The Economy

Gavin Newlands Excerpts

Wednesday 8th July 2020 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

In the last few weeks alone, my constituency has seen Rolls-Royce announce 700 redundancies, Menzies Aviation 160 and Swissport 321, all adding to the toll of expected job losses at British Airways, NCP, easyJet, Jet2, Flybe, BA CityFlyer, TUI, North Air and SSP. I would have included Ryanair in that list, but I am pleased to say that it has just reached an agreement with Unite on temporary pay cuts to stop the job cuts that had previously been announced. Well done to them and let that be a lesson to other airlines. Combined, Renfrewshire will see thousands of households employed in aviation and aerospace thrown into financial turmoil. Across Scotland and these islands, the total will very likely be into six figures. If it is not clear to the Government that aviation and its supply chain is in the middle of its biggest crisis ever, it should be now.

By May, the claimant count in my constituency had doubled in the space of two months and those newly unemployed people had the added stress of looking for a job in an employment market in its worst state since the second world war. I mentioned that I have no doubt the total will rise further. I say that because I see no urgency on the Treasury Benches to save the aviation and aerospace industries. In my Adjournment debate on Rolls-Royce redundancies, the Minister winding up, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stratford-on-Avon (Nadhim Zahawi), lauded the company for offering voluntary rather than compulsory redundancies. If that is the strategy, then God help us all. There are many constituencies like mine where airports play a pivotal role in the local economy, yet there has not been a cheep from Government about what support such areas will get to address the particular challenges our economies face. I hope the Chancellor and his colleagues at the Department for Business, Energy and Industrial Strategy can begin work urgently on a plan tailored to communities hardest hit by the devastation to the aviation sector.

I hope they will also take a hard look at the reaction of aviation companies to their employees. We have seen British Airways threaten one third of their workers with the sack, while the other two thirds have been told that they too will face the sack if they do not sign up for lower wages and lesser terms and conditions. I hear that easyJet and other companies, such as Menzies Aviation, are now trying the same bullying tactics. Unlike in most of Europe, these practices are despicable but not illegal. Those workers deserve the same protections as their fellow workers elsewhere. I urge the Government to back my Employment (Dismissal and Re-employment) Bill to make such practices illegal and make sure the law has their back.

It is not just in aviation where coronavirus has wreaked havoc. Alexander Dennis, the biggest bus and coach manufacturer in the country, is a huge success story, but nobody is buying buses just now. Without action, hundreds of jobs are under threat across the industry—another disaster for the local and national economy. The changes in road infrastructure and support for active travel that we have seen in recent weeks mean that there is a window of opportunity for the UK Government to take the bold action required and kill two birds with one stone, accelerating the transition from older, more polluting vehicles to Euro 6-compliant diesels and electric and hydrogen buses, and at the same time guaranteeing a future for manufacturers such as Alexander Dennis.

The Transport Secretary spoke last week about 4,000 buses. This is welcome, but completely lacking in the kind of ambition that we need now. A firm commitment from the Government to order at least 10,000 low and zero-emission buses would be a transformational policy, with the potential to be the biggest boost to public transport in generations, and it will help keep skilled jobs in this country in the long term. I urge the Chancellor to sit down with his colleagues in the Department for Transport to make that programme happen and support not just those jobs, but the accelerated transition to a net zero economy. The aviation sector, the bus industry, coach firms, aerospace and engineering—collectively, the UK transport industry is facing an unprecedented and catastrophic future if action is not taken, and taken soon.

Economic Outlook and Furlough Scheme Changes

Gavin Newlands Excerpts

Tuesday 16th June 2020 Commons Chamber

[Jesse Norman]

My hon. Friend is absolutely right. One of the really heartening things about the early phases of the crisis was precisely the response from distilleries in producing hand sanitiser. I was delighted to be able to make very quickly the changes to the tax regime that supported that. As we go forward, we will continue to review and seek to address the concerns that he raises. It is not by any means a straightforward matter, but the key thing is to continue to push, on a very wide variety of fronts, as rapidly and forcefully as we possibly can.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Many companies have used the job retention scheme to save cash while they planned redundancies, British Airways being one. BA has threatened over 40,000 staff with redundancy but about 30,000 would be rehired on vastly reduced terms and conditions. Last week I introduced a Bill to make that form of employment practice illegal to protect all employees. Does the Minister think it is fair that any employer should be allowed to make employees redundant from roles that are clearly not redundant and then rehire them on reduced pay— yes or no?

[Jesse Norman]

I will refrain from commenting on a specific situation; the hon. Gentleman has identified one. But I will say, having not been aware of it, that I will look at his Bill with great interest, and I thank him for drawing attention to it.

Self-employed Persons: Financial Support

Gavin Newlands Excerpts

Tuesday 24th March 2020 Commons Chamber

[Steve Barclay]

My hon. Friend speaks with considerable business and financial experience, and he will know the cash-flow issues and the challenges that many of the businesses in his constituency face. We absolutely hear his message, just as we do the message from Members across the House, and that is why we are moving at pace to address them.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Further to the point I raised at Treasury questions, which was echoed by the shadow Chancellor, the newly under-employed must be supported further. One of my constituents is a self-employed taxi driver with no work, due to the lockdown. His wife and four children have underlying health conditions. Any universal credit application would mean their tax credit ceasing. A jobseeker’s allowance application would mean having to prove that they are seeking work and engaging with their accountant. Will the Chief Secretary tell them how they can possibly put food on the table and pay their bills?

[Steve Barclay]

The hon. Gentleman speaks to a real concern and a real issue, but I draw attention to the fact that one of the challenges is to communicate what support has already been announced by the Chancellor. To give an example, a family renting in Sheffield with two children would be eligible for around £1,750 a month in support—far more than the £94 per week, if we take account of additional things such as housing and children’s support. It is about what package of support is available, and the Chancellor has already announced considerable measures in that regard.

Oral Answers to Questions

Gavin Newlands Excerpts

Tuesday 24th March 2020 Commons Chamber

[Rishi Sunak]

The hon. Member is absolutely right: we must ensure the safety of our workers in their industries. The guidance from the Government last night was clear that people should go to work if they cannot work from home. In common with other countries such as Italy or France, construction has remained open, but of course it is right that that is done safely. I know that my right hon. Friend the Housing Secretary is in touch with the sector and I believe that he has had conversations about guidance in this regard.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

My local bus company is one of many, I am sure, across the country that has had to introduce short-time working, but it is unsure about the implementation of the Chancellor’s very welcome wage subsidy. Will the Treasury top up the wages of those working two or three-day weeks, or does it have to lay off, say, 70% of the workforce and rely on the remainder to cover the rest of the routes, putting themselves at risk for a similar amount of money? Can the Chancellor clear that up for us, please?

[Rishi Sunak]

We said that we would aim to have the scheme up and running by the April payroll. This is a brand new system that has to be designed from scratch. Claims could be backdated from 1 March, which will provide significant support to businesses and jobs, and in common with all other schemes like this across the world, the scheme applies to furloughed workers in proportion to the hours they have worked—but to workers who are put on furlough rather than being retained in employment.

Economic Update

Gavin Newlands Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

The hon. Gentleman talks about packages to support business. They are not divorced from people’s circumstances; they are directly helping people’s circumstances. The way to help people is to secure their employment, now and in the future, and that is what these packages are designed to do, which is why they will make a real difference to people on the ground.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

The Chancellor is already late with support for aviation. Airlines, airports, and support services such as baggage handlers have already announced, or are strongly considering announcing, significant job cuts. Can the Chancellor reassure them that they do not need to do that, and that he will follow other Governments such as that of New Zealand, which announced £35 billion worth of direct wage subsidies to keep not just those jobs but all jobs safe?

[Rishi Sunak]

We have announced our own range of fiscal measures to help businesses to protect jobs, with particular reference to the airline industry. As I have said, my right hon. Friend the Transport Secretary and I are actively engaging with the companies and the airports in that sector to establish what support is required.