Aerospace Industry

Gordon Birtwistle Excerpts

Tuesday 2nd September 2014 Westminster Hall

[Sir Peter Luff (Mid Worcestershire) (Con)]

I apologise to the House for my voice; I am suffering from the after-effects of a long and difficult summer cold. I will croak my way through my 30 minutes or so and hope that I can be heard throughout my speech.

It is a great pleasure to welcome the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Mid Norfolk (George Freeman) to his second Adjournment Debate on a subject that he and I have discussed in the past. I am confident that he will lend a sympathetic ear. In keeping with the prevailing wisdom about the meaning of the word “aerospace”, I will discuss primarily the civil airframe market and its supply chain rather than space or defence, although I will make some remarks about both.

My interest in aviation goes back to the 1960s in Windsor. I grew up directly under the flight path of the rapidly expanding Heathrow airport, where I went plane-spotting regularly. I remember the Viscounts, the Comets, the VC10s and of course the magnificent Concorde. Those wonderful British and Franco-British aircraft inspired many British children, and they and the outstanding military aircraft that we have built have handed to this generation an extraordinary legacy of excellence in aviation that we must honour by continuing that success.

The debate is also an opportunity for me to return to the 2010 report of the Select Committee on Business, Innovation and Skills, which I chaired. The report was entitled “Full speed ahead: maintaining UK excellence in motorsport and aerospace”, and the inquiry convinced me of the extreme urgency of addressing the engineering skills shortage in our country. More than four years later, we are making some progress, but there is still a lot more to do. I will return to some of the report’s recommendations later in my remarks, but its conclusion states:

“The Government’s role in support of the aerospace sector is to enable the industry to compete on an equal footing with its international competitors. Other countries actively support and promote their aerospace industry through the provision of financial support, access to trade credit and funding for R&D work. The UK Government must ensure that the level of support it provides industry does not place the British aerospace sector at a disadvantage.”

There has been much to welcome in Government policy since that report. Government and industry now work together successfully through the Aerospace Growth Partnership in a concerted effort to secure the UK’s position as a leading aerospace nation, the second largest in the world, to invest in innovation and to take advantage of the future growth opportunities within the civil aerospace industry.

I hope that all participants in the debate—I am glad to see that the number is growing—offer unqualified support for the Aerospace Growth Partnership approach, but that does not remove the need for Ministers to be accountable to Parliament for the progress made. The debate is an opportunity to challenge aspects of the AGP approach constructively and test its progress. It is also an opportunity to demonstrate cross-party support for the broad approach being adopted.

In that spirit, I will be asking whether the strategy is sufficient to rise to the international competitive challenge. Are the various mechanisms being established sufficiently integrated and comprehensive? Are the views of the major US players in defence and civil aerospace who value our supply chains so highly properly understood? Is support for aerospace exports sufficiently strong? Is it understood that the sector and its supply chains comprise many medium-sized businesses, not just large original equipment manufacturers and small firms? Is the British supply chain sufficiently robust? Is it right to limit the scope of the work to the civil aerospace market? Should not links with the defence aerospace and space sectors be more explicit? Is the approach to skills adequate? Can the momentum being generated in the AGP be sustained?

Isaac Newton said:

“If I have seen further, it is by standing on the shoulders of giants.”

The modern British aerospace industry indeed stands on the shoulders of giants. British scientists and engineers have an outstanding track record of technical and commercial success since the earliest days of manned flight. We are heirs to a roll-call of famous names of companies and individuals. Aerospace is a significant manufacturing success story for the UK, and is one of our most important high-technology industries. As the BIS Committee 2010 report said:

“Britain is one of the few nations involved in the design, manufacture, marketing, maintenance and support of the full range of aircraft products—from complex composite aero-structures, including wings, aero-engines, rotorcraft, aircraft systems and avionics, through to maintenance, repair and overhaul services.”

Ours is the largest aerospace sector in Europe and, as I said before, the second largest globally, after the USA. A Boeing 787 Dreamliner flying with Rolls-Royce engines is 25% British by value. An Airbus A380 with Rolls-Royce engines has about 40% British content, broadly the same as other Airbus variants fitted with Rolls-Royce engines. Indeed, the new A350 XWB and the A330neo are supplied only with Rolls-Royce engines.

[Gordon Birtwistle (Burnley) (LD)]

I congratulate my hon. Friend on securing this debate. He mentioned the Airbus and Boeing aeroplanes using Rolls-Royce engines. Is he concerned, as I am, that Rolls-Royce has stopped making smaller engines for A320s, A319s and the smaller Boeing aeroplanes and is concentrating solely on big engines? Would it not be advantageous if Rolls-Royce could get back into making smaller engines, either with a partner or on its own? Smaller aeroplanes are becoming very popular at the moment.

[Sir Peter Luff]

I do not think it is right to double-guess companies’ commercial strategies, but my hon. Friend makes an important point and I am sure that the company has heard what he said. I hope it responds to both of us to explain its industrial rationale for taking that particular decision.

Airbus’s UK contribution includes civil wing design at Filton and build at Broughton; fuel system and landing gear design and testing at Filton; and A400M wing design and manufacture at Filton. UK suppliers providing other significant components and services to Airbus include landing gear manufacture in Gloucestershire; window manufacture on the Isle of Wight; maintenance service panel manufacture in Greenford; design houses around the country; and even a standby compass. We are also strong in the military market. Eurofighter, the Saab Gripen and the F35 all have significant British content.

These are exciting times for the UK aerospace industry, and there are significant opportunities for further growth. The latest monthly commercial aircraft order and delivery data, published last week by the trade association ADS, reveal a further increase in the backlog of more than 12,000 aircraft and 21,000 commercial aircraft engines. That equates to about nine years’ work in hand for the industry and could be worth about £155 billion to the UK economy.

Obviously, the UK civil aerospace sector makes a huge contribution to UK jobs, skills, exports and long-term growth. In 2013, UK aerospace was worth £27.8 billion to the UK economy, with 91% of final demand coming from exports. Aerospace exports grew by 12% in 2013, and the industry employs 109,000 people in well-paid, highly skilled jobs, and supports another 120,000 in the supply chain. The average wage is about £41,000, more than 50% higher than the UK average, and the sector has grown 10 times faster than the rest of the UK over the past three years.

After the record number of orders and commitments made at the recent Farnborough international air show, the longer term looks strong and opportunity-laden too. It is estimated that by 2032, more than 29,000 new large civil airliners, 24,000 business jets, 5,800 regional aircraft and 40,000 helicopters will be required. As the UK specialises in developing and manufacturing some of the most complicated and high-tech parts of modern aircraft, the industry estimates that that requirement means a potential market share of about $600 billion for the UK.

Against that background, we must ask ourselves whether the Government and the industry are doing enough to ensure that the UK retains and improves on its current position. To be honest, I was concerned by the breezily optimistic picture painted in “Flying High”, this year’s update on the Aerospace Growth Partnership. It reads more like a sales brochure for Government policy than an honest assessment of the challenges facing British aerospace companies. Only on the very last page do we read:

“However, the challenges of intensifying international competition, the rapid pace of innovation in the sector and a need to broaden our customer base remain.”

Those words encompass my reasons for seeking this debate.

There were starker warnings in the strategy “Lifting Off”, published last year, which says that

“recent trends have shown that UK content on new aircraft is in decline and that, without action, this will accelerate as new generations of aircraft are introduced.”

My confident hope is that the new Minister’s response will reveal a depth of thinking about the competitive challenges and a strong commitment to do all that it takes to maintain the UK’s position internationally. [Interruption.] I am encouraged by his affirmation of my hopes and aspirations. I also hope—again, confidently—to hear recognition from the official Opposition spokesman that the AGP’s success is built on the firm foundation laid by previous Governments, and therefore an expression of strong support for this Government’s approach to working with the industry. This should be an opportunity to examine in a bipartisan spirit how we can ensure that the success story of British aerospace is maintained.

The industry, through its trade association, identifies four principal challenges: overseas competition and innovation, environmental demands, access to finance, and skills. Advances in technology are driven by environmental needs to cut emissions, reduce fuel-burn and increase aircraft efficiency. The UK must continue to be at the forefront of research into improvements in those areas in order to stay competitive, drawing on its capability in propulsion, and advanced structures in particular. Small and medium-sized enterprises throughout the supply chain will face increasing pressure from larger companies to cut costs and innovate. Many companies face problems accessing the necessary finance to grow, respond to new demand, collaborate and conduct R and D. Banks and financial institutions can be less willing to offer the finance needed for innovation due to the inherent risk and the long time scales involved.

UK industry requires not only a greater number of aerospace engineers and technicians to replace the current generation, but candidates with the right skills and knowledge to understand the use of new materials and structures in aerospace manufacturing. I will return to that at the end of my remarks.

However, my first specific question to the Minister flows from the first of those four industry concerns—overseas competition and innovation. Innovation underpins growth. If we do not invest in innovation now, the UK will not be competitive in the years to come. That is especially true in high-tech industries such as those in the UK aerospace sector, which face increasing global competition. We know that public investment increases private investment in innovation, but as the Business, Innovation and Skills Secretary has observed, the UK has both lower public funding and lower total investment in R and D than most of our competitor nations. More must be done to boost UK aerospace R and D, and to create a more level playing field with Europe and the rest of the world. For every £1 invested in the UK, France spends €10 and Germany €15.

However, the AGP looks set to improve that position. Later this year, the Government are due to publish their science and innovation strategy, which also offers an excellent opportunity for the UK to make a serious commitment to innovation policy, complementing all existing industrial strategies. However, countries such as South Korea, Japan and Brazil are throwing their immense firepower at building their share of global markets—for example, we can look at the strong position of Japanese suppliers on the new Boeing 787. Other nations such as France and Germany have been doing more, and often for longer, to stimulate technology and R and D. The growth in opportunities in civil aerospace means that the UK faces increasing competition from both mature and emerging markets. Therefore, we must foster innovation throughout the supply chain to bring new technology, products and expertise in order to stay ahead in a competitive market.

I worry about whether the various mechanisms being established are sufficiently integrated and comprehensive. The response that has developed and that is spelled out in the AGP’s strategy is built around a variety of mechanisms. It rightly identifies areas of UK competitive advantage—wings, engines, aerostructures and advanced systems—and emphasises the importance of reinforcing that success. It seeks to address a major shortcoming in the UK business environment for aerospace. As “Lifting Off” says:

“Long-term predictability and stability of Government funding for R&D is a key factor in determining where it”—

the industry—

“chooses to invest and...the UK needs to do better in this research.”

At the pinnacle of the AGP is the Aerospace Technology Institute, an industry and Government co-funded £2 billion investment over seven years. That is precisely what the BIS Committee 2010 report called for and I am delighted to see our recommendation being so enthusiastically embraced. The ATI’s small team will lead on the development of the strategy and will identify the specific technological activity required to address capability needs in the UK. It aims to align early research and cross-sectoral R and D innovation delivered through the Technology Strategy Board, which will soon be known as Innovation UK. It already has more than £300 million of collaborative R and D projects under way, spanning the four UK priority areas: wings, engines, aerostructures and advanced systems.

The ATI works alongside the recently established UK Aerodynamics Centre and the various component parts of the High-Value Manufacturing Catapult, but a manufacturing accelerator programme is also being proposed. I am not currently clear about what that programme would add to the complex landscape of organisations. Indeed, I confess to being just a bit concerned about the complexity of the environment, with the ATI, the UKADC, the MAP, the TSB, the HVMC and its seven component parts, including the excellent Advanced Manufacturing Research Centre near Sheffield, the inspirational Manufacturing Technology Centre at Coventry, the important National Competence Centre near Bristol, and, possibly finally, the National Aerospace Technology Exploitation Programme that is aimed at smaller companies, never mind the host of academic organisations and those many organisations involved in defence aerospace.

I am a strong supporter of the AMRC and the MTC. I have been to both—I went to the MTC last week. They are fantastic centres of excellence, designed to encourage improvements in manufacturing across Britain and not just in aerospace, and they have a vital part to play in the aerospace sector and across all sectors. However, I worry whether that is a complex environment. How are the Government and the AGP assessing the strength of the international competitive challenges, and what lessons are they drawing about the adequacy and, crucially, the coherence of the UK’s response? We must always remember that the aviation industry works to very long time frames—they are often several decades per programme—and therefore consistent and long-term support from the Government is vital to provide a stable policy environment in which to operate.

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[Sir Peter Luff]

The hon. Gentleman makes an important point. We are talking about the long-term commitment to this sector; long-term commitment to ownership also matters very much. I strongly endorse what he said.

Of course, the new North factory in Broughton was opened by the Prime Minister three years ago. That factory shows the continued commitment of Airbus to the future of UK manufacturing and R and D. The company deserves the kind of high-level endorsement demonstrated by the Prime Minister. However, we need to give that endorsement practical substance by attacking non-compliant World Trade Organisation subsidies of Boeing and by robustly supporting export campaigns for Airbus aircraft.

Let us move briefly to Washington DC and, in a sense, to Washington state. At the end of July, it was astonishing to hear a senior Boeing executive tell a congressional hearing about

“the economic and employment benefits Europe has achieved with aerospace using massive state support over the past four decades”.

The old biblical phrase about the mote and beam comes to mind. The land of the free does not always extend its commitment to freedom to free trade.

Sadly, an ongoing dispute before the WTO regarding US and EU support for large civil aircraft manufacturers remains a real threat to the competitive position of Airbus. In essence, the WTO has found that European repayable launch investment loans to Airbus are legal and WTO-compliant but that many US grants, contracts and tax concessions to Boeing between 1989 and 2006 were WTO-inconsistent. Against this background, it is bewildering that, in blatant disregard of the 2012 WTO findings, Boeing has been awarded the single largest targeted tax break in US history, amounting to nearly $9 billion, in order to underwrite development and production of the new 777X aircraft in Washington state. The 777X is a serious competitor to Airbus’s wide-body A350 XWB and A380 families. This latest tax break for Boeing essentially allows it to develop the new aircraft for free, which places Airbus and its suppliers at a huge competitive disadvantage. It means that fair competition is not possible for products such as the A380. The “massive state support” happens not in Europe but in the USA. Will the Minister assure me that the UK Government will use their strong influence with bodies such as the European Commission and the WTO, and work with other Governments, to ensure that there is a level playing field in which UK companies can operate, with a fair global legislative environment?

Having said all that, Boeing builds excellent planes and it will remain a force to be reckoned with for the foreseeable future. We may think that the US Government’s use of subsidies is outrageous, but we still respect the technical skill of Boeing and the success of its aircraft. As the Defence Minister with responsibility for equipment, I was determined that all the major defence suppliers—including Boeing, Lockheed Martin and Northrup Grumman—should be made to feel entirely welcome in the UK and were encouraged to invest here, so as to work ever more closely with our supply chain.

In that spirit, we should recognise the way in which Boeing has thrown itself into the UK, supporting the AMRC at Sheffield and, for example, the Royal Aeronautical Society’s excellent “Build a Plane” challenge. The views of the major US players in aerospace—defence and civil—who value our supply chains so highly must be properly understood if we are to ensure that British suppliers can play a significant part in their future products. Yet the very name “Boeing” seems virtually to have been exorcised from AGP documentation, with only the briefest and most cursory of mentions. We want British technology to be so compelling that Boeing has no choice but to increase UK content on its planes, but we will get to that point only if we properly understand its needs, too. What are we doing to ensure we have that understanding?

I turn to exports. Industry insiders tell me that official support for sales campaigns is absolutely vital for the aerospace industry. From my time at the Ministry of Defence—I look to my hon. Friend the Member for Aldershot (Sir Gerald Howarth) in this regard as well—I have supported, in India, Turkey, South Korea, and elsewhere, the excellent work of the UK Trade & Investment Defence & Security Organisation. Sadly, UKTI is seen as being

“a long way from being optimal on the civil side.”

Specifically, the industry needs more advanced information on when Ministers are travelling on trade missions and not just to have what one chief executive described to me, in a description I recognise all too clearly, as

“a complete obsession from a media/comms perspective for ‘announcables’.”

Aerospace contracts take a long time to negotiate and cannot just be pulled out of a hat because a Minister happens to be visiting a particular country. As that same chief executive said to me,

“The UK diplomatic service is one of the best in the world; my colleagues from overseas regularly say that to me, the PM has a high regard on the global stage—we should use it more. He has said to us on several occasions that he is happy to be the number one Airbus salesman—it’s just that sometimes the back-up from UKTI is lacking.”

Another company has emphasised to me that advance warning of ministerial visits abroad and of trade delegations here to help support sales campaigns is just not being given, although that happens regularly—routinely—in other European countries such as France. On exports it seems we could do much more. Will the Minister pledge to look at that issue?

When politicians speak of SMEs, they often mean the very smallest firms, employing perhaps 10 or 20 people —members of the Federation of Small Businesses, say. Much of the debate about the aerospace industry appears to the outsider to revolve around the original equipment manufacturers on the one hand, and SMEs on the other. Discussion of the former usually focuses on the pursuit of new programme investment, in the case of purely indigenous companies, or on the methods by which non-indigenous companies can be persuaded to invest in the UK, embody original intellectual property in the minds of UK employees and deal with the constraints of the US international traffic in arms regulations regime.

Discussion of SMEs quite properly tends to concentrate on increasing their market access. However, in such a debate the industry layer below that of the OEMs but above that of the SMEs tends to be ignored. This layer, made up of companies that we could call the large sub-prime suppliers, includes companies such as Marshall Aerospace and Defence Group, Cobham, Meggitt, Ultra Electronics and Martin-Baker, most of which are completely British; the value they generate flows directly into the British economy and the Exchequer.

I acknowledge that many of these companies have particularly strong positions in defence aerospace, but I will be asking shortly whether we are right to think of the defence and civil markets in such distinct compartments. Any serious analysis of the future of the UK aerospace industry should take account of the large sub-prime suppliers and their contribution to the UK economy, national security and prosperity as well as to innovation, skills and training. Are we focusing sufficiently on the large sub-prime businesses in the AGP strategy?

We must also ask whether the British supply chain is sufficiently robust. Monday’s Financial Times reported that there were concerns about the ability of the UK supply chain to cope with the rapid upturn in orders. Industry chief executives have expressed concern to me about the lack of ambition of some of their suppliers, which are content to remain static but are risking stagnation or worse through an absence of plans for growth. Others have expressed concerns about the stability of small suppliers and said that they are forced to use two different suppliers for the same component to ensure stability of deliveries—and that second supplier is generally not a British one. There may be a need to provide not just finance to the smaller SMEs, as the AGP promises, but management consultancy on growth strategies and possible consolidation with other suppliers. I suspect more active intervention in the supply chain will be needed. Will the Minister consider that?

Is it right to limit the scope of the AGP’s work to the civil aerospace market? I ask because I am sure the linkages with defence aerospace, and space in particular, should be more explicit. Indeed, the Office for National Statistics classifies activity in this area as

“manufacture of air and spacecraft and related machinery”.

The Library briefing note reminds us that support for the sector from successive Governments owes much to the need to sustain the defence aerospace sector.

The AGP could learn directly from the Defence Growth Partnership, too. As noted in “Delivering Growth”, recently published by the DGP, the UK’s defence value chain comprises all suppliers of equipment, support and technology for defence, including defence aerospace, and includes the enabling functions of Government, ranging from test facilities to regulators, and the UK’s strong academic and science base in universities, research bodies and technical institutes. This is a profoundly capable resource, but a diverse one.

The DGP intends to harness the power of the value chain in a more co-ordinated way, to enhance responsiveness, agility and competitiveness in meeting customer needs. In addition to leveraging the existing value chain, it aims to maximise the synergies with other sectors and attract new companies into defence—particularly SMEs that can bring fresh thinking into the sector, but might otherwise struggle with market access. This is the kind of approach that we see in all industrial strategies, but I do not see it in the AGP.

In the 2010 Select Committee report, we looked at defence research and expressed concern about the sharp reductions being planned by the last Government, concluding that

“If we are looking at developing UK national capabilities for future defence requirements, it is self evident that if there is less being spent on research and technology now, we will have less UK capability in future.”

We also stated:

“While defence research is primarily the responsibility of the Ministry of Defence it is important that the Government acknowledges the fact that defence research has an impact on other areas of R&D, especially other high-tech industries. The Department for Business, Innovation and Skills should be involved in any discussions about funding for defence research to ensure that the impact of any reductions on advanced manufacturing industries is minimised.”

As Minister with responsibility for defence equipment, I was proud to put a floor under the Department’s spending on science and technology and prevent any further cuts, but our spending on defence S and T remains far too low.

In defence aerospace, much of the activity will have a direct read-across to the civil sector, particularly, for example, when it comes to sustaining relevant skills and fostering innovation. The rigid policy separation between defence and civil markets owes much to departmental boundaries, but also to a disappointing sense that promoting defence is not quite as acceptable as promoting civil aerospace. No such concerns cloud the minds of US policy makers and Boeing is again the beneficiary. It is time we grew up and joined up the parts of aerospace more convincingly.

That leads me to my final comments on the importance of sustaining the engineering skills of the aerospace sector. This was one of the most compelling sections of the 2010 BIS report and, more than four years on, there is not a word I would alter. “Lifting Off” gives a graphic account of the skills shortages and the demographic problems facing the sector. However, what I find profoundly disappointing is the apparent lack of acknowledgment that these are the problems of the wider engineering sector, too. Yes, the strategy outlines actions of Government and industry to address the issue—I welcome unreservedly the 500 masters-level postgraduate places announced in the scheme and the development of high quality, employer-led apprenticeships—but as EngineeringUK says, the UK, at all levels of education, does not have either the current capacity or the rate of growth needed to meet the forecast demand for skilled engineers by 2020.

The Royal Academy of Engineering and EngineeringUK estimate that by 2020 in the UK there will be demand for between 1.28 million and 1.86 million engineers and technicians. Approximately 640,000 graduate engineers will be required by 2020 across all sectors of the economy. Seven out of 10 jobs will be to replace the ageing work force. UK higher education institutions currently produce only 21,000 engineering graduates and UK industry creates only 66,000 engineering apprenticeships each year.

Against that background, it is profoundly worrying that each of the published industrial strategies, including the AGP, seem to regard skills in their sectors in isolation. The progress report on the AGP this year speaks of

“improving the image of the”

aerospace

“sector to make it a more attractive career choice”.

Companies have briefed me proudly on their own contribution to solving the aerospace skills shortage, but the Government and the Royal Academy urgently need to work for consolidation and co-ordination of the plethora of schemes, to build a coherent, comprehensive cross-engineering approach.

[Gordon Birtwistle]

Does my hon. Friend agree that the first step in encouraging young people to go into apprenticeships and engineering is careers advice at school, which is sadly lacking? At the moment, careers advice is normally given by a teacher who has only ever been a teacher and all they want is for young people to go on to university and further education. Engineering desperately needs young people to go into the craft skills, so it can carry on building the products of the future that this country is famous for.

[Sir Peter Luff]

I could not agree more profoundly or absolutely. My hon. Friend is right. One of the great disappointments of recent years is the decline in the quality of careers guidance in schools. The engineering profession is seeking to address that through a number of initiatives, but the industry should not be required to do that. The Government should understand the importance of this crucial part of the education process.

What worries me is that the Government contribute to the plethora of schemes, sponsoring small and particular solutions to problems that are probably designed to give Ministers announcements to make and sound bites to hide behind in debates such as these. It is time to concentrate on the big schemes that the Government fund, such as the excellent STEM—science, technology, engineering and mathematics—ambassador scheme.

I commend the major companies such as Rolls Royce and Airbus, which demonstrate a commitment to work with existing nationwide schemes—for example, encouraging their staff to become STEM ambassadors. Will the Minister take this opportunity to give his support to STEM ambassadors? In the detail of the AGP’s skills work there is much to applaud, but the micro solutions will work only if the macro issue is addressed: how to make all forms of engineering attractive to young people.

I still regard the looming engineering skills shortage as the single biggest avoidable threat to Britain’s prosperity and security. One way to help address it is to ensure that all industrial strategies, including this one, join up in a big picture approach so that each of them does not just go its own sweet way. It was good news that this summer saw the largest STEM outreach of the aerospace sector during “Futures Day”, on the Friday of the Farnborough International Airshow. More than 7,500 11 to 21-year-olds visited the air show for a hands-on programme of activity designed to enthuse them about the many opportunities in the aerospace sector. A poll by ADS of 150 aerospace MSc students found that one in five were inspired to pursue an aerospace career because of a visit to an air show, so “Futures Day” offered a unique opportunity to inspire the next generation. However, we must always recall that the future of aerospace in the UK is, in Airbus’s words,

“ultimately dependent on the availability of high-calibre scientists, mathematicians and engineers willing to enter the aerospace industry.”

Finally, is the momentum being generated capable of being sustained? Our competitors are snapping at our heels and staying ahead in this particular global race will require every ounce of exertion by both Government and industry. The future is bright, but only if we work to make it so.

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[Mr Iain Wright (Hartlepool) (Lab)]

May I begin, Mr Hollobone, by saying what a pleasure it is to serve under your chairmanship again? I also want to thank the hon. Member for Mid Worcestershire (Sir Peter Luff) for securing the debate and for advancing his argument in such a characteristically persuasive and courteous, although on this occasion very quiet, manner. I hope that his voice returns soon. I have said it before, but it bears repeating: I am sorry to see him leave the House, especially given the work he has been doing on raising the status of engineering in this country. He leaves a good body of work and I am sure that it will continue outside the House. He will be missed, certainly by the Opposition, for the work that he has done.

As this is the first time I have debated with the new Minister, I want to welcome him to his post. Since he obtained his red box, he has aged about 35 years, so the Government must be working him far too hard. I am pleased that he has been given specific responsibility for the life sciences sector, and I hope that we can soon debate the future of that vital industrial sector, too.

We have had a good debate about the future of the UK aerospace industry, which, as has been said many times, is a remarkable success story. Indeed, it is the very model of what a successful modern industrial sector in the UK in the 21st century should look like: high value added, with a focus on design, manufacturing, production, maintenance, innovation and excellence, as well as a relentless drive in the global export market, providing highly skilled and well-paid jobs and enjoying a long-term, collaborative approach between industry, Government, employees and research institutions.

Over the summer, I was privileged to visit the design team and view the manufacture of the A400M at Airbus in Filton. I have been to Marshall of Cambridge, which is one of only 15 companies out of a total global supply chain of 23,000 suppliers to be presented with a supplier of the year award in 2014 from Boeing. I also visited Rolls-Royce in Derby and the manufacturing technology centre in Anstey to see how innovation and collaboration between industry, research institutions and Government is ensuring that British industry retains its competitive edge.

The aerospace industry is vital to the UK economy, and, as the hon. Member for Strangford (Jim Shannon) said, this country should rightly be proud of it. It is worth noting that the UK aerospace industry grew on average by over 7% each year since 2008. Bearing in mind where we were in 2008, with the global financial recession and the drying up of credit across the world, that is a remarkable achievement. One reason for that, apart from the technical brilliance, drive and entrepreneurialism within the industry, is long-term collaboration between Government and industry. The aerospace industrial strategy, set up by the previous Labour Government and, thankfully, continued under the current Administration, has provided the industry with long-term certainty to plan and invest in Britain with confidence. Labour remains determined to ensure that the UK maintains its position as Europe’s No. 1 aerospace manufacturer, and that Britain remains second only to the US on the global stage.

We are well placed to capture a sizeable part of future growth in the industry. As has been said today, it has been estimated that, by 2032, more than 29,000 new civil airliners will be required, with a value of almost $4 trillion. As the hon. Member for Mid Worcestershire said, according to the data released by the trade association ADS last week, the largest ever month-on-month increase in the industry’s order book will bring it to about 12,000 aircraft and 21,000 engines in total, worth between £135 billion and £155 billion to the UK economy in the next nine years.

Labour Members welcome that and we will actively look to capture greater market share in a growing industry, although, as has been acknowledged today, that will be difficult, given the rapid pace of innovation and technological progress, the intensifying competition and the determination of other nations to secure a firm foothold in a high-value, lucrative and prestigious sector. In direct response to what the hon. Gentleman was asking me, that is why the next Labour Government will prioritise the aerospace industrial strategy as a vital sector. We will maintain the Aerospace Growth Partnership and the Aerospace Technology Institute, and we will emphasise the importance of long-term policy stability to allow the industry to soar ever higher.

A number of issues need to be addressed—many have been aired today—in order to ensure that the ambition for the industry is realised. I was particularly pleased to hear what my hon. Friend the Member for Alyn and Deeside (Mark Tami) said about the importance of the supply chain, because he is absolutely right. It is key that the supply chain is aligned with what the primes require to maintain competitiveness and technological innovation. No one wants to see work leak away from our shores, costing jobs and industrial capability, because of an un-coordinated, uncompetitive or unresponsive supply chain.

The hon. Member for Mid Worcestershire, in his opening remarks, mentioned the report in yesterday’s Financial Times. It is worth the Minister having a look at the report, which questioned the industry’s supply chain capacity to deliver the backlog of orders, especially when combined with the simultaneous emergence of new product development lines. Geoff Ford, who runs Ford Aerospace in my region of the north-east—I have been to see his factory—stated in that Financial Times report that the backlog of orders should give the suppliers the confidence to expand and to increase capacity. He said:

“If we don’t do that we’ll lose out to other countries.”

He is absolutely right.

What is the Minister doing to ensure that British-based companies in the aerospace supply chain are geared up to take advantage of the industry’s great order book? Not only is capacity important, but so is ensuring that technological advances and product development cascade through the primes and into the supply chain. The role of a proper, co-ordinated industrial strategy is crucial. If industry states that composites will be used more in future at the expense of metals, how are the supply chain companies being assisted to make the investments needed, not only to grow capacity, but to stay relevant to the primes’ modern production requirements? What are the Government doing to assist?

Access to finance has not been mentioned as much as I thought it would in the debate, but it is equally crucial, especially in the aerospace supply chain. The nature of the industry means that up-front capital expenditure is often required with long pay-back times. Supply chain work might move from Britain if British companies do not have access to the finance necessary to invest and compete. Will the Minister update the House about progress on the supply chain finance forum set up by the AGP? What tangible improvements have been seen? How many companies have received access to finance for up-front investment costs? Similarly, will the Minister let us know how many companies have benefited from and actually received the cash from the National Aerospace Technology Exploitation Programme since its launch?

In connection with the importance of the aerospace industry, I think about the three S’s: supply chain, skills and certainty. I have already mentioned certainty and the supply chain, but I must make a point about skills as well. Skills are the means by which the industry will maintain its competitive edge. The work force is ageing and, traditionally, the sector has not provided as many apprenticeships as other comparable sectors have done, although that is now changing. There is a need to increase the industry’s capabilities in certain skills and trades. Many companies carry vacancies that cannot be filled because of a lack of suitable skills. Unless that problem is addressed urgently, activity will move away from the UK, because of a lack of suitable skills.

Is the AGP going as far as it can to identify the specific crafts and skills necessary to enable the UK to maintain its comparative advantage? For example, the AGP has introduced standards for an aerospace manufacturing fitter role, and something similar for electrical fitters and machinists is being developed. What other trades are being considered? That is important and would show the benefits of a proper, co-ordinated industrial strategy.

[Gordon Birtwistle]

I agree with the shadow Minister. The craft parts of the industry are critical. Plenty of young people wish to be involved in design and the high-tech part, but the craft side is critical. Does he agree with me and with the big companies such as Rolls-Royce, BAE Systems and Airbus, which are now training more than the necessary number of apprentices? For the benefit of its supply chain, Rolls-Royce took on double the number of apprentices that it needs. Does he agree that some of the bigger companies should be getting on board and doing that for the smaller companies in the supply chain?

[Mr Wright]

The hon. Gentleman is right, and that model works well for the aerospace industry. I certainly want to see that encouraged, because an oversupply of apprentices then cascaded down through the supply chain reassures the primes about quality. It can be a means by which the whole competitiveness of the sector can be maintained and something that we should certainly encourage.

Health

Gordon Birtwistle Excerpts

Monday 9th June 2014 Commons Chamber

[Gordon Birtwistle (Burnley) (LD)]

The health service is very close to everyone’s hearts, and there are a lot of political gains to be made from it. I have to say that, as the Member of Parliament for Burnley, my election chances were boosted when Labour’s Secretary of State closed down our A and E unit. I am delighted to say that the coalition Government have now delivered us a brand new emergency centre in Burnley, which shows that the coalition Government have delivered good things, especially for the people of Burnley.

There is one issue that I really want to talk about today. I have been a councillor for 31 years—I stood for election only last month and increased my majority over Labour in my ward—and the issue that has become very close to my heart is the care of elderly people. I am talking about elderly people who are on their own. People from companies call on them in the morning to get them out of bed. They stay for 10 minutes to make sure they are up and have had some breakfast. They then come back at lunchtime to make sure they have eaten some lunch, and then again in the afternoon to make sure they have had their tea. They come back in the evening. As one elderly man said to me, “They come back at 8 o’clock and tell me to get ready for bed.” He said, “I don’t want to go to bed at 8 o’clock in the evening. I am 87 years old. I fought for this country, and now they are telling me that I have to go to bed at 8 o’clock. I don’t want to do that.” What he wants is for someone to come and see him in the morning and talk to him. He is housebound, and he does not have a family. He is not the only one in that situation. There are many more like him in Burnley.

We are a poor town and people cannot afford to pay for private services. These people want to talk to somebody in the morning when they get up; they want a bit of conversation. They do not want staff running in with their meals-on-wheels food in a foil container saying, “We’ll come back and see you later.” They want to talk to someone. They want to know that there is somebody who cares for them; somebody who is interested in listening to them. This elderly man has some fantastic stories about his life; I have seen him many times. When the staff come back in the evening, he is not asking them to stay all night. He is asking them to show a little bit of interest in him, and he certainly does not want to go to bed at 8 o’clock at night. He has never gone to bed at that time and for someone to tell him that he has to do so, “or he’ll be on his own” is wrong. I am not being political here. All I am saying is that we should care more for the elderly people of this country. I am talking not about people who are in their 60s, but about people who are in their 80s and 90s who, unfortunately, have been left on their own. They might be elderly ladies whose husbands have died. These are people who have worked for this country all their lives and fought for this country, and are now, certainly in my constituency anyway, being left alone. I find that hard to accept. I might be unusual. There might be people who think it is tough and bad luck, but I do not think that. We should be looking after these people and showing them some compassion. We are a wealthy country. Apparently, we are the fourth or fifth wealthiest country in the world, and the contribution that these people have made over their lives has helped to put us in that position.

Burnley is an industrial town; we had the pits and the mills. Now we have high-tech industry where young people work and create wealth. Fortunately these days, they are able to put something aside for their pension, which will help to look after them in their old age. The elderly people from the ‘70s, ‘80s and ‘90s could not do that; they were on poor salaries. In the main, the wives did not work. My mother never worked. My father brought up our family, and my mother never worked. All right, my mother and father are dead, but there are still people around who were in the same position. Many have lost a partner and in the main their children are out of the area, and they need us to care for them. Is it a lot to ask for someone to turn up and say, “Hello, Mr Jones. How are you?”

[Lyn Brown]

The whole House is listening very quietly to what the hon. Gentleman is saying because it resonates. My father is 87. He pays for carers to come in from an agency. What has upset us is the fact that his life savings are paying the wages of people who drive Lamborghinis, who employ people on the minimum wage and who provide very poor care to the people the hon. Gentleman is talking about. This Government need to act to ensure that the care offered to our people, which they pay for out of their meagre savings, is of the quality that they deserve.

--- Later in debate ---

[Gordon Birtwistle]

I am grateful to the hon. Lady for her intervention. I do not know of a company that delivers services in Burnley that has an owner who drives a Lamborghini. In fact, I do not know anyone in my neck of the woods who has a Lamborghini. I do not know many people who can spell the word Lamborghini. At the end of the day, the hon. Lady is right: there are companies that are taking money, particularly from the state, and giving a very poor service. I do not want this to be a political point. What I want is to plead with the Minister and with the people in control—I am not in control, so I cannot deliver this—and say that we are living in an age where people are getting old and need looking after. Why can we not do a little bit more to look after these people? The people who get the sums of money to deliver this service should be a little bit more considerate and compassionate. They should not just walk through the door with a metal tray with a bit of food on that no one wants to eat, because it does not feel like the proper food they used to eat. Can we not just do a little bit more?

My message today is: can we do a bit more for our old people—the people who have put us where we are today, who have delivered the prosperity of this country over the years; and who have fought for us in wars? Can we not show them a bit more consideration? If those companies with Lamborghinis exist, can we lean on some of them to train people properly to ensure that they have a bit more compassion?

[Paul Burstow (Sutton and Cheam) (LD)]

I hope my hon. Friend will forgive me for turning my back to him, but I want to tell him through the Chair that one of the places that is trying to do what he is talking about, and which I visited recently, is Wiltshire, which is using its relationships with contractors to drive out 15-minute contracting and drive up training standards, which is making a difference. That is happening now, and it needs to happen in more places.

[Gordon Birtwistle]

I am delighted to hear that, and I would like Wiltshire to become a standard that everyone else copies. I would hope that my constituency and the rest of Lancashire copies that. There are great companies—I know a few good companies that really care about the customer. These elderly people are customers: if Tesco treated people like some of those carers, they would shop somewhere else. Unfortunately, elderly people cannot go anywhere else, because a contract has been organised, and they have to use it. I urge the Minister to consider those suggestions and look at ways of improving the service that we deliver to our old people. I would be very happy if he did so, and I am sure that he would be too.

[The Minister of State, Department of Health (Norman Lamb)]

I completely agree with what my hon. Friend is trying to achieve. I hope that he is reassured that the Government have effectively introduced compulsory minimum training for all care assistants for the first time. I think he will welcome that.

[Gordon Birtwistle]

I do welcome it, and I am delighted to have heard that. I just hope that we make it a major condition of all Government and local authority contracts that all companies deliver that service to our elderly people. We will all become elderly—I am catching up very quickly—so who knows how soon it will be before someone comes to my house to say, “Gordon, it’s bedtime. It’s 8 o’clock—it’s toilet time.” That’s the worst thing I think I have ever heard—someone coming in and saying that it is toilet time. An old man said to me: “I do not want to go to the toilet, but I am told that it is time to go to the toilet.” It is just not acceptable to do that to an elderly man. I am delighted to hear what the Minister said, and I hope that we ensure that it continues in future so that we really respect and care for the people who have put us where we are today.

NHS

Gordon Birtwistle Excerpts

Wednesday 5th February 2014 Commons Chamber

[Mr Hunt]

As the hon. Gentleman knows, I must follow a strict legal process in relation to such decisions, and we have had an extensive consultation. However, let me say this to him. When he talks to those MPs, he should tell them the facts about the proposals for north-west London which I approved—proposals for three brand-new hospitals in which seven-day working is to be introduced, 24/7 obstetrics, 16/7 paediatrics, seven-day opening of GP’s surgeries, and a range of other services which will help to address precisely the issues raised by the right hon. Member for Leigh in connection with transforming out-of-hospital care, which I support. As a result of those proposals, the services that I have listed will be available in north-west London before they will be available in many other parts of the country. I hope that the hon. Gentleman will inform the MPs whom he is meeting of those important facts.

[Gordon Birtwistle (Burnley) (LD)]

My right hon. Friend may remember that in 2009 the Labour Government transferred an A and E unit from Burnley to Blackburn, some 15 miles away. Last week, we opened the doors of a new emergency facility in Burnley to replace the one that Labour had shipped out. Does my right hon. Friend agree that it is right to invest capital in A and E, and to stop listening to the rubbish that is being spoken by Labour Members?

[Mr Hunt]

I understand my hon. Friend’s frustration. This is the shadow Secretary of State who said that it was irresponsible to maintain the NHS budget at its current levels and who actually believes that it should be cut, and he has stuck to that position. It is not possible to make such investments by following the right hon. Gentleman’s advice.

The right hon. Gentleman talked a great deal about competition, and I am afraid that his comments about that also showed a wilful disregard for the facts. He raised two distinct issues, and he was right to do so, because they are important. The first relates to mergers. NHS hospitals often need to concentrate services for clinical and safety reasons, but the involvement of the Office of Fair Trading and the Competition Commission is not a result of the Health and Social Care Act 2012, as the right hon. Gentleman alleged. As he well knows, it is as a result of powers that they have under Labour’s Enterprise Act 2002. All my Front-Bench colleagues agree with me that we must ensure that when those powers are exercised, they are exercised in a way that is in the best interests of patients. For that reason, I have had useful discussions with both the Competition and Markets Authority—which is replacing the OFT and the Competition Commission—and Monitor about how their respective roles can be clarified.

National Health Service

Gordon Birtwistle Excerpts

Monday 16th July 2012 Commons Chamber

[Andy Burnham]

The hon. Gentleman is making my point; if he was listening to what I said at the start of my speech, he would have heard me say clearly that the £20 billion Nicholson challenge, which I set, was always going to be a mountain to climb for the NHS. Let us be clear that it was. What was unforgiveable was combining that Nicholson challenge with the biggest ever top-down reorganisation in history, when the whole thing was turned upside down, managers were being moved or made redundant and nobody was in charge of the money. That was what was so wrong, and that is what the hon. Gentleman should not be defending if he is defending staff in the NHS.

The third area where we need action from Ministers is on protection for staff. The Deputy Prime Minister said recently:

“There is going to be no regional pay system. That is not going to happen.”

But we heard yesterday that a breakaway group of 19 NHS trusts in the south-west has joined together to drive through regional pay, in open defiance of the Deputy Prime Minister. They are looking at changes to force staff to take a pay cut of 5%; to end overtime payments for working nights, weekends and bank holidays; to reduce holiday time; and to introduce longer shifts. We even hear that if staff will not accept this, they are going to be made redundant and re-employed on the new terms. So let us ask the Secretary of State and the Minister to answer this today: do the Government support regional pay in the NHS and the other moves planned by trusts in the south-west? If they do not, will they today send a clear message to NHS staff in the south-west that they are prepared to overrule NHS managers?

Fourthly, I shall deal with reconfigurations. The House will recall the promise of a moratorium on changes to hospitals and the Prime Minister’s threat of a “bare-knuckle fight” to resist closure plans. In 2010, the Secretary of State set out four tests that all proposed reconfigurations had to pass. They related to support from general practitioners, strengthened public and patient engagement, clear clinical evidence and support for patient choice. He said:

“Without all those elements, reconfigurations cannot proceed.”

So let me ask the Minister: does he think that the A and E units closing at Ealing, Hammersmith, Charing Cross and Central Middlesex pass that test? How about St Helier, King George, Newark and Rugby? Is it not clear to everyone that the Prime Minister’s bare-knuckle fight never materialised? Is it not also clear that no one told the Foreign Secretary, the Work and Pensions Secretary or even the Minister of State, Department of Health, the hon. Member for Sutton and Cheam (Paul Burstow), who is responsible for care and older people and who has launched a campaign against his own Department? What clearer sign could there be of the chaos in the Department of Health and of the chaos engulfing the NHS? Will the Secretary of State now take action to stop reconfigurations on the grounds of cost alone?

That brings me to my fifth and final area for action, which is NHS spending. The coalition agreement said:

“We will guarantee that health spending increases in real terms in each year of the Parliament.”

That is health spending, not the health allocation. Official Government figures show that actual spending has fallen for two years running and the underspend has been clawed back by the Treasury. Of all the promises the coalition has broken, people will surely find that one the hardest to understand given that the Prime Minister appeared on every billboard in the land, on practically every street in the land, promising to do the opposite just two years ago.

[Gordon Birtwistle (Burnley) (LD)]

Will the right hon. Gentleman advise me who he consulted before he closed the A and E unit in Burnley?

[Andy Burnham]

I was prepared to make difficult decisions and be honest about them. I am not proposing the reversal of that decision and I note that clinicians in his area recently said how it had improved outcomes for his constituents. What I will not do—what I will never do—is go to marginal constituencies, as the Secretary of State did, and make false promises that I will reopen such units. The Secretary of State did that before the last election; no wonder he is looking shifty in his seat right now. He went to the hon. Gentleman’s constituency and said that he would reopen that unit. Has he done that? I do not believe that he has.

Health and Social Care Bill

Gordon Birtwistle Excerpts

Tuesday 13th March 2012 Commons Chamber

[Gordon Birtwistle (Burnley) (LD)]

Let me follow on from what the previous speaker said about the legacy of the Labour party by expressing to him my concern about happened to the hospital in my constituency. “We went through the process of meeting patients’ needs.” Well, one would think that if a Government were meeting patients’ needs, they would speak to them to ask what they would actually like. That would be the normal thing to do in meeting patients’ needs: one would want to hear their views. Did the previous Secretary of State speak to the people of Burnley and ask what they wanted within that process? Not a one. Did the previous Government, in their programme to “meet patients’ needs”, ask the GPs what they would like? Not a one.

What did “meeting patient’s needs” mean to the people of Burnley? It meant the closure of our accident and emergency unit and our children’s ward, and their transfer 15 miles away to Blackburn. Hon. Members will recognise from what happened that the strategic health authority and the primary care trust, which made those decisions after taking advice from a gentleman called Sir George Alberti—hon. Members will also recognise from the name that he is not well known in Burnley—did not understand what the people of Burnley wanted. The strategic health authority and primary care trust transferred our A and E unit, which supported 250,000 people, if we include Pendle and Rossendale, and a children’s ward supporting the same number of people, to Blackburn, without one comment accepted from the people in my constituency. That was an outrage.

We campaigned vigorously to get that stopped. I held a march of more than 1,000 people through Burnley. What happened? Our local MP at the time—hon. Members will probably notice that after 77 years, the colour of the MP in Burnley has changed, and it has changed because of this—[Interruption.] A lot longer than you think. What happened then was that our MP was glad to support a change that meant taking a vital service from our town and relocating it 15 miles away. People were having to travel 15 miles to Blackburn after having heart attacks or suffering major trauma in car crashes. An example of a lady—[Interruption.] If the hon. Member for Kingston upon Hull East (Karl Turner) wants to ask me a question and apologise for what Labour did, I am happy to take it. No? Fine. One lady had a car crash in the Burnley hospital car park—her foot slipped off the pedal and she crashed her car. She was in sight of the urgent care centre that we have now—an excuse for an A and E unit. What did they do? They did not treat her within 100 yards of the accident; they brought an ambulance all the way from Blackburn to take her there and sort out her problem.

Are Labour Members telling me that that is really good, when there is a chance that in future the people of our town will be able to have a say in what they want? Decisions about the health service will be taken by the GPs and the people they represent. If I have a problem I will go and talk to my GP. I cannot talk to the PCT, and I certainly cannot talk to the SHA, which sits in its landed glory in the centre of Manchester, so what is wrong with the Bill? We cannot allow what has been happening to continue, so I disagree with my hon. Friends down here below the Gangway. We cannot delay; we need to get on with it. We need to sort out the problems that we have. We cannot continue with what we have now.

There is a young lady called Rachel living in my constituency who suffers from myalgic encephalopathy, or ME. She has a friend in Blackburn who has the same problem. The friend in Blackburn was given treatment by the PCT, because it was a decent PCT. When Rachel asked the PCT that represents Burnley for the same treatment to help her, she was turned down—for £3,000. I went with her husband and her parents to speak to the people at the PCT and beg them to fund her treatment—I even had a letter from her doctor—yet the two ladies we spoke to cruelly turned us down. Her doctor was keen to do it; he will still do it in Rachel’s case. I support the Bill; let us get on with it.

Manufacturing

Gordon Birtwistle Excerpts

Thursday 24th November 2011 Commons Chamber

[Guy Opperman]

It is, indeed, flushed with success, as my hon. Friend so ably quips from the sidelines—as always, he is on the money. The wood pulp goes in at one end of the factory and paper products come out at the other. The machinery is highly technical; this is modern manufacturing in the modern age.

In this time of austerity, I am extremely proud that the north-east has a positive balance of trade and is the only region consistently to do so. We should trumpet the fact that the North East chamber of commerce is the only regional chamber of commerce in the country. It represents more than 4,000 businesses and covers more than 30% of the region’s work force. If I had to single out one local concern that it has highlighted to me from the multitude of things it would like to be done, it would be to urge the Minister to conduct the review that it is hoped will be undertaken of the planned carbon floor price and other climate change and energy-related matters.

How are we to address the manufacturing deficit? I have three main suggestions. First, we need a Minister for manufacturing. That is not to decry the efforts of the Minister with responsibility for business or the Business Secretary, both of whom are worthy men, or those of any parties in that Department. However, the fact remains that, according to the House of Commons Library, there has not been a Minister for manufacturing since 1945.

[Gordon Birtwistle (Burnley) (LD)]

In my constituency, I get a lot of requests from local manufacturing companies for advice on various issues, mainly in relation to exports and where to go for help with them. Does my hon. Friend agree that a Minister with responsibility specifically for manufacturing would be a major asset to the Government and the manufacturers of this country? Businesses would be able to go directly to the person who could give them the answer they required rather than having to go through myriad Departments. People get lost in that process—even Ministers sometimes, I imagine—and if we had someone who could be accessed directly and who reported directly to the Prime Minister, that would be a major asset to the Government.

[Guy Opperman]

I completely agree. To put it in the vernacular, we need a go-to guy who is the one person looking after manufacturing.

--- Later in debate ---

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

My sincere apologies for arriving two minutes after the hon. Member for Hexham (Guy Opperman) started his speech, but I think I caught the gist of it. We have worked harmoniously in calling for this debate, and I am delighted that we are having it today, and that it is cross-party. The group of us who are associated with the all-party manufacturing group are very pleased about that. My interest in manufacturing has obviously been a total failure. I have been in this House for more than 30 years, and I started the manufacturing group not long after I got into Parliament. Ever since the original all-party manufacturing group started, our manufacturing sector has shrunk and shrunk, under all parties and all Governments.

I represent Huddersfield, the cradle of the industrialisation of our country. Anyone who knows anything about my part of the world will know that even today it is a centre for the highest-quality wool textiles—super-100 and super-110 worsteds and so on. It is also very well known for its engineering, for David Brown gears and many other manufacturing companies, and of course for chemicals, which come from the traditional industry of dyestuffs for textiles.

Huddersfield became an industrial town because of power. The energy coming from the fast-flowing streams from the Pennines—the Holme, the Colne and the Calder—attracted industry because that is what made the mills work. That is how we got industry in our part of the world. It was a manufacturing town. There was not much in Huddersfield; there was the old village of Almondbury, which is a bit of a market town, and an ancient place, but the modern town is 18th and predominantly 19th century. Some 70% of the population would have been in the manufacturing sector. We are now down to about 8.9% manufacturing employment in the constituency, whereas 86.7% of employment is in various forms of services; 33% is in health, education, or working for the local authority. We are lucky to have a large and successful university, Huddersfield university, which is pre-eminent in engineering, textiles and design innovation, but that does not disguise the fact that we are pre-eminently in the service sector; 87% of employment is in services of various kinds. Unemployment is at its highest level since I became a Member of Parliament.

[Gordon Birtwistle]

Does the hon. Gentleman agree that the collapse of manufacturing in Huddersfield, which has gone from 30% or 40% of employment to 8%, is significant given that youth unemployment is so high? Huddersfield’s colleges are training young people to be engineers and manufacturers, yet the collapse of manufacturing industry means that the jobs are not there any more for them to do. Manufacturing has been overtaken by the services sector. Does he agree that it is high time we reversed the trend towards the services sector and returned to a buoyant manufacturing sector, which could employ those young people?

[Mr Sheerman]

I would go 90% of the way with the hon. Gentleman, but I would not accept the word “collapse”, because we still have a vibrant, though much smaller, manufacturing sector in engineering and chemicals. The textiles, engineering and chemicals industries are still there, and have very high productivity, but the capability now is such that we turn out an enormous amount of worsted in a crinkly shed—not one of the magnificent old stone mills—that is working 24/7. I think we underrate the productivity of some of those industries.

I do not want to make Members suicidal, but let us compare the decline of the UK’s manufacturing sector with that of other countries before moving on to something more cheerful. In Great Britain around 8.8% of employment is in manufacturing. Some figures for 2008 indicate 9.8% for manufacturing and 80.8% for services. Things are very similar, if not worse, in the United States, where employment in 2009 was 8.9% in manufacturing and 83.4% in services. The decline of manufacturing in the UK has very much gone in parallel with the experience of the US. By comparison, Germany still has 18.5% in manufacturing and 73% in services, and China has 27.8% in manufacturing and 53% in services.

I want to draw the House’s attention to the UK’s balance of trade, particularly the trade deficit with Germany, which last year was £16.8 billion, and with China, which was £21.6 billion. Whatever is happening today, and despite the depressing interview with Chancellor Merkel last night, which persuaded me that we are on the precipice of a world recession, we must remember that Germany has been very fortunate and that the eurozone has been very kind to German manufacturers over this period. The renminbi, the Chinese currency, which the Chinese conveniently manipulate to give their manufacturing exports every possible advantage, has done the same for China.

I want to dwell on the future and what kind of society we want. It seems to me that we want a wealth-creating society that produces the goods and wealth that can then be shared. Some of us disagree about the levels of individual and corporate taxation, but we all agree that we have to produce the wealth in order to share it, whatever way we choose to do so. I am concerned that if we do not do something in the manufacturing sector we will not have very much to share.

What do we depend on? A core element at every level of activity is the fact that in every facet of human experience success depends on the quality of the people who do the job, their skills and commitment and their desire to do a good job. In the 10 years that I chaired the Education and Skills Committee, that came home time and again. The history of our country is one of clever and skilled people with ingenuity, determination and a hunger to do something. We have had an amazing crop of entrepreneurs. At the heart of our manufacturing problem is the fact that too many people in our country who go to university do not go into manufacturing. I remember walking across the hallowed lawns of Magdalen college with the master some years ago. I asked him whether any of his graduates went into manufacturing or public service. He replied, “Oh no, they all go into the City.” If we continue to make the City and banking the profession of choice, we will be in even more trouble than we are in at the moment.

--- Later in debate ---

[Gordon Birtwistle (Burnley) (LD)]

I congratulate my colleagues who called for this debate and thank the Backbench Business Committee for accepting and giving us a lengthy amount of time for it at short notice.

The future of manufacturing products is inextricably linked to the future of manufacturing growth and wealth. If we have a strong manufacturing sector, we will have a strong economy that will create growth and prosperity for the country.

I have a personal interest in manufacturing. I left school at 15—I did not pass my 11-plus or get any GCSEs—and went to be a craft apprentice at a local company in Accrington that manufactured textile machinery. That was an enthralling event. I had to go to night school three nights a week until I was 25, where I secured two HNCs. Unfortunately, that does not happen any more, but young people go into manufacturing and get other types of education.

[Mr Willetts]

I should like to assure the hon. Gentleman that I meet young people who are doing HNCs and HNDs at their local colleges to be trained to work in British business, including in manufacturing. We should take pride in the fact that people still get those qualifications, which are valued and recognised. Indeed, part of the Department for Business, Innovation and Skills commitment is to continue to recognise those qualifications.

[Gordon Birtwistle]

I am grateful to the Minister for that assurance and I hope that that continues.

When I started in manufacturing some 53 years ago, manufacturing was 40% of the country’s gross domestic product and a balance of payments surplus was delivered every month. What on earth would the Chancellor think of having a constant balance of payments surplus now rather than the negative position we have? As manufacturing was so big, lots of apprenticeships were available through local companies that delivered the products that the country needed. The unemployment rate for young people was very low. When I left school, I applied for many apprenticeships throughout Lancashire. Most young people with whom I went to school achieved an apprenticeship in some industry or other. The vast majority of people in those days did not go to university; many people would have liked to have gone, but they could not, so they spent their time being apprentices and learning skills in the old-fashioned way by making things and having a trade.

I do not want to make this political, but I have to point out that under the last Labour Government, manufacturing fell from 22% to 11%. Even Mrs Thatcher did not achieve such a drop—she only managed to get it from 25% to 21%. Manufacturing has a number of variables to overcome. They include how the industry is perceived by young people, the lack of skills, and the lack of investment and of research and development. One of the biggest challenges to manufacturers in my constituency is finding enough skilled workers to carry out the incredibly technical jobs that are available. More must be done to change the image of industry to make it attractive to young people. I know that those who undertake skilled apprenticeships will end up with great jobs working on interesting projects, earning decent salaries and probably with a job for life.

A lot of damage has been done over the past 10 years to the image of manufacturing and vocational courses. A priority for the Government and for our successful and well-known manufacturers is changing the perception of manufacturing, especially among the young. We have become a country relying on a fragile financial sector and on the service industries. If young people were asked what they thought manufacturing was, they would probably respond that it is dirty and grimy. That is not the case. We need to show young people that there is more to manufacturing—that it is about maths and science, about design and innovation, about robots and computers. Manufacturing and technology in the food industry, for example, are phenomenal. There are so many different areas in the manufacturing sector and they are all innovative and exciting sectors to work in.

Controlling the supply side of our skills deficit is but part of the problem. As important is ensuring that both new entrants and existing employees in manufacturing are sufficiently upskilled to meet the demands of British employers. The preparation work needs to begin in schools. We know, for example, that pupils who take three separate science subjects at GCSE are more likely to study science, technology, engineering and maths later in their educational careers. If we can tackle the problem at source, and improve the rigour of the subjects and the number of pupils studying them, it will have a cumulative impact on the calibre of graduates entering the job market.

[Lorely Burt]

Does my hon. Friend agree that a great way to get youngsters more excited and involved is to have closer collaboration between employers and schools, so that children can see what it is they aspire to do, and therefore choose to take the subjects to which he refers?

[Gordon Birtwistle]

I totally agree with my hon. Friend and I will come on to an initiative in my constituency related to that suggestion.

In my constituency we have Burnley college, a joint FE-HE campus working with local firms to train highly skilled youngsters to be ready for the world of work. We are also getting a university technical college that will bring young people into the industrial life. Burnley college has made huge leaps in changing the perception of manufacturing locally among young people, and if the model the college uses were introduced across the UK, it would go a huge way towards really changing the perception of manufacturing at a national level. More schools and colleges need to start joining up with local businesses to provide youngsters with the knowledge and experience that will help them in the world of work. Too many children do not have any experience of working, or of the personal and other skills required. I will continue to encourage the Government to introduce impartial careers advice from the age of 11. Indeed, we should start careers advice long before young people go to secondary school.

[Graham Evans]

Is the hon. Gentleman aware of the Manufacturing Institute’s Make It campaign, which is specifically designed to enable young people in what used to be year 3—now year 9, I think—to experience as they take their options the delights of working in the manufacturing industry?

[Gordon Birtwistle]

Yes, I am aware of that, and it is a great thing. I encourage the Government to encourage such things, and we should also give careers advice to young people at 11.

Manufacturing must cease being perceived as a career avenue for low achievers, and the Government must work harder to ensure that perception and reality are closely matched. The culture in our schools must change, and the Government can help with that. There is so much emphasis on how many children can get to Oxbridge but there is never a fanfare about how many get on to high-skilled training programmes in the manufacturing industry, such as those with Rolls-Royce, BAE Systems or Aircelle in my constituency. Business must recognise that a new role is emerging, and UK manufacturing must ensure that it sells its career and employment possibilities to young people.

Trade finance also plays a huge role in the export cycle, but small and medium-sized enterprises often find raising the finance overly complex because of the myriad requirements on both financial institutions and Government agencies. The manufacturing industry in Burnley would like the Export Credits Guarantee Department to work more with financial institutions on initiatives to support exporters, particularly small businesses, many of which would love to export but find it difficult. For example, What More, an SME in my constituency that makes plastic buckets, washing-up bowls and lunch boxes that are sold widely in Tesco, is taking on the Chinese. The Chinese used to control that market but the company now exports to 38 countries, including China, and would like to export further afield. What More tells me that with an export credit guarantee it could export to another 25 countries. It employs 160 people and has invested £16 million over the past few years.

It is critical that the Government, as a big purchaser of manufactured goods, buy British-made goods. I was extremely disappointed by the decision on the Thameslink contract. I do not know how it happened. I was not a Member of Parliament during the consultation and quotation on the Thameslink trains but I was concerned that the contract was placed with Germany. I do not understand the European rules but I was extremely concerned. Importing trains when we make our own does not stack up. I am pretty sure that the Germans and the French do not import their trains. They seem to find a way around these rules to ensure that the same does not happen there. Furthermore, a £1 billion order for Chinook helicopters was sent direct to Boeing despite there being a helicopter company in this country with a licence to build Chinooks. That would have saved us £500 million on our balance of payments.

I have a couple of suggestions for the Minister. First, we should return the capital allowances scheme to enable companies to invest and get the capital allowances on the new equipment that they buy. There would be a massive investment in new plant and investment if the capital allowances were returned. Secondly, as my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) said, tax rebates on research and development should be increased in line with the rest of the world and with what is needed in this country.

Future of the NHS

Gordon Birtwistle Excerpts

Monday 9th May 2011 Commons Chamber

[Mr Lansley]

If my hon. Friend will forgive me, I will give way again a little later, but first I want to make a couple of further points.

The House knows of my commitment to the NHS; Opposition Members know of that, too. They know that I have not spent seven and a half years as shadow Secretary and Secretary of State to see the NHS undermined, fragmented or privatised. They know that that was never my intention; it is not my intention. Before the last election, we were absolutely clear that we would protect the NHS, but we are doing more than just protecting it; we are strengthening it. We are enabling clinicians to lead a more integrated, responsive, accountable NHS—not fragmented, not privatised, not based on access to insurance, and not compromising quality for price—and, equally, an NHS that is not run by a top-down, unaccountable bureaucracy, but that is locally led and locally accountable.

As the right hon. Member for Wentworth and Dearne admitted, this is a comprehensive, consistent and coherent vision, and it is an evolution of the better policies of the last 20 years. It was the last Labour Government who introduced patient choice; we will extend it and give patients the information they need to make it work. It was the last Labour Government who introduced practice-based commissioning; we will make it real, with health professionals designing integrated pathways of care with decision-making responsibilities. It was the last Labour Government who introduced foundation trusts; we will deliver on their broken promise to take all NHS trusts to foundation status. It was the last Labour Government who introduced payment by results, but left it half baked, distorting services and hindering joined-up care; we will change it so that it genuinely supports the best care for patients. Of course, it was the last Labour Government who brought the independent sector and competition into the NHS, but we will not follow their lead by giving the independent and private sector providers the opportunity to cherry-pick services and by giving them financial advantages over NHS providers.

[Gordon Birtwistle (Burnley) (LD)]

Will the Secretary of State confirm that the meeting patients needs programme put forward by the previous Government, which closed down many accident and emergency units and many children’s wards, will not happen again under this new regime? Will he confirm that that is because local people and local GPs will be consulted first, as opposed to having the programme driven through with no support and no consultation, as under the previous Government?

[Mr Lansley]

I completely understand and agree with my hon. Friend. I thought it was outrageous for the shadow Secretary of State to say, “Oh, they promised a moratorium and now some closures are taking place.” Why? Because we were left what were, in effect, faits accomplis by the previous Government and it was impossible to change them. [Interruption.] My hon. Friend the Member for Maidstone and The Weald (Mrs Grant) would feel the same as my hon. Friend the Member for Burnley (Gordon Birtwistle).

NHS Reform

Gordon Birtwistle Excerpts

Monday 4th April 2011 Commons Chamber

[Mr Lansley]

The right hon. Lady must know that we continue to have a record number of midwives in training, and that the number of midwives in the health service has continued to increase since the election. In the financial year that is just starting, the number of commissions for training will continue to be at a record level.

[Gordon Birtwistle (Burnley) (LD)]

The Secretary of State is aware that under the Labour Government, accident and emergency and children’s services were transferred from Burnley to Blackburn. The transfer was opposed by the majority of GPs and 95% of the local community. It was supported only by the bureaucrats in the PCT and the SHA and by prima donna consultants. Will the Secretary of State confirm that under his new proposals that will never happen again and that such decisions will be taken only following full consultation and agreement with GPs and local communities, rather than being driven through as they were by the previous Government?

[Mr Lansley]

I am grateful to my hon. Friend. In Burnley and other places—I think not least of Maidstone—decisions were made in the past, under a Labour Government, that clearly did not meet the tests that we now apply, which are about public engagement, the support of the local authority, engagement with general practices leading commissioning, the clinical case and the responsiveness to patient choice. Those tests will be met in future. As we go through the painful process of examining how they are applied to the situations that we have inherited, on occasion we can say things to help colleagues, but sometimes we cannot.

Health and Social Care Bill

Gordon Birtwistle Excerpts

Monday 31st January 2011 Commons Chamber

[John Healey]

We operated an NHS with a set tariff, not a maximum tariff. In government, we operated an NHS in which price could not be the factor that drove decisions about what services patients received and by whom they were provided. My right hon. Friend the Member for South Shields is absolutely right to point out that the Bill will introduce price competition and the flexing of the price so that there is no longer a set tariff for treatments and patients but a maximum price that can be undercut by providers coming into the field. The Government will not talk about that.

The Prime Minister is not helping the Health Secretary, because the changes the Bill makes were not in his election manifesto, not on his election posters and not in his election speeches. I have the Conservative manifesto here. There is no mention of axing all limits on NHS hospitals treating private patients, so that NHS patients lose out; no talk or mention of undercutting on price, so that established NHS services are hit as new private companies cherry-pick easier patients and services; no mention of guaranteeing only selective hospital services, so that others can be closed and lost to local people without public consultation; and no mention of putting a new market regulator at the heart of the NHS with the principal job of promoting and enforcing competition. There is no mention in the Conservative manifesto of the biggest reorganisation of the NHS since it was set up more than 60 years ago. They did not tell people about their plans before the election and they promised not to introduce such measures in the coalition agreement after the election. There is no mandate from the election or the coalition agreement for this fundamental and far-reaching reorganisation. That is not a debating point, but a point of democratic principle.

[Gordon Birtwistle (Burnley) (LD)]

I do not remember in the 2005 Labour party manifesto the “Meeting Patients’ Needs” programme that closed the A and E unit and the children’s ward in Burnley. Do not start getting on to us about what we are and are not closing. The right hon. Gentleman closed those things. Does he agree that what he did was a disgrace to the people of Burnley?

[John Healey]

May I urge the hon. Gentleman to look very closely at the Bill and beyond what he hears the Health Secretary say when he talks about it? I urge him instead to look at how local hospitals could be undercut by private health companies, and at how GPs could be forced to put out work to those companies. That will undermine local hospitals such as the one in Burnley and lead to hospital closures driven not by proper planning and the development of better services in the community, but by hospitals being driven to the point of bankruptcy and closure.

--- Later in debate ---

[Gordon Birtwistle (Burnley) (LD)]

I shall support the Bill, because it will mean an end to the disruption and devastation of local hospital services owing to overpaid, faceless bureaucrats in palatial offices many miles from people’s local hospitals deciding that a particular service is no longer needed or is better off elsewhere. The Bill’s local democratic legitimacy policy strives to ensure that decisions on serious hospital reconfigurations never again ride roughshod over the wishes of the local community.

[Rosie Cooper (West Lancashire) (Lab)]

When I asked the Secretary of State who would make the decision if the consortium and the health and wellbeing board disagreed on the reconfiguration of hospitals, he said the reconfiguration panel as it exists today—no difference.

--- Later in debate ---

[Gordon Birtwistle]

I am pleased that the reconfiguration board is now studying a decision that the previous Government made to close my local hospital’s children’s ward. The Secretary of State is due to rule on that shortly.

A prime example of the authoritarian nature of primary care trusts can be seen in my constituency. Without proper consultation, we have seen our accident and emergency department closed and our children’s ward transferred to Blackburn. My constituency is seriously deprived, and the decisions made by managers in Manchester have had a disastrous effect on the health and well-being of thousands of my constituents, many being seriously ill children. The proposals before us will ensure that, for the first time, commissioners and all providers of NHS-funded services have to consult the local authority on the proposed substantial reconfiguration of designated services. In my eyes, that can only be a good thing.

I want to bring to the House’s notice a young man called Logan Cockroft, who lives in my constituency. He has cerebral palsy, and he cannot speak or walk. The only thing that Logan can do is smile. His parents live near Burnley general hospital; they moved there because of Logan’s illness. He made many visits to the hospital because of his illness, the nurses knew him, and he was happy to go there. Logan seemed intent on smothering himself with a pillow, so the nurses at Burnley hospital kept a close eye on him and put him close to the nurses’ station. The family were happy with the treatment that Logan received. Unfortunately, under their meeting patient needs programmes, the previous Government closed down our children’s ward. Logan now has to go to Blackburn. The nurses on the children’s ward in Blackburn do not know Logan. They do not know about Logan’s problems.

[Helen Jones (Warrington North) (Lab)]

The Bill allows private providers to undercut the NHS. What would the hon. Gentleman’s reaction be if an NHS service in his constituency disappeared because it had been undercut by a private provider?

[Gordon Birtwistle]

The service was removed by the hon. Lady’s Government, so I do not need to worry too much about private services.

As I said, Logan has those problems. When he is in Blackburn, his parents are extremely concerned about the care that he is receiving—not because the care is poor, but because staff there are seriously stretched. An attempt has been made to put the children’s ward in Burnley into the children’s ward in Blackburn, which was already overloaded, and the staff cannot manage. That cannot be right and it would not have happened if the PCT had contacted the people of Burnley, who have signed a 25,000-name petition against the move. Almost every GP is against the move, and the people of Burnley are unanimously against it. The move would not have happened under the new system that we are setting up.

The bureaucrats in Manchester tell me that the reconfiguration is not about money but about what is best for Burnley. I tell them that their unfounded interference will result in deaths. Nobody in my constituency wanted the A and E or children’s wards to close; they were a valued service. The Bill will strengthen democratic involvement by ensuring that the full council decides on whether to refer proposals to the NHS commissioning board or the Secretary of State. The people of Burnley had no say at all in what happened to our children’s ward. The Bill will strengthen the important function of scrutiny and recognise the new enhanced leadership of local authorities in health and social care.

It is about time—[Interruption.] I have been here only six months; if Labour Members cannot win, they start arguing, don’t they? But they never stand up and say anything fruitful.

It is about time that measures were put in place to strengthen the role of local authorities and the involvement of democratically elected representatives. That is how there will be representation. We will have somebody to listen to us who has been democratically elected. I have met no one in Burnley who found anybody in the primary care trust or the palatial offices of the strategic health authority in Manchester to speak to about the closure of the children’s ward. Now the people’s voices will be heard.

I am particularly pleased that the Government recognise that district councils have an important role to play in shaping our local hospitals. I hope that the proposed health and wellbeing boards take into account the recommendations of local hospitals and listen to patients. I trust GPs in Burnley to make the right call about our hospital. I only wish that these measures had been in place before the previous Administration reduced services at Burnley general hospital to the point of non-existence.

I welcome these radical changes. Local democratic legitimacy in decision making about our hospitals is desperately needed. It is time that we gave power back to the people.

Oral Answers to Questions

Gordon Birtwistle Excerpts

Tuesday 25th January 2011 Commons Chamber

[Gordon Birtwistle (Burnley) (LD)]

The College of Emergency Medicine recently stated that if a hospital A and E unit is to be downgraded to an urgent care centre, the nearest A and E unit should be no more than 12 miles away. Will the Secretary of State revisit the cases of A and E units that were recently downgraded by the previous Government to urgent care centres when the nearest A and E unit is more than 12 miles away?

[Mr Lansley]

Yes. My hon. Friend makes a very important point. I promise I will discuss with John Heyworth of the College of Emergency Medicine precisely the point that my hon. Friend has raised. The College of Emergency Medicine says that it does not recognise what an urgent care centre is. From its point of view, hospitals should either have an emergency department or an A and E or they should not. If they do not, it is very important to be clear that they do not. I feel that we need to be much clearer about the nature of the service provided in A and E departments and the distinction between that and the service provided in minor injury or minor illness centres.