The Parliamentary Under-Secretary of State for Northern Ireland (Dr Andrew Murrison)
I am grateful for the opportunity to respond to my hon. Friend the Member for North Antrim (Ian Paisley) and congratulate him on the robust way in which he has put the case. His constituents will be very pleased with that, and I think that it does him great credit. The closure of the JTI Gallaher factory in Ballymena and the loss of hundreds of jobs and some £60 million from the town’s economy, and indeed from the whole economy of Northern Ireland, is a major blow. He is quite right to put that in proportionate terms, making a comparison with Great Britain and how we might view such losses on the mainland. He is quite right that this is indeed a major blow for the whole of Northern Ireland. I will do what I can to assure him that the Government are doing what we can, under the terms of the 1998 agreement, to protect jobs in his constituency and promote the prosperity agenda in Northern Ireland at this difficult time.
As my hon. Friend said, the factory in his constituency has been producing tobacco for 150 years and is the last tobacco manufacturing concern in the UK. I recall my own visit to one of the last tobacco factories in the UK, in Bristol 30 years ago—ironically, I was at medical school. Cigarette factories then were commonplace, and I think that he would admit that their decline is in some respects a good thing, since it tracks the fall in smoking, but not if production is simply shifted abroad. Of course we would all much rather have those jobs here in the UK and, specifically in the context of this evening’s debate, in Northern Ireland.
The announcement takes place against the background of the Northern Ireland economy continuing to move away from its reliance on industrial production. It is still too reliant on the public sector for jobs, as he knows. The economy in Northern Ireland is rebalancing, with the generation of creative industries, life sciences and the knowledge-based sector, which accounts for the large majority of all foreign direct investment into Northern Ireland. Aerospace, for example, continues to perform well in a very competitive market.
I accept, of course, that it is cold comfort for JTI employees to be told that software and financial services are experiencing the fastest growth or that Belfast is the No. 1 destination globally for financial technology investment. My hon. Friend will be aware, however, that the prospects for the tobacco industry overall are not very good. Indeed, they point to long-term decline as demand for cigarettes continues to fall and smoking rates edge downwards all the time. This is of course good news for health, but very bad for jobs in his constituency.
In 1974, almost half the UK population smoked—a remarkable thing to reflect on now. Last year, the figure had fallen to 18.7%. About 68% of smokers want to quit and are increasingly aware of the dire health implications of smoking. The tobacco industry has recognised the declining market caused by consumers’ health concerns and is diversifying into electronic cigarettes and associated technology that is deemed to be safer.
Dr Murrison
If my hon. Friend wants to intervene, I ask him to do so briefly as I do not have much time.
Sammy Wilson
Does the Minister accept that while there may be a decline, the irony is that while the Government are encouraging the private sector to grow in Northern Ireland, in this instance Government policy has squeezed the private sector?
Dr Murrison
I think that is a little unfair. Perhaps as I go through my remarks, my hon. Friend will be somewhat assured that the Government are doing what they can to promote the private sector, in particular, in Northern Ireland. I think he should know that from his experience of Northern Ireland overall, where the private sector is doing relatively well and the economy is, without a doubt, rebalancing, albeit at a rate that is perhaps not as fast as we would have liked.
There have also been job losses from the mechanisation and streamlining of tobacco production, and that has had a greater impact on jobs than tobacco control measures implemented by this Government. My hon. Friend the Member for North Antrim would probably accept that, given the changing nature of this industry, which he will have seen over many years.
On the tobacco products directive, my hon. Friend should know that I am generally loth to accept anything that comes out of the European Union, particularly when it results in regulation. However, it is fair to say that the tobacco products directive aims to protect health—that of his constituents, my constituents, and all constituents. Tobacco use is responsible for an estimated 700,000 avoidable deaths in the EU every year, and smoking accounts for over one third of respiratory deaths, over one quarter of cancer deaths, and about one seventh of cardiovascular disease deaths. I have seen these cases; I saw them day in, day out when I was practising regularly. I am sure he would agree that if we are to make any progress in improving public health, we have to cut the consumption of cigarettes. I do not think there is any difference between us on that.
Mr Burley
Does the Minister accept that smoking is not illegal in this country, and unless he is proposing to make it illegal, it makes no sense to regulate the industry into the hands of organised crime, whereby money will not be going into the Exchequer and there will not be the health benefits he is talking about? It is not an illegal activity, and we have a duty to protect jobs in manufacturing products involved in a legal activity.
Dr Murrison
It is clearly not an illegal activity, and I hope it never will be. For as long as people wish to smoke, they are entitled to do so. HMRC has the control of tobacco smuggling in Northern Ireland as its joint No. 1 priority. In my view, people are entitled to smoke if they want to, but if we are interested in improving public health, there are measures we can take to reduce consumption. Tobacco consumption is in long-term decline, as I described, and we need to try to work out what that means for the industry in this country, particularly in Northern Ireland, and how we can diversify it to create new jobs to replace those that are being lost. In the very few minutes that I have available, I will try to describe how the Government propose to do that.
No decision has yet been made on standardised packaging of tobacco products. Ministers at the Department of Health will review the results of the recent consultation before taking a position. My hon. Friend the Member for North Antrim has read Sir Cyril Chantler’s report and it does not give him much comfort, but I am sure that my colleagues at the Department of Health will note the contents of this debate very carefully and that they will be mindful, as all Ministers are, of the particular impact this issue is likely to have in Northern Ireland, for the reasons my hon. Friend has elegantly laid out.
It is important that we find new and sustainable work for JTI employees. Obviously, the Executive are in the lead, notwithstanding what my hon. Friend the Member for East Antrim (Sammy Wilson) has said about the Westminster Government in his typically robust terms. I know that Arlene Foster, the Minister for Enterprise, Trade and Investment, and Dr Stephen Farry, the Minister for Employment and Learning, have conducted a skills audit at the factory.
I have spoken to Arlene myself and she is very much on the case. Stephen Farry is on record as saying that his priority is to re-skill the work force and to ensure access to training courses, particularly in further education and especially at the Northern regional college. My own constituency experience very much suggests that the focus and priority in situations such as these has to be re-skilling and up-skilling the work force, and I am very pleased that that work is under way. The Government will, of course, support that wherever they can, but I must emphasise that, under the devolved settlement, it is first and foremost a matter for the Executive, which I suspect my hon. Friend the Member for North Antrim knows full well.
The auguries are good—my hon. Friend knows that. Northern Ireland continues to do well in respect of inward investment. Indeed, under devolution it has attracted more than twice its share of UK incoming jobs and investment. Since the start of 2014, Invest Northern Ireland has announced more than 1,250 new jobs from 11 new inward investors. That is an incredible achievement of which Northern Ireland should be very proud indeed. The future looks bright and maintaining that momentum has to be the priority of both the Executive and the Government. My hon. Friend can be absolutely certain that we will do whatever we can to support the prosperity agenda in Northern Ireland and make sure that his constituents benefit fully from that, given what has happened recently in relation to JTI Gallaher.
The economic pact published last year represents a different approach to delivering the Government and the Executive’s shared aims of rebalancing the economy and building a shared future. It recognises that working together can deliver better results for the people of Northern Ireland. “Building a Prosperous and United Community: One Year On”, published in the summer, makes for good reading. It is a backdrop against which I hope the work force in my hon. Friend’s constituency will emerge well from the setback that he has so ably brought to the attention of the House.
Question put and agreed to.