Bombardier: Job Losses (East Belfast)

Alasdair McDonnell Excerpts

Tuesday 1st March 2016 Commons Chamber

[Gavin Robinson]

I completely agree. In fact, I was seeking hon Members’ forgiveness for the parochial nature of the title of the debate, recognising that the issue is much larger than East Belfast and Northern Ireland. In view of the nature of aviation, this is a UK and a global story.

I was saying that our Executive have a positive target of reaching £2 billion by 2024, but to achieve that aim, after the announcements over the last two weeks, it is important for us to take stock at this stage and to establish how best to grow to reach that target.

Bombardier’s present difficulties are directly associated with their noble development of the C Series aircraft. I say “noble”, because it is exactly the sort of manufacturing that we as a country should support. The C Series aircraft is novel; it is highly innovative; it utilises the best advances in lightweight composite technology; and in its class, it represents the next generation of light, noise-reducing, fuel-efficient aircraft that will travel further for less, with the wings that are fabricated and assembled in my constituency of East Belfast.

Such innovation has brought with it significant pressure from competitors in both Boeing and Airbus. The project has taken three years longer than anticipated and at $5.4 billion, it is $2 billion over budget. Cash flow has become a problem, but if I may, I wish to nail a number of myths that should not go unchallenged.

First, Bombardier is not a busted flush. It has taken a bold but significant step to refocus its operation and to enhance its competitiveness, and the rise in company value is just one indication that, while deeply painful, the recalibration of its international operation was an important step.

Secondly, the Government could not have done more to stave off the job losses. Bombardier has said as much, with half the job losses announced being in Canada, just four months after the Quebec Government invested over 1 billion Canadian dollars in the company. There was nothing that the regional government or national Government could have done in the last few weeks to stave off the difficult announcement that was made.

Indeed, far from viewing our Government as being inactive, I have been hugely encouraged by the support offered by both regional and national Government, so it may be appropriate to place on record at this stage my sincere appreciation for the commitment given by the Minister for Small Business, Industry and Enterprise. She recognises the importance of Bombardier to the Northern Ireland economy. Within hours of the announcement during recess week, she was available to discuss the issue with me by phone and she stood ready to assist. Just yesterday morning, she flew to Belfast, toured the facility and met management to extend her support, alongside the Under-Secretary of State for Northern Ireland. As you know, Mr Speaker, the Minister was here until late last night, and it was an early start for her yesterday, but she was committed, and she responded most ably.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

I echo and endorse much of what my colleague from the neighbouring constituency has been saying. Many of the job losses are not in any one constituency; they are widely scattered. Is there not a need for all of us here, and the Northern Ireland Executive and the United Kingdom Government, to work together? Northern Ireland needs a comprehensive strategy, and that is not down to the Northern Ireland Executive alone.

[Gavin Robinson]

I am grateful for the intervention from my parliamentary neighbour, some of whose constituents work at the Bombardier plant.

To date, the support of regional and national Government for Bombardier has reaped real rewards. Since the privatisation of Short Brothers in 1989, £2.6 billion has been invested in its facilities. Most recently, £114 million from regional and national Government secured an additional £850 million investment from Bombardier itself, including £520 million for the wing facility in my constituency, which was opened by the Prime Minister and was visited by the Minister yesterday.

But here’s the ask. In view of the Minister’s support, I ask her to leave no stone unturned in considering how we can best support Bombardier, especially given the investment that has been present for the C Series. I am also keen for UK Trade & Investment to take a more imaginative approach when considering how it can best support various aircraft manufacturers when they seek to secure orders internationally. Competition is rife in this market, but with three competing firms seeking Government support, I would recommend a considered and tactical deployment of support, relating to both need and the likelihood of success.

Inflating the order book for the C Series must be a key goal for us all. The opportunities for small airports located in city centres are very significant. Encouraging the inclusion of the C Series in their fleet mix and support for a markedly innovative industry must form part of the Government’s action plan, and I trust that the Minister will address that in her response. I am aware of the planning challenges posed by London’s City airport. A discussion with colleagues about ending the current impasse on planning restrictions would prove fruitful for the C series and Bombardier.

Following a personal request, the Minister committed herself to hosting a round-table discussion with representatives of the Ministry of Defence and the aerospace, defence and security industries in Northern Ireland, to share national procurement opportunities with the aim of enabling those industries to increase their output and their contribution to this country’s export capabilities. There are 70 such companies in Northern Ireland, 27 of which are in my constituency, and I know that the renewed importance of that request will not be lost on the Minister.

When people find themselves without hope, with lost opportunity and with no idea of what will come next, we must stand with them both morally and politically, and offer light during the darkest of times. On behalf of the 1,080 who have been directly affected, their families and our aerospace industry, I trust that we will begin that process tonight.

--- Later in debate ---

[Anna Soubry]

It seems that the C Series is the sort of aircraft that is perfectly placed to provide that service to passengers. It may be that that is a very good set of arguments to be advanced, but, as I have said, I cannot possibly comment on it.

In relation to the meeting with the Minister for Defence Procurement, we will absolutely get that together. We are in the process of bringing everybody into the Ministry of Defence. We will not come to Northern Ireland, much as we want to, as we think we stand a better chance of getting everybody around the table if we hold the meeting in the MOD. We are definitely working on that. It will take a bit of time to get all the big players, and the right players, around that table, but that is an absolute promise that I have made. My hon. Friend the Minister for Defence Procurement is also keen to have that meeting; we are looking forward to it and we think we can do some good work there.

[Dr Alasdair McDonnell]

Will the Minister accept the point I made earlier to my colleague the hon. Member for Belfast East (Gavin Robinson)? Bombardier is the subject of this evening’s debate, and it is very important that we focus on it and do not detract from its importance, but the Northern Ireland economy is frail and fragile. Ministers in the Executive have done a wonderful job trying to promote the economy in every way possible, but we need a comprehensive plan including having her good self and her Department, as well as the broader UK Government, give us that bit of extra help. To put it quite simply, the likes of the apprenticeship provision are very important because we are not in a position to give our young people jobs. If the Minister is coming to visit, we will find places other than North Antrim to take her. I am a native of North Antrim, but there are 17 other constituencies and we would love to involve the Minister in helping us to build a more prosperous society.

[Anna Soubry]

I am more than happy to work with anyone, but I get the invitations and either say yes or no, so the hon. Gentleman will have to invite me. When people ask me to go to places, I am happy to go. There are places I am particularly keen to go, and it just so happens that Northern Ireland is one. I went over to meet the hon. Member for Strangford (Jim Shannon) and had a very pleasant day with him. I have to say, Mr Deputy Speaker, that he said he would only take up my time for a couple of hours—four hours later I had nearly missed the plane.