Ford in Bridgend

Lord Wigley Excerpts

Monday 10th June 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I am grateful to my noble friend for the benefit of his experience on this issue. I very much agree that we are dealing with a global situation; this is not simply about Europe or Brexit. I accept that there are Brexit issues relating to the economy, but the far more important issue here is the move away from diesel and petrol towards low-emission vehicles and the growth of markets in China and India in particular.

On strategic responses to this issue, we have the automotive sector deal and we committed £250,000 to the Faraday challenge on battery storage, which is important. A couple of weeks ago, I had the great privilege of going round Northern Industrial Battery Services Ltd in Welshpool, which is significantly attached to what BEIS is doing and provides a useful glimpse into the future. We need to move towards battery storage and low-emission vehicles, which is a large part of why the automotive sector has seen this period of turbulence. That turbulence has not been limited to this country, of course: as I indicated, this is going on pan-Europe. I take seriously what the noble Lord, Lord Howell, says, but I assure him that we are very much there.

I should add that we are investing in infrastructure in the low-emission and electric sectors. I am sure that, like me, noble Lords have noticed a greater prevalence of battery-charging in our cities now.

[Lord Wigley (PC)]

My Lords, I really must challenge the Minister on the total non sequitur in the Statement that this decision is not about Brexit, as engines will come from Mexico. Is he not aware that, in January, a Ford executive—Bob Shanks—said that a no-deal Brexit would be,

“catastrophic for the UK auto industry and Ford’s manufacturing operations in the country. We will take whatever action is necessary to preserve the competitiveness of our European business”?

Is the Minister not aware that Ford executives made it clear to Welsh Government Ministers that the danger of a no-deal Brexit was a contributory factor in their decision to close the Bridgend engine plant? What discussions have the Government had, or will they have, with the Welsh Government to create an aid package that will persuade Ford to suspend its decision until it is known whether we are to suffer a disastrous no-deal Brexit outcome?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord knows that I have immense respect for him but, on the move to Mexico, I rely not on the Statement but on what Ford has said. It made it quite clear that this decision would have been taken independently of Brexit. That is not to say that Brexit is not an important issue for the economy, but that debate is different from the one on this particular decision. We would do well to listen to Ford.

The noble Lord makes a significant and fair point about aid packages and assistance, which I am sure the task force will begin to look at next week in its first meeting. In the meantime, consultation is ongoing so there is time to look at this issue, although I accept that there is a degree of urgency. That will be one of the early things that Ken Skates, as the Welsh Government Minister, and the Secretary of State will want to look at with the unions and others when the task force meets.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, again it is important that we as politicians do not seek to interpret what executives in the car industry say. They are sufficiently strong to know their own minds and they are not backward about coming forward and telling Governments what they feel. If they say that this decision would have been made anyway and that it is not related to Brexit, we must take them at their word. It does not do any good at all to claim that this is about something that it is not. That is not to say, as I have now repeated many times, that uncertainty in the economy is a good thing; it is not and we all know that. That is why we need a Brexit deal and I hope that noble Lords will take that message back to their leaders so that we can come together and get a deal before the end of October.

[Lord Wigley]

My Lords, I hope that I can raise one more point. The Minister said that Brexit had played no part in this and that this position had been accepted by Welsh Government Ministers. Did he not hear Ken Skates AM yesterday morning on the radio making it perfectly clear that Ford had told him that a no-deal Brexit was a contributory factor in this decision?

[Lord Bourne of Aberystwyth]

My Lords, I have worked a great deal on the Welsh economy with Ken Skates. I did not have the privilege of hearing that interview but I did have the privilege of seeing what Ford had said in relation to the job losses. That is the point I was making.