Trade Union Access to Workplaces

Andrew Stephenson Excerpts

Tuesday 4th June 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

It is a pleasure to serve under your chairmanship, Ms McDonagh.

I congratulate the hon. Member for Warrington South (Faisal Rashid) on securing today’s important debate, and commend the impassioned speeches by the hon. Members for Ellesmere Port and Neston (Justin Madders), for High Peak (Ruth George), for Glasgow North East (Mr Sweeney), for Glasgow South West (Chris Stephens), and for North West Durham (Laura Pidcock).

I am very pleased to engage in this debate. Before I address the individual points made by hon. Members, I want to put it on record that the Government recognise the important role that trade unions play across the United Kingdom, and I personally recognise the important role that they play. In my role as a constituency MP, I have worked closely with trade union representatives at Rolls-Royce, which has a site at Barnoldswick in my constituency, and since my appointment as Business and Industry Minister, I have met trade union representatives at BAE Systems here in Parliament and trade union representatives at British Steel on a visit to Scunthorpe.

[John Howell (Henley) (Con)]

I am glad that the Minister mentioned all of those organisations, but there is another organisation that he should mention, which is the Council of Europe, of which we are a member. The Council of Europe has always taken a very strong line on this issue. For example, it runs facilitation courses to help people to understand the role of trade unions and how they can participate in them. That is something that we should be proud of.

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[Andrew Stephenson]

I thank my hon. Friend for his point. He is not just a powerful advocate in the Council of Europe, but a powerful advocate in this place for the role it plays in helping to make positive change, not only in this country but across Europe.

Trade unions have played a long and positive role in our society; they have long represented their members and lobbied for wider changes in society. They have campaigned on equality issues for women and other groups, helped to tackle child poverty and fought against modern day slavery. They have shown how we can bring about change that benefits everybody in society.

Over the decades, unions have improved the working lives of their members, and this Government hope to see that continue. Throughout the country, trade union health and safety representatives have made our workplaces safer, which not only benefits workers but contributes to our economy, by reducing accidents.

Unions have also invested in people, working to develop the skills of their members. Unionlearn is an excellent example of that. It has helped to engage with more than 50 trade unions in more than 700 workplaces. Unionlearn has helped those with low literacy and numeracy and also helped to recruit and support thousands of apprentices. That is why the Government continue to support initiatives such as Unionlearn with over £8 million over the previous and coming years.

[Justin Madders]

In the spending review, which may or may not happen some time this year, will the Minister advocate for Unionlearn’s funding at least to continue at that level or perhaps to increase?

[Andrew Stephenson]

I can assure the hon. Gentleman that, as a fellow north-west MP, I am a passionate advocate of the positive role that unions can play. I have stepped into this debate today because the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. friend the Member for Rochester and Strood (Kelly Tolhurst), who is the Minister with responsibility for small business, consumers and corporate responsibility, has to take an urgent question in the main Chamber. This is her policy remit, but I will certainly speak to her to see what we can do to ensure that we lobby for things such as Unionlearn in the spending review. I am passionate about trade unions. In 2015, I helped to re-establish the Conservative workers and trade union movement in my own party, so Members have a friend of the trade union movement stood before them today.

Let me turn to the points made in the debate. I think it would be helpful if I set out the legislative position. Workers in the UK have a right to join a trade union. That right is protected under our trade union law. It is automatically unfair for an employer to dismiss an employee on the grounds of trade union membership or for being active in a trade union, and employers cannot subject their workers to detriment in attempting to deter union membership or participation in trade union activities.

All union members have the right to participate in union activities, which includes members who are union officials. They have the right, for example, to organise union meetings and consult their members. Furthermore, the right to be active in the affairs of a trade union is enhanced where the union is an independent union that is recognised by the employer for collective bargaining purposes. Officials of such unions may seek time off work with pay to discharge certain union duties. Members who are union learning representatives may also seek paid time off in order to carry out their functions. Individual workers can enforce these rights at an employment tribunal.

[Faisal Rashid]

I want to emphasise that the debate is about what happens before people become members of a union. The Minister is explaining exactly what members’ rights are, but we are not talking about those rights; we are talking about what happens before employees become union members.

[Andrew Stephenson]

I appreciate that point, and I hope I will get to address it slightly later in my remarks. I was trying to emphasise that those rights, as they exist, amount to the right for a union, through its individual members and officials, to recruit and organise in a workplace.

It is important that I address the argument about the UK’s general commitment to human rights. In particular, I wish to refute the argument that the right, under article 11 of the European convention on human rights, for workers to join a trade union and to organise is effectively being denied. That could not be further from the truth. The UK has a long-standing commitment to uphold human rights. The Government are satisfied that our trade union legislation complies with our international obligations, including article 11 of the European convention.

As I have set out previously, workers are free to join a trade union and to participate in trade union activities. That is protected by law. Unions are also free to organise and seek collective bargaining arrangements with employers. Where an employer refuses to recognise a trade union voluntarily, our legislation provides for a statutory recognition procedure. That allows independent unions to apply to the Central Arbitration Committee to be formally recognised for collective bargaining purposes. Unions that can demonstrate majority support for recognition in the workplace will secure statutory recognition from the committee.

[Chris Stephens]

The Minister defines the legal position. Does he believe, therefore, that the Government could do more to enforce that legislation, to ensure that the many alarming examples that the hon. Member for Warrington South (Faisal Rashid) gave us are not repeated anywhere in the United Kingdom?

[Andrew Stephenson]

I do not wish to comment on any of the individual cases that have been raised by Members today, but it is always important to keep these things under review, to look at the evidence and to see where legislation can be changed if there is a need for that, to reflect what is happening in the labour markets.

Returning to the Central Arbitration Committee, the UK courts have found that the statutory recognition procedure complies with article 11. Furthermore, the European Court of Human Rights has accepted the Government’s view that the UK’s trade union legislation strikes the right balance between the rights of trade unions and their members, and the legitimate interests of others. The UK’s system is based on the democratic wishes of workers in the workplace. If workers in the UK want to organise and be represented by a trade union, they have the means to do so.

[Ruth George]

I think the Minister will find that in practice individual workers do not have the ability to organise themselves and to join trade unions, as all the evidence presented by Opposition Members has shown. Employers frequently victimise trade union members and do not allow trade unions into the workplace to support their members, even when they are needed.

[Andrew Stephenson]

I take the hon. Lady’s point. As a constituency MP, I have come across companies whose practices I would not approve of, and I have taken the matter up with managers and been able to secure better access for trade union officials. The hon. Lady will know that workers have the right to bring a union representative to a disciplinary or grievance hearing. Unions have the right to accompany workers in such cases, even if the union is not recognised. It is fundamental that we allow unions access and that we remind workers all the time that they have that right.

[Several hon. Members rose—]

[Andrew Stephenson]

I want to make progress because there were many speakers and there are lots of points to cover.

[Ruth George]

On that point, the member might have the right to be accompanied but the trade union representative does not have the right to speak in the meeting, so their presence is pointless. Does the Minister not agree that that makes the regulation fairly useless?

[Andrew Stephenson]

No, I would never describe trade union representatives as pointless. It is important that they are able to attend and support workers in grievance or disciplinary meetings. They do not have to be able to speak to support someone.

On giving practical effect to article 11 rights, let me turn to a matter that a number of hon. Members have raised: facility time for union representatives to carry out union activities. I agree that without facility time union representatives cannot carry out their trade union duties in relation to collective bargaining and related matters, and our trade union legislation provides for that. Where an independent union has been recognised by an employer for collective bargaining purposes, the employer is required to provide facility time to the union’s representatives and its members. Union representatives are entitled to paid time off to carry out their union duties as well as paid time off for training. That allows them to negotiate with the employer and carry out their functions in relation to matters covered by the collective bargaining agreement.

[Several hon. Members rose—]

[Andrew Stephenson]

I have to make some progress.

Union members are also entitled to unpaid time off during working hours to participate in union activities, for example to attend union meetings or vote in internal union elections.

In relation to access to facilities, the ACAS code of practice on time off for trade union duties and activities states that employers should, where practical, make available to union representatives the facilities necessary for them to perform their duties efficiently and to communicate with their members. The provisions of the code are admissible in evidence in proceedings before an employment tribunal relating to time off for trade union duties and activities. Provisions of the code that appear to the tribunal to be relevant should be taken into account. The Government therefore believe that the current arrangements in relation to facility time are sufficient. The arrangements have been in place for a long time, and are well understood by both employers and trade unions.

[Chris Stephens]

I thank the Minister for his generosity. Why, therefore, is it necessary for the Government to publish the so-called cost to the public purse of facility time for civil service trade unions? It seems to me that there is no cost and that the benefits of providing facility time outweigh the so-called cost.

[Andrew Stephenson]

I will raise that matter with the Minister for Small Business, Consumers and Corporate Responsibility, and I am sure she will be more than happy to write to the hon. Gentleman with an answer.

In his speech on 15 May introducing his Bill, and again today, the hon. Member for Warrington South referred to strengthening collective bargaining in the workplace. In the UK, collective bargaining remains an important method whereby pay and other terms and conditions are set. The UK takes a voluntary approach to collective issues. Collective bargaining is largely a matter for individual employers, their employees and their trade unions. Most collective bargaining in this country takes place because employers have voluntarily agreed to recognise a trade union and bargain with it. The Government do not believe that they should be in the business of forcing employers or their workers to enter into collective bargaining arrangements if they do not wish to do so. Instead, we prefer a voluntary and democratic approach. However, where an employer refuses to recognise a trade union voluntarily, our legislation provides for a statutory recognition procedure.

In 2018-19, the Central Arbitration Committee received 56 trade union recognition applications. Of those, six were able to reach agreement without the need for a ballot, including that reached between the employer Babcock Mission Critical Services Onshore and Prospect. A total of 25 applications were withdrawn and, encouragingly, 13 of these were because the employers and unions were able to reach agreement voluntarily. The key point I wish to reiterate is that if a majority of workers in a workplace want to organise and be represented by a trade union, they have the right to secure trade union recognition for collective bargaining purposes.

The Government recognise the important role that trade unions play in the UK economy and society and, personally, I hope that that continues for many years to come. Individual workers have the right to join a union and take part in union activities. Unions, through their individual members and officials, effectively have the right to recruit and organise in the workplace. Unions are also free to seek collective bargaining agreements with employers. If necessary, they can obtain statutory trade union recognition as long as they can demonstrate majority support for union recognition in the workplace. Our legislation therefore does not need amending. It is well established, and has been backed by successive Governments. If workers and unions want collective bargaining in workplaces across the UK, they are free to organise to achieve that.

[Siobhain McDonagh (in the Chair)]

I apologise that we have until only 6 o’clock.

British Steel

Andrew Stephenson Excerpts

Tuesday 21st May 2019 Commons Chamber

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the discussions he has had with British Steel regarding its future.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

My Department is in regular conversation with a wide range of companies, including those in the steel industry. As the House will be aware, the Government entered into a commercial agreement with British Steel on 24 April, valued at £120 million, relating to the company’s obligations under the EU emissions trading system. The Secretary of State updated the House on that agreement in an oral statement on 1 May—the first available opportunity after market-sensitive elements of the resulting transaction were concluded. The commercial agreement reached with British Steel ensured that the company was able to meet its 2018 EU ETS obligations under a deed of forfeiture. It also ensured that the company did not incur an EU ETS non-compliance fine which, coupled with 2018 ETS liabilities, would have equated to a financial pressure of over £600 million—a sum that would have put the company under significant financial strain.

The speculation regarding the future of British Steel will no doubt be creating uncertainty for those employed by the company. As shown through the ETS agreement, the Government have been willing to act. We have been in ongoing discussions with the company, and I am sure the House will understand that we cannot comment in detail at this stage. We will update the House when more information is available. I can, however, reassure the House that, subject to strict legal bounds, the Government will leave no stone unturned in their support of the steel industry.

Yesterday I signed up to the UK steel charter. We want to acknowledge and support the initiative from the industry, and the charter is one element of that. We have been also been encouraging the UK steel sector to strengthen its engagement with all existing and potential domestic steel consumers, maximising opportunities to benefit from the £3.8 billion a year of high market value opportunities that we have identified by 2030. We recognise that global economic conditions continue to be challenging for the industry, which is why the Government are working with the sector, unions and the devolved Administrations to support a sustainable, productive and modern UK steel sector.

[Gill Furniss]

It goes without saying that the UK steel industry is critical to our manufacturing base and that protecting the industry should be of paramount importance to the Government. The industry provides over 30,000 highly skilled, well-paid jobs in the UK, and British Steel directly employs around 4,500 in Scunthorpe, with a further 20,000 down the supply chain. Does the Minister agree the Government should be doing everything in their power to prevent British Steel from entering administration?

It is reported that British Steel had initially asked the Government for a £75 million loan in emergency financial support and subsequently reduced that request to around £30 million following negotiations with the Department. Will the Minister outline the asks of British Steel throughout the negotiations? Have the discussions included just financial support or a wider package of measures to support the site in Scunthorpe and the steel industry more widely?

Will the Minister confirm the status of the negotiations and why they are reported to have stalled in recent days? It has been reported that one of the reasons was the Department’s frustration with Greybull Capital’s apparent unwillingness to put money on the table. Will the Minister confirm whether that is the case? What impact did the company’s decision to acquire Ascoval last week have on the negotiations? If no deal can be reached with Greybull, have the Government considered any other options, such as bringing British Steel into public ownership?

Finally, the steel sector is facing myriad issues, from the value of sterling and the uncertainty around future trading with the EU through to US trade tariffs, and the Government could have taken steps to address them, such as greater procurement of UK steel, agreeing a sector deal, as the industry was requesting, and taking action on energy prices. Does the Minister accept that this Government have simply failed to take the steps necessary to ensure that UK steel remains competitive?

[Andrew Stephenson]

I pay tribute to the hon. Lady for the commitment that she and her family have shown to the steel sector over many years. I represent the constituency of Pendle, which is dominated by manufacturing, and I share her passion for the steel sector. I will leave no stone unturned, and neither will the Secretary of State for Business, Energy and Industrial Strategy, in supporting the UK steel sector.

As the House will know, we can only act within the strict bounds of what is legally possible under domestic and European law. I can assure the House that we will continue to do whatever is in our power to support the UK steel industry and those who work in the sector. We are working with the sector, the unions and the devolved Administrations to support all aspects of the UK steel sector.

The Government have taken a number of important longer-term steps, including ensuring that social and economic factors can be taken into account in public sector steel procurement, and providing more than £291 million in compensation to the steel sector since 2013 to make energy costs more competitive. We have also published a pipeline of upcoming national infrastructure projects every year to enable steel businesses to plan for future demand.

As I mentioned earlier, I signed the UK steel charter yesterday, and I will be encouraging other hon. Members and Government Departments to do the same. We want to acknowledge the importance of this industry.

[Tom Pursglove (Corby) (Con)]

On Friday I had one of my regular catch-ups at the Tata steelworks in Corby, and we specifically talked about support for the steel charter. I was obviously pleased to see the Minister at yesterday’s event, but will he both adopt the charter and action it as quickly as possible so that the industry can rapidly feel the benefit of the course it advances?

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[Andrew Stephenson]

My hon. Friend is a huge champion of the steel sector. I was pleased to meet representatives of Tata yesterday, and I have regular engagements with companies across the steel sector to talk about these issues. The UK steel charter is a really good initiative, and I am proud to have signed it on behalf of my Department. I will be encouraging other Departments to do the same.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

It was left to the SNP Scottish Government to secure a future for Scottish steel with the transfer of the Dalzell and Clydebridge plants to Liberty. Although Liberty still expects operations at British Steel to continue as normal for the time being, it is preparing and taking the necessary measures to protect the business from a potential shortage of slab, which would affect the Liberty works. Will the support shown to British Steel, not to mention Nissan, be given to any Scottish firms affected? British Steel needed a loan earlier this month to pay its £100 million Brexit fine. Given that British Steel is clear that Brexit-related issues are taking the firm to the brink, how many more jobs will Westminster sacrifice before it gets the message that Brexit must be stopped?

[Andrew Stephenson]

I am very keen to work with the devolved Administrations to support the UK steel sector. Only this week I met the Secretary of State for Wales and a Welsh steel company to talk about support for the steelworks in that part of the United Kingdom. I am very keen to work with the Scottish Government to ensure that we have a thriving steel sector in Scotland as well.

[Sir Desmond Swayne (New Forest West) (Con)]

Will my hon. Friend undertake to avoid halving both output and employment? That is what the last Labour Government achieved.

[Andrew Stephenson]

We have taken decisive action to support the UK steel sector. There are more things we could do, and I am keen to explore with industry what more we can do, but I agree that the challenges here have been going on for a number of years. This Government see the steel sector as fundamentally important to British industry, and we will continue to leave no stone unturned in supporting the sector.

[Nic Dakin (Scunthorpe) (Lab)]

Steelworkers and their families in my constituency and across the country are anxious, as the Minister has recognised. Pragmatic decisions in the coming days could still avert another industrial disaster. I have spoken to the trade unions, which are clear from the messages they are getting that there is still a deal to be done. It is important that, across the House and outside the House, we all work to make sure this delivers positively for the future of the British steel industry. Does the Minister agree that the stakes are too high for the Government, for us, to fail?

[Andrew Stephenson]

I thank the hon. Gentleman for his comments; we have discussed this issue over the past few days. When we are in a position to update the House with more information, we will do so. I hope that he will acknowledge that the Secretary of State is one of the most diligent Ministers in coming to the Dispatch Box as soon as information is readily available. At this stage, however, I cannot comment on specifics.

[Richard Harrington (Watford) (Con)]

In the past two years, I had the pleasure of dealing with the steel industry in my capacity as Minister at the Department for Business, Energy and Industrial Strategy. I can certainly confirm that the Secretary of State and the ministerial team are very much behind the steel industry.

Does the Minister agree that one of the problems affecting firms such as British Steel, which has an excellent business plan and very good management, is the uncertainty about the trading relationship with the European Union and outside it? Nonsense is talked about World Trade Organisation rules and other things, under which there may be a 20% tariff. Will the Minister, at the Dispatch Box, please ask the Opposition and Members on the Government side who voted against the Prime Minister’s deal to change their minds and get Brexit sorted out very quickly? That will help the steel industry more than anything.

[Andrew Stephenson]

I echo the comments of my predecessor, whose shoes I am still trying to fill only six weeks into the job. All Members should reflect on the real-world impacts of the decisions—or lack of them—that they make in this place on businesses, and how that can affect thousands of jobs and whole towns across the United Kingdom.

[Rachel Reeves (Leeds West) (Lab)]

The Government have presided over the decline of the UK steel industry: the closure of Redcar in 2016; the lack of assurances obtained from Greybull when it took over British Steel; the chaotic handling of Brexit; and the failure to agree a sector deal with the steel industry, which it has been crying out for. The Government now have a chance to right some of those wrongs. I urge the Minister to do everything in his power to protect jobs, investment and our vital manufacturing base in our steel sector.

[Andrew Stephenson]

In this role, I want to do everything that I can to support the UK steel sector. We were the first country in Europe to take account of socioeconomic factors in public sector procurement. We have provided more than £291 million in compensation for high energy costs in the UK. We have provided and published a pipeline of upcoming national infrastructure projects, and last year I signed the UK steel charter. We are doing a lot as a Government, although there is more that we can do. I stand ready to help the sector in any way I can.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

I welcome the Minister’s answers today and appreciate that there are limitations on what he can say at this time. I thank him and his team at the Department for all the work I know they are doing to deliver a sustainable future for British Steel. I urge him to impress on Greybull Capital its moral and legal responsibility to the hundreds of men and women, in my constituency and elsewhere, to deliver a sustainable future for the industry.

[Andrew Stephenson]

My hon. Friend is a champion of steelworkers in his constituency. We will, of course, update the House when we have more information on any specific discussions with any steel company. That is all I can say.

[Jessica Morden (Newport East) (Lab)]

Today we are rightly talking about British Steel and the strong action needed to save the company. Surely the Minister understands that the situation makes it even more crucial that we have a robust and positive industrial strategy, with steel as a key part, and a sector deal. That is what steelworkers at Orb, Llanwern and Liberty in my constituency want. When will the Government act?

[Andrew Stephenson]

We have a robust industrial strategy and remain open to a steel sector deal. Since I have been appointed, I have been meeting steel industry representatives and discussing that, along with other issues. I have mentioned the steel pipeline, support on energy costs and a range of things that the Government are already doing. We need to see through the steel sector deal whether we can take that further.

[Andrew Percy (Brigg and Goole) (Con)]

As the Minister knows, part of the Scunthorpe site and probably the lion’s share of workers at Scunthorpe live in my constituency. I thank him and the Secretary of State, on my behalf and that of the hon. Member for Scunthorpe (Nic Dakin), for their frequent communication with us over the past week or so.

Certainty is very important to the industry. That is why, with some reservations, I have consistently supported the Prime Minister’s deal, to end the Brexit uncertainty, and I will continue to do so. I hope that other colleagues will also do that, as British Steel has asked it of Members of Parliament.

Will the Minister confirm that, if the company were nationalised, it would be subject to the same rules on Government investment had it remained in private ownership?

[Andrew Stephenson]

Delivering a negotiated deal from the EU remains the Government’s top priority, and I hope Members will vote for the deal. My hon. Friend is exactly correct: nationalisation is not the solution. If the business were nationalised, the exact same domestic and European laws would apply.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

According to the BBC, 95% of the rail used by Network Rail comes from the Scunthorpe plant. Instead of bailing out what is essentially a private equity firm, will the British Government not consider taking a direct equity share in the company, or, if it goes into administration, creating an arm’s length publicly owned company to take over the plant?

[Andrew Stephenson]

Any support for any business in the steel sector has to be commercial, to fulfil state aid rules. Whatever support is provided to any steel company has to stack up on that basis. However this is done, and whether we take a stake in the company or not, this has to be done on a commercial basis.

[Dame Caroline Spelman (Meriden) (Con)]

The union convenor from British Steel’s Scunthorpe plant came to Parliament last week and told us that 25% of its order book had been lost through Brexit uncertainty. He summed up their plight as “No deal, no British Steel”. Does the Minister agree that resolving Brexit uncertainty by voting for the Bill next month would offer a lifeline to the company and other manufacturing businesses?

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[Andrew Stephenson]

Delivering a deal negotiated with the EU remains the Government’s top priority. It remains the best way to provide security for the future of British jobs and businesses.

[Anna Turley (Redcar) (Lab/Co-op)]

Redcar steelworks was closed by the Government three and a half years ago, with the loss of 3,100 jobs. After that biggest act of industrial vandalism, everybody came together and said, “Never again!” The Minister has said that he will leave no stone unturned, but is he willing to accept that if the worst should happen and the company goes into administration, the Government will step in to secure the asset this time—not let it go to waste so that it is still sitting there three and a half years later—and secure the workforce and their livelihoods?

[Andrew Stephenson]

The Government have been willing to act. We provided a £120 million bridging facility to the company earlier this month, which shows that we are fleet of foot and responsive to businesses that approach us with their concerns. I cannot comment on any current negotiations with this or any other company, but the Government are responsive, and, when it comes to this specific company, we have already shown our willingness to act, with that £120 million.

[James Cartlidge (South Suffolk) (Con)]

I was born in 1974: in my entire lifetime, unemployment has never been lower than it is today. Should we not remember that picture? It is based not on policies such as renationalisation but on maintaining pro-business policies that keep us attractive and open to inward investment.

[Andrew Stephenson]

I see the steel sector as fundamentally important to the British economy, and we are keen to do everything we can to support it. However, as I have already said and the House will know, we can only act within the strict bounds of what is legally possible under domestic and European law.

[Mr Clive Betts (Sheffield South East) (Lab)]

It is now nearly two years since the Helm review, yet British steel producers are paying 50% more for energy than their competitors in Germany and nearly twice as much as those in France. Does the Minister accept that that disparity has to be removed? If so, what action will he take to remove it and when will he take that action?

[Andrew Stephenson]

We have already provided £291 million in compensation to the steel sector since 2013, including £53 million in 2018, to make energy costs more competitive. I am particularly keen to see the steel sector benefit from the industrial energy transformation fund, which is backed by an additional £315 million of investment. I have already had discussions with UK Steel about how firms across the sector can make the most use of this transformative funding.

[Jeremy Lefroy (Stafford) (Con)]

I thank the Government for the action they are taking. Does the Minister agree that, just as our agriculture sector is vital for the national interest in food security, our steel sector is vital for the national interest in defence and manufacturing security?

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[Andrew Stephenson]

I wholeheartedly agree with my hon. Friend. His Stafford constituency has, like mine, significant numbers of people who work in manufacturing, and we all know how important the UK steel sector is. In my role as Minister I will do everything I can to support the sector.

[Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)]

British Steel’s service centre for Ireland is located at Lisburn in my constituency, and those jobs are vital for our local economy. I echo the comments of other right hon. and hon. Members in encouraging the Government to look more closely at a sector deal for the steel industry. As the hon. Member for Stafford (Jeremy Lefroy) said, the sector is vital for the UK economy, and we encourage the Government to go the extra mile.

[Andrew Stephenson]

I remain open to discussions on a sector deal with the steel industry, and I have already met companies. I will certainly do everything I can to ensure that such a deal is reached without delay.

[Mr Philip Dunne (Ludlow) (Con)]

I congratulate my hon. Friend on the way in which he is handling himself and the Department, having come into his new post with such an issue to deal with. This is a serious matter, but we must remember that steel is an internationally competitive and traded commodity. The industry currently faces the challenge of the US-China trade war and tariffs being imposed on it. Will my hon. Friend inform the House what measures the Government can take to seek to provide some protection from the dumping of Chinese steel in this country?

[Andrew Stephenson]

My right hon. Friend is correct that this is a global issue. The 33 countries that are members of the G20 global forum on steel excess capacity have agreed important policy principles and recommendations to tackle unfair subsidies and practices. It is important that all G20 global forum members act on that agreement and are held to account for unfair practices.

[Stephanie Peacock (Barnsley East) (Lab)]

People in Barnsley whose jobs depend on industrial supply chains will be astounded if the Government let the owners of British Steel walk away with tens of millions while they suffer the consequences of administration. Will the Minister guarantee that that will not happen?

[Andrew Stephenson]

I cannot be drawn on the specifics, but through our industrial strategy the Government want to work with all businesses, large and small, to ensure the success of British industry. I see the British steel industry as an important part of that and we need to work together to ensure its long-term success.

[Martin Vickers (Cleethorpes) (Con)]

Scunthorpe produces the long products that are vital for major infrastructure projects such as High Speed 2. Will the Minister assure the House that projects such as HS2 will use British steel? Will he ensure that he does everything possible to ensure that British-manufactured steel is used in major infrastructure projects?

[Andrew Stephenson]

The Government have worked hard to produce a pipeline of the steel products being used in the public sector, and the details were published for the first time this year. Many other large construction projects in the UK, such as Hinkley Point C, are contributing significantly to new orders and future business for the steel sector. We hope that our transparency will lead to better public procurement, and we will work with the industry to ensure that it uses the data to ensure further support and orders for the British steel sector.

[Nick Smith (Blaenau Gwent) (Lab)]

The Minister talks about the steel pipeline, but only half the steel that the UK Government buy is from the UK. What steps will the Government take to increase dramatically the share of UK steel that is used in Government projects?

[Andrew Stephenson]

We were the first EU country to implement socioeconomic and environmental factors in public procurement rules on the purchase of steel. For the first time ever, we have published information for not only Departments but their arm’s length bodies on how much steel they have procured over the past financial year and how they have applied the steel procurement guidance. I hope that that will allow greater transparency in the sector so that we can see exactly where steel is coming from and ensure that we can increase the proportion that is bought from UK suppliers.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Some 88% of structural steel used in the Queen Elizabeth aircraft carrier programme was sourced from UK producers. Does my hon. Friend agree that the UK steel industry is vital to our nation’s defence security, and will he do all he can to support it?

[Andrew Stephenson]

UK steel is incredibly important, not only to our defence sector but to other sectors. The published details on the upcoming steel requirements for national infrastructure projects show that the Government plan to use more than 3 million tonnes of steel, until 2021, for infrastructure projects such as Hinkley Point and for the maintenance and upgrading of the UK’s motorway network. Steel is important not just to defence but across a range of sectors, which is why the Government stand ready to support the UK steel sector.

[Tom Brake (Carshalton and Wallington) (LD)]

British Steel has made it clear that Brexit uncertainty is scaring customers away and is a major cause of its problems. There is a simple solution: stop Brexit and stem the flow of job losses and relocations. If the Minister is not willing to take such action, will the Government instead look into the idea of setting up a Brexit support fund, which could be used, where appropriate, to support businesses and sectors that have been damaged by Brexit?

[Andrew Stephenson]

British Steel has been clear that Members of this House should vote for the deal, which I have voted for three times. All Members should reflect on the real-world impacts of the decisions that we make in this place, or the lack thereof, on businesses and the people we represent.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The Minister is right to consider jobs at risk, particularly when they relate to what are hopefully relatively short-term Brexit uncertainties, but to be fair Greybull did buy the business after the referendum and therefore might have expected some volatility ahead. Will the Minister confirm to the House that if he decides to support the business, it will be an isolated case, rather than an ongoing policy of supporting failing businesses?

[Andrew Stephenson]

All support that is provided for businesses has to be compliant with UK domestic law and EU law. It has to pass various commerciality tests to be legal and compliant with state aid rules. We always stand ready to work with UK businesses to protect UK interests and jobs, but any support that we provide has to be legal.

[Stephen Kinnock (Aberavon) (Lab)]

It is almost three years to the day since we were battling to save the entire Tata operation throughout the United Kingdom. It beggars belief that we are here having the same conversation and asking the same questions. The fact is that the fundamental problem is that the British steel industry is not able to compete on a level playing field because of the Government’s complete failure to have an industrial strategy to support it. When will the Government stop leaving stones unturned and give the steel industry the sector deal it urgently needs?

[Andrew Stephenson]

I know the hon. Gentleman is incredibly passionate about this issue. I met representatives of Tata Steel yesterday, and we discussed many issues relating specifically to the Port Talbot site. Rather than a bleak picture, they painted a positive picture of how that site has grown over recent years. There has been significant investment and the company wishes to invest more. The Government will work with Tata Steel to support it in any way possible, and we will certainly work with colleagues in the Welsh Assembly to ensure that if any support is required it is delivered. Across the board, we are working to support the UK steel sector.

[Sir Kevin Barron (Rother Valley) (Lab)]

The Minister talked about public sector procurement; my understanding is that around 50% of the steel used in public sector procurement is produced here in the United Kingdom. Why is the proportion not higher?

[Andrew Stephenson]

That is a good question. We were the first EU country to implement socioeconomic and environmental factors in public procurement rules, which means we can take into account the impact on carbon emissions and on local communities. This is the first year in which that information has been published and made readily available. Now that it has been published, I have asked my officials to look into how we can consider not only that information but the steel pipeline, to ensure that we support British companies as much as we can. If British companies need to transform some of their processes to supply a greater proportion of UK domestic demand, I am sure my Department will do whatever it can to support them but, as I have said several times, any support that we provide to any businesses in the steel sector has to be compliant with UK domestic law and EU state aid law.

[Nick Thomas-Symonds (Torfaen) (Lab)]

The forthcoming Government project to build the Royal Navy fleet solid support ships will clearly use enormous amounts of steel. Quite simply, why can the Minister not ensure that those ships are built of UK steel?

--- Later in debate ---

[Andrew Stephenson]

We are working with industry on a range of projects to ensure that a higher proportion of the UK domestic need for steel is supplied by British companies. As I have mentioned before, the steel pipeline has identified those projects, which means that steel companies can see when the demand is coming many years ahead. Hopefully, we can ensure that a much higher proportion of our domestic steel requirement is supplied from British Steel projects.

[Peter Kyle (Hove) (Lab)]

To say that the Government have left no stone unturned is, frankly, an insult to an industry that has been sent to the back of the queue when it comes to a sector deal. When will it get the sector deal for which it has been crying out for month after month after month? I ask the Minister to give us a very specific date.

[Andrew Stephenson]

Sector deals are not about value signalling. We are not doing sector deals randomly across the board. We are doing sector deals where we believe that they can deliver a transformation in productivity and enhance production in any sector. The UK steel sector, like the global steel sector, is challenged by global economic conditions, oversupply and a range of other factors. We have taken firm action on sorting out energy costs. We are supplying millions of pounds in compensation. We have launched the industrial energy transformation fund and we have the industrial strategy challenge fund. There is the steel pipeline and now the steel charter. This Government are dong an awful lot to help the UK steel sector.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I wonder whether the Minister might respond to the point raised by my hon. Friend the Member for Scunthorpe (Nic Dakin), who said that the stakes are too high to fail for this vital national industry as well as for the regional economy in the Humber area.

[Andrew Stephenson]

The closure of any steel blast furnace or steel mill would have a significant impact on the locality. All the sites across the United Kingdom employ large numbers of people, which is why we are very keen to support all sites across the country. However, as I have said, the Government are willing to take action and intervene where we can. We supplied the £120 million bridging facility to British Steel recently, which I hope shows the level of commitment from this Government. We will work with all companies across the sector to support them, but any support we provide to any business has to be judged against British and European law.

[Alex Cunningham (Stockton North) (Lab)]

As my hon. Friend the Member for Redcar (Anna Turley) said, the Tory Government have form in failing to support this steel industry. Ministers turned their backs on Teesside in particular when we lost the country’s most efficient blast furnace, leaving thousands of people out of work. Now, more Teesside steel workers face an uncertain future. We need Ministers to act to save those jobs that we have left, but also to accelerate the investment on Teesside to create the well-paid jobs that have been promised but not delivered. When will we get these jobs?

[Andrew Stephenson]

The Government are working to support the sector. As I have just mentioned, a £120 million bridging facility has been supplied to British Steel to support its EU emissions trading system compliance, which demonstrates that graphically. In the past few weeks, we have been working with the sector on high energy costs, we are working with the sector to reduce its carbon emissions and we are working across the board to support all regions of the United Kingdom.

[Melanie Onn (Great Grimsby) (Lab)]

What reassurance can the Minister offer to the many apprentices who work at the Scunthorpe plant from my Great Grimsby constituency and to the colleges that arrange those apprenticeships in the event that the Government’s intervention is not sufficient?

[Andrew Stephenson]

Media speculation about this site and about the financial future of this site is unhelpful. If we have anything to say we will update the House when there is more information available.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Last week, Martin Foster, a loyal long-serving steel worker and the Unite union convenor from Scunthorpe, told Parliament: no deal, no British Steel. In urging, as he did, that a deal be done with a strong customs union at its heart, does the Minister agree that he is right and that British Steel is right? Does he also agree that those who think that we can crash out of the European Union without a deal and rely on World Trade Organisation terms just do not live on the same planet as those Scunthorpe steel workers whose whole future is now threatened?

[Andrew Stephenson]

British Steel wrote to local MPs in the Scunthorpe area to urge them to vote for the Prime Minister’s deal. I have voted for it three times. How many times has the hon. Gentleman voted for it?

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Primary steel making in Scotland ended in 1992 with the closure of Ravenscraig, but the two remaining secondary steel plants that process plate are heavily reliant on the Scunthorpe blast furnaces, which supply them with steel and, in turn, the shipbuilding industry in Glasgow. Not only have we seen this Government leading efforts to block action against Chinese dumping at the European Commission, but we have seen them diluting efforts to ensure maximised content for British manufactured products in renewables projects. We have seen them move the goalposts from 60% of manufactured content to 60% of through-life content. When will the Minister understand the reality of the impact that these damaging decisions are having on the British steel industry and reverse them?

[Andrew Stephenson]

We are working with the G20 global forum on steel. There are currently 46 EU trade defence measures in place to protect UK steel producers from unfair trade imports. As we move to leave the EU and operate a trade policy, the UK will continue to champion free trade, but will also take a proportionate approach to trade remedies.

Nuclear Energy

Andrew Stephenson Excerpts

Wednesday 15th May 2019 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

Government’s preparations for the UK’s withdrawal from Euratom mean that the UK now has all the necessary measures in place to ensure that the UK nuclear industry can continue to operate with certainty in all situations.

On 22 February the UK and Japan signed an exchange of notes confirming how the terms of our existing 1998 nuclear co-operation agreement will operate in the context of the UK’s withdrawal from Euratom.

The Nuclear Safeguards (Fissionable Material And Relevant International Agreements) (EU exit) Regulations 2019 and the Nuclear Safeguards (EU exit) Regulations 2019 and the Shipments Of Radioactive Substances (EU Exit) Regulations 2019 have been made. This means that Government have put in place all legislation needed ahead of the UK leaving Euratom to ensure that it can now operate as an independent and responsible nuclear state, and that civil nuclear trade can continue.

Government have also published further guidance to industry on no-deal arrangements in relation to the Transfrontier Shipment Of Radioactive Waste And Spent Fuel (EU exit) Regulations 2019, and the Shipments Of Radioactive Substances (EU Exit) Regulations 2019.

Today I will be depositing a report in the Libraries of both Houses that sets out further details on the overall progress on the Government’s implementation of their Euratom exit strategy, including EU negotiations, domestic operational readiness, legislation and international agreements. The report covers the three-month reporting period from 26 December to 26 March and is the third statutory report under section 3(4) of the Nuclear Safeguards Act 2018. The next report on Euratom exit progress is due to be deposited in July 2019.

[HCWS1557]

Bombardier

Andrew Stephenson Excerpts

Tuesday 7th May 2019 Commons Chamber

[Tony Lloyd (Rochdale) (Lab)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the decision by Bombardier to sell its operations in Northern Ireland.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

Last Thursday, Bombardier Inc. announced its plans to sell its Belfast aerostructures and engineering services operations. The Secretary of State for Business, Energy and Industrial Strategy has spoken to Alain Bellemare, Bombardier’s chief executive, and Michael Ryan, the head of its Belfast operations, about this decision.

The decision is a change of strategy for Bombardier, and we have asked the company to explain it. Bombardier has told us it is a strategic decision so that the company can focus on its transportation division, which includes trains and business jets. The company will be consolidating its aerospace assets into a single business unit with core operations in Canada, the USA and Mexico, while selling its Northern Ireland and Morocco units. Bombardier has said it will continue to be committed to rail transportation in the United Kingdom.

I recognise this is unwelcome news for the Northern Irish workforce across the company’s sites in Belfast, Dunmurry, Newtownards and Newtownabbey and for their families. It is deeply regrettable that they face further uncertainty about their future. We have been assured by Bombardier that it is committed to finding the right buyer and will not rush to sell at any price. Bombardier has said it will secure a buyer that will operate responsibly and will help the buyer to achieve its full growth potential.

The Belfast plant, its expertise and its highly skilled and dedicated staff will be highly sought after, and we will be working with potential buyers to take this successful and ambitious business forward. Bombardier has committed to no further job losses at the Short Brothers factory in Belfast and has paused the redundancy process from its November 2018 restructuring announcement. The management team will still continue to drive ongoing transformation initiatives to improve productivity and increase competitiveness.

The Short Brothers factory employs around 3,600 skilled workers, with a large number of them working on the A220 aircraft joint venture programme with Airbus. It also supports a supply chain of hundreds of companies and many more jobs in the UK. Bombardier’s commitment to the Short Brothers factory has transformed the business, changing it to a state-of-the-art wing factory with a healthy order book. The Belfast plant is a vital asset to the UK’s world-leading aerospace sector and is a centre of excellence in advanced composites and in the design and manufacture of some of the most high-value components in aerospace manufacturing.

We are committed to helping ensure that the Belfast facility continues to be successful. Last year, when the A220 aircraft joint venture was launched, both Bombardier and Airbus made a number of important commitments to the Business Secretary, including that wing manufacturing will continue in Belfast, that the treatment of UK sites and suppliers will be equal to that of other Bombardier and Airbus suppliers and that the strategy will be one of building on existing capabilities. I expect those commitments to be respected.

We will continue to work closely with the company, the unions and the Northern Ireland Departments while this process is under way.

[Tony Lloyd]

I welcome the Minister to the Front Bench. He is right to describe Bombardier as a company of vital importance. The workforce, of course, are both dedicated and highly skilled, but that of itself does not express the importance of Bombardier to the Northern Ireland economy. This is a world-class operation and an icon of Northern Ireland’s capacity to deliver world-class manufacturing and production. The company represents some 10% of Northern Ireland’s manufacturing output, and, as he says, it employs some 3,600 people across its different sites in Northern Ireland, but that only partially tells the story of a company with a supply chain that employs many, many more—some in Northern Ireland and some in other parts of the United Kingdom. Bombardier’s decision comes as a genuine shock and will lead to potential dismay. The Minister tells us that Bombardier has made commitments to try to maintain the site’s viability.

I would like to draw the House’s attention to comments made by the Moroccan Industry Minister, because Morocco is in the same position as Northern Ireland in this context. Moulay Hafid Elalamy has confirmed that Bombardier’s Casablanca factory operations will continue after Bombardier sells it plants. We look to the Minister to give the same kind of assurance to the people of Northern Ireland, the UK and beyond that Bombardier will make sure that the current workforce, skills base and production will continue unscathed.

In that context, the Minister has told us that conversations have taken place between the Secretary of State and Bombardier’s management. Will the Minister tell us whether there are plans to meet the representatives of the workforce—the trade unions involved? They are particularly keen—I agree with them on this—that the Secretary of State should hold a summit involving all the key partners, not simply the company and the workforce, but other stakeholders, including Members of this House and others elsewhere. It is important that a combined effort across Northern Ireland is made to ensure that we salvage what is proper from this announcement. Can the Minister, once again, establish that Bombardier will be sold as a total going concern? It matters enormously that we do not see a vulture company coming in, stripping its assets and its workforce and denuding both Northern Ireland and the UK of the Bombardier capacity.

Those with a good memory will recall that when Short Brothers, the predecessor company, was in public ownership, public money went into this site. What is the legacy of that public money? Can the Minister give assurances that Bombardier is committed to making sure that there is proper legacy for its workforce in Northern Ireland? Will consideration be given by his colleagues, probably those in the Treasury, as to whether enhanced funding should be provided for the Belfast city deal? Obviously, this announcement will create pressures on the Belfast city region and the people who live there.

The final point I wish to make to the Minister is a simple one. The Secretary of State for Northern Ireland cannot be with us today, for perfectly valid reasons—she is hosting five-party talks in Northern Ireland—but it is important that this Government do everything they can to see the Northern Ireland Executive back in operation. Were the Executive in place today, this would make both the Minister’s task and the future of Bombardier much less complicated.

[Andrew Stephenson]

I thank the shadow Secretary of State for the tone of his remarks, and I agree with him completely on the importance of Bombardier. Indeed, I would go as far as to say that it is a jewel in the crown of not only Northern Irish manufacturing, but the whole UK aerospace sector. It is therefore vital that we all work together to do everything we can to ensure the future of this site and its workforce.

The hon. Gentleman posed a range of questions that I wish to touch on. I am more than happy to meet the unions and workers’ representatives to talk about this issue, and to visit Northern Ireland to see what we can do. It is important that we find the right buyer for this company, which has a good order book and is profitable. Like other companies in the aerospace sector, it has huge growth potential in the coming years. I will not rehearse the statistics now, but they show huge growth potential in the aerospace sector, and Bombardier is well positioned to capitalise on it.

The Government continue to work to support the wider Northern Irish economy. A heads of terms agreement for the Belfast city deal was agreed by the UK Government, Northern Irish government and Belfast regional partners in March 2019. The Belfast region city deal will see the UK Government invest £350 million into the Belfast region over the next 15 years. In addition, work is ongoing between the UK Government and local partners on a funding announcement for a Londonderry/Derry regional city deal. As has been said, the Secretary of State for Northern Ireland is not here—obviously, she is doing good work in Northern Ireland at the moment—but I stand ready to work with her and other Ministers to ensure that all necessary support is given to the workers at this site going forward.

[Mark Pawsey (Rugby) (Con)]

The Business, Energy and Industrial Strategy Committee paid a visit to the Belfast plant of Bombardier last November during which we saw a highly skilled workforce carrying out fantastic work in the manufacture of aircraft wings with a high level of expertise. We also saw the benefits of the £2.7 billion investment that has been made in the plant since 1989. Does the Minister agree that it is important to reassure not only customers of Bombardier, which provides for the families of aircraft that Bombardier itself produces, but external customers such as Airbus with its A220 programme?

[Andrew Stephenson]

I agree that this site is very much a going concern. Bombardier has made it clear that it will look for the right buyer for this site. It does not intend to close it. As part of a strategic overview of its business, it has decided that this site, along with the Morocco site, should go up for sale. The Government have worked consistently with the site, and, since 2017, more than £20 million has been invested in research and development activity at the Belfast plant to develop new products and to improve efficiency.

[Carol Monaghan (Glasgow North West) (SNP)]

I had the privilege of visiting Bombardier last year as part of an Industry and Parliament Trust delegation. I was blown away both by the scale of the plant and by the highly specialised processes that were being undertaken there. Three thousand six hundred jobs is a massive figure. To put that in context, that represents 4.5% of the entire workforce in Northern Ireland, and when we take into account the supply chain, the figure becomes even greater.

According to Bombardier, Brexit is not a factor in the decision to sell the business, but when we were there on that visit, concerns were raised about Brexit and the impact of the removal of the UK from the single market and customs union. Whether or not Brexit had a role to play in this decision, the current situation will affect the search for a new owner. Airbus wings are built by Bombardier, and Tom Enders, the chief executive of Airbus, has said that the UK’s aerospace sector now stands at the precipice and that Brexit uncertainty is a disgrace. Is the Minister listening to the message from the site’s key customer and is he doing everything in his power to ensure that the UK does remain within the single market and customs union? Is he aware of any firm willing to purchase the site?

Finally, what steps is he taking to protect this highly skilled workforce, and how will he ensure that these skilled workers remain in Northern Ireland?

[Andrew Stephenson]

I have been assured that Bombardier is committed to finding the right buyer for the site. It has said that it will find one that will operate responsibly and help the company to achieve its full growth potential. The Belfast plant, its expertise and highly skilled and dedicated staff will be highly sought after and the Government will work with potential buyers to take this successful and ambitious business forward. Bombardier is a global business that operates in 28 sites across the world and it has made it clear that Brexit was not a factor in this decision.

[Mr Philip Hollobone (Kettering) (Con)]

Given the world-class technical skills of the Northern Ireland workforce, is the Minister optimistic that the right buyer can be found? Given the continued railway expansion in this country and the need for more rolling stock, does he welcome Bombardier’s continued commitment to the railway sector?

[Andrew Stephenson]

I thank my hon. Friend for his question. This will be a highly sought after company, and I imagine that there will be a range of people interested in buying the site. Bombardier has made it very clear that, in terms of its other divisions in the UK, particularly in rolling stock, it intends to stay firmly involved in the provision of new rolling stock, and I look forward to visiting Bombardier’s facility on Thursday.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I am co-chair of the all-party manufacturing group and very heavily involved in air safety. Is not the news today about Bombardier a disaster for British industry and British aerospace? This is a prime globally known company and a prime contractor of Airbus, and the news today is a sign of what is happening in high-tech industries and the car industry: they are moving out of Britain and taking out their investment. This is a disaster. Every Minister should be aware that this is not a canary singing, but a canary falling off its perch.

[Andrew Stephenson]

Like other companies in the growing aerospace sector, Bombardier is transforming itself. In 2015—way before Brexit—the company announced a five-year plan to transform the business to reduce costs and to improve profitability and competitiveness, while also launching commercial and business jet programmes. Bombardier has been very clear that the decision to sell off the Northern Irish site and the Morocco site—definitely nothing to do with Brexit—has nothing to do with Brexit.

[Jeremy Lefroy (Stafford) (Con)]

Does my hon. Friend agree that this is an opportunity for UK-owned and UK-based companies to re-enter the major civilian aerospace sector, and that this is not just an opportunity to see it sold to some foreign-based buyer? It is our second biggest manufacturing sector after the automotive sector, and we now have the opportunity to see it come back into British hands.

[Andrew Stephenson]

My hon. Friend makes an excellent point. This is a golden opportunity for a number of businesses in the sector and for businesses that want to expand into the sector. It is a growing, profitable business that would make a sensible investment for anyone.

[Gavin Robinson (Belfast East) (DUP)]

I thank the hon. Member for Rochdale (Tony Lloyd) for raising this question and pay tribute to Members across the House who have shown support over the last number of years for Bombardier in my constituency and the constituencies of the hon. Member for Watford (Richard Harrington) and the right hon. Member for Broxtowe (Anna Soubry); I particularly thank them for their commitment over many years.

I also thank the Minister for taking an interest in this case. I was very grateful to the Secretary of State for his phone call on Thursday and recognise the commitment that he has shown to this key part of our industry in Northern Ireland—and, indeed, to the UK aviation sector—over the last period.

The Minister knows the importance of Bombardier and its significance to our economy. Can he therefore assure us that he will maintain the jobs in Belfast and surrounding areas, the industry, the innovation and the skill that we are benefiting from and that the whole world will?

[Andrew Stephenson]

I thank the hon. Gentleman for his point. He is a huge champion for his constituents and all the workers at the site. My constituency of Pendle is dominated by the aerospace sector and is home to a large Rolls-Royce fan blade factory, so I know the importance of these highly skilled and well-paid aerospace jobs. I will do everything I can, working with the hon. Gentleman and his hon. Friends, to ensure that we secure all the jobs at the Bombardier Belfast site.

[Joseph Johnson (Orpington) (Con)]

Will my hon. Friend join me in welcoming the substantial investment that Bombardier has recently made in Biggin Hill, where its new business aircraft service centre is creating many opportunities for young people in the London Borough of Bromley?

[Andrew Stephenson]

My hon. Friend is correct to point out that Bombardier is a growing company that is investing in different sectors; it is just strategically realigning itself. I look forward to visiting a different Bombardier site on Thursday—not the one my hon. Friend mentioned—to talk about other investments within the UK. The decision to sell its operations in Northern Ireland is regrettable, but we will work with the company to ensure that the right buyer is found.

[Mr Jim Cunningham (Coventry South) (Lab)]

Members will recall that the American Government took legal action against Bombardier about 18 months ago, so how big a part did the United States play in this decision? The hon. Member for Glasgow North West (Carol Monaghan) said that this affects 4.5% of the workforce in Northern Ireland, but we can multiply that figure by two or three if we include the supply chain as well, so the problem is much bigger than people realise. We had a similar statement on GKN a couple of weeks ago; is the Minister being conned on this?

[Andrew Stephenson]

Bombardier has told us that this is a strategic decision so that the company can focus on its transportation division, which includes trains and business jets. We have been told that it has not been influenced by any other factors. This is a strategic decision by the company so that it can focus on certain key parts of its core operation.

[Toby Perkins (Chesterfield) (Lab)]

The Minister described the strategic realignment that Bombardier has spoken about, but he has also no doubt spoken to ADS—on behalf of the aerospace industry—and heard about the huge concern that exists in aerospace manufacturing about the fact that the Government are unable to come up with a permanent customs arrangement or even to get a deal through this Parliament. Given all the discussions he has had, what impact will the Government’s current Brexit position have on the likelihood of these Bombardier jobs being secured and a new buyer found?

[Andrew Stephenson]

The large aerospace businesses I have talked to—including Rolls-Royce, which has a plant in my constituency—have been very clear that MPs should vote for the deal, and I am proud that I voted for it three times.

[Tom Brake (Carshalton and Wallington) (LD)]

I accept that there is not very much the Government can do, but will the Minister set out what it might be possible to do in identifying or facilitating the identification of any new buyer? On retraining, although hopefully that will not be necessary, what sort of package might the Government be willing to put in place if it does prove necessary in future?

[Andrew Stephenson]

At the current time, we are going to be focused on finding the right buyer. We will work across government to ensure that the right buyer is found. If there are already existing purchasers involved, that is commercially sensitive and something for the company.

I very much hope that we never have to look at any sort of retraining package for the site. Obviously, if we did I would come back to the House on it. However, this is a growing, profitable business—one of the jewels in the crown of UK aerospace—and I would imagine that buyers for this site are lining up to invest in the jobs and skills in Northern Ireland.

[Anna Soubry (Broxtowe) (Change UK)]

One of the finest visits I had the honour of making when I was a business Minister was to this remarkable factory in Belfast. I went with the hon. Member for Belfast East (Gavin Robinson). They are indeed a highly skilled workforce making a world-class product. It was remarkable to see those wings being made. Does the Minister not agree, though, that British aerospace has basically been built on the fact that we are a member of the European Union, that any potential buyer will surely not be attracted even to the brilliant workforce with this outstanding product when we leave—if we leave—the European Union, and that the truth and reality is now dawning on many people that the best deal with the European Union is the deal that we currently have?

[Andrew Stephenson]

No, I would respectfully disagree. I think we need to provide certainty for all sectors of our economy. We have seen a range of recent investments in the aerospace sector across the United Kingdom, but we have also seen businesses restructure, as in this business with huge growth potential, as the sector looks to realign itself for the growth potentials in future.

[Jim Shannon (Strangford) (DUP)]

rose—

--- Later in debate ---

[Mr Speaker]

I do hope that the hon. Gentleman now feels that he has fully ventilated his concerns, at least for now.

[Andrew Stephenson]

Any discussions that are ongoing between Bombardier and potential buyers are of course commercially sensitive. However, one would imagine that a company like Airbus, which is so reliant on this excellent company providing so many components to it, would be taking an active interest in the company and how it goes forward.

[Sammy Wilson]

I bet you wish you had chosen me the first time, Mr Speaker.

The people of Northern Ireland appreciate the political and financial commitments that Governments of all shades in this House have given over the years to keeping aircraft manufacturing alive in Northern Ireland. Bombardier’s lease was due to be renewed this year. When it was privatised, a peppercorn rent was made available for the site—it is a very land-intensive industry—which is a fraction of a per cent. of what the commercial rent would be. That could be a deal breaker when it comes to the sale of the site. What discussions has the Minister had, or will he have, with the Belfast Harbour Commissioners about setting a level of rent that ensures that operations can continue on the site?

[Mr Speaker]

The right hon. Gentleman was not to be outdone by his hon. Friend.

[Andrew Stephenson]

I thank the right hon. Gentleman for his question. Three weeks into the job, I have not had any conversations with them yet, but I look forward to doing so because, as he says, that could be very worthwhile as we look to secure the future of this company and all those whose livelihoods depend on it.

Oral Answers to Questions

Andrew Stephenson Excerpts

Tuesday 30th April 2019 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

5. What steps he has taken to promote the use of sustainable packaging.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

The Government are committed to building a globally competitive and sustainable packaging industry through research and innovation. As we announced in the UK’s first bioeconomy strategy at the end of last year, we are providing up to £60 million to transform the plastics economy through the industrial strategy challenge fund, so that we can establish the UK as the world’s leading innovator in smart, sustainable packaging.

[Rachael Maskell]

The Government’s response to plastic use has been woeful, with a 4% increase in plastic use just last year. There is now more plastic in our oceans than fish. In the light of this environmental calamity, will the Government make a new commitment to ensure that only organic-based packaging material is in place, with no more plastics by 2025?

[Andrew Stephenson]

The UK has committed to being a global leader on this topic. We have already taken more than 15 billion plastic carrier bags out of the economy, we are consulting on a deposit return scheme and we have introduced proposals for a world-leading new tax on plastic packaging that does not meet minimum thresholds. There is always more that we can do, but there is an awful lot that we have already done.

[Mark Pawsey (Rugby) (Con)]

Does the Minister recognise the contribution of the UK packaging manufacturing industry, which has annual sales of £12 billion, employs 85,000 people and makes up 3% of the UK manufacturing base, in working closely to increase the percentage of recycled material by using innovative new technologies and materials?

[Andrew Stephenson]

I thank my hon. Friend for that question. The UK plastics industry is vital to our economy, employing more than 170,000 people. This new challenge for the sector allows it to create new jobs as it embraces our challenging targets and ambitions in this area.

[Jo Swinson (East Dunbartonshire) (LD)]

20. The UK plastics pact is an important part of our achieving a circular economy and preventing plastics from ending up in our oceans. However, one year into this seven-year commitment, we still do not have the information on whether the warm words have been matched by firm action. Will the Minister introduce transparent benchmarking and reporting mechanisms, so that we can all hold the Government and the plastics industry to account?

[Andrew Stephenson]

Most major supermarkets are signatories to that pact, and we have certainly seen some go further than others. A lot of lessons can be learned. It is a mixed picture at the moment, so I am certainly keen to keep this area under review. I particularly praise Morrisons, which has come out with a range of things on this, but there are many other supermarkets available that are working hard on this topic. We all have to work together on this—consumers, business and the Government.

[Adam Afriyie (Windsor) (Con)]

6. What recent progress he has made on meeting the Government’s ambition to make the UK the best place to start and grow a business.

[Andrew Stephenson]

To encourage the next generation of innovative entrepreneurs, our modern industrial strategy announced the biggest increase in public research and development funding on record—an extra £7 billion by 2021-22. We have also launched an independent review of the barriers facing young entrepreneurs, and we have published a review of the barriers facing female entrepreneurs.

[Adam Afriyie]

I very much welcome that answer, and I very much welcome the Minister on his debut appearance at the Dispatch Box. I would also very much like to welcome him to Windsor, where residents of the royal borough have the lowest council tax in the country and residents of Bracknell Forest have low council tax but also high-quality services. That is why so many talented people come to Windsor to live and work. Will the Minister join me in recognising the good work of the Thames Valley Berkshire local enterprise partnership and the two key local authorities in making the Windsor constituency a great place to live, work and, above all, to start and run a business?

[Andrew Stephenson]

I agree with my hon. Friend and welcome his support for the good work of the Thames Valley Berkshire LEP and his local councils. My officials will work with his LEP and its local authority partners to produce a local industrial strategy for Berkshire that will boost productivity and support business start-ups. That is in addition to the £142 million local growth fund investment that we have already made in the county.

[Matt Western (Warwick and Leamington) (Lab)]

Similarly, in my constituency, young entrepreneurs trying to set up businesses, particularly in the digital sector, face a real shortage in the availability of electricity through the district grid—an issue identified by my local LEP. Will the Minister agree to meet me and the LEP to see what can be done to improve the situation?

[Andrew Stephenson]

We are working closely with LEPs on this issue, but I will be more than happy to meet the hon. Gentleman.

[Rehman Chishti (Gillingham and Rainham) (Con)]

To be the best place to grow and start a business means having consistent rules and regulations. My brilliant local Medway Licensed Taxi Drivers Association has raised a real concern about Uber operating in Medway without having the same rules and regulations as association members. Will the Minister meet me and that brilliant association to look at those rules and regulations, to ensure that they are fair? I declare an interest: I have relatives in that trade.

[Andrew Stephenson]

My hon. Friend is a huge champion of his constituency, and particularly its small businesses. That meeting would probably be more appropriate with the small business Minister, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), and I am sure that she will be happy to take such a meeting.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the Minister agree that after our eventual departure from the EU the growth of more small businesses and the expansion of existing small businesses, freed from bureaucracy, will be central to the economy of the entire United Kingdom, including Northern Ireland?

[Andrew Stephenson]

Small businesses are the backbone of our economy. I was proud to be a small businessman myself, employing eight people, in my life before politics. We are ranked in the top 10 globally as a place to do business, and this Government will continue to do everything they can to support small business.

--- Later in debate ---

[Rebecca Pow (Taunton Deane) (Con)]

13. What recent steps he has taken to support businesses in Taunton Deane constituency.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

The Heart of the South West local enterprise partnership, which covers both Somerset and Devon, is receiving £239 million through the local growth fund to drive regional economic development. That includes an investment of over £24 million in projects in Taunton Deane, such as the redevelopment of Taunton station and improvements to junction 25, which is one of the largest investments that we have made in the south-west through the local growth fund to date.

[Rebecca Pow]

I welcome the Minister to his new role. Will he join me in congratulating all those involved in the development of the new headquarters for the UK Hydrographic Office, the opening of which I attended in Taunton last week? Will he also join me in supporting the endeavour to use its expertise in marine data to open a marine geospatial innovation centre at Firepool in Taunton to open up opportunities in the blue economy?

[Andrew Stephenson]

I will of course join my hon. Friend in congratulating those involved in the opening of the new UK Hydrographic Office headquarters in her constituency. It is a world-class natural asset. The UKHO is working with local partners to scope the feasibility of developing a marine geospatial innovation centre in Taunton, and it plays a key role in the south-west’s local industrial strategy.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

15. What plans he has to hold discussions with trades union representatives on increasing workers’ rights.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

T6. The Government’s industrial strategy has recently drawn criticism for neglecting steel. The UK steel charter was mentioned earlier; will Ministers attend the launch of the charter on 20 May and sign up to it on behalf of the Department, to maximise opportunities for UK steel in uncertain times?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

I look forward to working with the UK steel sector and have already had several engagements. Steel overcapacity remains a significant global issue that requires international solutions, but here in the UK we have already done a range of things, including identifying more than £3.8 billion a year of UK domestic requirement for steel.

[Several hon. Members rose—]

GKN Aerospace, Kings Norton

Andrew Stephenson Excerpts

Wednesday 24th April 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

Thank you, Mr Deputy Speaker. It is always a pleasure to see a fellow Lancastrian in the Chair.

I start by congratulating the hon. Member for Birmingham, Northfield (Richard Burden) on securing the debate. I pay tribute to my predecessor, my hon. Friend the Member for Watford (Richard Harrington), for all the work he has done to support UK business and industry, which I am sure he will continue to do for many years to come.

I represent the constituency of Pendle, which is home to several large aerospace businesses, so I fully appreciate the pride that the constituents of the hon. Member for Birmingham, Northfield feel in working for a company like GKN, which can trace its roots back to 1759 and the birth of the industrial revolution. I also appreciate the impact of the loss of jobs on an area, with aerospace jobs typically paying around 43% above the national average. I greatly sympathise with the staff who will be affected by the company’s decision to close the Kings Norton site by 2021. I say that as someone whose family has a long-standing association with the aerospace sector, with three generations of my family working at Chadderton and Woodford for Avro, the firm that produced the legendary Lancaster and Vulcan aircraft. I know the pride that my family members felt in working for such a great British company, and even years after his retirement, my uncle Tom worked on projects celebrating the company’s achievements. I know that employees of GKN share a similar sense of pride in working for such a great British company, and I commend the hon. Gentleman’s dedication and passionate advocacy on behalf of his constituents.

I turn to the points raised by the hon. Gentleman. I can confirm that Melrose informed both my Department and the Ministry of Defence of the proposals to close the site on 1 April. Since then, there have been ongoing discussions between GKN and the Government on how best to support workers. He asked whether any alternatives to closing the site had been discussed. I am sure he will appreciate that this was a commercial decision for the company, but in our conversations GKN has said that it is at an early stage in the process. It has confirmed that it will do all it can to support the 172 affected employees, including providing help in seeking alternative employment both within and outside GKN.

[Wayne David (Caerphilly) (Lab)]

Will the Minister give way?

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. I am sorry, but the hon. Gentleman cannot intervene from the Front Bench.

[Andrew Stephenson]

Thank you, Mr Deputy Speaker. As they did during the merger of GKN and Melrose, the Government continue to act to ensure that mergers result in the best outcomes for the United Kingdom. Our merger regime is a key part of the UK’s dynamic economy. Mergers and takeovers can bring great benefits to consumers and the economy. The UK has the third highest foreign direct investment stock in the world, behind the US and China. That investment means jobs in growing sectors and more opportunities to develop our skills base, and it helps companies to deliver products and services at competitive prices.

[Richard Burden]

It was remiss of me earlier not to welcome the Minister to his new position on the Front Bench. Can I ask him to address the question of alternatives? Frankly, saying that employees will be supported to find other jobs is not the same as asking the company whether it has looked at alternatives to closure. Has that question been asked, and what was the result? Is he not rather worried that nothing was apparently said about any of this in the Department’s last six-monthly review with Melrose?

[Andrew Stephenson]

The company has emphasised to us that it is at a very early stage in the process. It has not started formal consultation with workers, but it thought it was appropriate to set out its long-term vision for the site. I hope that the hon. Gentleman and others who meet the company will discuss alternatives to the site, and I hope that we can work together to support the 172 workers who are directly affected and those in the supply chain who will also be affected.

I fully appreciate the hon. Gentleman’s opposition to the takeover, which he set out today and in a debate in Westminster Hall on 15 March last year. I also understand the concerns that have been raised this evening by the hon. Members for Coventry South (Mr Cunningham), for Glasgow North East (Mr Sweeney) and for Strangford (Jim Shannon). However, I emphasise that mergers are an important part of our economy, and they can bring real benefits to consumers and the economy as a whole by attracting investment and promoting growth and innovation.

[Mr Sweeney]

The Minister is making a fair point about the potential for mergers and takeovers to be positive. He also mentioned foreign direct investment, but does he recognise that there are two types of foreign direct investment—developmental and dependent—and that the bulk of the FDI activity in the UK is dependent? It involves purchasing existing UK-owned assets and does not add to the overall capital stock of the economy or grow the economy in a sustainable way. Does the Minister recognise that that is a big flaw in the Government’s industrial policy? If he recognises that, perhaps he will start to deal with it.

[Andrew Stephenson]

No, I think foreign direct investment is a power for good in our economy, and we should work to attract more investment into the economy. Some of our best firms have grown through mergers and acquisitions, and we have seen huge investments in different sectors with the help of foreign direct investment. It is worth saying at this point that GKN has grown through mergers and takeovers, both here and abroad. I think the firm actually bought the site from Pilkington in 2003.

The UK’s merger regime is highly regarded around the world because of how it is designed. It is based on transparent rules that are administered consistently by expert bodies. It recognises that decisions are primarily a matter for the shareholders and restricts the role of Ministers to transactions that raise public interest concerns. As a result, the regime offers clarity for businesses and maintains investor confidence. An example of that is the independent Takeover Panel, which governs the takeover code. The code provides a robust framework to ensure that takeovers of listed companies are conducted in an orderly manner, with fair treatment of all shareholders.

On 12 January 2018, GKN announced that Melrose had made a takeover approach and the Secretary of State spoke to both parties to understand their intentions. The Government’s priority was to ensure that the national security concerns raised by the transaction were addressed. The Government completed a thorough and detailed assessment and concluded that they should not intervene under the Enterprise Act 2002.

Melrose voluntarily agreed post-offer undertakings with the Takeover Panel. As a result, for a period of five years, Melrose committed to sustain GKN’s current level of expensed research and development at 2.2% of sales; maintain a UK stock exchange listing; remain headquartered in the UK and ensure that the majority of directors are UK resident; and guarantee that both the aerospace and Driveline divisions retain the rights to the GKN name. In addition, Melrose agreed to sign a deed in favour of the Department for Business, Energy and Industrial Strategy that commits the company not to sell the core aerospace business before 1 April 2023 without the Secretary of State’s consent.

[Mr Jim Cunningham]

I welcome the Minister to the Front Bench—I should have said that earlier. In response to my hon. Friend the Member for Birmingham, Northfield (Richard Burden), he indicated that he has had discussions with the Ministry of Defence about the current situation. What was the MOD’s view?

[Andrew Stephenson]

The MOD shares my Department’s view that these job losses and this closure are highly regrettable but do not contravene the terms of the deed and the undertakings made during the takeover. Melrose agreed a deed with the MOD that includes clear obligations and commitments to maintain capacity and to support certain military goods, and requires that the Secretary of State for Defence be notified if Melrose plans to transfer production outside the UK. Melrose also made commitments to invest in skills and innovation, support sector deals, and support the supply chain during its ownership of the business.

Since the transaction completed, the Government have been monitoring Melrose’s compliance with the terms of the deal. My officials had a meeting with the company in October 2018 and will meet it again next month. Furthermore, on 1 April Melrose publicly reported that it is in compliance with the post-offer undertakings as required by the Takeover Panel. We are currently content that Melrose is compliant with the commitments that it made to the Government. Although GKN Aerospace’s decision is a huge disappointment for both the Government and the 172 staff members who will be affected, it does not contravene the commitments that were made at the time of the takeover.

The hon. Member for Birmingham, Northfield asked whether I had spoken to my colleagues in the Ministry of Defence; I have spoken to the Defence Procurement Minister, and he confirmed that they are content that Melrose has complied with its requirement under the deed with the MOD.

Prior to the Melrose bid, GKN had itself planned to restructure the business, which could have resulted in job losses, and intended to sell the entire automotive division to the US company Dana, which likewise might have decided to close UK manufacturing sites. The Secretary of State spoke to GKN Aerospace’s chief executive officer, Hans Büthker, and he informed us that the announcement does not in any way reflect a reduction in growth by the company. In fact, he said it is quite the opposite: the decision is the result of an internal strategic review by GKN to invest in high-value technology- driven production. That same review proposes to invest more in other UK sites.

I understand that a meeting has now been arranged between the hon. Member for Birmingham, Northfield, the Secretary of State and the CEO of GKN Aerospace for further discussions on the matter, including on how we can best support his constituents who work at the site. I hope that will be an opportunity to discuss and explore alternatives to the site, and that that is something the hon. Gentleman can take forward from this debate.

As I mentioned earlier, GKN has confirmed that it will be doing all that it can to support the affected employees. We will continue to work closely with the company, the unions, the local enterprise partnership, the Mayor of the West Midlands Combined Authority, Andy Street, and councils to help with this effort and ensure that each and every worker is fully supported in finding new work.

Aerospace is one of our most rapidly expanding sectors and skilled and experienced employees are in strong demand. The UK aerospace sector is a great success story, and we punch well above our weight on the world stage. We are a world leader in the design, manufacture and maintenance of some of the most complex and high-value components of an aircraft, including the wings, engines, aerostructures and advanced systems. Our industry turns over £39 billion a year and the vast majority of what we make in the UK is exported globally.

Around half of the world’s modern passenger aircraft have wings designed and built here in the UK, and GKN Aerospace-manufactured products are on more than 100,000 flights a day. The hon. Gentleman asked what impact the closing of the Kings Norton site will have on the industrial strategy in Birmingham. Yesterday, I attended a meeting alongside five of my ministerial colleagues to discuss the midlands engine and the progress of our west midlands local industrial strategy. This will set out an ambitious long-term vision for the west midlands economy to increase productivity, drive economic growth, and support manufacturing and technology in both Birmingham and the wider region.

The midlands has long been renowned as a hub for manufacturing, and it is not short of opportunities for advanced engineering jobs. More than a third of the UK’s automotive sector employment is in the midlands, and the region boasts many globally recognised companies, including Jaguar Land Rover, JCB and Rolls-Royce. More widely, the midlands is also home to the Manufacturing Technology Centre in Coventry, which operates some of the most advanced manufacturing equipment in the world.

The past year has seen the largest GKN Aerospace UK technology investment since 2012. This includes the announcement of a £32 million UK Global Technology Centre in Bristol and the large investments made to support its additive manufacturing capabilities in the UK—both have been supported by the Government through co-funded research and development grants. This co-funded investment will support GKN’s growth in the UK and will help safeguard and create high-value jobs in the company and its supply chain.

Hon. Members will be pleased to hear that GKN has also confirmed to us that there will be further investment at some of its other UK sites, including those in Luton and Portsmouth, which will soon become technology centres of excellence. This comes on top of GKN’s recent announcement of £300 million in new investment to ramp up its activities in the fast-growing market for electric vehicles, something that I am sure the hon. Gentleman, as chairman of the all-party motor group, will welcome.

I can assure hon. Members that the Government will continue to support those affected by this site closure in the years ahead. Finally, I thank the hon. Gentleman again for giving the House the opportunity to debate this important issue.

Question put and agreed to.

Oral Answers to Questions

Andrew Stephenson Excerpts

Tuesday 14th March 2017 Commons Chamber

[Greg Clark]

Yes. I would expect all competitive areas to make a bid for these places. The University of Cambridge and Anglia Ruskin University in Cambridgeshire, and other institutions more broadly across the country, will be in a good position to benefit from that.

[Andrew Stephenson (Pendle) (Con)]

21. The aerospace sector is of vital importance to the economy in the north-west of England. In December, I was delighted to take part in a ground-breaking ceremony at Rolls-Royce in Barnoldswick ahead of its £50 million expansion of its Pendle site. How can the Government’s industrial strategy help to further the growth of our aerospace sector?

[Greg Clark]

My hon. Friend is absolutely right. This is an important sector, as has been evident from our discussions this morning. That reflects the track record of working together that will continue and be reinforced. I think that all Members across the House will have been as delighted as I was that Boeing made its commitment to its first ever UK plant in Sheffield, showing how attractive we are to advanced manufacturing businesses such as that.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

Of course, the primary effect of success in that area will be to keep costs down for small business, as well as for large.

[Andrew Stephenson (Pendle) (Con)]

On Friday, I visited Graham Engineering, in Nelson. It is an excellent company in the nuclear supply chain that currently has 30 new vacancies, which will be on offer at my seventh annual Pendle jobs fair on 24 March. What more can we do to support the nuclear supply chain?

[Greg Clark]

One of the things that we have done to support the nuclear supply chain is to have a continuing commitment to nuclear power in this country, and that will benefit my hon. Friend’s constituents. Through our network of training colleges, we will make sure that we grow the nuclear skills that we need for this industry.

Opel/Vauxhall: Sale to PSA Group

Andrew Stephenson Excerpts

Monday 6th March 2017 Commons Chamber

[Greg Clark]

What I would say to the hon. Lady is, first, that the reason we have a successful record in this country is that our car plants and their workforces are highly efficient, and we should not forget that. Secondly, the commitments given—they have been shared with the trade unions—are to honour agreements that include the trade unions, which I think she will welcome. In the long term, we want to expand the industry. We want to take every opportunity to work with the automotive sector to increase the number of good jobs available to her constituents and people across the country.

[Andrew Stephenson (Pendle) (Con)]

I welcome PSA’s assurances that it will continue to respect the commitments made by General Motors to Vauxhall’s employees and, very importantly, Vauxhall’s pensioners. Can the Secretary of State assure us that he will continue to engage and work with PSA in the weeks and months to come to ensure not only that any assurances are kept, but that PSA will continue to build on the success of both plants for the long term?

[Greg Clark]

I will indeed. As soon as we heard about these proposals, my colleagues and I engaged immediately with the management and the unions of this country and with our counterparts. My engagement in our activity will not let up in the weeks ahead. These assurances are welcome, as everyone has noted, but we need to make sure that they are implemented in practice.

The Government’s Productivity Plan

Andrew Stephenson Excerpts

Tuesday 28th February 2017 Commons Chamber

[Amanda Solloway]

I will come to that later in my speech. I apologise, but I am having difficulty seeing today, so Members should shout loudly if they want to intervene.

I was saying that the Government’s commitment to making the UK the best place in the world to do business should be warmly welcomed by the House.

I have spent most of my life in retail and manufacturing, so I am acutely aware of the challenges faced by the sector, which are clearly not unique to the industry and can be seen throughout the business community. With the right foundations, business and industry can and will flourish; we just need to provide the right conditions, which the productivity plan rightly addresses. In doing so, it is essential for us to focus on improving the quality of our primary and secondary education to provide an adequate starting point for young people heading into further education, apprenticeships and employment. I welcome the Government’s recognition that improvements to basic skills such as numeracy and literacy play a vital role, and the fact that they are putting those skills at the heart of their reforms. It is skill provision in general that I shall touch on today.

The UK’s competitiveness in the open market is now more important than ever. Following the result of last year’s referendum, as we seek to find new avenues for investment and trade, the potential opportunities for and contribution to our nation’s productivity should not be underestimated. New capital, more competition, and new technologies will all be vital as we look to compete with the rest of the world.

From a Derby North perspective, the success of the midlands engine is incredibly important to me. The midlands engine strategy can be a vehicle to deliver policy that will not only increase productivity but support the vision for a successful United Kingdom. We have a strong offering in the midlands that can deliver growth that is not only balanced by sector, geography and trade, but sustainable, in that it creates skilled, highly productive roles backed by private sector investment. The midlands engine must focus on elements that give us competitive advantage, central to which is our expertise in key sectors, especially advanced manufacturing.

In my constituency alone we have a high density of original equipment manufacturers—such as Toyota, Rolls-Royce and Bombardier—and a well-established supply chain that serves them all. It is essential that we have the training and skills that match local employers’ needs, which is something the productivity plan looks to address.

[Andrew Stephenson (Pendle) (Con)]

Today I met Katie Goodwill, who won the gold medal in computer numerical control turning at the 2016 WorldSkills show in November, and Ryan Worthington, another award winner; both work for Rolls-Royce in Barnoldswick in my constituency. Does my hon. Friend agree that apprenticeships play a vital part in developing the skills we need to improve productivity, and join me in congratulating Katie and Ryan on their success?

[Amanda Solloway]

Of course I do, and I congratulate them both on their great success. I was about to mention the apprenticeship levy, which is essential because it encourages large businesses to invest in their workforce and in the future, and will ensure that the UK has the skilled workforce it needs in the years to come.

During my time as an MP, I have regularly heard that more needs to be done to tailor skills to play to local strengths and boost productivity. Brilliant work is being done in Derby to try to tackle that problem. For example, in response to the needs of businesses such as Rolls-Royce and Bombardier, the university in the city recently opened a new science, technology, engineering and maths building. Apprenticeship providers such as 3aaa are building initiatives to link employers, schools and apprenticeship providers to tailor skills. A great example is the recently opened construction academy in Derby North, which looks to encourage and train young people in the much-needed skill of bricklaying. More needs to be done to support such hard work, and giving the required resources to the productivity plan will do just that. Initiatives such as those I have mentioned can make a real difference locally, and will not only set the foundations for growth but keep the east midlands and the UK on the map as a place where a technically skilled workforce is in place to meet demand.

It is reported that there is an annual engineering skills gap of 82,000 staff, which is clearly cause for concern. However, it is widely recognised in Derby that the local worker supply chain is struggling to keep up with the demand for skills that employers need. There are, though, positive signs that with smart investment and the long-term vision that comes from the productivity plan, those problems can be overcome. The Government have shown that they are committed to tackling our productivity problem, whether it is through new funding and capital, or through education, infrastructure and research and development. It is imperative that we support the plans outlined as we look to implement a long-term vision for our economy. I certainly feel that for Derby and the east midlands there are some great proposals in the plan that will go a long way towards addressing our specific concerns, while also addressing the issue of productivity and output throughout the UK.