Brexit: Aerospace Industry

Debate between Lord Soley and Lord Prior of Brampton

Monday 6th February 2017 Lords Chamber

[Lord Soley]

To ask Her Majesty’s Government what assessment they have made of the impact of Brexit on the aerospace industry.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Prior of Brampton) (Con)]

My Lords, we have engaged with the UK aerospace sector and are aware of the potential issues that the UK’s exit from the EU may have. Our aim is to keep the UK the leading aerospace nation in Europe and we will continue our long-standing support for the sector. That includes a matched co-funding of some £3.9 billion for a research and development programme to 2026.

[Lord Soley (Lab)]

Are the Government aware of the cross-border problems with the supply chain in aerospace? I am concerned about the European Aviation Safety Agency—where we play a key role—which certifies the safety of aircraft products. That is a profoundly important area. I am not sure—and this applies to other agencies, too—how the Government plan to move that forward in agencies, particularly where we play the lead role and will no longer be able to do so after Brexit.

[Lord Prior of Brampton]

My Lords, the EASA is indeed extremely important, as are other European agencies. We will negotiate with those agencies over the next two years to come to a sensible arrangement.

Industrial Strategy Consultation

Debate between Lord Soley and Lord Prior of Brampton

Monday 23rd January 2017 Lords Chamber

[Lord Prior of Brampton]

I agree 110% with that. For generations we have downgraded people who do technology, engineering, and the like; whereas we have paraded people who do PPE at Oxford, and the like. We have got it slightly wrong. We should do anything we can to encourage young people to go into technology, engineering, natural sciences and the like. Of course, the changes in technology that we are witnessing now, and will continue to witness over the next 10 years, will fundamentally change our society, whether in artificial intelligence, in robotics, in cell and gene therapy, or in battery technology—this is the future. The more we can encourage people to go into these technological areas and also encourage them to be entrepreneurial at the same time, that will be good not just for them but for our economy as a whole.

[Lord Soley (Lab)]

I welcome the further endorsement of Heathrow’s expansion. As the Minister will know, the Government keep saying it quietly, so I hope it will happen. But my question really relates to the wider aerospace industry. It is an incredibly important part of British industry, with very advanced technology—the second most advanced in the world, and still the second or third largest in the world generally. What troubles me, and what troubles me about other industries such as the car industry, is that increasingly parts are exported and re-exported. I wonder how much thought in this Green Paper is going to be given to the complexity of arrangements not just with Europe—but obviously with Europe at the moment—in terms of exports and re-exports in order to produce a finished product.

[Lord Prior of Brampton]

The noble Lord is referring, I think, to the integration of supply chains, which have now become very global. Certainly, that is particularly true in areas such as satellite technology. Having easy ways of trading with other countries with non-tariff barriers is critical to that. Space technology is exactly the kind of industry that the UK should be fully a part of. It is interesting—you look around the world, and the USA is clearly leading in many of these areas, but if you look at other countries you often find that our technology is very strong. That is not to be complacent. Look at Israel, Switzerland, or Singapore—and look at Ireland, which has done a fantastic job in attracting many of the world’s best companies. If they can do it in southern Ireland, why can we not do it in Northern Ireland, or in the north-east, or the north-west?