Ford and Visteon UK Ltd

Bob Russell Excerpts

Thursday 12th December 2013 Commons Chamber

[Mr John Whittingdale (Maldon) (Con)]

I, too, congratulate my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) not just on securing the debate from the Backbench Business Committee but on how he has led the campaign, which has been supported on both sides of the House, as demonstrated this afternoon. It is a pleasure to follow the hon. Member for Swansea West (Geraint Davies), who has also been tireless in pursuing the matter. It is notable that four parties are represented in the House this afternoon. Sometimes MPs put aside their party differences and come together when it is plain that there has been an injustice that needs to be put right. That is certainly the case with the issue we are debating this afternoon.

There is a danger in such a debate that one simply repeats the points that have been made. We have already heard some powerful speeches from both sides of the House, such as that from my constituency neighbour, my right hon. Friend the Member for Chelmsford (Mr Burns), who represents many of the Essex Visteon pensioners, as I do. As has been pointed out, it is particularly sad that it is necessary to have this debate a second time—I participated in the debate in Westminster Hall—because we all still have great respect and admiration for the Ford Motor Company. It has a proud history in this country and a strong reputation across the world, yet this is a terrible stain on that reputation.

It is perhaps because Ford has previously been seen as such a strong company that it was understandable that its employees, who had given many years of service, should believe the assurances they were given when they told that they were being transferred to the Visteon company and that their pensions could be transferred to a new Visteon pension fund. I will not repeat the quotations given by many hon. Members about how they were told that there would be no detriment and that their pensions would be guaranteed under the same terms and conditions. Of course they believed that, yet today they find that the position is very different.

It is particularly sad when one meets and talks to employees who gave many years of service to Ford that now seem to be ignored and forgotten because for a few years—or even, in some cases, for a few months—they transferred to the Visteon company. In particular, I mention Mr Steve Sharpe, my constituent from Heybridge, who spent 27 years working for the Ford Motor Company and three months working for Visteon, yet has lost 50% of his pension. On any grounds, that is clearly wrong and should be recognised as such by the Ford Motor Company. What makes it worse is that—we have heard reference to this—it appears that Ford knew perfectly well that the Visteon company could not succeed, and indeed took actions after its establishment which made absolutely certain that it was not viable in the long term.

Also, we know that the Visteon pension fund was underfunded right from the start. In the discussions that we have had as part of the all-party group, we have talked to the Pensions Regulator, for instance. It is perhaps a matter of regret that the Pensions Regulator was not in place at the time that this happened. It is perhaps worth speculating that had we had the Pensions Regulator, this situation would not have been allowed to arise. I am grateful to see on the Front Bench the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb), who responded to the previous debate so is familiar with this injustice.

At that time we talked about the way in which the cap on the Pension Protection Fund affected some former employees of Visteon. That is something that the Government have sought to address, but it is still impacting severely on some pensioners of the Visteon company. Perhaps the Minister might touch on that in his response.

As we know, there is a legal case pending, and I of course hear the instruction from the Chair. We do not want to prejudice in any way the legal proceedings that are under way. It should not be necessary because ultimately it is not a question of whether or not Ford acted within or outside the law. It is, as Members in all parts of the House have said, a question of corporate social responsibility. It is a question of the reputational damage that this is doing to Ford across this country and beyond, and it is a question of morality and decency.

[Sir Bob Russell (Colchester) (LD)]

The Minister will have noticed the unity of Essex MPs. Does my hon. Friend agree that the legal skirt behind which Ford is trying to hide is shrinking all the time and the petticoat of morality is now around its ankles?

[Mr Whittingdale]

The hon. Gentleman puts it in his unique style. I think I agree with the message he is giving.

As I say, we will wait to see what happens in the courts, but I hope we do not have to, and that the Ford Motor Company will hear the message being sent from this Chamber this afternoon. My hon. Friend the Member for Rochford and Southend East (James Duddridge) talked about the possibility of a Select Committee hearing. Whether or not we could force the Ford Motor Company to come to this country to a Select Committee is not entirely clear. I have had some experience of forcing people to come before Select Committees, and there is a problem if they are on the other side of the Atlantic. Again, that should not be necessary.

What should be apparent from hearing all the Members who have spoken this afternoon is the overwhelming moral case of the people who gave years of service to the Ford Motor Company and were told that they would be looked after in the future, yet now have suffered real loss due to the fact that they were transferred to the new company, which in a sense was almost bound to fail.

It is just a couple of weeks before Christmas. If the Ford Motor Company wanted to give a Christmas present, it should honour its moral obligations to the Visteon pensioners.