Harland & Wolff

Debate between Jonathan Reynolds and Jim Shannon

Thursday 19th December 2024 Commons Chamber

[Jonathan Reynolds]

I share the hon. Gentleman’s aspirations and recognise his calls for UK shipbuilding to have a higher priority in future than it has in the past. To be specific on what I was saying in the statement, there has been a revision to the value of the fleet solid support contract; it has required a little bit of additional support—but not greatly and on commercial terms—in order to deliver it. There are not promises of additional work packages on top of the contractual agreements made by the previous Government, but because Navantia UK is such a world-renowned expert builder of shipping of all sizes, as well as the investment that comes with this deal and the more competitive nature of the yards in future, there are genuine grounds for optimism. I see real opportunities in fabrication and maintenance, but particularly in energy. I also think that a little bit of competitive diversification in the military shipbuilding sector’s supply chain is welcome, creating better value for money in procurement. Across the board, this is a positive story for Harland & Wolff and its employees, but as the hon. Gentleman has described, it is also a positive story for UK shipbuilding.

[Jim Shannon (Strangford) (DUP)]

This announcement is really good news, and everybody across the House will welcome it. It is probably time to break out the Christmas cake and the mince pies early, because there is good news coming and the Secretary of State has delivered it today. This morning I spoke to my right hon. Friend the Member for Belfast East (Gavin Robinson), who has worked tirelessly with the company to secure this progress. We all agree that it is great news, particularly for the 1,000-strong workforce in Belfast, and especially in the run-up to Christmas—well done. My right hon. Friend will be at the yard with the Secretary of State for Northern Ireland this afternoon, probably in about an hour’s time.

If the national shipbuilding strategy is to mean anything, it must be that the Government invest in skills and capacity throughout the United Kingdom of Great Britain and Northern Ireland. Does the Secretary of State agree that more could be done to increase research and innovation support across the United Kingdom and, in particular, in Northern Ireland?

[Jonathan Reynolds]

I am grateful to the hon. Gentleman for asking what I think will be my last question of the year. I would particularly like to recognise what he said about his colleague, the right hon. Member for Belfast East (Gavin Robinson). Obviously, he has a constituency interest and a leading role in Northern Ireland, and I think he understood the decisions we had to make. We had to explain in confidence to all colleagues affected why the initial decision on the guarantee alone was not the right way forward, but that we were committed to the kind of solution we have announced today. I am extremely grateful for being able to work with the right hon. Gentleman on that. It is great news that he is going to the yard today; my colleagues the Secretary of State for Northern Ireland and the Minister for Industry are also in Belfast today, and I understand that the Secretary of State for Scotland will be at one of the yards in Scotland too.

On the hon. Gentleman’s point about innovation and research and development, that is the basis on which we have to compete. Whether in the sectors of aerospace, automotive or shipbuilding, what we need is high-end, sophisticated R&D, innovation and world-leading products. That is what we have in many of our advanced manufacturing sectors, but it is such a competitive world that we have to maintain that edge. In particular, R&D is an area where core support and core funding between Government and industry has real benefits. We have seen that in lots of sectors—maybe not to the degree we have needed in shipbuilding, but let us look at that for the future and approach the next year with some real positivity.

Stellantis Luton

Debate between Jonathan Reynolds and Jim Shannon

Wednesday 27th November 2024 Commons Chamber

[Jonathan Reynolds]

I agree that that is one concern that consumers have. The principal concern for consumers on EV take-up is the cost of the vehicle. The hon. Member will know from our constituencies that in some places, it is difficult to envisage the kind of infrastructure that people take for granted in areas that have more capacity to have it built into properties and driveways. There are about 70,000 public EV chargers in the United Kingdom, and there is not always equity across different parts of the country. A lot of people are surprised to learn that we have more public chargers than Norway, for instance, which is very much the leader in electric vehicle roll-out. There was money in the Budget to expand the roll-out of charge points and build on the 70,000 already in place, but the hon. Member is right to say that that is a key concern. We must consider not just the overall number of charging points, but the equity of those around the country, and I promise that the Department for Transport is interested in that.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his statement, and in particular for his honesty. It is important to have that when we look at the bleak things we have before us.

The Secretary of State will understand that with the cost of living crisis that our constituents are struggling through, the last thing on their minds is to afford—forgive me—an all-singing, all-dancing electric car; they are clearly struggling to pay their electric bills. The closure of the plant, which highlights the lack of passion for electric cars, can come as no surprise. What can the Government do to make electric cars affordable for everyone, which would enhance the need for car manufacturers once again?

[Jonathan Reynolds]

I am grateful to the hon. Member for his question and the way in which he put it. He is right that cost of living concerns are paramount. We have also got to recognise that the cost of petrol and diesel is often a key consideration in overall household finances.

The hon. Member asked specifically about what we can do to bring down the cost. It is about co-investing with industry in the most efficient forms of production. He mentioned an all-singing, all-dancing EV, but there is a whole range of vehicles available. Many of our producers have led on family cars. The Nissan Leaf is a great example of that, made by some of my former school friends in Sunderland. We should get behind that and talk about how great those products are. But, fundamentally, we need now to bring down not just the cost of the charging infrastructure but the unit cost. That can be done only by investment in efficient production and scale production. That is why the destination is so important. Working with industry on that destination is key to delivering the outcomes that I think he and I want.

Budget Resolutions

Debate between Jonathan Reynolds and Jim Shannon

Wednesday 6th November 2024 Commons Chamber

[Jonathan Reynolds]

I am sorry but, again, the right hon. Gentleman is wrong. I agree with part of his assessment, such as that a strong and thriving private sector is crucial to growth, but I find his analysis a little simplistic. Private firms will say that they also need skilled workers, and that they need a decent transport system so they can get to work.

Under the last Government, I would often get up in the morning and check my phone for updates from people using the trans-Pennine line I just mentioned—the one we are upgrading—and it would be full of people saying, “I cannot get to work.” I need the right hon. Gentleman to make a slightly broader analysis.

Despite the previous Government leaving us with a raging skip fire in many areas—we have to raise money, not to deliver our pledges but to deliver their pledges that they did not properly fund—we have had a regard and a heed for the level of competitiveness in the UK economy. For instance, on the rise in employers’ national insurance contributions, over half of all firms with national insurance liabilities will actually pay less or the same, not only because of the changes to the employment allowance but because of how we have removed the threshold so that all firms now qualify.

Despite the frankly terrible inheritance bequeathed to us, we have done our best to meet those needs and to deliver a long-term focus on the future.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Jonathan Reynolds]

I was going to move on, but I cannot resist the hon. Gentleman.

--- Later in debate ---

[Jim Shannon]

I hope the Minister will not be disappointed.

There are many good things in what the Government have brought forward, but what is missing, unfortunately, is support for farmers on inheritance tax. Farmers are the backbone of Britain, and they produce almost all the food we eat across this United Kingdom of Great Britain and Northern Ireland. Farmers will be impacted greatly.

I declare an interest as a member of the Ulster Farmers Union and the National Farmers’ Union, and all the farmers I talk to in Northern Ireland have indicated that every farmer in Northern Ireland will be affected by inheritance tax. If the Government want to get it right, the threshold needs to be raised, and it is not too late. Raise the threshold to £4 million or £5 million so that family farms, the backbone of Britain, can continue.

[Jonathan Reynolds]

I always listen to the hon. Gentleman because he is genuine and conscientious in representing his constituency’s interests. I will always listen to what he has to say. We can judge the exact impact of these changes by looking at the value of claims to date. The Conservative party’s analysis has forgotten to aggregate the impact of the changes to those allowances, such as agricultural property relief, alongside the existing nil-rate band and the ability to transfer the allowances between spouses in all cases. The total number of farms across the UK that will be affected by this change is actually only 500 for the 2026-27 financial year. That has been missed, and I remind colleagues that any inheritance tax liability has a 10-year, interest-free payment period. To be frank, there has been some scaremongering from the Opposition, and we have to be clear with people.

We have had to restore economic stability to deliver that investment, and we should not shy away from explaining why this has been so necessary. The previous Government’s scattergun approach to growth left our country starved of investment, economically divided and struggling to maintain a competitive edge in the global economy.

The previous Government’s claim to have delivered the fastest-growing economy in the G7, based on its performance in the first half of this year, is laughably false. I believe that The Sunday Times likened it to someone walking a marathon in six hours but, because they ran the last 100 yards, claiming to be the fastest runner in the world. The truth is that consistency and stability have been sorely lacking. We have had seven growth strategies since 2010 and 11 Business Secretaries in as many years, to say nothing of the UK’s revolving door of Prime Ministers.

Port Talbot Transition Project

Debate between Jonathan Reynolds and Jim Shannon

Wednesday 11th September 2024 Commons Chamber

[Jonathan Reynolds]

I say again that had the election not been called, a statement such as this would not have been not possible. It would have passed us by; that was the situation that we faced. My hon. Friend rightly talks with pride about her constituents at Llanwern, which is an incredibly important and successful part of the industrial supply chain in the United Kingdom. I will ensure, as part of the transition, that the downstream functions, which are so valuable and praised, and which carry such respect in the industry, are protected, and that the transition plan does not disrupt the business model, which is, again, proof of the sector’s success and of future opportunities.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for his statement, and I welcome his endeavours, which I think we all recognise, to create firm foundations for the sector as it moves forward. I also recognise his commitment to Harland & Wolff, to which he referred. That is indeed great news, not just for workers but for the construction sector in Northern Ireland. However, the steel industry faces the problem of affordable energy, which he mentioned in his introduction. Will he safeguard the long-term sustainability of that and other industries by immediately addressing the energy price crisis and implementing the necessary long-term green energy fixes?

[Jonathan Reynolds]

I am extremely grateful to the hon. Member for his support for what we have announced. Having a competitive environment is an absolutely key issue. I am already having extensive conversations with the Chancellor and key Cabinet colleagues, including the Secretary of State for Energy Security and Net Zero, about the way to do that not just in the short term but in the longer term, when we will clearly have a significant renewable energy base. There are a lot of exciting options available, including in how we use some of that capacity in areas of low consumer demand. I can tell him that that is a key priority for getting this right in future.

Post Office Horizon: Redress

Debate between Jonathan Reynolds and Jim Shannon

Monday 9th September 2024 Commons Chamber

[Jonathan Reynolds]

Members may know that Capture was the precursor to the Horizon software. It is of concern to us, and we are investigating. The forensic accountants appointed to look into the issue are due to report fairly soon, and as soon as we have their findings, we will be able to update the House on steps that may be necessary.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for the statement, and for the clear commitment to closure for all those affected. He said that the role of Government is to do right, to seek justice and to defend the oppressed. I say amen to that; that is exactly the Government’s role. It is past time that our handling of the scheme came to an end, but that can happen only when every affected postmaster and postmistress has been restored reputationally and financially, and when lessons have been learned to ensure that our reliance on computers is never again the vehicle of persecution. Will the Secretary of State assure me and the House that that has been done, and is in place right now?

[Jonathan Reynolds]

I thought that the hon. Member might recognise the words from Isiah that I used in the statement. The failure that goes to the heart of what we are talking about today is not just about the reliance on computer systems over the testimony of people on the frontline; it is also about the culture of organisations and how government operates. We will definitely turn a page on all of that, but there are Members in the Chamber who, like me, have been here not just for infected blood and the Grenfell statement last week, but for Hillsborough and Bloody Sunday.

We must reflect on what has been a very difficult set of findings. I think that we can commit to making sure that we learn the lessons from them, and take them forward. That is the challenge for all of us who believe that we are here to do good, and to do as I said in the statement. There is more to do on that, but we can move in the right direction, and that is certainly what I and my Government Ministers will do.

Oral Answers to Questions

Debate between Jonathan Reynolds and Jim Shannon

Thursday 5th September 2024 Commons Chamber

[Jonathan Reynolds]

The hon. Gentleman is right to say that business is often frustrated by the pace at which the Government can go. We are doing a considerable amount of work on how business interfaces with the Government as a whole, how that is managed as a relationship, and how we can assemble the different parts of the state in the way needed to respond to some of our big investment opportunities.

Frankly, in the past, we have often seen the UK miss out, particularly to, for instance, the French. The “Choose France” policy has been fairly successful from their point of view by taking some investments that I believe should have come to the UK. They have got ahead of us. We have to understand that the competitive environment that we are now in is extremely challenging and we have missed out on things. We have to change and get it right and better. I will work with the hon. Gentleman— I have already highlighted the meeting scheduled with my Minister of State—and he makes a fair point that we all recognise has to be addressed.

[Jim Shannon (Strangford) (DUP)]

I welcome the Secretary of State to his place and wish him well in the position he now controls. In Northern Ireland we have many businesses that can excel, but when it comes to an industrial strategy I particularly highlight the defence sector and the cyber-security sector. Just last Friday, my right hon. Friend the Member for Belfast East (Gavin Robinson) and I had a chance to visit Thales in east Belfast. Staff there explained to us that they employ almost 700 people on the site, and they also have an apprenticeships plan that is in action and are taking on another 25 apprenticeships. When it comes to expertise, they have the skills, experience and success, but they do not have the defence contracts, as they have in the rest of the United Kingdom. Will the Secretary of State say some words into the ear of the Secretary of State for Defence to ensure that Northern Ireland can play a bigger part when it comes to accessing those contracts?

[Jonathan Reynolds]

I absolutely agree with the strengths that the hon. Gentleman identified; he will know that I visited Northern Ireland as the shadow Secretary of State, partly to make that point. We are responsible for the promotion of the defence trade, so the relationship with the Ministry of Defence and the Secretary of State for Defence is very strong. I will absolutely do as the hon. Gentleman requests.