Bombardier: Job Losses (East Belfast) Debate

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Bombardier: Job Losses (East Belfast)

Gavin Robinson Excerpts
Tuesday 1st March 2016

(8 years, 8 months ago)

Commons Chamber
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Gavin Robinson Portrait Gavin Robinson (Belfast East) (DUP)
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May I first express my gratitude for the selection of this Adjournment debate, and the opportunity to raise what for me and my constituency has been a devastating blow not just for us in east Belfast. but for the Northern Ireland economy and for constituents in Derby affected by cuts in the transport division and internationally across Bombardier’s operation? Given the nature of Adjournment debates, I trust that hon. Members will have no objection to the parochial title I chose for this debate. My desire is to do the best for my constituents in east Belfast, while recognising that this story is much larger.

Bombardier employs 74,000 people in 28 countries across the world, with 7% or roughly 5,500 employees in Belfast working directly in the aerospace industry. On 17 February, it announced 1,080 job losses in east Belfast.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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My hon. Friend talks about the figure of 1,080 jobs lost. Some 1,000 people work for Bombardier in my constituency. With great respect, our concern is not just east Belfast but Strangford. I commend him for bringing this issue to the House for consideration and for his hard work with the Minister. Help will have to reach beyond east Belfast, as there will be job losses for my constituents as well.

Gavin Robinson Portrait Gavin Robinson
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I am very grateful to my hon. Friend for making that point. He is right. Some 5,500 people are employed in the east Belfast site and around the city in five other locations. People work for Bombardier in Northern Ireland throughout our Province—in East Antrim, Larne, Carrickfergus, Lisburn, Lagan Valley, Bangor in North Down, and Ards in Strangford. This news story affects not only the 1,080 affected most directly, but their families, the local communities and the shops that they support, and so forth. The decision announced on 17 February was seismic.

Lady Hermon Portrait Lady Hermon (North Down) (Ind)
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I am grateful for the opportunity to intervene in this very important debate. The hon. Gentleman will be well aware that his party leader, the now First Minister Arlene Foster, will make her first visit in that capacity to America shortly, accompanied by the Deputy First Minister, to mark St Patrick’s day. Has the hon. Gentleman asked the First Minister and the Deputy First Minister to encourage the American Government, which have done so much to support the peace process and other events in Northern Ireland, to intervene on this particular occasion?

Gavin Robinson Portrait Gavin Robinson
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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 Portrait Christian Matheson (City of Chester) (Lab)
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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 Portrait Gavin Robinson
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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.

Alasdair McDonnell Portrait Dr Alasdair McDonnell (Belfast South) (SDLP)
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I echo and endorse much of what my colleague from the neighbouring constituency has been saying. Many of the job losses are not in any one constituency; they are widely scattered. Is there not a need for all of us here, and the Northern Ireland Executive and the United Kingdom Government, to work together? Northern Ireland needs a comprehensive strategy, and that is not down to the Northern Ireland Executive alone.

Gavin Robinson Portrait Gavin Robinson
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I am grateful for the intervention from my parliamentary neighbour, some of whose constituents work at the Bombardier plant.

To date, the support of regional and national Government for Bombardier has reaped real rewards. Since the privatisation of Short Brothers in 1989, £2.6 billion has been invested in its facilities. Most recently, £114 million from regional and national Government secured an additional £850 million investment from Bombardier itself, including £520 million for the wing facility in my constituency, which was opened by the Prime Minister and was visited by the Minister yesterday.

But here’s the ask. In view of the Minister’s support, I ask her to leave no stone unturned in considering how we can best support Bombardier, especially given the investment that has been present for the C Series. I am also keen for UK Trade & Investment to take a more imaginative approach when considering how it can best support various aircraft manufacturers when they seek to secure orders internationally. Competition is rife in this market, but with three competing firms seeking Government support, I would recommend a considered and tactical deployment of support, relating to both need and the likelihood of success.

Inflating the order book for the C Series must be a key goal for us all. The opportunities for small airports located in city centres are very significant. Encouraging the inclusion of the C Series in their fleet mix and support for a markedly innovative industry must form part of the Government’s action plan, and I trust that the Minister will address that in her response. I am aware of the planning challenges posed by London’s City airport. A discussion with colleagues about ending the current impasse on planning restrictions would prove fruitful for the C series and Bombardier.

Following a personal request, the Minister committed herself to hosting a round-table discussion with representatives of the Ministry of Defence and the aerospace, defence and security industries in Northern Ireland, to share national procurement opportunities with the aim of enabling those industries to increase their output and their contribution to this country’s export capabilities. There are 70 such companies in Northern Ireland, 27 of which are in my constituency, and I know that the renewed importance of that request will not be lost on the Minister.

When people find themselves without hope, with lost opportunity and with no idea of what will come next, we must stand with them both morally and politically, and offer light during the darkest of times. On behalf of the 1,080 who have been directly affected, their families and our aerospace industry, I trust that we will begin that process tonight.

--- Later in debate ---
Anna Soubry Portrait Anna Soubry
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I certainly undertake to take a look at it, but I am not promising to be able to alter it. None the less, I will take away this apprenticeship query. I am sure that the Northern Ireland Executive and Bombardier will be well onto this matter, but if there is anything more that we can do, we will try to do it. The thought of youngsters finding their apprenticeships cut short concerns us all, so I absolutely give that undertaking.

As I come to a close, may I address some of the specific points raised by my hon. Friend the Member for Belfast East? As we have a little time, let me say that I was very sad that I had to shorten my visit to Northern Ireland yesterday. Obviously, I had to come back for the steel debate. One day, I will go to the constituency of the hon. Member for North Antrim (Ian Paisley). I keep promising to go, but I never end up there. I was very sorry that I had to cancel that side of the visit yesterday, but we will do it another time. I really wanted to go to Bombardier, because that visit is incredibly important to me.

My hon. Friend talked about London City airport. Apparently, as it is a planning decision, I cannot comment on it, which is a pity. However, I do know that the C Series is particularly suited to that type of airport: it is a quiet aircraft; it is the right size; it carries the right number of passengers, 100 to 150; and it is perfectly suited to those international city-to-city journeys. We had a conversation as to whether the C Series would be involved in a new route from City airport to John F Kennedy international airport. Of course I have no opinion on that whatsoever, but I know that my hon. Friend does.

Gavin Robinson Portrait Gavin Robinson
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indicated assent.

Anna Soubry Portrait Anna Soubry
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It seems that the C Series is the sort of aircraft that is perfectly placed to provide that service to passengers. It may be that that is a very good set of arguments to be advanced, but, as I have said, I cannot possibly comment on it.

In relation to the meeting with the Minister for Defence Procurement, we will absolutely get that together. We are in the process of bringing everybody into the Ministry of Defence. We will not come to Northern Ireland, much as we want to, as we think we stand a better chance of getting everybody around the table if we hold the meeting in the MOD. We are definitely working on that. It will take a bit of time to get all the big players, and the right players, around that table, but that is an absolute promise that I have made. My hon. Friend the Minister for Defence Procurement is also keen to have that meeting; we are looking forward to it and we think we can do some good work there.