§ 2. Mr. Huw Edwards (Monmouth)If he will make a statement on progress in establishing enterprise challenge centres in universities. [95823]
§ The Secretary of State for Trade and Industry (Mr. Stephen Byers)We have recently announced the establishment of eight centres of enterprise in the university sector at a cost of £25 million. The centres will promote the exploitation of knowledge and will make a major contribution to the development of an enterprise culture in the UK.
§ Mr. EdwardsCan my right hon. Friend tell the House where the centres are to be located and how they complement other initiatives introduced by the Government to bring science and enterprise together?
§ Mr. ByersI am grateful to my hon. Friend for his question, because I can now prove that there are eight centres: at Bristol, Cambridge, Glasgow, Imperial College London, Manchester, Nottingham, Sheffield and the London business school.
§ Mr. Nick Gibb (Bognor Regis and Littlehampton)That is seven.
§ Mr. ByersNo, there are eight—I just checked.
Those centres will have a wider regional focus, looking not just at the needs of their own cities but at those of their whole region. The objective of the new centres of excellence is to ensure that we can exploit commercially the knowledge that resides in our university sector, which was badly neglected during the 18 years of the previous Administration. We shall provide £25 million to ensure that we can use that knowledge to create British jobs and British investment for British people.
§ Mr. Michael Fabricant (Lichfield)Does the Secretary of State agree that one of the roles of those enterprise centres is to seek partnerships with people outside universities in knowledge-based industries? Why did he not make representations to the Chancellor of the Exchequer and the Secretary of State for Social Security to prevent the regulations on IR35 from going through? I have received—as, I am sure, have many hon. Members—representations from many people in the knowledge-based industry. [HON. MEMBERS: "How many?"] I have received 2,600 representations from people saying that they will leave the United Kingdom or will invoice from outside the UK, because they cannot survive with the IR35 regulation. Does the Secretary of State accept that, without the writing of software, there is no e-commerce and there is no knowledge-based industry?
§ Mr. ByersThe hon. Gentleman has learned nothing from his party's 1997 election defeat. The Tories are yet again defending a tax loophole. We have heard it all before, and we are hearing it again today. The Government consulted widely on the changes that the House voted in favour of last night. As a result, we were able to close a tax loophole with the support of the industry. That is what our proposals do, and that is why the House agreed to them yesterday evening.