Leaving the EU: Airbus Risk Assessment

Debate between Greg Clark and Darren Jones

Monday 25th June 2018 Commons Chamber

[Greg Clark]

My right hon. Friend is right that any negotiation of course involves give and take. That is true on both sides, and it is important to remember that these observations have been addressed to the European Union as well as to the UK. My right hon. Friend talks about the time. As I said to the Chairman of the Exiting the European Union Committee, the right hon. Member for Leeds Central (Hilary Benn), now is the time when we are moving on from discussing the terms of our withdrawal to what our future economic partnership looks like. This is precisely the time at which we will set out and agree, I hope, a long-term future in which Airbus and many other companies can prosper.

[Darren Jones (Bristol North West) (Lab)]

Airbus and its supply chain are significant employers in north Bristol, so will the Secretary of State set out what assessment his Department has made of the number of jobs that need to be put at risk, the number of families’ lives that need to be devastated and the amount of damage that needs to be done to British industry before the threshold is met for the definition of a duff deal on Brexit, and will he at that stage join me and others in calling for a people’s vote?

[Greg Clark]

I think the hon. Gentleman would be more productive if he engaged with the substance of the negotiation. We are leaving the European Union, and what is required is to reach an agreement that avoids frictions and tariffs. It is perfectly possible to agree such an accord with the European Union. That is our purpose, and we will faithfully implement it.

GKN

Debate between Greg Clark and Darren Jones

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

My hon. Friend puts it well and succinctly. Any takeover bid will obviously involve some anxiety for employees with long service, but whether or not the bid had succeeded, this was always going to be a period of change for GKN employees. As a result of the commitments that have been given, they can have more certainty about a confident future than would otherwise have been the case.

[Darren Jones (Bristol North West) (Lab)]

In the Secretary of State’s previous statement on this issue I asked two questions: whether the Government would ask Melrose for a commitment to the aerospace division of longer than five years, based on advice both from key customers and other stakeholders; and whether the Government would have a conversation with Airbus about the consequences of a short-term commitment of five years? Will the Secretary of State confirm to the House whether he asked Melrose for a commitment of longer than five years and whether he had a conversation with Airbus? If not, why not?

[Greg Clark]

On the hon. Gentleman’s first point, the commitment to five years is the longest that has ever been given and was not something that Melrose was willing to offer the Business, Energy and Industrial Strategy Committee. In fact, the further undertakings that have been entered into on defence matters, which are of course in the aerospace division, go beyond that period.

I mentioned in reply to my hon. Friend the Member for Redditch (Rachel Maclean) that Airbus’s chief executive has not repeated the reports that were made previously. I have discussed the matter with Melrose and its intention is to develop a relationship that it hopes will prosper in the future.

GKN: Proposed Takeover by Melrose

Debate between Greg Clark and Darren Jones

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

I hope the hon. Gentleman will reflect that this is the first time a set of concerns outside a Secretary of State’s statutory powers has been laid before a bidding company, with the ability to discharge them through legally binding undertakings. I was very clear that section 172 of the Companies Act embodies a range of commitments that go beyond those just to shareholders. I hope the hon. Gentleman would agree that, by taking the action I have, I have reflected the wider concerns that exist.

[Darren Jones (Bristol North West) (Lab)]

Many of my constituents in north Bristol rely on work with GKN and its largest supplier Airbus, including for the A400 military aircraft carrier. Both the Secretary of State and Airbus have said that a short-term approach to ownership is not compatible with the long-term interests of the defence sector, so if the Secretary of State will not intervene in this hostile takeover, will he seek to extend the five-year period, which we have heard is not long enough? In doing so, will he speak with Airbus about what the appropriate length of time should be?