Manufacturing (East Midlands)

Debate between Andrew Bingham and Iain Wright

Tuesday 12th February 2013 Westminster Hall

[Mr Wright]

I absolutely agree. We should use economic values. If Bombardier or any other company fails to win a contract, we should consider the wider economic consequences, in terms of lost taxes, the money that could have been pumped into the local economy and the losses in the supply chain. Those important factors should be part of procurement decisions.

The second point I want to mention relates to a particularly distinctive strength of the east midlands economy and its manufacturing firms: the supply chain. I am interested in it, because it is an important part of improving competitiveness. In November last year, the Minister announced the advanced manufacturing supply chain initiative—we are now on round 2. Despite the importance of mid-sized firms in the east midlands and their potential, will he confirm that no east midlands firm was successful in the bids? What will he do about that to help to realise the potential in the supply chain?

Thirdly, the whole House will agree on the importance of an export-led economic recovery. As we heard today, there is potential for that in the region, but the Derbyshire and Nottinghamshire chamber of commerce’s latest quarterly survey says:

“Export sales are at their lowest levels since December 2009”.

It goes on to say:

“Net manufacturing export sales balances remain significantly lower than the national averages.”

As an interested outsider, it is clear to me that the region is not reaching its potential for an export-led recovery. What can the Minister do in conjunction with UK Trade & Investment and others to ensure that that potential is realised?

[Andrew Bingham]

Is the hon. Gentleman aware that exports from the east midlands in the first three quarters of 2012 were £13.5 billion, which is up £500 million on the same period in the previous year?

[Mr Wright]

That is welcome, but we should not be complacent in any region. In my region of the north-east, the economy has an important export-led component, but we cannot be complacent in what is a fierce race, as the Prime Minister has said. We should be resolute in ensuring that the potential for exports is fulfilled as far as is possible, so that we can have an export-led recovery.

Beer Duty Escalator

Debate between Andrew Bingham and Iain Wright

Thursday 1st November 2012 Commons Chamber

[Mr Wright]

My right hon. Friend is exactly right. She mentions the importance of the pub trade in the local economy—the economies of Salford and Hartlepool are very similar—but she also talks about breweries, which brings me to my next point.

We have a major brewery in my constituency: Camerons brewery—I am pleased to confirm to the House that it has nothing to do with the Prime Minister, thank goodness. Camerons brewery has been on the same site for more than 140 years, using the unique Hartlepool water from its own well to make the beer. It now employs 100 people and is involved in large-scale ale and lager production. Not only does Camerons produce quality ales of its own—I would recommend to hon. Members Camerons Strongarm and 6th Sense, which are particularly good pints—but its modern manufacturing facility and investment in plant means that the brewery is now capable of producing 1.3 million hectolitres per annum, with the potential to increase that, given certainty in the brewery trade, to 2 million hectolitres. Camerons has been well positioned to win orders for beer and ale production from global brands such as Carlsberg. The brewery continues to be—and has been for the best part of 150 years—an important part of the town’s manufacturing base.

[Andrew Bingham (High Peak) (Con)]

Will the hon. Gentleman give way?

[Mr Wright]

I give way for the second and last time.

[Andrew Bingham]

Does the hon. Gentleman agree that it is not just the big breweries that are affected, but small microbreweries, of which there are many in rural constituencies, where pubs are extremely important socially, such as Howard Town brewery and Buxton brewery in my constituency of High Peak?

[Mr Wright]

I absolutely agree with the hon. Gentleman. If manufacturing is to be an important part of this country’s economic base, with small and medium-sized enterprises forming a key part of that, the food and drink sector—of which microbreweries have to be an essential and growing component—will be vital to that.

I have listened closely to other hon. Members’ contributions to this debate, which has been fair and balanced. It is unreasonable to suggest that beer duty is the sole reason that the pub and beer trade is facing difficulties. There are long-term social and economic forces at work. Over the past 30 years, people have switched away from beer to wine in their alcohol consumption. That is true not just in Britain, but throughout western Europe and the United States. Significantly—this point has been touched on many times in the debate, but it is worth repeating—people are now consuming alcohol in their homes rather than in pubs. In fact, some 70% of the alcohol purchased in the UK is bought for consumption at home. Traditionally, 30 or 40 years ago, people probably bought alcohol only in a pub; now, it is far more likely that beer will be bought in a supermarket.