Coty Manufacturing Plant (Seaton Delaval)
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The Minister for Universities, Science, Research and Innovation (Joseph Johnson)
I congratulate the hon. Member for Blyth Valley (Mr Campbell) on securing a debate on this important issue. I recognise the importance of the Coty manufacturing plant to his constituency and to the region as a whole. It has been part of the industrial fabric of the north-east, and the culture of this country, since the factory was opened by Shulton some 55 years ago. The announcement on 15 March that the company proposed to close the plant before the end of 2018 has clearly come as a bitter blow to the employees concerned, their families and the communities in which they live. I fully appreciate the uncertainty this will cause and its potential implications for the region.
The proposed closure is a commercial matter for Coty, but if the decision is confirmed at the end of the statutory consultation period the Government will ensure that those employees affected receive all available government assistance to help them get back into work as soon as possible. We will encourage the company to contact Jobcentre Plus as soon as possible to discuss appropriate support that can be delivered locally. The Jobcentre Plus rapid response service is delivered in partnership with a range of national and local partners. Where no partner support is available, there is dedicated funding that may be used to fill gaps in provision.
Decisions about appropriate support are made locally. This is because a decision that is based on the specific redundancy situation, an individual’s own transferable skills and experience and the availability of jobs in the local area is far more likely to be the right decision. Typical support for an individual might include matching to local known job vacancies, or helping to construct or improve CVs. Where there is scope to do so, support might be delivered on a group basis, for example by bringing redundant workers and employers together at a jobs fair.
My officials are part of a locally arranged and organised taskforce to ensure that the potential for continuing manufacturing on this site is maintained. The taskforce will be led by Northumberland’s economic development company, Arch. We will work with it to explore opportunities for retaining manufacturing at this site. We will highlight the economic strengths and opportunities of the site and the workforce, as well as how to support economic growth opportunities. If closure is confirmed, I would expect the taskforce, working with the Department for Work and Pensions, Northumberland County Council and the North East local enterprise partnership, to support any affected workers to enable them to transfer as smoothly as possible into local growth sectors.
The Government are supporting the economy of the north-east by providing £380 million of local growth funding and improving infrastructure, skills, innovation and transport. That funding will lever in £300 million of public and private investment, and will create about 8,000 jobs. It forms a critical part of the newly refreshed strategic economic plan for the north-east, published by the local enterprise partnership last month.
We are also providing funding for the growth hub in the north-east in order to identify, target and support scale-up businesses more effectively. That will include the creation of a scale-up development model and the introduction of new systems to ensure robust measurement of impact on economic growth and productivity. It will have a significant impact in enabling companies that are ready to grow to expand quickly, and will ensure that there are more opportunities for those affected by Coty’s decision.
Question put and agreed to.