Coty Site (Seaton Delaval)

Ian Lavery Excerpts

Monday 21st January 2019 Commons Chamber

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

I held an Adjournment debate on this subject just over a year ago, when this factory closed. The factory was originally owned by Shulton. It made Old Spice aftershave, which anyone who is as old as me will remember. This was the company that made that product, and still made it up until the factory’s closure. Of course, it went on to make Hugo Boss, which cost about 40 quid a bottle.

The factory closed under poor circumstances. There was a merger: Coty, an American company, had a 48% share and Proctor & Gamble a 52% share. A year after the merger, the factory closed. The company had factories in Spain, France and Germany. It also had a factory in Tipperary in Ireland, which closed along with ours. I believe that it also has one somewhere in Kent—in Ashford, I think.

The owners decided to close down the Seaton Delaval factory, which was making a good profit. Proctor & Gamble had invested £21 million in the new factory. We could not understand why they wanted to close it, until we looked into the deal and found that it was cheaper to sack British workers than it was to sack Spanish, German and French workers. It was down to the capitalist system—that was the way that it worked. The Americans wanted to take over the company and to get rid of some of the competition, and the cheapest one was, unfortunately, Seaton Delaval at that particular time. It was at least 20% more expensive to sack German workers and at least 7% more expensive to sack French workers.

The factory has been standing empty since it closed. I do not know whether it has deteriorated, but I am told that it is still in good shape. Heather Mills, who, as everyone will know, was married to Paul McCartney, is becoming a very decent and entrepreneurial businesswoman. She has already opened a couple of factories: one is in Seaton, producing vegan food. Vegan food might not be appetising to some of us in this Chamber, but it certainly is among the young people. From what I have heard, there are 3.5 million vegans in this country at this moment in time. Of course, that says a lot. Something is clearly going on here, because some of this food is pretty tasty. I have never tasted it, but my hon. Friend the Member for Wansbeck (Ian Lavery) says that he has had one of Greggs’ sausages. I may never have tasted vegan food, but my granddaughter has. She buys it and says it is quite tasty now—not like it used to be in the old days, when it was horrible stuff. Now they put all sorts of spices in, and they do a good job.

Heather Mills wants to expand. She wants to use the Coty factory so that she can export—she has another factory making food for this country. The problem is that the owners are asking a lot of money for the Coty factory and the price is too high. She wants to invest a lot of money in it. The investment needed to get the factory up and running is about £4 million; after fitting it out with all the machinery, we are talking about £6 million. We can see that she needs a lot of money. I do not know what the owners are asking for the factory, but I know it is a lot.

We want to be careful here. I found out that Canada is investing $153 million in vegan food. Remember we have a trade agreement with Canada—well, Europe has. Canada wants to become a world leader in vegan food. If Heather Mills wants to outdo Canada, we need to help her with costs.

The last time I spoke about this here, the Minister who responded was someone who later resigned over Europe—I cannot think of his constituency.

[Ian Lavery (Wansbeck) (Lab)]

It could have been any of them.

[Mr Campbell]

Yes. He has gone, anyway.

--- Later in debate ---

[Ian Lavery]

Will my hon. Friend briefly explain how many jobs could be created, and what that would mean for the economy of south-east Northumberland?

[Mr Campbell]

I am told that the main factory, which is good and has been invested in, would provide from 500 to more than 600 jobs for those preparing the food. As a knock-on, the rest of the factory would be made into start-up businesses. There are five or six small areas for start-up businesses, which is a good idea. I am told that if it takes off, we are talking about over 1,000 jobs. We should think about that venture, because vegan food is taking off. I am delighted to hear about vegan sausages; I must try them, seeing that everybody else has. I must try vegan food—I am sure I will one of these days—but I do not think the Indian restaurant has vegan chefs; that is the problem.

Seaton Delaval went through a bad patch last year when it lost all those jobs, especially the part-time ones. It wants them back. I drive past the factory often, and it is a shame to see that nice factory, which has had a lot of investment put into it, standing empty. I would like to see the Government giving a bit of encouragement and help. If their statement from my previous debate means anything, they should help.