Aerospace Industry: Northern Ireland
(4 months ago)
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Jim Shannon (Strangford) (DUP)
Thank you, Mr Deputy Speaker, for allowing me the opportunity to speak on Government support for the aerospace industry in Northern Ireland. It is not unique, but it is quite unusual for me to be leading an Adjournment debate instead of intervening in it. I hope that plenty of Members will take the opportunity to intervene on me.
Northern Ireland is an aerospace hub. We have worked long and hard to make it so, and for good reason: we are an anchor for the aerospace industry. It is something that we have built on over the last number of decades, and from suppliers to highly skilled labour Northern Ireland is a global force for aerospace. Invest NI has highlighted this, saying:
“Northern Ireland Aerospace & Defence offers a true turnkey supply solution with design, manufacture, certification and testing in one hub. The level of proximity and cohesion is unique—120 firms within 1 hour drive of each other, a high density of suppliers across all elements of the aerospace supply chain, from design and manufacture (world leading capabilities in machining, composites, polymers), to coatings, assembly, certification & testing. Our high performing and consistently reliable supply chain can meet customers’ needs at pace and with industry leading quality performance. These companies are engaged at the leading edge of advanced aerospace design and manufacturing. Every major commercial aircraft programme depends on structures, components and expert services from Northern Ireland…World-class universities and an extensive network of further education colleges provide excellent academic and vocational training.”
Sammy Wilson (East Antrim) (DUP)
Is my hon. Friend pleased that Northern Ireland has tens of thousands of jobs in the industry? We are a major exporter as a result of the aerospace industry, and when people fly around the world, a third of the seats on aircraft are made in Northern Ireland. That is an amazing figure, showing how important the industry is not only to Northern Ireland but to Great Britain and the UK.
Jim Shannon
I am always happy when my right hon. Friend intervenes, and that exactly underlines why Northern Ireland is so important. It plays above its status, with its population and the skills force that I have referred to.
I should have said, and I apologise for not doing so, how pleased I am to see the Minister of State, Department for Business and Trade, the hon. Member for Croydon West (Sarah Jones), in her place. I very much look forward to engaging with her over the next period of time. I am also pleased to see the Under-Secretary of State for Northern Ireland, the hon. Member for Putney (Fleur Anderson), in her place. She was in my constituency approximately six or seven weeks ago. She came as a shadow Minister and I told her that the next time she came, instead of asking the questions, she would have to answer them, so I look forward to the next time she comes to Northern Ireland. I am really pleased to see both ladies in their place, and to see the shadow Minister here as well.
To reinforce what my right hon. Friend the Member for East Antrim (Sammy Wilson) said, there is an existing talent pool, with more than 34% of Northern Ireland’s workforce having a third-level qualification, and costs are significantly lower than EU, US and UK averages. Operating costs are up to 30% lower than on the UK mainland or in the EU. I say with great respect and humbleness that Northern Ireland candidates consistently outperform those from other UK regions at GCSE and A-level examinations, and with a strong partnership between academia, industry and Government driving skills development in the region, it is little wonder that we are thriving. I want to say how pleased I am at that.
Sarah Dyke (Glastonbury and Somerton) (LD)
In a segue from Northern Ireland to Somerset, Leonardo is an aerospace manufacturer located just outside my constituency. Last month it held its AeroWomen event to highlight the diversity of careers for women in the sector. Does the hon. Member agree that the Government can play a role in encouraging more girls and women to study science, technology, engineering and maths—STEM subjects—and to work in this field, which would help to close up the skills shortages that the industry faces?
Jim Shannon
Yes, I agree. I am glad to say that, in Northern Ireland, Spirit AeroSystems and the aerospace sector are already trying to achieve some of those goals by giving introductions to ladies in engineering. I am very encouraged by that, and the hon. Lady is right. We have heard a woman Chancellor speak in the House today, which is an example of what we all wish to see. It is wonderful to have ladies elevated to different positions, and we have that in engineering, at Spirit and across the aviation sector.
This has undoubtedly been a holistic effort, with Invest NI involvement and Government support. It is clear that this has paid dividends, with the Northern Ireland aerospace, defence, security and space sectors on track to achieve revenue of £2 billion a year by 2024. The sectors had a turnover of £1.9 billion and contributed almost £1 billion in value added to Northern Ireland’s economy in 2022.
Robin Swann (South Antrim) (UUP)
The hon. Gentleman mentions the military side of aviation in Northern Ireland. Does he agree that we are underutilising the Royal Air Force base at Aldergrove? The Government could look at that, as well as enhancing Belfast International airport in my constituency.
Jim Shannon
The hon. Gentleman spoke in his maiden speech today about what could be done at Aldergrove and Belfast International airport. I see that, as we probably all do, as a way of advancing aerospace across Northern Ireland for everybody’s advantage.
Support for the sector has resulted in an employment dividend, with 7,000 people believed to be directly employed. There are also the skills and the varied subsidiary companies whose bread and butter is supplying this industry. Strangford has hundreds of people employed in this sector, so I have much to be proud of.
However, it is clear why I have called this debate. One of the major employers under Spirit has a factory in my constituency and employs hundreds at its east Belfast site, and it has taken the decision to sell its operations here. I am privileged to have secured the debate for that reason. I told the press in the run-up to the election that I would make this an issue, and I am glad to have been able to speak to the Minister to highlight it last week.
Claire Hanna (Belfast South and Mid Down) (SDLP)
The hon. Gentleman rightly speaks about the potential changes. He will recall that a trade union-led campaign saved Harland & Wolff in 2019. I am sure that, like me, he was down at the yard many times to support the campaign. It was the unions that had the tenacity to keep it open and the vision to see potential green jobs down the line. Does he agree it is important that the trade unions are kept involved in any discussions about the future of the site?
Jim Shannon
The hon. Lady makes a pertinent point, and I absolutely agree about the importance of unions. The last sentence of my speech will underline the important role played by the unions.
The operations are being sold as a going concern, which is encouraging. However, my going concern is to ensure that it does not result in jobs being lost, but results in an even stronger aerospace industry in Northern Ireland. That is why I am pressing for Government involvement and support to ensure that happens.
Spirit announced on 1 July that it had signed a definitive merger agreement under which Boeing will acquire Spirit. Spirit has also entered into a binding term sheet with Airbus, under which Airbus will assume ownership of certain Airbus programmes carried out by Spirit. That includes the A220 programme at our Belfast site.
Gavin Robinson (Belfast East) (DUP)
My hon. Friend makes an important point not only about trade unions but about job retention. It will be important in the days and weeks to come that the Minister of State, Department for Business and Trade, the hon. Member for Croydon West (Sarah Jones), the Under-Secretary of State for Northern Ireland, the hon. Member for Putney (Fleur Anderson), and the Secretary of State for Northern Ireland impress upon Airbus that, in assuming responsibility for the wings facility, it is taking on grandfathered obligations that arise from Northern Ireland Executive and national Government commitments that led to the construction of that facility. Airbus should be in no doubt that, if it takes on the wings facility, those obligations sustain, and that its commitment to the workforce in Belfast should sustain. I hope my hon. Friend the Member for Strangford (Jim Shannon) agrees with me, but I am also keen to hear that the Minister is prepared to advance that issue with Airbus in the coming days.
Jim Shannon
I thank my right hon. Friend for his comments. In my discussions with the Minister last week, I took the opportunity to give her my contribution and my final asks. We are looking for positive answers, and I think my right hon. Friend will not be disappointed when the Minister responds; certainly, I hope that will be the case.
I am aware that Spirit is in the process of securing a responsible owner for the remaining activities in its Northern Ireland operations, hopefully including the facility in Newtownards, which is severely underutilised. I wish to underline something that the company has been at pains to highlight: the decision to offer the non-Airbus part of the Belfast site for sale is not a reflection on the operation’s performance or capabilities. Spirit is one Northern Ireland’s largest investors and biggest employers, with over 3,500 employees. It has a highly skilled, adaptable workforce and an extensive, integrated Northern Ireland and GB supply chain. That must remain the case because it is clearly a key part of the local aerospace ecosystem and its operations have a major impact on the Northern Ireland economy. I cannot underline enough the importance of its impact on the Northern Ireland economy.
Adam Jogee (Newcastle-under-Lyme) (Lab)
I thank the hon. Member for Strangford (Jim Shannon) for giving way. As somebody who has spent many years watching his interventions on other people, it is a pleasure to be able to intervene on him. The hon. Gentleman will know how important Northern Ireland is to me and my family, and to many people in Newcastle-under-Lyme. Will he take the opportunity to place on the record his welcome of this Government’s commitment to upskilling young people right across our United Kingdom?
Jim Shannon
The hon. Gentleman and I have been friends for many years. I am pleased that he has been able to participate in the debate; he said he would if the opportunity arose. I agree with what he says, and I think the Minister will underline it her response.
Sammy Wilson
Given the difficulties with the apprenticeship levy and the way in which firms in Northern Ireland have lost out, does my hon. Friend wish, like me, that the Government will remedy that situation, so that when firms in Northern Ireland pay into the apprenticeship levy, they can benefit from that in training young people?
Jim Shannon
That is another issue for the Minister. I wholeheartedly agree with what my right hon. Friend says, and others do as well. An anomaly needs to be addressed; hopefully the Minister can do that. I want to stand by workers who have come to me seeking assurances, so I look to the Minister to provide those assurances.
I seek an assurance that the Government understand the nature of aerospace in Northern Ireland, and how essential the Spirit operations are to our economy and employment. The Belfast site is a global leader in aerostructures, with unique end-to-end capabilities through design and development, testing and manufacture, to after-market support. The operation has engineering and technology leadership in advanced materials and ultra-light structures, in particular unique advanced composites capabilities, which it is further developing for commercial, defence and space applications.
Spirit does so much, and it can do so much more for Northern Ireland. Its extensive expertise has led to significant investment in R&D and engineering skills and capabilities over many years. The investment can and must continue to support the key role that Northern Ireland plays in the UK-wide sector. I always say what a pleasure it is to be an MP in this great United Kingdom of Great Britain and Northern Ireland, and I mean that from the bottom of my heart. I think we are better together wherever we are. We can exchange ideas and advance things; that cannot be overstated enough and must be made crystal clear.
It is clear the site is ready for a buyer and that a Government standing by the industry, ready to continue investment in R&D and site improvements, will make this even more attractive for purchase. The Government are aware of the crisis looming over Northern Ireland manufacturing, with the difficulties in Harland and Wolff. Indeed, the Government released a written statement about that today. My right hon. Friend the Member for Belfast East (Gavin Robinson) has been at the fore of trying to address that issue. Whatever the reasons may be, we look forward to the hopeful possibilities of something that has the potential to get us beyond the problems we have today.
However, the outworking of these issues at this time is that the workers at Spirit cannot help but fear that there is trouble, not simply in the water with the shipping industry, but in the air with factories in Morocco and Mexico seeking to undercut costs but not quality. Now is the time for this Labour Government—my Government, my Minister, here in this House, for me and for my constituents in Strangford—to make it clear that they will deliver for my constituents. It is no secret that my politics lie to the left of centre; I am very pleased to see the Minister in her place and to see the things I hope to see over the next period of time.
It is important that we make clear our commitment to the Northern Ireland economy, which is anchored in manufacturing, and send a very clear message to prospective buyers that there is an unflinching commitment to aerospace and defence in Northern Ireland that will be outworked in development grants and tax aid to secure the future of this facility and, indeed, its expansion in the future.
In conclusion, I look to the Minister now to outline how her Government—as I have said, this is my Government as well—can and will send the right message today. I am very glad—this is a personal opinion, not necessarily a party one—to see a party, the Labour party, come to power, as it speaks for the workers, understands the rights of the workers, and understands the importance of an industry that is at the centre of the future economic plan of Northern Ireland. I now look to that Government to put action to all the words and secure the future of this sector, which is far from being on its last legs, and, indeed, is longing and equipped to soar even higher than it is now.
The Minister of State, Department for Business and Trade (Sarah Jones)
I thank the hon. Member for Strangford (Jim Shannon) for introducing this debate tonight. I had wondered who was going to intervene on him as he could not intervene on himself. I am grateful that several hon. Members did the job for him. I also want to thank him for his dedicated support for Northern Ireland’s remarkable aerospace industry, which is founded on strong engineering heritage and is rich in knowledge, skills, experience and technology. Indeed, as this is my first time at the Dispatch Box since I was given this ministerial appointment, I am delighted that it is to discuss and highlight the Government support for the Northern Ireland aerospace sector.
I can absolutely assure the hon. Member and the whole House that this Government will work tirelessly to deliver economic growth in Northern Ireland and across all corners of the United Kingdom, so that we can drive inward investment, enable British industry and businesses of all sizes to grow and prosper, and give working people more secure employment.
Gavin Robinson
I am grateful to the Minister for giving way. I congratulate her on her appointment and wish her incredibly well.
May I encourage the Minister to access the Royal United Services Institute report into defence spending in Northern Ireland? When she reads it, she will recognise that Northern Ireland to date has received one fifth of the UK average spend on defence per region around the United Kingdom. There is a huge opportunity for her to increase support and investment for Northern Ireland and for the industry at the heart of this debate.
Sarah Jones
I thank the right hon. Gentleman for that intervention and for adding to my reading list, which is already quite substantial, as I am sure he can imagine. Our wonderful civil servants are keeping us very busy with all the things that we need to read, but, indeed, I will look at that report, as he suggests, and am happy to do so.
Delivering an industrial strategy is at the centre of the Government’s growth mission alongside our goal of becoming a clean energy superpower. We want to create the right conditions for the green industries of the future to flourish, enabling those key sectors not only to transform the UK economy, but to become world leaders in their own right.
Aerospace is crucial to this growth mission, with investment in research and development key to delivering the next generation aircraft for sustainable flight. That is why I am very much looking forward to attending the Farnborough International Airshow tomorrow for the first time as a Minister. I will be meeting UK aerospace companies and see for myself the vast array of pioneering products and services being sold across the globe. I am hoping to see all the partners involved in the Spirit discussions tomorrow and to talk to them about this topic.
Jim Shannon
I understand that there is a tent at the Farnborough show that has a Northern Ireland section. I am sure that the Minister will attend that show, and have a chance to interact with the companies there. Sometimes people say that if Ministers go there, they get them for about 15 minutes. I suggest that she spends a wee bit longer there.
Sarah Jones
I am delighted that the hon. Member has intervened in his own Adjournment debate. I will be there at the UK stand tomorrow, and we will see what Northern Ireland has on display. I will spend as much time there as I can. I am there for the whole day, so I hope that I will spend some good time there.
As Members will be well aware, Northern Ireland has a long and impressive history in the aerospace industry. This Government are in lockstep with the sector’s ambitions to grow, compete on the world stage, and ease the transition to net zero flight. Today, the aerospace sector supports nearly 240,000 jobs, with almost half of those employees directly employed by aerospace companies. Some 5,000 of them are in Northern Ireland. The sector as a whole is worth some £30 billion. Despite all the achievements, we recognise that the past years have been challenging for the sector, with the chaos and uncertainty of the previous Government, and the global shocks of covid, the war in Ukraine and the disruption in the Red sea. We know that the impact of those issues persists.
Adam Jogee
I know that in a previous life the Minister spent a lot of time working in and on Northern Ireland, so we are listening very carefully indeed. Labour Members are rightly very proud of devolution, and what it has meant for all parts of our United Kingdom. What engagement has she had, and will she have in the months ahead, with the Northern Ireland Executive on this and associated issues?
Sarah Jones
I welcome my hon. Friend to his place in this House. A really important aspect of the way that the Prime Minister has set about government is his telling us all that we must work together much more closely on issues that affect the United Kingdom as a whole. That means working across Government Departments and across the nations and regions. We are setting up structures to do that. The Under-Secretary of State for Northern Ireland is already talking at length to colleagues, and we have had conversations across Government on these issues already.
Alex Easton (North Down) (Ind)
Thousands of people in my constituency of North Down work in the industry. Will she consider a visit to my constituency to visit those factories? It would be a great honour for us, and she would see at first hand what is going on. It would be greatly appreciated by the hon. Member for Strangford (Jim Shannon) as well.
Sarah Jones
I thank the hon. Member for his intervention. I am of course happy to visit whatever I can. One of the best ways of understanding the issues is to go and see things for myself, and I would certainly like to do that. The Under-Secretary of State for Northern Ireland has been in Northern Ireland frequently, and we went there a few weeks before the general election was called. It was incredibly powerful to see the ambition in the business community in Northern Ireland to get things moving and growing.
The industry faces resourcing constraints, and shortages of materials and capacity. That situation is forcing some major manufacturers to slow down their planned production rates. Given all those challenges, it is only right that we support aerospace manufacturers in Northern Ireland and across the UK, and the industrial strategy will be the cornerstone of that work. We believe that the strategy will grow our share of the global aerospace manufacturing market, unlock huge investment opportunities that will fuel research and development, and create new high-skilled, high-paid jobs across the economy, including in aerospace. The Government will work in close partnership with the aerospace sector, support clean growth and continue to develop joint Government and industry strategy through the aerospace growth partnership sector council—a partnership that reaches businesses and the research base in every part of the United Kingdom.
I am aware that the hon. Member for Strangford’s debate is focused on Northern Ireland, so let me turn to Northern Ireland in greater detail. First, I recognise his reference to Harland & Wolff. As he will be aware, my right hon. Friend the Business Secretary gave an update to the House this morning via a written statement, stressing the fact that we are working with Members, the Northern Ireland Executive, trade unions and other partners to support a positive outcome for all affected sites across the UK and for its workers.
Moving back to aerospace, as the hon. Gentleman said, there are at least 120 companies in Northern Ireland supplying to every major commercial aircraft programme, boasting expertise in everything from composite design and manufacturing to precision machining and more. As he also said, one third of global aircraft seats are made in Northern Ireland, as of course are the advanced composite wings of the Airbus A220 aircraft.
It is the week of the Farnborough international airshow, and a week in which we have announced over £100 million for cutting-edge new green aerospace technologies, so the hon. Gentleman’s debate has touched down with excellent timing, particularly as I recognise—we need to cover this—that there is of course concern about the expected change in ownership of the region’s largest advanced manufacturer, Spirit AeroSystems’ Short Brothers. Short Brothers is best known for its award-winning advanced composites technology, developed and deployed on the A220 wing. The innovative design and manufacturing technique received recognition in 2019 from the Royal Academy of Engineering, the highest honour awarded to an engineering project.
Shorts employs 1,500 people on the A220 programme, supported by £113 million through a repayable funding partnership with the Northern Ireland Executive and the previous Labour Government in 2009. The ability to manufacture a complete wing in one facility is a credit to those who work there. That builds on the legacy of more than 100 years of Northern Ireland aerospace. Airbus is now working on ramping up production, and announced in April this year that it would be increasing the production rate per month to 14 aircraft by 2026. With more than 550 orders to deliver, and the likelihood of further orders to follow, this provides great certainty for the company, its employees and the Northern Ireland economy.
On the acquisition of Spirit and Shorts, Boeing and Airbus announced on 1 July that they will acquire parts of the Spirit AeroSystems global business. Boeing plans to take nearly all of Spirit’s Boeing-facing business, mostly those parts located in the United States. That sale is, however, subject to the sale of certain other Spirit operations to Airbus. Airbus and Spirit have agreed, subject to final terms, that Airbus will acquire the A220 wing and mid-fuselage. These are built by Short Brothers at its A220 wing production facility and its other Northern Ireland sites.
Spirit plans to sell its remaining Belfast operations—the non-Airbus programmes—alongside its facility in Prestwick, to another company. These advanced manufacturing sites offer engineering centres of excellence with engineering-backed capabilities, which Spirit assures us will prove to be an attractive proposition for potential buyers. Commercial negotiations are continuing as the parties work through the details of the acquisition and work towards finalising terms, with an expectation that the transaction will close in mid-2025.
The Government are working with the Northern Ireland Executive to help to ensure the best outcome for Short Brothers and all its highly skilled and hard-working staff. We have a keen interest in seeing that any acquisition includes a commitment to develop Short Brothers and its supply chain and provides the best possible opportunity for growth in Northern Ireland. That is because the Government have a clear vision for the future of aerospace across the whole UK.
We are providing support for technology development for the next generation of aircraft and engines through the Aerospace Technology Institute programme, which provides collaborative funding to companies based in Northern Ireland and the rest of the UK. That includes the isothermal variable-volume infusion, or IVI, project that we announced earlier today at Farnborough international airshow—a £10 million project led by Short Brothers to produce lighter, more structurally efficient aerostructures, enabling the transition to new sustainable aircraft. The Government will also continue to work in partnership with the Northern Ireland Executive on opportunities for growth and investment.
In summary, the UK has a vibrant and hugely pioneering aerospace sector. It is a central cog in our manufacturing economy and will play a hugely important global role in decarbonisation and net zero, nurturing some of the highest-skilled jobs and most advanced technologies in the world. UK aerospace companies and their supply chains will be at the heart of our transformative industrial strategy, and I know the Northern Ireland aerospace sector will play a pivotal role in the success of the UK sector as a whole, and in the growth and success of UK manufacturing and industry.
Question put and agreed to.