Humber Flood Risk Management Strategy

Debate between David Davis and Andrew Percy

Tuesday 1st July 2014 Westminster Hall

[Andrew Percy]

That is an interesting idea. I think that we would all prefer it if farmers were allowed to continue producing food, but my right hon. Friend raises one of the biggest criticisms of the current funding regime: the value placed on agricultural land is not sufficient. I am not against flood alleviation projects—of course not—and that includes the sacrificing of land at Alkborough flats in my constituency. That operated very well and possibly lowered water levels in the Trent to such an extent that it prevented a couple of communities from flooding. We do not have a problem with some of these schemes, in appropriate areas. What we have a problem with is the value placed on agricultural land and rural communities generally under the current system. In the original drafts of the various flood catchment plans for our area, there seemed to be a policy of retreat and sacrifice of rural areas. That has abated somewhat through various processes, for which we are very grateful.

My right hon. Friend the Member for Haltemprice and Howden and others, including the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson), have highlighted the nationally important infrastructure in our area and the national risk register. In my constituency, to add to the list of nationally important infrastructure that we all seem to be trotting out today, there is of course the port of Goole, which is England’s busiest and biggest inland port. We also have the power station at Keadby, which of course was one of the communities flooded in December. There is the Drax power station just across the way, and biomass imports come through my constituency via the railway lines. My hon. Friend the Member for Cleethorpes (Martin Vickers) talked about petrochemicals, and of course we have the motorway and rail infrastructure and agricultural land. I believe that 55% to 60% of our land is grade A agricultural land, so it is some of the most productive land in the country.

We have mentioned the Isle of Axholme, but of course the defences along the Trent and the Ouse do not just protect the 50,000 acres and 20,000 residents there. They are also major defences for Doncaster and Thorne. A catastrophic breach of those defences would have a significant impact on Doncaster, but although that is sometimes taken into account, it is not always accounted for in funding decisions.

[Mr David Davis]

May I draw my hon. Friend’s attention to something that has not been mentioned so far? Even though residential accommodation is given the highest score in the ranking, that is based on property value. One thing that works against the north of England is that properties there tend to be of lower value, which leads to a cyclical effect: the house is cheaper, so it gets less defence and therefore gets cheaper. It feeds on its own poverty. Does my hon. Friend agree that that has a distorting impact on flood defence funding?

[Andrew Percy]

Absolutely. I want to talk about the problems and failings in the current system, but before I do—I do not want to be entirely negative—I will praise the Government. The response in my area after the December surge was welcome. We appreciated the flood repair and renewal grants, and the support for business has been well received. Also, additional Government funding since December has been of particular benefit to my area: a £5 million scheme to raise the banks at Reedness has been approved, as has £3 million to shore up the banks at Snaith, and work will begin in a month’s time to shore up the banks at Burringham, which were not breached but were severely damaged.

BAE Systems

Debate between David Davis and Andrew Percy

Thursday 24th November 2011 Commons Chamber

[Mr Davis]

It is certainly the consequence of deliberate decisions. Whether the management intended this outcome at the beginning, or whether it is sheer crass misjudgment, I will leave the House to judge. What I am trying to do is lay out the facts as starkly as I can, because it was long ago time to open up the process to public scrutiny.

That brings me to the decision today. The company is in the middle of a 90-day consultation period. From the start, the right hon. Member for Kingston upon Hull West and Hessle and I, and a number of colleagues—probably every Member of Parliament involved in the process—told the company that we would hold it to its legal responsibilities on a 90-day process. Those legal responsibilities involve being transparent and open, and looking in good faith at all proposals put to it. I repeat that: looking in good faith at all proposals put to it. Unfortunately I have to tell the House that, based on the company’s behaviour to date, it seems to me entirely possible that it has broken its legal responsibilities. It has not looked in good faith at all the options available to it, but I will leave it to my right hon. Friend—I beg his pardon, the right hon. Member for Kingston upon Hull West and Hessle; he is my friend—to say more on that later.

I certainly expect the company to demonstrate why it turned down the options that it was looking at before it made the decision. As far as I can see, it has not even done that. Secondly, I expect it to give proper consideration to the plan drawn up by its management to preserve employment at Brough in my constituency, albeit at lower levels. Again, I think that the right hon. Gentleman will touch on that point.

The work force at Hull are the best, in terms of attitude, productivity and skill, I saw in my 20 years in business before I came to the House, and BAE Systems senior management agree. The work force’s attitude is positive, their productivity is high, and the right hon. Gentleman and I have always been told that they are competitive on cost and quality. They deserve a proper chance.

If the company does a proper, open-minded review, and the figures do not add up—I accept that is possible—its responsibilities do not end there. We have been fortunate: the Civitas think-tank has invested £50,000 in looking at the Brough site to see what it can be used for, how the skills can be deployed, and what we can do without destroying the skills base. For that, I thank it warmly. The chairman of the Government’s skill retention taskforce came to see us yesterday, and it is at work, looking for alternatives. The Government acted within two weeks and put in place two enterprise zones, one on each side of the Pennines, to help us in all this, but if we cannot come up with an alternative, we will again lose a critical mass of skilled workers that will not be replaced once it is dissipated. That is the nub of the matter.

The job losses in Brough and on the other side of the Pennines are, to a large extent, a direct consequence of the company’s strategy over the years. The company’s profits come, to a very large extent, from taxpayer support.

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

My right hon. Friend makes a powerful point. On the legacy issue, does he agree that it is not good enough for BAE Systems to say, “We will do everything that we can to find people alternative work”? It has to make sure that that legacy remains in east Yorkshire, and that the site remains a site of employment in manufacturing for our constituents.

[Mr Davis]

My hon. Friend, who has been very active in this campaign, brings me to the nub of the issue. It is precisely because the company had, until five years ago, experience in civil aviation; precisely because it is the biggest employer of engineers in the country; and because of its knowledge, access, contacts and understanding of the markets, that it is best equipped to find an alternative use for Brough—full stop. That is what I—and others, I am sure—demand. It is not just Brough; I keep saying Brough because it is closest to my heart, but the company must find alternative employment and use for the assets and the work force across the country. That is what it is best equipped to do. Frankly, as far as I can see, so far it has not lifted a finger in that direction.

There has been a lot of criticism in recent weeks of high levels of executive pay. Recently, the statistic came out that, over 30 years, senior executives have had a 4,000% increase in pay. Despite severe criticism of senior management by investors and others over the years, the pay of BAE’s chief executive grew by 8,000% over the same period, double the national average. I am not one of those who believe that people should not be paid large sums of money, but I expect them to earn it. They could perhaps justify their salaries—the chief executive’s is £2.4 million—by doing a better job not only for shareholders, but for employees and the country.