Bombardier: Job Losses (East Belfast)

Christian Matheson Excerpts

Tuesday 1st March 2016 Commons Chamber

[Gavin Robinson]

I am grateful to the hon. Lady who raises a fair point. When I was the special adviser to the then First Minister, I had the opportunity alongside him and the Deputy First Minister of visiting Montreal and the Bombardier facility there in 2012. There are important strategic links that have grown with the United States of America, so I think it is an important avenue to pursue.

With Bombardier being the largest private employer in Northern Ireland, providing high-skilled, well-paid jobs in a technically advanced industry, the impact is of great significance. The aerospace industry in Northern Ireland contributes £1.1 billion to our local economy, and to put that into perspective, that is 10% of our overall operating budget of the Northern Ireland Executive. Bombardier is also responsible for 10% of Northern Ireland’s total export manufacturing figures. Our region’s Enterprise Minister, Jonathan Bell, MLA, my colleague on the Northern Ireland Executive has the realistic and positive ambition of growing the impact that the aerospace industry in Northern Ireland has from £1.1 billion to £2 billion by 2024.

[Christian Matheson (City of Chester) (Lab)]

The hon. Gentleman talks about being parochial, but of course with the launch of the C Series by Bombardier, the factory has a huge contribution to make to the UK aerospace sector as a whole. I understand his concern for his own constituency and region, but does he recognise that this is a national problem, as well as a local one?

[Gavin Robinson]

I completely agree. In fact, I was seeking hon Members’ forgiveness for the parochial nature of the title of the debate, recognising that the issue is much larger than East Belfast and Northern Ireland. In view of the nature of aviation, this is a UK and a global story.

I was saying that our Executive have a positive target of reaching £2 billion by 2024, but to achieve that aim, after the announcements over the last two weeks, it is important for us to take stock at this stage and to establish how best to grow to reach that target.

Bombardier’s present difficulties are directly associated with their noble development of the C Series aircraft. I say “noble”, because it is exactly the sort of manufacturing that we as a country should support. The C Series aircraft is novel; it is highly innovative; it utilises the best advances in lightweight composite technology; and in its class, it represents the next generation of light, noise-reducing, fuel-efficient aircraft that will travel further for less, with the wings that are fabricated and assembled in my constituency of East Belfast.

Such innovation has brought with it significant pressure from competitors in both Boeing and Airbus. The project has taken three years longer than anticipated and at $5.4 billion, it is $2 billion over budget. Cash flow has become a problem, but if I may, I wish to nail a number of myths that should not go unchallenged.

First, Bombardier is not a busted flush. It has taken a bold but significant step to refocus its operation and to enhance its competitiveness, and the rise in company value is just one indication that, while deeply painful, the recalibration of its international operation was an important step.

Secondly, the Government could not have done more to stave off the job losses. Bombardier has said as much, with half the job losses announced being in Canada, just four months after the Quebec Government invested over 1 billion Canadian dollars in the company. There was nothing that the regional government or national Government could have done in the last few weeks to stave off the difficult announcement that was made.

Indeed, far from viewing our Government as being inactive, I have been hugely encouraged by the support offered by both regional and national Government, so it may be appropriate to place on record at this stage my sincere appreciation for the commitment given by the Minister for Small Business, Industry and Enterprise. She recognises the importance of Bombardier to the Northern Ireland economy. Within hours of the announcement during recess week, she was available to discuss the issue with me by phone and she stood ready to assist. Just yesterday morning, she flew to Belfast, toured the facility and met management to extend her support, alongside the Under-Secretary of State for Northern Ireland. As you know, Mr Speaker, the Minister was here until late last night, and it was an early start for her yesterday, but she was committed, and she responded most ably.