Opel/Vauxhall: Sale to PSA Group

Alistair Burt Excerpts

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I am grateful to the hon. Lady for her questions. The last two weeks have been worrying times for the workforce. The statements that have been made by both parties today have been welcomed—not just by me, but by the trade unions—as steps in the right direction. It is important that we should hold the company to account on that.

On the points that the hon. Lady mentioned, PSA has said that it will honour GM’s agreements with the unions, which extend to at least 2021. In the motor industry, as she will know, new models come in at various points. We are fortunate that both the principal models in the UK are at quite an early stage in the cycle. I want, as I am sure she does, both plants to be competitive in expanding their production in the years to come.

I have discussed pensions regularly and in detail with GM and PSA. They have given an absolute commitment that no pensioner—current or prospective—will be worse off in any way. Of course, the Pensions Regulator, which is independent of the Government, is required to confirm any changes in pension arrangements.

In terms of the takeover regime generally, the hon. Lady will know that, in this case, one overseas-owned company is being taken over by another; we are not talking about a listed UK company that falls within the UK merger regime. In discussions with my counterparts in France and Germany, I have agreed that we should take a consistent approach on the assurances that are needed. The trade unions are equally in contact with their opposite numbers in other countries.

In terms of the support available to the automotive sector, as I mentioned to colleagues a few moments ago, that sector has been a great success in this country. One of the foundations of that success is the co-operation that we have had—Government to sector, and within the sector through the Automotive Council—to invest in research and development, particularly for electric vehicles and battery storage, and to make sure that we have institutions to train the future workforce. That has been a great success, and I hope that the future owners of Vauxhall will participate in the same way as other successful UK motor industry players have done.

[Alistair Burt (North East Bedfordshire) (Con)]

I thank my right hon. Friend for his statement and his engagement with those of us who represent employees in the areas concerned—in my case, Luton. I would be grateful if he indicated what reassurance has been given to PSA in recognition of the fact that part of the strength of the Luton plant arises from the quality of the supply chain and the investment that has been made in it over recent years. I hope that he can give us some reassurance, because an understanding of that position will help to secure jobs not just at Luton, but in the supply chain, which is so important to the home counties area around Bedfordshire.

[Greg Clark]

I agree with my right hon. Friend. We are talking about both the workforce directly employed by Vauxhall and the substantial employment in the supply chain. Both are very important, so this has been part of our discussions. I think that there is every opportunity—I will be vigorous in pursuing it—to expand the supply chain that supplies not only the Vauxhall plants, but other plants in this country. In the context of our industrial strategy, that is one of the avenues that we intend to expand on during the months ahead.