Manufacturing

Debate between Lord Bates and Lord Green of Hurstpierpoint

Thursday 8th March 2012 Lords Chamber

[Lord Bates]

To ask Her Majesty’s Government what assessment they have made of the United Kingdom’s international competitiveness in manufacturing, in the light of the recent investment by Nissan in north-east England.

[The Minister of State, Department for Business, Innovation and Skills & Foreign and Commonwealth Office (Lord Green of Hurstpierpoint)]

My Lords, the United Kingdom has an internationally competitive manufacturing sector, with companies across a wide range of activities. The automotive sector is a great example of that. We were delighted to see the unveiling of Nissan’s new concept car in Geneva this week. We welcome the news that the production model will be built at the Sunderland plant next year, creating about 2,000 new jobs at Nissan and in its supply chain.

[Lord Bates]

I am grateful to my noble friend for that Answer. It is indeed very good news. Does he recall that three years ago the confidence of the north-east was shattered by three simultaneous announcements: the lay-off and mass redundancies at Nissan, the closure of the Corus steel plant and the shelving of plans for a £5 billion investment in new high-speed trains? Does he recognise that over the past year we have seen the reopening of the Corus steel plant, the go-ahead for the Hitachi investment in new trains, and now the thousands of new jobs coming through Nissan’s investment? Does he agree that this demonstrates restored confidence in manufacturing in Britain and also in the policies pursued by the Government?

[Lord Green of Hurstpierpoint]

Before I answer that question, I am sure that the whole House would like to join me in congratulating my noble friend on just completing a 3,000-mile walk around Europe in support of the Olympic Truce initiative.

Yes, I agree with my noble friend that this is a sign of confidence in the British economy and in the north-east in particular. There is recent evidence of inward investment into this country in a range of sectors—not just cars but also rail, as my noble friend mentioned, renewable energy and steel. The investment comes from a range of countries—Japan, India, Thailand, China, as well as the more traditional sources of Europe and the United States. This is a welcome sign of the rejuvenation of the British economy.