Burton’s Foods (Moreton)
Debate between Angela Eagle and Mark Prisk(13 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)
I congratulate the hon. Member for Wallasey (Ms Eagle) on securing the debate. She has raised a number of important questions, which I will seek to answer. I know from looking at the history of the site that this has been a vexed site and plant, so these are not necessarily new problems with this particular business or location; she rightly alluded to that.
I was sorry to hear of the decision, which I first learned about from the media, and then heard about from the hon. Lady when she raised the matter in the Chamber last week. Clearly, the concern that she has rightly shown for the 342 employees will be shared in the House. It is very unwelcome news and it is inevitably a worrying time for both the employees and the families, let alone the community. Having been through that experience myself, I understand how people often take this as very much a personal issue.
Since the company announced the factory closure earlier this month, Jobcentre Plus has been in contact to offer the support of its rapid response service. The company has accepted that offer of help and the details of the tailored support package that will be offered to the work force are currently being worked out. That support will focus on helping Burton’s employees find alternative employment as quickly as possible and will take a number of forms. In addition to offering advice on writing CVs and doing job searches, depending on what is required, the support package might include matching the employees made redundant to known job vacancies and helping individuals to identify their transferable skills and training needs to help them find work in the local labour market.
Ms Eagle
I understand that, but I hope that the Minister has listened with some sympathy to the fact that 17 people are currently chasing every vacancy in Wallasey. It is not a question of writing CVs; it is a question of demand and the existence and supply of jobs. What he describes would be important if the plant were to close, but I hope that he will help us to keep it open.
Mr Prisk
Certainly, and my purpose in elaborating on this is for people to understand the broad packages available. I will then move on to the questions the hon. Lady has raised.
In addition, the support package will set up an action fund to help workers take up a new job, for example by giving help with travel-to-work expenses, which relates to the point made by the right hon. Member for Birkenhead (Mr Field). As I said, redundancy can be a personal tragedy for every individual and their families, so the Government are committed to helping people find alternative employment as soon as possible.
The hon. Lady cited the disappointing GDP figures in support of a claim that the Government are somehow pursuing the wrong economic strategy. In fact, the Office for National Statistics has made it perfectly clear that the fall in GDP was largely driven by the weather late last year, when we experienced the coldest December since records began. In looking at the figures, it is noticeable that the manufacturing sector, which we are talking about today, was in fact performing well.
Ms Eagle
I understand that and thank the hon. Gentleman for giving way. In the spirit of trying to work together to find a positive solution, I did not play politics with the issue and did not mention the GDP figures. I am trying to see whether the Department for Business, Innovation and Skills will be able to offer positive help to save the jobs. We all know what has to happen, and I would wish to discuss that with the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling), who is responsible for employment, if the worst happens and the factory closes. However, I wanted this Minister to be here so that we could try to save the jobs, and I deliberately did not mention yesterday’s GDP figures because I did not want to get into a party political argument about economics. I am trying to help my constituents to get by and to save local jobs, and I am a little disappointed that he has claimed that I mentioned the figures.
Mr Prisk
I am trying to set out the context of where we are, because it is important for understanding why some factories are closed and others are prospering. It is important to remember that we are seeing record output levels in manufacturing as a whole, although clearly there will be individual factories, to which the hon. Lady has rightly alluded, where there are specific circumstances, such as the way own-brand goods are damaging the food and drink industry’s manufacturing side, that might lead them to close. We need to understand the reasons behind individual factory closures and why some parts of the manufacturing sector are prospering in the north-west and others are not. That is the context that I am trying to set out.
We feel at this stage that the crucial thing that industry needs more than anything is certainty and clarity on the overall picture. That is why we are cutting the corporation tax rate from 28p to 24p, which will result in the UK having the lowest corporation tax rate of the G7 nations. That matters for an important reason: by 2016 it will unlock £13 billion of investment that industry and business can reinvest. When we look at the past problems of the Moreton plant, which has received £3 million in direct grant assistance from the public sector, we must recognise that if the business itself says that it cannot make the plant viable, there is a challenge as to what the Government can then do to change that.
On the broader picture, I must say that we are focused on investing in programmes such as the manufacturing advisory service, which is expressly designed to help strengthen and improve manufacturers. We are also putting £200 million into an enterprise capital fund, which is good for growth businesses. The hon. Lady referred to Burton’s existing account balance, and that might be relevant, but we would also point to the importance of the enterprise finance guarantee, which seeks to generate up to £2 billion of additional lending—again, an important issue in that sector.
On the broader issue of adult apprenticeships, the additional investment of £250 million is very important, because, as the north-west economy restructures and we see good success—for example, in the aerospace and automotive sector—the need for more adult apprenticeships will be crucial. That is why we are seeking to expand their number, so that the opportunity for the hon. Lady’s constituents and those in neighbouring areas is significant, enabling them to retrain where other businesses cannot prosper.