Ford Motor Manufacturing

Alan Whitehead Excerpts

Tuesday 6th November 2012 Westminster Hall

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I want immediately to take up where my colleagues who represent south Hampshire left off this morning. An important aspect of this debate is the extent to which, at all stages, hon. Members for the area affected by Ford in Southampton have, in good times and bad, rallied to ensure that Ford was supported as far as it could be. They have ensured jointly that as much information as possible about Ford’s plans was obtained and disseminated, and as the right hon. Member for Eastleigh (Chris Huhne) said, they have taken part in meetings at which Ford gave assurances about how the Southampton plant would operate and its prospects.

As the right hon. Gentleman emphasised, at the meeting with John Fleming in November 2008, the three hon. Members from the area around Ford’s operation who attended obtained cast-iron assurances about the plant’s future, what it would be doing and its development of a chassis cab. The hon. Members present understood that those assurances extended not just to Ford’s central operation, but to its whole operation, including all the ancillary supply chains and the associated arrangements. I recall that that was part of the discussion at that time.

Everything seemed fine with those assurances, as Ford sought to suggest in briefings, until three or four days before it set out its decision. The suggestion that suddenly, on a Thursday afternoon, its international management decided to pull stumps on its plants in Genk and particularly in Swaythling is incredible. That underlines the urgency of obtaining answers to questions about the money that Ford obtained from the regional growth fund and, as importantly, the £80 million loan from the European Investment Bank.

It is difficult to believe that those loans were obtained when the original 2008 assurances stood at the time that the discussions were entered into. Either Ford did not give the information that should have been before both bodies before the loans were agreed, or the people who were responsible for discussing them had information that could and should have caused them to take a more careful view of how those loans should have been set out. That underlines what my right hon. Friend the Member for Southampton, Itchen (Mr Denham) emphasised: the extreme sadness with which some Members of Parliament in the Southampton area feel about the break between past working arrangements with Ford locally and the clear issues that now arise. I like to think that, even at this stage, Ford might consider what that means for its national and international reputation, its responsibilities to Southampton, its past investment in Southampton and, more importantly, Southampton’s investment in Ford’s operation for many years.

I join my colleagues in making three suggestions. First, the work force who are involved not centrally in production but in the supply chain that has supported Ford’s success in Swaythling should be considered on an equal basis with those in the Ford plant as far as future support is concerned. Secondly, any decisions by Ford about the plant’s future should take account of whether it can continue with a presence in the area, in any shape or form. That might provide the opportunity for Ford employees to relocate, as the right hon. Member for Eastleigh said, in not very favourable circumstances, as there are no Ford plants anywhere near Southampton. If there is a continuing presence in Southampton, perhaps some of the work force currently employed at Swaythling could be relocated more locally. Thirdly, Southampton has invested in Ford’s Transit operation for more than 40 years, and the vehicle and the site are iconic. The workers have probably paid for it many times over in the work that has gone into it and the profit that has come out.

If Ford attempts to raise funds by selling that site, in addition to the funds that it obtains by exporting its benefits to Turkey, that will be an additional slap in the face for the local area, which has put so much into Ford in the past. The minimum that I expect Ford to say is that the site will not be sold for development or other purposes, but will be donated to the community and the city that have put so much into Ford and have been such a pivotal part of its success in making that site work for so many years. If that happens, we might at least have the opportunity in Southampton and the surrounding area to bring to that site some of the industry, jobs and prosperity that have been part of it in the past. If Ford would leave that small legacy to the city of Southampton, it would be at least some reparation for what seems to me is a grubby episode.