Ford in Bridgend

Debate between Alun Cairns and Chris Elmore

Monday 10th June 2019 Commons Chamber

[Alun Cairns]

My right hon. Friend makes the important point that Europe faces similar challenges. I have already pointed to the 5,000 jobs that have been lost in the automotive sector in Germany, and we are seeing similar challenges in Spain and elsewhere. Many of these issues are being driven by consumer demand, but some are being driven by regulation, and I think every regulator needs to reflect on the demands from the climate change challenge together with the risks that it poses in the short term until the technology catches up.

[Chris Elmore (Ogmore) (Lab)]

I should like to start by welcoming the Secretary of State’s statement, and I thank him and the Business Secretary for the constructive way in which they have engaged with me as the Member for the neighbouring constituency, in which a large majority of the workforce actually live, and with my hon. Friend the Member for Bridgend (Mrs Moon). We have been meeting the workforce and the unions over the weekend, and I welcome the way in which they are working with the Welsh Government.

It is reassuring to hear the Secretary of State say that he is willing to work in the taskforce and to do all he can to help to support the workforce, but can he set out here and now what he will do if there is a need for UK Government fiscal intervention to protect those jobs and possibly to make Ford change its mind? I believe that Ford still has questions to answer, given that just three weeks ago it was talking about the Dragon line being the most efficient of any of the plants across the world, including in Mexico.

My priority will be the families in my constituency who will be left devastated by this and the communities in my constituency that have not recovered from the de-industrialisation of the 1980s. This really will be a hammer blow to so many of them right across Ogmore, Bridgend, Aberavon and many other constituencies. We need a fiscal stimulus package and an automotive sector deal so that we can protect these jobs and these workers and ensure that these families have some security beyond September 2020.

[Alun Cairns]

I am grateful to the hon. Gentleman for raising those points and for his comments and contributions in the call that we had earlier today. He rightly points out that this is a consultation from Ford, and we will therefore work closely with the unions in challenging the assumptions and statements that Ford has made where we believe them not to be the case.

The UK has a good record of investment in this sector. According to the latest available data, there is a 20% uplift in investment in the automotive sector, which demonstrates that we still remain attractive. We will of course work closely with the Welsh Government on attracting investment to the area, to serve the hon. Gentleman’s constituents and the employees who come from a much wider field than just the community of Bridgend. We remember that there was a Ford plant in Swansea not so long ago and that people travelled to that. The effects therefore stretch much further west, east and north than just the Bridgend site.

The Welsh Government clearly have a responsibility under the devolution settlement for economic developments, but we will continue to work closely with them, as well as with the Department for International Trade, the Department for Business, Energy and Industrial Strategy and the whole might of Whitehall to support the employees by attracting investment to that site.

Oral Answers to Questions

Debate between Alun Cairns and Chris Elmore

Wednesday 27th February 2019 Commons Chamber

[Alun Cairns]

I will be voting for a deal with the European Union. The hon. Lady will have an interest in a whole range of sectors, be they agriculture or automotive, and all those sectors have strongly supported the Prime Minister’s deal with the European Union. I am disappointed that the hon. Lady voted against that, making no deal more likely.

[Chris Elmore (Ogmore) (Lab)]

11. One of the ways that the Welsh Secretary could start doing his job and providing support for the Welsh economy is by confirming how the Shared Prosperity Fund will work beyond 2020. Treasury Ministers and Business, Energy and Industrial Strategy Ministers will not give me an answer, so is it not time that he stepped up, did his job and explained to the House how the Shared Prosperity Fund will work?

[Alun Cairns]

I do not want to pre-empt our consultation, which will go out very shortly, but I say candidly to the hon. Gentleman that he will recognise that more than £4 billion—approaching £5 billion—in EU structural funds has been spent in the Welsh economy over the last 17 years; does he honestly believe that we have had the best value from that, and is there not a better opportunity to deliver better value for money for the taxpayer?

[Chris Elmore]

I am asking the questions, not you.

Oral Answers to Questions

Debate between Alun Cairns and Chris Elmore

Wednesday 23rd January 2019 Commons Chamber

[Alun Cairns]

In the first instance, I remind the hon. Lady that Wales voted to leave the European Union in even stronger numbers than the rest of the United Kingdom. The withdrawal agreement sets out the basis on which, and how, we will leave the European Union. In the light of last week’s votes, we are determined to make amendments and to develop a document in consultation with colleagues across the House in order to win the House of Commons’ support.

[Chris Elmore]

May I associate myself with the Secretary of State’s comments about Steffan Lewis? He and I worked together as young researchers in the National Assembly for Wales. We must remember the words of our colleague Jo Cox that we do have a lot more in common across this House and across the devolved institutions.

Will the Secretary of State simply rule out now, and make representations to the Prime Minister to rule out, no deal, so that the automotive industry in Bridgend—Ford in Bridgend employs many of my constituents—can have certainty beyond March? This continuing planning for no deal is providing no certainty to anybody.

[Alun Cairns]

I would say to the hon. Gentleman that the best way of avoiding no deal is obviously to get a deal. It was interesting that the hon. Gentleman voted against the deal last week. We will continue to engage across the House and with the devolved Administrations, and we are optimistic that we will continue to make amendments to the document that will gain a deal with the European Union.

Oral Answers to Questions

Debate between Alun Cairns and Chris Elmore

Wednesday 5th December 2018 Commons Chamber

[Chris Elmore (Ogmore) (Lab)]

9. In June, Wales exported £10.2 billion-worth of goods to the EU. The viability of manufacturing in Wales relies on frictionless trade with the EU. The Prime Minister’s deal gives no assurances to Welsh businesses—it just gives us buzzwords and more uncertainty—so when will the Secretary of State start doing his job and stand up for businesses in Wales?

[Alun Cairns]

Last week, I spoke to the Welsh Automotive Forum annual dinner. The sector represents 18,000 employees in manufacturing in Wales. It was strongly supportive of the deal that my right hon. Friend the Prime Minister has negotiated. I wish the hon. Gentleman would appreciate it too.

Welsh Affairs

Debate between Alun Cairns and Chris Elmore

Monday 19th March 2018 Commons Chamber

[Alun Cairns]

I am quite surprised that the hon. Gentleman suggests that major investments such as that take place with such simplicity. They might have well have been thought of a number of years ago, but it takes a lot of hard negotiation to strike the final deal and gain a commitment to investment. We all recognise that global companies such as Toyota could take their investment almost anywhere, but it chose to bring it to the United Kingdom. I was in Japan just last August talking to Toyota about that investment, because of the ongoing influence it will have on any investment on Deeside. We have not yet won that for Deeside, but we are in a much stronger position because of Toyota’s commitment in Derbyshire.

I have also had the privilege of visiting Qatar and the US in recent months, to meet investors and seek to establish new relationships that will benefit Wales and the rest of the United Kingdom. The Welsh and UK Governments are developing a strong trading relationship with Qatar, and in six weeks the very first Doha to Cardiff flight will operate, making it far easier for investors from the region to trade in and with Wales.

[Chris Elmore (Ogmore) (Lab)]

Does the Secretary of State now accept that the Welsh Government were right to put in the investment to purchase Cardiff airport several years ago? Without that investment within his own constituency, Cardiff airport could have folded, because he simply was not interested.

[Alun Cairns]

I do not accept that statement. The ownership of the airport does not matter; it is the operation and management of the airport that is important. The hon. Gentleman will recognise that it is an independent, limited company, and it is important that the airport has the freedom to operate in the way it does. I am privileged to have the airport in my constituency, and I support it. In recent months, I have spoken to every managing director or chief executive involved to encourage and facilitate more flights to and from the airport, which is playing a part in contributing to its success. It has grown by 8%, but other airports across the country have grown by similar amounts because of the success of the UK economy.

Welsh businesses will be at the forefront of the UK’s biggest ever trade festival, which kicks off in Hong Kong later this week. I am determined to ensure a close working relationship between the Welsh Government, my office and the Department for International Trade on foreign direct investment and our export ambitions. This is what businesses and communities want. Last week, the Department for International Trade and I held workshops in my office in Cardiff bay to better understand the barriers to exporting and the opportunities in which each Government can play a part in supporting those ambitious companies. I will host a similar event in north Wales next week.

Certainty and continuity for businesses and communities are themes that we are extending to our approach to leaving the European Union. As Members will be aware, we have been working closely with the Welsh Government on the European Union (Withdrawal) Bill. Our initial approach was to retain all EU powers at UK level on a temporary basis to provide the certainty and security that the business community has called for, and we have committed to working with the devolved Administrations on how these powers will work and their onward transfer to the Welsh, Scottish and Northern Ireland Assemblies and Parliaments. However, having listened carefully to the concerns raised by the devolved Administrations, we have tabled an amendment to clause 11. The assumption is that the powers should be devolved, but with an order-making power to enable the UK Government, working with all the devolved Administrations, to legislate and to protect the UK common market. This will apply only in a limited number of areas and on a temporary basis. We have published analysis showing that we expect there to be only 24 areas of policy where we will need to discuss the possibility of legislative frameworks with the Welsh Government.

Autumn Budget as it Relates to Wales (Morning sitting)

Debate between Alun Cairns and Chris Elmore

Wednesday 7th February 2018 General Committees

[Alun Cairns]

Rwyf yn ddiolchgar am yr ymyrraeth gan y Foneddiges anrydeddus. Mae’r hen rheolau wedi bod yn eu lle dros ddegawdau ac roeddwn felly yn falch iawn bod y Llywodraeth yma wedi cefnogi’r newidiadau a ddaeth ar lefel drawsbleidiol.

Ni all y Llywodraeth weithredu ar ei phen ei hun i gyflawni’r newidiadau sydd eu hangen ar Gymru. Dyma pam rwyf am bwysleisio fy awydd i gydweithio’n agos gyda Llywodraeth Cymru er budd Cymru. Rwy’n annog Llywodraeth Cymru i ddefnyddio ei phŵerau ei hun a’r Cynulliad i gyflawni buddiannau economaidd tebyg i Gymru.

Rwyf yn edrych ymlaen at drafodaeth ddiddorol a bywiog heddiw yma yn y Pwyllgor.

(Translation) I am grateful to the hon. Lady for her intervention. The orders have been in place for decades, so I was pleased that this Government supported the changes that came about on the basis of cross-party support.

This Government cannot act alone to deliver the changes that Wales needs, so I reiterate my desire to work closely with the Welsh Government in the best interests of Wales. I urge the Welsh Government to use their powers and the Welsh Assembly’s powers to deliver similar economic benefits to Wales.

I look forward to an interesting and stimulating debate.

[Chris Elmore (Ogmore) (Lab)]

The Secretary of State talks about the Welsh Government using their functions to their economic benefit. One way that he could use his powers would be to secure the tidal lagoon at Swansea by working with the Welsh Government on the financial offer that they put to the Prime Minister. That will bring real economic prosperity across south Wales and beyond.

[Alun Cairns]

Rwyf yn falch bod y Bonheddwr anrhydeddus wedi gofyn y cwestiwn. Fel rwyf wedi dweud yn y gorffennol, byddem yn hapus i weld y cynllun yn mynd yn ei flaen, ond mae’n rhaid inni ddangos gwerth am arian. Ni fedrwn gefnogi’r cynllun heb brofi gwerth am arian. Mae fy swyddogion, yn ogystal â swyddogion yr Adran Busnes, Ynni a Strategaeth Ddiwydiannol—BEIS—a swyddogion Llywodraeth Cymru, wedi cwrdd. Mae Pwyllgor Dethol Materion Cymreig wedi gofyn am dystiolaeth gan Brif Weinidog Cymru. Yn amlwg, wnawn ni ddal ati i gydweithio i geisio dangos gwerth am arian. Rhaid hefyd gofio mae’r Llywodraeth hon a roddodd ganiatâd cynllunio wedi’r etholiad yn 2015, sydd yn dangos ein bod ni’n awyddus i’r cynllun llwyddo, ond ni ddylem ei gefnogi heb brofi gwerth am arian, oherwydd ein trethdalwyr a’n cymunedau ni byddai’n cefnogi’r cynllun, gyda’r pergygl bod y gost yn llawer mwy iddyn nhw na beth sydd yn cael ei gyflawni mewn llefydd eraill.

(Translation) I am pleased that the hon. Gentleman raised that question because, as I said previously, I would be very happy to see that project go ahead. Obviously, however, we must test its value for money, because none of us would wish to support that funding without it being proved good value for money. I have considered this with officials from the Department for Business, Energy and Industrial Strategy and in the Welsh Government, and the Welsh Affairs Committee has asked to take evidence from the Welsh First Minister. We will continue to work together to test the value for money of the plan. We must also bear in mind that it was this Government who gave planning permission for the project after the 2015 election, which shows that we are eager to see it succeed. However, we do not believe we should support it if there is no value for money. Taxpayers and our communities will support this project, but not if it is not good value for money and the cost will be higher than what has been achieved in other countries.

--- Later in debate ---

[Alun Cairns]

It is far too simplistic to say that 60% of Welsh exports go to Europe, because supply chains are far more complex than that. The Welsh Government concluded that 80% of Welsh exports go to the rest of the United Kingdom, which demonstrates the complexity of the position. Therefore, maintaining the integrity of the single market is important.

[Chris Elmore]

In relation to the Secretary of State’s point about inward investment and jobs, one of the areas that is not growing is the car industry at the Ford plant in Bridgend, due to Jaguar Land Rover’s ending its contract early. One of the real concerns is that that is not linked to Brexit; it is about commercial decisions that I accept Ford has to make. It puts significant numbers of jobs at risk for people in my constituency. If we are not in a customs union, trade tariffs on car production could risk closing Ford. That is not scaremongering, before the Secretary of State accuses me of that; it is a real issue, which Ford is raising at the highest levels of Government in the UK, including the Welsh Government.

[Alun Cairns]

In the first instance, that is factually inaccurate. The contract is not being ended early; it was the natural end of the contract. I am sure the hon. Gentleman will be pleased that the Welsh Government and the UK Government are working together closely. Just over a week ago, I met the Assembly Cabinet Secretary for Finance to discuss how we can continue to work together and where officials can be part of a joint taskforce. That measure was requested and supported by the trade unions, and I was keen to respond positively to it.

The Aston Martin investment is just a short distance away, and that demonstrates the confidence that the industry has in the south Wales economy, with 700 jobs from one project, as well as the greater opportunities for the future that have been created. We take Ford very seriously, which is why we continue to work together with the unions, the Welsh Government and the UK Government, as well as Ford, to seek a positive outcome.

Mae’r ffigyrau hyn yn dangos bod Cymru’n parhau i fod yn gyrchfan atyniadol ar gyfer buddsoddiad tramor, gan roi hwb gwerthfawr i’r economi a chreu miloedd o swyddi.

Erbyn hyn, mae gan ein gwlad lwyfan aruthrol i adeiladu arno dros y misoedd nesaf wrth inni wneud cynlluniau i adael yr Undeb Ewropeaidd, creu cysylltiadau cryfach gyda phartneriaid rhyngwladol a denu mwy o fuddsoddiad o farchnadoedd sy’n dod i’r amlwg.

Mae’r Gyllideb hon yn amlinellu pecyn grymus o fesurau a fydd yn helpu i lunio economi Cymru fel ei fod yn addas ar gyfer y dyfodol.

(Translation) These figures demonstrate that Wales remains an attractive destination for overseas investment, and that provides a valuable boost for the economy and creates thousands of jobs. Our country now has a tremendous platform to build on over the coming months as we make plans to leave the EU, and to forge stronger relations with international partners and attract more investment from emerging markets. This Budget outlines a powerful package of measures that will help to shape Wales’s economy into one that is fit for the future.

Oral Answers to Questions

Debate between Alun Cairns and Chris Elmore

Wednesday 13th December 2017 Commons Chamber

[Alun Cairns]

My hon. Friend is a strong champion for Cornwall, and Cornwall is already responding, through her leadership, to the new opportunities that leaving the European Union provides. Wales is rightly doing the same. Exports to areas outside the European Union are growing at a much sharper rate than exports to the European Union, and Wales is well ahead of the UK average.

[Chris Elmore (Ogmore) (Lab)]

One of the trading opportunities we already have is at Ford in Bridgend, which is at risk of closure after Jaguar Land Rover’s contract ended early. The Secretary of State for Business, Energy and Industrial Strategy met me at Ford yesterday. What is the Secretary of State for Wales doing to help to secure those jobs for the future?

[Alun Cairns]

The hon. Gentleman raises an important point about Ford in Bridgend. I met the unions recently, and I speak to Ford on a regular basis. I am pleased that the Welsh Government responded to Ford’s suggestion that I join their working group. We are determined to work together to come up with the best outcome that delivers long-term, sustainable jobs at the Ford plant in Bridgend.