Bombardier

Alan Brown Excerpts

Thursday 22nd November 2018 Commons Chamber

[Richard Harrington]

As ever, my right hon. Friend is right and as erudite as he always is in explaining the significance of the Government’s procurement role. That is also true for many other sectors in which I am involved, including construction. I think my right hon. Friend was asking me whether state aid policies will change in relation to the procurement of Government contracts and so on. I cannot answer that question, because we will have to see what happens in future, but I can say that my Department is regularly in touch with other Departments that are responsible for procurement, to push continually the advantages of Bombardier and many other companies in the supply chain, in all the areas that we deal with.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Minister for advance sight of the statement.

In the light of the 57% increase in profits announced earlier this year, the announcement of job losses is clearly a real kick in the teeth for the workforce. Our sympathies obviously go out to the 490 employees and their families. The latest news follows a longer-term pattern, with the 220 jobs lost in 2015, 630 lost in 2016, nearly 400 lost in 2017, and close to 500 lost now. Given that pattern, what discussions have the UK Government had with Bombardier over this period about stemming job losses and about the plant’s long-term future? What money can be made available either to protect these jobs or to help with redeployment? It is not good enough for the Government to say that it is a private company and a commercial decision, because they need to do everything to protect jobs from being lost.

We hear from the Government statistics about record employment and record low unemployment, but such statistics hide serious issues such as this one at Bombardier and the recent announcement of 850 job losses at Michelin in Dundee. What steps are the Government taking to make sure that the industrial strategy is fit for purpose and will protect manufacturing jobs?

One of the Brexit dividends so far has been the plummeting of the pound, which is actually supposed to help manufacturing exports. What assessment has the Minister made of future currency fluctuations and inflationary pressures in the sector and what that can mean for jobs?

Finally, the Minister’s statement confirms that the UK Government provided £20 million of research and development grants to the plant in Belfast, and this was to be used to bring in efficiency measures. Can he confirm that, when the Government give R&D grants for efficiency measures, they do an impact assessment to see what that means for jobs and that the grants are only for protecting jobs? Any job losses must come with transitional arrangements and plans for workforce redeployment.

[Richard Harrington]

I will try to answer the hon. Gentleman’s questions as best I can. I was jotting them down quickly as he said them.

First, I did say that this is a commercial decision, and it is a commercial decision. The last time I looked, Bombardier was not a nationalised industry, so it is not at all a question of the Government making people redundant. The Government’s support for Bombardier and for aerospace generally is unmatched by any time in history. Bombardier is an important part of the Aerospace Growth Partnership, which I chair jointly with Colin Smith, an industry veteran and former president of Rolls-Royce. We have channelled about £1.95 billion to support R&D, of which Bombardier is the beneficiary.

The hon. Gentleman mentioned the £20 million that was announced. This is for a number of projects including a reverse thrust project. [Interruption.] It is a reverse thrust for an engine. I know, Mr Speaker, that you will be personally interested in reverse thrusts. I have learned quite a lot about it and would be delighted to brief you personally on the subject if you require it. The serious point is that the whole of the aerospace industry, particularly in passenger jets, is changing. We must make sure that the Government funds that we have help to change our aerospace industry, which has a turnover of £42 billion, of which £38 billion is exported, and shape the business for the future. I am very pleased about the projects that are going on, and I have visited them with the hon. Member for Belfast East to see what was happening. The project itself—the factory that I visited—was opened by Arlene Foster when she was the Minister responsible for that area, so this is very much a cross-party thing.

The hon. Gentleman mentioned the ups and downs of the currency. He is right that it has changed significantly, but businesses such as Bombardier are used to dealing with changes in currencies. It has happened in cycles throughout history, and when companies such as Bombardier—I cannot speak for them, but this is what happens in my experience—get an order, they take hedging positions on the currency so that they do not face currency risk.

The most serious and significant point that the hon. Gentleman made, among the many points—[Interruption.] I will try. There has been a lot of chuntering about me going on too much, Mr Speaker, but the hon. Gentleman made a very important point about industrial strategy. Aerospace is a critical part of it. It is really about place, which is ideal for Bombardier because it is in Northern Ireland. It is about skills. Again, these are very highly skilled and very highly paid jobs, I am pleased to say. It is about channelling the partnership between the Government and the industry to produce a business for the future, and I am certain that Bombardier in Belfast will be part of that.