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Mr. John Bercow (Buckingham): Will the right hon. Gentleman reflect on the Government's proposals either for better regulation--which has so far been a failure--or for deregulation? I wrote to him on 20 May seeking a response to the six-point plan contained in my 10-minute Bill presented on 27 April. At the end of June, he replied with an undertaking to implement a measure of sunset regulation, along the lines of the American model, whereby regulations automatically lapse or expire after a given date if they are not deemed worthy of renewal. Will he now tell the House what specific measure he proposes to introduce in fulfilment of that promise?
Mr. Byers: I shall ensure that the hon. Gentleman receives a copy this morning of the Electronic Communications Bill, which is being published today and contains a sunset clause. I thank Opposition Members for their silence.
The Queen's Speech prepares our country for the future and reflects a recognition that a fundamental shift, driven by globalisation, technology, innovation and knowledge, is occurring within our economy and society. In that context, we must be absolutely clear about the role that Government can and should play, especially in trade and industry and support for business. We should promote competitive markets, encourage long-term research and investment and help to equip all our people with the skills that they will need to succeed in a modern economy. I do not believe that my Department needs to go far beyond those essential requirements.
I recognise that, in a modern economy, the main source of value and competitive advantage will be human and intellectual capital. For most of our history, wealth and power have been derived from the control of physical assets--land, raw materials, coal, iron and steel--but, in the next century, they will come from human capital, so investing in knowledge, skills and learning is a key priority for the Government and our country. We were the cradle of the first industrial revolution, which was based on investment in plant and machinery--physical capital. The current revolution will be based on knowledge, which means that the responsibility of both Government and employers must be to invest in human capital--in skills, knowledge and learning.
A range of new policies and approaches is needed if we are to create a more entrepreneurial, knowledge-rich economy. That is the objective that the Government have set for themselves. When we look around the world today, it is clear that its chief characteristic is change. The force of change outside our country is driving the need for change within it. We must ensure that markets work effectively, which means operating a strong, robust competition policy and keeping consumers well informed and confident.
A market left to its own devices cannot educate or equip us for this world of rapid change; that is possible only if we work together. Our objective must be a dynamic, knowledge-based economy, founded on individual empowerment and opportunity, in which Government enable but do not dictate, and the power of the market is harnessed to serve the public interest. The real challenge for Government in the dying days of the 20th century is: how can we prepare Britain for a world in which knowledge will be the new currency?
I know that Conservative Members are obsessed with another currency--they can think of little else--but knowledge is the global currency to which they should give some thought. Successful economies and societies will be those that can adapt to the demands of rapid change, that are flexible and creative and manage change rather than being submerged by it. We want to ensure that change can be seen as a bringer of opportunity, not of threat.
There will be countries that find ways of including all their people, not just the new "knowledge elite". That is the challenge that we face. We need an approach that will be built around a new coalition, but with the historic objectives of the left of centre in politics: to create a better standard of life for our people, to ensure that British business succeeds at home and abroad, and to tackle exploitation in all its forms.
Mr. Geraint Davies (Croydon, Central):
My right hon. Friend has spoken of e-commerce, changing technology and human capital. Does he envisage, as I do, a world in which, within the next few years, one in five working days may be spent at home, on a computer? Would not such a development have an enormous impact, decreasing the need for additional transport infrastructure, and radically changing the whole paradigm for the Department of the Environment, Transport and the Regions? Will that not be the effect of our innovations in the spheres of e-commerce and trade and industry?
Will my right hon. Friend work closely with his friends in the DETR to manage those changes? If one day in five is spent at home, presumably one office in five will be
empty, and the resulting space could be used for executive homes. The whole situation in British industry, in terms of the efficiency of travel to work and of communication--
Mr. Deputy Speaker (Sir Alan Haselhurst):
Order. This is a long intervention, even for a Friday.
Mr. Byers:
My hon. Friend has, however, made a serious point. Many large multinational companies are now considering the number of places that they will need to provide at their headquarters. The chief executive of a major multinational relocating in central London told me the other day that the company will require all its workers to spend one day a week at home, and that it will consequently need less office space. It is taking financial advantage of that reduction, and is encouraging people not to travel by providing them with all the facilities that they will need in order to keep in touch with the business from home. Such developments will lead to rapid changes in the way in which businesses organise themselves.
As I was saying, we must help British business to succeed at home and abroad, as well as tackling exploitation in all its forms. That approach, which runs throughout the Queen's Speech, recognises that, while the role of Government has changed fundamentally, Government still have a critical part to play in improving the performance of the British economy, and improving life for all our people.
By creating a stable macro-economic environment and ending the cycle of boom and bust, we can ensure that businesses have the confidence to plan for the future. We need them to invest in knowledge, whether through research and development or through training, and to be prepared to take risks in order to stay ahead in fast-moving markets. We can ill afford any delay in that vital investment owing to fears about the economy and its long-term stability.
As the world opens up, British firms will succeed in winning market shares only if they have access to markets, and are capable of competing. Opening up markets will be one of the Government's top priorities. We are driving that forward in the United Kingdom, where there is now full competition in the supply of electricity and gas, but much more needs to be done. Part of it will be achieved by the utilities Bill. Far too few domestic consumers, in particular, are taking advantage of the freedoms that are already available to them: very few, for instance, are changing their gas and electricity suppliers even when to do so would be financially advantageous. I want consumers to think seriously about how they can take advantage of the benefits that have resulted from greater competition in the energy market, and we shall look at how we can help consumers--especially domestic consumers--to do that.
We also need to ensure that the markets in Europe are made fully open, and that we make the single market a reality. I am sure that all hon. Members were concerned to learn yesterday that the French Government do not intend to implement the electricity directive that would have opened up the French electricity market to competition. We strongly believe that open electricity and gas markets are necessary throughout Europe, and that one of the key reforms in Europe will be making the single market a reality. France's failure to implement the directive is disappointing, to say the least.
EDF, the French state-owned electricity company, is taking advantage of open European markets to establish a powerful position in Europe, but retains a monopoly in its home market. That is clearly unacceptable. We strongly support the infraction proceedings initiated by the European Commission, but we must also consider what further action might be appropriate in relation to the French Government's failure to open up the energy market to full, effective competition.
In just 10 days' time, the World Trade Organisation's ministerial meeting will begin in Seattle. We shall use it as an opportunity to work with others to continue the drive for global free trade and increased liberalisation of goods and services. Within markets, competition will always be the greatest spur for innovation and the provision of genuine consumer choice. Next year will see the start of a new competition regime in the United Kingdom, which will ensure that anti-competitive practices and the abuse of dominant positions can be halted, and punished where appropriate.
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