing energy consumption by households - what more can be done? Newmark argued that a lot was being done, through Green Deal etc. and that it was still early days for these initiatives.

BPIF asked how trade associations could help the Conservative Party Small Business Ambassadors engage with SMEs and assist them in promoting the cause of small business. He asked that each of the TAF members submit a list of their top business concerns on one-page of A4 and that the TAF chair collate these and pass them to him. He would then share these with his fellow ambassadors and take these to BIS. BPIF expect to be asked for their input after this goes to the next TAF Council meeting this month.

Something has to change with Europe - we can't carry on with the existing relationship between the UK and the EU. What can be done? Newmark said he was a huge supporter of free trade and he believed that the EU should go 'back to the future' by concentrating on trade issues. He believed that this view was shared by most of the member states but with the notable exception of Southern Europe and France.

How can we stimulate growth in the regions? Newmark's view was that regions should not place undue reliance on public sector employment, or on just one industry.

Business rates and their impact on the High Street. Newmark was in favour of wholesale reform. He said that two shops he had opened in his constituency in the past two years had since closed.

How well are the banks supporting the economy? Newmark argued that banks had become over-cautious but that they could not be expected to return to pre-recession lending practices. Part of the problem was that banks were not pulling the plug on zombie business for fear of having to take huge write-offs.

Newmark concluded by saying that he has established a Million Jobs Campaign to address the problem of youth unemployment. The campaign has published a Manifesto (http://millionjobs.org.uk/2013/09/06/million-jobs-manifesto-exempt-unemployed-under-25s-from-national-insurnace/)  setting out five key policies to help young people across Britain move into jobs. These are:

• Get rid of employer National Insurance Contributions for unemployed under 25s.
• Make sure school pupils know all about apprenticeships.
• Get rid of rules that stop employers from giving honest feedback.
• Encourage more companies to take on a young person.
• Help every young person to find a mentor.

The suggestion was made that full apprenticeship funding should also be made available up to 25 and Newmark said that he agreed and would 'take this forward'.

Brooks Newmark was elected as the Member of Parliament for Braintree in 2005. Since then he has served as a member of the Science and Technology Committee (2005-7) and the Treasury Select Committee (2006-7). He became a Government Whip in 2007, serving as such until 2012. At the end of 2012, he was again elected to the Treasury Select Committee. His special interests include Economic Policy, Foreign Policy (Middle East, India, China and USA), Poverty Reduction and International Development (Microfinance), Special Needs Education, and Women's Issues (Healthcare & Politics). He is an expert on Syria, having met Assad and most of the other factions in that country on numerous occasions.