Strikes (Minimum Service Levels) Bill

Ian Lavery Excerpts

Committee stage
Monday 30th January 2023 Commons Chamber

[Angela Rayner]

I absolutely agree with my hon. Friend. We cannot be divorced from the fact that members of the public have seen how this Government have conducted themselves—the sleaze and scandals, the outrageous waste of money, and crashing the economy, of course—while at the same telling the key workers who got us through the pandemic that they have to like it or lump it and suffer the consequences of the Government’s incompetent governance. It does gripe with the general public and they do not accept it.

[Ian Lavery (Wansbeck) (Lab)]

My right hon. Friend is making a really powerful speech. I remind Members that this afternoon the fire and rescue service members in the FBU voted—on a 72% turnout—88% yes to industrial action. They have a huge mandate but, like other trade unions, they are suggesting that there should be 10 days in which the employer can discuss with the unions some sort of resolution to the strike action, by discussing pay and so on. Is that not a far better way to deal with this unrest than trying to implement the most anti-democratic, anti-worker and anti-trade union legislation? I declare an interest and refer to my entry in the Register of Members’ Financial Interests.

[Angela Rayner]

I thank my hon. Friend for that intervention. I think we all have an interest in ensuring that we have good, valuable public services. Like our other key workers, firefighters put in place local agreements to ensure that services continue if life is at risk or there are major incidents. There is not a single firefighter who would not attend a major incident. These are our brave heroes who run towards danger when the rest of us run away. There are also already legal obligations on fire services to provide contingency plans for strike days, dating back to the Civil Contingencies Act 2004. Yet again, we have a Government fixated on creating a problem and trying to fix a problem that does not actually exist, instead of dealing with the problem that they have created—penalising and causing great hardship for our key workers, such as the firemen and women who protect our lives every single day.

Can the Minister promise that we will get separate assessments of the impacts of this legislation on all six of the sectors named? Can he guarantee that there will not be any impact on workforce numbers? Can he guarantee that work notices will not put undue burdens on overworked, under-resourced employers? Can he guarantee that equalities law will be upheld and that these new measures will not be used to discriminate against workers with protected characteristics? I fear we already know the answer to that question.

That brings me to our biggest concern with this Bill: the “sacking key workers” clause—

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[Mr Rees-Mogg]

I think that the Bill should set out clearly what it is trying to achieve, so I will end with an appeal to the other place: I hope that their lordships will look at clause 3 with extreme care, that they will not be abashed by whatever majority comes from this House with respect to the Bill, and that they will amend the Bill to strengthen it, make it more effective and ensure that it achieves its objectives and sets out, in a good and proper constitutional way, what it is trying to achieve. That would be helpful to the Government, but it would also be good practice.

[Ian Lavery]

rose—

[Mr Rees-Mogg]

I should love to give way to the hon. Gentleman, but lots of people want to speak and I have gone on for too long.

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[Dr Mullan]

Perhaps there would not be investigations into some of the historical misconduct in the SNP. We can all throw stones at one another about misconduct. It is not relevant to the debate, but I welcome the hon. Gentleman’s attempt to put me off.

We need balance in society when it comes to the rights of workers, businesses and individual citizens.

[Ian Lavery]

Will the hon. Member give way?

[Dr Mullan]

No, I want to make progress.

Unions have a requirement to represent the specific interests of specific people who pay them to do just that. Union leaders are not invested in the wider interests of society; they are required literally to deliver for the people who pay their subs. I welcome that as an important part of society and how we get good employment law, but it also means that unions are not a benevolent part of the discussion about businesses, society and the economy. They all have interests and they represent those interests. If that is given too much weight, they can hold a business or public service in a fixed point in time, unable to change and move with the times. It is no different from the battle we fought with the luddites. If unions were around at the time of the luddites, I guarantee that they would have been the first to say, “Destroy the machines; get rid of them; we don’t want them!” They will only ever look after the short-term interests of the people they represent. That is not what we as a Government should look at.

To paint these things as black and white is a gross oversimplification of a complex balancing act. Opposition Members try to make out that we on the Government Benches are anti-union. We are not; we are anti unions running the country without balance and with a Government in their pockets. On other issues we might see whether we get the balancing act right by looking to other countries, but I think we can make those judgements on our own. Again, the Opposition are very keen to tell this Government to look to Europe to decide what is good legislation and the right way to protect workers’ rights. Conveniently, on this issue we can give examples of similar legislation in Europe, but they absolutely do not want that.

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[Andy McDonald]

My right hon. Friend is right. People’s response has not been to lie down and accept the Government’s bidding; they have no choice but to stand up for themselves. Labour will have no truck with this terrible attack on working people, and once in government we will not only repeal this appalling legislation but, under the expert stewardship of my hon. Friends on the Front Bench, bring in the new deal for working people to tackle in-work poverty head on. The real impact of this Bill will be that any employee who disobeys an order to work during a strike could be fired. That is simply unacceptable in a free society. I was staggered at some of the comments from Conservative Members that they did not think that was the impact of the Bill. It clearly is.

[Ian Lavery]

I tried to intervene on the hon. Member for Crewe and Nantwich (Dr Mullan), who I believe was a GP, and my question would have been: if a doctor, nurse, transport worker or fire and rescue service rescue worker had voted for industrial action and was then instructed by their boss to cross a picket line and was compelled to work, what would that do in terms of the duty of care from the employer to the employee and the wellbeing and mental health of those individuals?

[Andy McDonald]

My hon. Friend makes a good point. This is about targeting people. People will be selected for treatment under these work notices, and trade unionists will be singularly picked out to add to the humiliation and distress. It is a dreadful tactic.

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[Laura Farris]

I agree with the hon. Gentleman, and it is a good point. Even though the ILO has set out, in black and white, the services in which it says the right to strike might lawfully be restricted, and even though its list includes every single service that the Government have included in the Bill—in fact, the ILO goes much further—the Opposition, for some reason, seem to wish to take out every one of those essential services. They would say no to a minimum service level when the schools are on strike, no to any key worker being able to put their kids in school and no to any vulnerable child being able to be looked after. They would say no to the trains running at all during the rush hour. The Opposition need to be clear with the British people about why their amendments deviate so far from international norms. It seems to be the case that, in their view, the country should grind to a standstill.

[Ian Lavery]

Will the hon. Lady give way?

[Laura Farris]

I will make a bit of progress, because I am conscious of time.

Let me just deal briefly with the issue of sanction, because it has come up. The hon. Member for Middlesbrough will know—he is an employment lawyer, but there may be others—that section 219 of the 1992 Act is uniquely convoluted in the way it confers a protection on the worker and on the union in terms of the right to strike. The statutory language is that there is immunity in suit from the tort of inducement to breach of contract—that is the right to strike as expressed in domestic law. What I think the law is doing here in terms of sanction is removing the immunity—that is what is happening; that is the logical consequence of anything that restricts the right to strike. I just want to say this: nobody in this Chamber envisages sacking nurses or any other category of emergency worker, but it must be right that, if the section 219 immunity is lost or in any way qualified, we bring into play disciplinary sanctions. That must be right and I accept that.

I have said in response to the hon. and learned Member for Edinburgh South West (Joanna Cherry) that both France and Canada seem to have a far more draconian system—[Interruption.] She can correct this when she makes her speech. Again, I looked at what the ILO said about this issue. I will finish with this Dame Rosie, because I can tell that I am being annoying. The ILO said that if the strike is determined to be unlawful by a competent judicial authority on the basis of provisions that are in conformity with the freedom of association principles, proportionate disciplinary sanctions may be imposed. I do have some improvements that I think can be made to the Bill, but I am going to take them offline and say them afterwards.

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[Anna Firth]

My hon. Friend is making the critical point that we represent all of our constituents—not just those who are public sector workers but those who need to go to work in the private sector in order to maintain their way of life and look after their families. That is why the school closures will be a particular problem to many hard-working parents who may have to take a day off work to look after their children.

[Ian Lavery]

rose—

[Anna Firth]

I will not be troubling the Committee for much longer, so I will carry on and get through my speech.

I know that we are not debating the specifics of the current strikes today, but it is worth saying again that these wage demands are completely unaffordable. Indeed, if we were to cave in to all of the unions’ wage demands, we would be looking at a bill not far short of £30 billion a year. That would have a huge impact on inflation and cause a permanent increase in our cost of living. In effect, that would mean a pay cut for every single one of our constituents.

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I will ask the question that I asked earlier, and I want the Minister to answer it when he speaks at the end. Can he point me to any other country in Europe that would sack people for taking part in a strike that breached top-down imposed minimum service levels, without any negotiation or arbitration beforehand? Does he really want to be in the same company—the same wee club—as Hungary or Russia when it comes to workers’ rights?

[Ian Lavery]

I rise to speak to amendments 78, 95 and 96 in my name, which focus on the instruction of people to work that is encompassed in a work notice. Amendment 78 refers to the removal of the protection for those refusing to work on strike days, and amendments 95 and 96 would ensure that people receive a copy of the work notice and other related details.

I will focus on the legislation. This is a sackers charter that is about destroying the very fabric of the trade union movement. People say that the devil is in the detail, and it certainly is when we read this Bill. When the Minister comes to the Dispatch Box, I ask him to confirm, for everybody concerned, whether an individual who is instructed by a work notice that they must go to work on a strike day, but then refuses, will not be sacked. I have a lot of time for the Minister—in fact, I am nearly calling him an hon. Friend—

[John McDonnell]

Steady!

[Ian Lavery]

I hear my right hon. Friend say, “Steady!”, but I want the Minister to confirm that, because that simple question has been asked by many hon. Members tonight and he shook his head on every occasion. Simply, for the sake of individuals who are instructed by a work notice to cross the picket line, will they not be sacked? Never mind the situation whereby their protection under the unfair dismissal regulations will be withdrawn—what does that mean? If that is withdrawn, it means that they will be sacked. That is exactly what it means—we do not need to be employment lawyers to recognise that.

The Bill is also about attacking individual members in the workplace, particularly trade union representatives. If there is going to be a strike in a workplace, perhaps about health and safety, and the trade union representative is advocating strike action because that is what they are elected to do, but the boss—the gaffer—gives them a work notice and says, “You’re the person who’s got to cross the picket line,” how does that work? In the main, we have fair bosses and bad bosses, and bad bosses will pick out people they can get rid of as quickly as possible. A trade union rep advocating action on a health and safety issue could be dismissed, because the protection is gone for someone who refuses to cross the picket line and go into work. Even Conservative Members understand that that is not fair in any way, shape or form. How can it be? Individuals have the right, regardless of work notices, to withdraw their labour. It is a basic human right. Here we have legislation that not many people—even in this place—want; it is a knee-jerk reaction. It is what happens when the Conservative party is cornered and is 25 points behind in the polls. What can unify them? I will tell you what unifies the Tory party: attacking the trade unions. That gets them speaking. That is the true red meat of unifying Tory politics. But tonight there have not been many speakers from the Conservative Benches.

An accusation has been made that trade union members are not ordinary people, but they could not be more ordinary if they tried. They are the fire and rescue service people who run towards fires and towards those in desperate need of being rescued; as we have seen, sadly, a member of the Scottish Fire & Rescue Service has just lost their life. These are ordinary people. Nurses are ordinary people saving lives on a daily basis. Transport workers kept the country running before the pandemic, during the pandemic and after it.

The work notice is a bosses’ charter. I have spoken about the duty of care of an employer to an employee. What happens if someone, despite campaigning for action, is told by their employer that they must go to work? What will be the impact on that individual’s wellbeing? What impact will it have on mental health in the workplace when people are compelled to work? It is not short of a form of industrial slavery to compel people to go to work against their wishes.

It is not the same in Italy. It is not the same in Germany. It is not the same in France. It is different. Stop arguing the cheat, because it is completely different, and that has been highlighted by speaker after speaker, particularly with regard to the difference in collective bargaining and sectoral collective bargaining. There has not been an impact assessment or any consultation with the trade unions or those who will be involved. This is simply Government diktat. It is draconian, authoritarian legislation that is unfit for purpose. It is unfair, undemocratic, unworkable and unsafe. It is unfit for purpose. I am proud to be voting against it tonight.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

I declare an interest as a proud member of Unite the union and GMB. It is great to follow my hon. Friend the Member for Wansbeck (Ian Lavery).

May I start by saying how outrageous it is that we have only five hours to debate this extremely important and dangerous legislation? As has been mentioned many times before, there have been well over 100 amendments tabled to the Bill, showing its numerous flaws. In the brief time I have, I will touch on a few.

First, on the retention of protections against unfair dismissal, as covered by amendment 1, too many people already have very little protection in that regard. When I was a trade union official, I frequently represented members whose unscrupulous employers sought to dismiss employees because they dared to challenge their working conditions. I recall in particular one member who had MS and had to work with bank notes, which triggered her condition. Rather than looking into redeploying her to a more suitable position, the employer sought to dismiss her. To add insult to injury, she was a trade union rep herself and had often stood up for other members. Sadly, the laws this Government are seeking to water down further did not protect her.

Britishvolt

Ian Lavery Excerpts

Wednesday 25th January 2023 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

On a point of clarification at the outset, it is important that the media and everyone else involved recognise that the Britishvolt site is in the East Bedlington parish of my constituency of Wansbeck, contrary to most media reports.

The rise and fall of Britishvolt and its dream to build a gigafactory in Cambois, in Wansbeck, is an incredibly important story not only of how the Government have once again failed people in the north-east, but of how the wider lack of an industrial strategy, in particular regarding the automotive industry, is putting thousands of jobs at risk and making the creation of high-quality manufacturing jobs—like the ones promised by Britishvolt —nothing but a pipe dream.

Due to its proximity to the old Blyth power station and the local deep sea port, the fact that it is fully plugged into the national grid, with a potential supply of green hydroelectric power from Norway at a competitive price, and its fantastic transport links and planning permission, Cambois is the most attractive and desirable site in the country, if not in Europe, for a gigaplant—those are not my words, but those of many industry experts.

However, the biggest asset is the people of our great region, who once again feel terribly let down by the situation that has been allowed to develop with Britishvolt.

[Jon Trickett (Hemsworth) (Lab)]

I am grateful to my hon. Friend, who is a great champion for his constituency, working people and the north of England. Has he seen the reports today saying that if the north of England were a country, it would be more or less the worst in the whole OECD for investment by the public or private sector? Have we in the north not been let down enough, and particularly those in my hon. Friend’s constituency, who were led up the garden path, by the looks of it, on a promise that will now not be delivered?

[Ian Lavery]

My hon. Friend makes a number of important points. It is correct to state that people in the north have been let down greatly as a result of this Government’s policies. Many people in our constituencies have been let down greatly, and some are even saying they have been left behind.

[Kate Osborne (Jarrow) (Lab)]

I thank my hon. Friend for bringing this debate to the House. Cambois is in the constituency of Wansbeck, not Blyth, as some seem to think. What we are discussing will impact not just Northumberland and Wansbeck but the wider north-east, including my constituents in Jarrow. Does my hon. Friend agree that if the Government want the people of the north-east to believe that levelling up is not just empty rhetoric, they need to deliver not just in more affluent areas, but in places such as the north-east, where we have seen very little—certainly in my constituency, and I believe the same goes for my hon. Friend’s constituency.

[Ian Lavery]

The reality is that the development of this Britishvolt plant would have transformed lives and communities not just in the south-east of Northumberland, in places such as Blyth, Wansbeck and Bedlington, but—my hon. Friend is right—in the likes of Jarrow and farther afield in Sunderland, North Tyneside and the entire region. It was to be the biggest investment in our region since Nissan in the ’70s.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

My hon. Friend is being very generous with his time. Does he agree that despite the clear failure of the Government’s UK industrial strategy, they should continue to try to attract investors to support a battery gigafactory in his constituency by establishing a localised supply chain across the north-east? That would in turn support automotive giants, such as Nissan, which he mentioned, that are already investing in electric vehicles. We know that that is vital for EU trade and the drive toward zero-emissions vehicles by 2030.

[Ian Lavery]

Thanks for that intervention. The supply chain is so, so important. Britishvolt suggested at the time that there would be 3,000 jobs created at the site and 5,000 jobs created in the supply chain. That would have been felt throughout the whole of our region in the north-east and probably further afield.

Links with Nissan would be brilliant. We need to take a leaf out of Nissan’s book in the way it has operated in the north-east for so many years. We were hoping to see some sort of link. Nissan is looking towards an on-site gigafactory with Envision AESC, which is in progress as we speak.

[Mary Glindon (North Tyneside) (Lab)]

Does my hon. Friend agree that the Government seem to have forgotten and neglected the area north of Teesside? This great part of our region, whether it is Tyneside, Northumberland or Wearside, always seems to be forgotten. We were forgotten when it came to a freeport, levelling up and now Britishvolt, which, as my hon. Friend says, would have created jobs across the region and given it a brighter future.

[Ian Lavery]

That is very, very well put. People in our region are very much aware that there has been investment in Teesside. I welcome every penny coming into the region, by the way—every single ha’penny of investment we can get—but it has to be further afield than just one particular pocket of the north-east region. As my hon. Friend says, there has been a complete lack of investment in our region and it has been left behind for decades now. That is just not acceptable any more. This is the idea that could have transformed and changed that for a lot of the people we proudly represent. People were excited by the thought they actually had the potential to get a decent job with good wages, terms and conditions.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this issue forward. He has been really active on this issue and he was active in the Chamber last week during questions, so well done to him.

I am sure the hon. Gentleman will agree that the news of an Australian company’s intention to potentially purchase Britishvolt, which I heard about today when talking to the hon. Member for Hemsworth (Jon Trickett), is truly good news. Does he agree that the Government must invest in British business, manufacturing and engineering? I see our highly skilled aerospace workers constantly fearful for their jobs and managers reluctant to expand. Further, will he join me in asking the Minister for the Government to focus—they must focus—financial investment in our manufacturers throughout all of the United Kingdom of Great Britain and Northern Ireland?

[Ian Lavery]

Yes, of course. I will come on to the nub of the questions the hon. Gentleman raises during my speech—I have only got through two paragraphs up till now.

The Britishvolt site has been kept alive for years. It is not just something somebody has come up with; it is to the credit of the former Labour-run council, which had the foresight to recognise the site’s advantages. It insisted on maintaining the site for industrial use to create thousands of potential jobs in the future, a prophecy that Britishvolt promised to make a reality. We should remember that projects on the scale Britishvolt was proposing do not just appear from thin air. They go through decades of decision making and planning. That was largely done by the Labour group on Wansbeck Council, which made the site so attractive to potential builders over decades.

Britishvolt arrived on the scene in late 2020 and was full of promise and potential. While many of the industry professionals I spoke to, along with others, expressed scepticism about its lack of experience and long-term plans, it continued to exceed expectations and gather support. I recall the chief executive ringing me up before Christmas that year, just out of the blue. He said, “I’m the chief executive of Britishvolt”—I had not heard of it—“and we are bringing 8,000 jobs to your constituency.” They were going to be well-paid, secure jobs—green industrial jobs. I promise you, Mr Deputy Speaker, I could not believe it. It was like all my Christmases had come at once. Since then, I have been heavily involved, only to be devastated by the current position.

As I say, Britishvolt arrived on the scene in late 2020. It impressed people so much that it managed to secure a £100 million grant from the Government’s automotive transformation fund. To many, that seemed to legitimise the company. There were still many people—many, many people, in fact—who doubted it, but they were confounded by glowing reports from the then Business Secretary, the then Chancellor and the then Prime Minister.

At the time, the then Business Secretary, the right hon. Member for Spelthorne (Kwasi Kwarteng), announced:

“I’m delighted to confirm we have now provided Britishvolt with a final grant offer through the Automotive Transformation Fund. The Blyth gigafactory will turbocharge our plans to embed a globally competitive electric vehicle supply chain in the UK and it is fantastic to see how the project is progressing.

The vast site will ensure Britain can fully capture the benefits of the booming global electric vehicle market. The well-paid jobs and growth it will generate for the North East of England will be transformational and are exactly the reason we are investing to make the UK the best place in the world for automotive manufacturing.”

In an interview with national media when the grant had been confirmed, he also claimed:

“It is absolutely what levelling up is all about. In fact, I can’t think of a project that demonstrates levelling up better than this one.”

The then Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), claimed:

“Britishvolt’s plan to build a new gigafactory in Northumberland is a strong testament to the skilled workers of the North East and the UK’s place at the helm of the global green industrial revolution.

Backed by government and private sector investment, this new battery factory will boost the production of electric vehicles in the UK, whilst levelling up opportunity and bringing thousands of new highly-skilled jobs to communities in our industrial heartlands.”

Last summer, before his departure from office, he gave me further guarantees in this House that support for Britishvolt was in the post and that the Government remained 100% behind the project.

The then Chancellor, who is now the Prime Minister, also took the opportunity to jump on the bandwagon, boasting:

“Once complete, this factory will produce enough batteries for over 300,000 electric vehicles each year…Our #PlanForJobs is working.”

So he claimed. At the time, everybody wanted a piece of Britishvolt, which was hailed as the poster boy of levelling up and as a tribute to the vision of life post Brexit held by this new-look Conservative party.

So where did it all go wrong? What actually happened? Why are we in this situation now? At what point did the Government go cold on Britishvolt, which was hailed only a year ago as the jewel in the crown of their levelling-up plans and vision for Britain? As ever, the Government will be keen to blame the cost of soaring energy bills and the knock-on effects of the illegal invasion of Ukraine, but that does not add up with the story across Europe. The website Sifted is tracking the development of 33 gigafactories across Europe, many of which are due to be up and running imminently. Germany has plans for 12 gigafactories, while the UK has plans for only three, one being the Cambois gigafactory we are discussing, which is now in great peril at best.

The underlying issue with Britishvolt is that as a start-up it had no capital to work with, and a range of issues meant it was not able to attract sufficient investment and meet the milestones that would have unlocked the Government funding that was promised—not a penny was ever received by the company, despite the benefits explained by the Prime Minister, the former Prime Minister and the former Business Secretary.

[Mrs Hodgson]

I do not want to interrupt my hon. Friend’s flow too much, as he is making some excellent points. On the number of gigafactories we need, he mentioned plans for three. I hope the one in his constituency will be saved, but it looks as though we may lose it. We actually need eight gigafactories if we are to meet the 2030 target for zero-emission vehicles. The last thing in the world we should be doing is not saving the plant in his constituency. The Minister shakes her head, but I do not know how we will ever reach that target if we do not save such plants.

[Ian Lavery]

I will come on to that point later in my speech, but my hon. Friend makes a very valid and strong point.

On the issue of competitive energy sources, the UK’s industrial energy pricing is far from competitive and drives investment away, while our green energy infrastructure is nowhere near able to guarantee a supply of energy via the national grid. In December 2022, the UK cost per megawatt-hour was £580, while in Germany it was £225, in Italy £259, in France £238, and in Sweden £206. If we are ever going to reach our targets and support the automotive industry, that disparity must be addressed without any further delay.

That is just a drop in the ocean of the wider strategic issues that have been allowed to develop in the industry. We have hundreds of thousands of workers producing parts for vehicles that will not be required, with no clear plan on how those workers will transition and be reskilled in a rapidly changing industry. That is part of the wider issue of a chronic skills shortage that needs to be addressed by having the proper training available for our young people leaving schools and paying them a proper living wage to do well-paid skilled jobs. We are being rapidly overtaken by European competitors who have support from the European Commission and the member states themselves, and we are also being stymied by the strength of the US and, in particular, China, which has a near dominance in the supply of cells, cathodes and anodes, as well as the base materials for their manufacture.

CATL in Germany has received grant and loans from the state of €750 million, or 22.8% of the total build costs; Northvolt in Sweden has had €505 million, or 17.1%; and in North America General Motors has had $2.5 billion, or 36.2%, Stellantis has had $l billion, or 35.7%, Tesla has had $1.3 billion and Ford has had $884 million—the list is nearly endless. Compare that with Britishvolt, which was promised just £100 million by the Government, and guess what percentage that was of build costs—only 2.3%. That is absolutely disgraceful. Moreover, the £100 million was heavily caveated, to the point where the company never had a penny of Government support. How can this country—how can we, as a manufacturing nation—expect to be competitive while Governments across Europe and beyond are offering real incentives for the manufacture of batteries, far greater than those offered by our Government? We have to pull our socks up. We have to get on to the pitch. We have to start playing the game, for the sake of this nation.

In the autumn, when Britishvolt was facing financial difficulties, it asked for £30 million of the £100 million grant that had been agreed by the Government. The company asked for this to be released early because it had cashflow problems, arguing that the money would help keep it afloat and attract the private investment that it needed to reach the other milestones set by the Government. The Government have repeatedly made the point that they need to act responsibly with taxpayers’ money. I agree with that, and I am sure no one disagrees with it, but it seems to me that £30 million for a company that says the money will allow it to stay in business and create 8,000 jobs in a region that has been held back for so long, keeping it afloat, is a worthwhile investment. That £30 million is a mere drop in the ocean of the money lost so carelessly during the pandemic, which went into the coffers of those with close ties to senior members of the Government, but when it might be spent on benefiting held-back towns in the north-east, it is held under very tight wraps.

By this point, the Government’s attitude towards the company seems to have cooled considerably since the previous January, when they were singing its praises from every rooftop they could find. The pandemic and the Russian invasion of Ukraine have been harsh reminders of the need for national self-reliance, particularly in key strategic industries. Simply assembling the batteries in the UK is not enough; as we enter a new phase of globalisation, we must take control of our own destiny—and of battery manufacturing—if we want our car industry to survive. We still do not have a single fully functioning gigafactory, although, as was mentioned earlier, predictions suggest that we will need anywhere between eight and 10 by 2040.

All this has real consequences at an individual human level. Towns and villages across south-east Northumberland and in the north-east as a whole, including my constituency, have been held back for decades. Once thriving industrial communities, they have had their economic and social fabric swept from under them with nothing to replace it. More than a decade of brutal austerity has hollowed out our public services and civic spaces and left us battling high levels of unemployment, low pay, poverty, crime, and addiction problems. The jobs that were promised to come with the gigafactory had the potential to be the first step in changing the fortunes of our region. The income from the new well-paid local jobs would have supported thousands of families across our communities, and might well have helped to kick-start a new era of manufacturing in industrial work that could have reignited the economy in the towns and villages close by.

There was a good deal of reluctant optimism about announcements of new developments in transport and infrastructure, alongside the announcements about the factory and the possibility of money from the Government’s new towns fund and levelling-up fund, but bit by bit, drip by drip, that has ebbed away. Only last week a bid from Ashington, in my constituency, for levelling-up money to transform the crumbling town centre was rejected, while Richmond, in the Prime Minister’s Yorkshire constituency, received a cosy £19 million. That is pretty offensive to people in held-back communities.

Bedlington in my constituency got about £8 million to build new cycling lanes, although the bid was somewhat ironically designed with getting workers to the new Britishvolt factory in mind. Although every penny given to Bedlington is welcome, many are already questioning whether new cycle lanes are all that levelling up will amount to, given how starved the town has been, like many in my constituency, of crucial infrastructure funding for so long. The levelling-up fund has proved itself to be time-consuming, expensive, divisive and unable to meet the needs of held-back towns in the north-east. The south-east has received nearly twice as much as the north-east from the fund, and none of this touches the sides of the cuts to local councils since 2010 and the introduction of austerity.

The best use of levelling-up money for south-east Northumberland would have been getting behind the Britishvolt gigafactory. The people of Northumberland and the north-east have, sadly, once again been let down by those working far away in the halls of Whitehall and Downing Street. Three Prime Ministers in a matter of weeks and a merry-go-round of Ministers in different positions, based on nothing but blind loyalty, rather than competence and know-how, has been a disaster for any plans the Government may have had to level up my constituency and the region. As usual, we are the ones dealing with the consequences of the internal political drama unfolding in the ranks of the Conservative party.

We need long-term thinking and a proper plan for our broader industrial sector, and we need to overcome the major obstacles our automotive industry is up against, if we are to truly level up, or gauge up, our communities in the north-east, not just a few packets of money—not just the crumbs off the table. It cannot just be that who is best at submitting a bid will get the money and other areas that are sadly lacking will again get left further and further behind—my hon. Friend the Member for Hemsworth (Jon Trickett) talked about that.

This morning, the news broke in the press that Recharge Industries, an Australian-based company, had put in an offer to buy Britishvolt, which is very encouraging, as were other reports in the press this morning that 12 other companies have shown an interest. Let us hope that something can happen, because we cannot have another false dawn. We cannot have another Britishvolt, where we have a project of this magnitude, with the land, the planning and everything else in place, only for the Government to go cold and step back from assisting our regions.

A couple of issues are really interesting. The administrator, Ernst & Young, has a legal obligation to accept the highest offer. It has no legal obligation to accept what might be the best offer for the people in our communities or to say, “I will take that offer because it is going to create tens of thousands or hundreds of jobs.” It has an obligation to seek what is best for the current shareholders. We have to look at that and hope that the administrators bear in mind when making this ultimate decision that this is not only about the shareholders, many of whom will probably not live in our region, or even in this country, and are looking for as much money as possible—the people in our region count and they should not be forgotten. We have to put as much pressure as we can on the administrators.

I am going to ask the Minister a number of quick questions. We have to make sure that the Government step up to the plate on this. I have explained this and I will not repeat myself, but the Government were shouting about Britishvolt from the rooftops one minute and then they were refusing any finances to it the next moment—that is well documented. They said that one of the milestones was private investment, but the company thought that was wrong way around. Those private companies were willing to invest on the basis that the Government would support it morally and financially. If the company had UK Government support, that would hold sway. The British Government basically abdicated responsibility, and jumped off the ship like a rat. That caused investors to be extremely unhappy, and probably put them off in the short and the medium term.

We are where we are with Britishvolt at Cambois. Will the Minister commit to do whatever it takes to get behind whoever acquires the site to build a gigafactory, including offering a proper package of financial support, in line with what other states across Europe offer? I have explained the massive difference in support that European countries get from their Governments. Can the Minister outline the Government’s plans to ensure that the site in Cambois is developed as quickly as possible? There cannot be any more delays. We hope that the Government will get in intense discussions to support any successful bidder for the plant.

Would the Minister tell us why money was not forthcoming to Britishvolt when it requested the £30 million early, which it argues would have gone a long way to reach its milestones and to get the gigafactory developed? Can the Minister clarify what due diligence was done on the company when it decided to offer it a £100-million grant in the first place? Why did the Government eventually go cold on their support? Can the Minister clarify what the Government are doing to reach the target of building eight to 10 gigafactories by 2040? How do they plan to stay competitive with other companies across Europe and globally, given the strategic barriers that I have outlined?

I have spoken for quite some time, but the issue is critical for Members, individuals and families in south-east Northumberland and the wider afield constituencies of my hon. Friends the Members for North Tyneside (Mary Glindon), for Hemsworth and for Washington and Sunderland West (Mrs Hodgson). We feel left behind. We feel that the Government have not supported us, despite the initial euphoria that this was to be the best possible opportunity to transform our area. I say to the Minister that, seriously, we need to get on to that playing field. We need to support the automotive industry. That includes electrical vehicle battery plants. We are way behind if we are to have 80 by 2040. Let’s get cracking. Let’s get the site developed in Cambois. Let’s get the Government support to the preferred bidder and make sure that the bidder wants a gigafactory, not something much less, so we can transform the economy of our great region.

[Mr Deputy Speaker (Mr Nigel Evans)]

Mr Ian Levy has sought permission from the mover of the motion and from the Minister to make a short contribution, and I have been informed.

Oral Answers to Questions

Ian Lavery Excerpts

Tuesday 17th January 2023 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

15. What steps he is taking to help ensure the effective provision of postal services.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)]

Ofcom has a duty to ensure the provision of a financially sustainable and efficient universal postal service. Ofcom oversees Royal Mail’s contingency plans to mitigate disruption to universal postal services, and it continues to closely monitor Royal Mail’s performance.

[Ian Lavery]

Does the Minister share my deep concerns about the creeping increased shareholding in Royal Mail by Vesa Equity Investment, a company whose chief executive, Daniel Křetínský, has close ties to Russia? What guarantees can the Minister give about the future of our cherished, 500-year-old Royal Mail?

[Kevin Hollinrake]

As I say, we have no plans to change the universal service requirements of the postal service. This Government are proud of their credentials on foreign direct investment, and we encourage foreign investment into this country. I notice from the global chief executive officer survey today that the UK is third in the world in terms of the places where people want to invest, and we want to make sure that that continues. We looked at this matter from a national security perspective and we did not feel there was an issue, so we welcome that investment.

Strikes (Minimum Service Levels) Bill

Ian Lavery Excerpts

2nd reading
Monday 16th January 2023 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

Let me declare my interest as a proud member of the trade union movement—I have been all my life and will be until the day I die. People in this debate need to recognise that we should not be surprised by the actions of the Government, because they have crashed the economy and people cannot put their heating on and they cannot eat. People are struggling to feed their families and they cannot pay their mortgages. So what happens? They get together and the Tories revert back to what they believe they are best at: attacking ordinary working people; attacking the trade unions. They relish it; they love it. That is what this is about. The Secretary of State should admit it: the Tories are running scared, they are finished, they are a busted flush after 13 years of austerity. They should accept that, but no, they are attacking ordinary working people.

I think I speak for a lot of the people when I say that there is nothing in this world, and no one on this planet, that could conscript me to cross a picket line. It does not matter what legislation the Tories wish to push forward and it does not matter what rules, regulations or Government diktat they put in place, thou shalt not cross a picket line.

Let me refer, in the short time I have left, to the attacks on ordinary working people. The Government are demonising the people who brought us through the pandemic: the posties, the transport workers, the bus drivers, the train drivers, the people who work on the transport system, the nurses, the NHS workers and the ambulance drivers. These are not mad Marxist militants. They are not forced to be part of a trade union; they join a trade union. As sales of champagne and luxury yachts go through the roof, sadly, our key workers are forced to use food banks. I will oppose the Bill tonight and urge every other Member of Parliament to do so as well, out of respect for the ordinary people who brought us through the pandemic and who work hard for this country.

Royal Mail and the Universal Service Obligation

Ian Lavery Excerpts

Thursday 12th January 2023 Westminster Hall

[Ian Lavery (Wansbeck) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Ali. I congratulate my hon. Friend the Member for Jarrow (Kate Osborne) on securing this important and timely debate.

As many hon. Members have said, we have to look at the current situation with Royal Mail regarding the USO and at the Royal Mail going forward. Not only have I been on the picket lines, but I have visited people in the workplace, and it is a fact that those individuals are more determined to take the Royal Mail forward as a viable, modern organisation than the people who are actually managing it. The people managing the company at the moment are taking fortunes from the business, and I will mention Simon Thompson personally. The fact that the salary of the chief executive is 23 times more than the median wage of a Royal Mail worker is scandalous, and nobody here would agree with paying him that amount.

Simon Thompson’s objective is to destroy the Royal Mail and sell it off to Vesa Equity, which now owns 23% or 24% of Royal Mail. That fact was unearthed by the CWU during early discussions about the pay award. Behind the scenes the management is trying to destroy Royal Mail in order to sell it off and to make fortunes, and then those people will move on to other industries in order to do the same. On the other side, we have people who are losing wages and who are prepared to fight for a viable, modern Royal Mail service, looking after the public in the future. That is the difference.

There are 115,000 posties on strike: the key workers we all clapped during the pandemic for the wonderful job they had done; the men and women who trundled the streets with the covid packs, day in, day out; the only individuals lots of people saw on a daily basis, in the morning—always with a smile, always with a whistle. These are the individuals who are fighting for what we all need, which is a modern Royal Mail, not a gig economy, courier-type service where we hive off the letters and use self-employed white van drivers, who themselves work extremely hard. We do not want to replace what we have with that type of employment; I would have thought those days had gone.

The profits been mentioned a number of times. What organisation could make £750 million-odd in profit, give £570 million-odd to shareholders and then not have any money to pay the people who provide the service, and then, just months after, say it is losing £1 million a day? It is ludicrous. There needs to be an inquiry into how the management are deliberately destroying Royal Mail, both financially and structurally. Until we get that, we have to support Royal Mail and the workers on the picket line to make sure we get a fair resolution and a decent, modern Royal Mail service into the future.

--- Later in debate ---

[Kevin Hollinrake]

We will have a good opportunity to debate the Bill on Monday, so I do not want to get dragged into that right now.

[Ian Lavery]

Yes or no?

[Kevin Hollinrake]

As the Minister concerned, clearly I will vote in favour, as the hon. Gentleman would imagine, but let us have a good debate about that on Monday. I spoke to one of the hon. Gentleman’s colleagues, the Chair of the Business, Energy and Industrial Strategy Committee, the hon. Member for Bristol North West (Darren Jones), today, and he said he was very supportive of a minimum service level, so we should not draw battle lines on this issue simply on party political grounds. But perhaps we should have a go at debating that on Monday.

The importance of the universal postal service is a key element of today’s debate, as mentioned by many hon. Members, including my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale, my hon. Friend the Member for Wimbledon (Stephen Hammond), and the hon. Members for Reading East (Matt Rodda), for Luton South, for Wansbeck (Ian Lavery) and for Ilford South (Sam Tarry). Our objective continues to be the provision of a financially sustainable and efficient universal service that meets the needs of users, within an open and competitive postal market. That is why the six-day-a-week, one-price-goes-anywhere, universal service remains at the heart of the regulatory regime, and why Ofcom has a primary duty to secure its provision.

My hon. Friend the Member for Wimbledon asked what I am doing to make sure that Ofcom meets its responsibilities. I met the head of Ofcom and other members and pointed out very clearly its role as a regulator, and in ensuring that this service continues.

To be completely clear, the Government currently have no plans to change the statutory minimum requirements of the universal postal service, which are set out in the Postal Services Act 2011.

[Kevin Hollinrake]

The hon. Gentleman raises an important point. I will come on to the Vesa point later, but set out in the legislation, from back in 2011, there is a clear and transparent process for how any changes to the universal postal service should be considered. That was coalition legislation. Any such change would need to be made through secondary legislation and be agreed by Parliament. We would also expect Ofcom to consult with all stakeholders. Our position has been very clear in my meetings with Royal Mail and Ofcom: we think that the six-day service should continue.

Ofcom has a monitoring regime in place to identify any risks or threats to the universal postal service. Since 2012, it has published an annual report setting out key data and trends in the postal sector, the impact of the changing market dynamics on UK postal services, and Royal Mail’s performance. Royal Mail is clearly facing some challenges, particularly given the long-term decline in letter volumes and the currently challenging economic backdrop, but I have yet to receive any convincing case for a need to change to meet users’ needs and to ensure the financial sustainability of the universal postal service.

A number of hon. Members, including my hon. Friend the Member for Wimbledon and the hon. Member for Jarrow, raised a point about large business owners and the impact on large businesses, such as those that produce magazines and the like, and how they would be impacted. We would fully expect their needs to be taken into account, in terms of user needs’ surveys. The hon. Member for Reading East talked about the impact on small and medium-sized enterprises—something that is very important to me personally—and making sure that they can get marketing messages out to communities across their target areas.

I have made it clear to Royal Mail that it needs to make any case for change to Ofcom and that I will fully consider any advice the regulator gives me on the future scope of the universal postal service.

Hon. Members have understandably raised concerns about Royal Mail’s service delivery performance. The hon. Member for Liverpool, West Derby (Ian Byrne) and my hon. Friend the Member for Wimbledon both raised that point. It is true that the business has faced increasing pressures over the last few years, not least the coronavirus pandemic and the industrial relations dispute with the Communication Workers Union. There have been impacts on the business and the users of postal services. It is regrettable to see postal services disrupted due to strike action and to see the impact that that is having on consumers, businesses and other users.

We are not involved in the negotiations, given that Royal Mail is a private company. However, we are monitoring the dispute closely and have urged Royal Mail and the CWU to reach a resolution as soon as possible. I know there are ACAS talks right now and there will be no further strikes until 20 January, until the talks have concluded. I very much hope that the talks will prove successful.

[Ian Lavery]

Before the Minister concludes, will he comment on the fact that Royal Mail is openly bragging that it has £1.7 billion in a war chest for union-busting and investing in the company?

[Kevin Hollinrake]

I will come on to that important point.

Among other things, Royal Mail is required by Ofcom regulation to achieve certain performance targets in the delivery of its universal service products to ensure that consumers receive an adequate level of service. The regulator has powers to investigate and to take enforcement action, as it did when it fined Royal Mail £1.5 million in 2020 for missing its 2018-19 first class national delivery target.

Ofcom does accept that covid-19 has had a continued impact on Royal Mail’s service delivery, which is why Ofcom did not fine it for its regulatory obligations breaches last year. However, in that decision, Ofcom also noted its concerns, which should concern us all, about Royal Mail’s performance in the early part of the year, which Ofcom felt fell well short of where it should be. Ofcom believes that Royal Mail has had plenty of time to learn lessons from the pandemic, which will mean that it is unlikely to consider the factors considered for 2021-22 as exceptional and beyond its control in the future. Royal Mail has committed to restoring quality of service as soon as possible, and I expect Ofcom to keep a close eye on its performance over the remainder of this year.

Points about renationalisation were raised by the hon. Members for Glasgow East (David Linden), Coventry South (Zarah Sultana) and Glasgow South West and others. While Royal Mail undoubtedly faces challenges, the Government are clear that renationalising the business is not the answer. One of the primary reasons for the sale was to enable Royal Mail to access the capital it needs to invest. When Royal Mail was independently reviewed in 2008 for the last Labour Government, we were told that it was underfunded and had not kept pace; it was 40% less efficient than equivalents around the world.

Financial performance was raised by the hon. Member for Wansbeck and the hon. Member for Cynon Valley (Beth Winter). I think the hon. Member for Cynon Valley said that she had not had a response to her letter. I have asked my officials to look into that urgently, along with the letter from the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), to ensure that they get responses quickly; I apologise for that.

In terms of profitability, it is important to look at Royal Mail in isolation, rather than at IDS itself. Different figures have been bandied about. Look at profitability this year: as Members have mentioned, in the same period in the previous year it made a profit of £235 million —this year, it made a loss of £220 million. To answer hon. Members’ questions, in its regulatory notice in the Regulatory News Service—in which the information must be accurate—it blames that on the strikes, the lack of productivity improvements that were set out in the “Pathway to Change” document and the macro-economic climate.

The hon. Member for Wansbeck described the £1.7 billion invested as a war chest to fight unions; I do not think that that is an accurate statement. I saw it reported in one of the papers—I think it stated that it was £1.7 billion to invest across the businesses. That does not mean that it uses that war chest to simply fight industrial action, and I would not expect that to happen. We are keen to ensure that the dispute is resolved, and amicably.

Royal Mail has invested more than £2 billion in the UK business since privatisation, including £900 million over the last three years and £441 million in the last financial year, in areas such as electric vans, two new parcel hubs, automation and improving its poorest performing delivery offices. Importantly, that investment is transforming how Royal Mail operates, with parcel automation up from 12% in 2019 to 65% now. There is certainly room for improvement in Royal Mail’s service delivery. Ofcom’s analysis tells us that most consumers continue to be satisfied with postal services, but we should continue to challenge Royal Mail on its performance.

As I have set out, the Government remain committed to securing a financially sustainable and efficient universal postal service for users throughout the UK that is accessible and affordable. There are currently no plans to change the minimum requirements of the service.

Industrial Action

Ian Lavery Excerpts

Tuesday 10th January 2023 Commons Chamber

[Grant Shapps]

My hon. Friend is right. These so-called forever strikes, which have continued for month after month on the railways, are particularly hurting rural communities. It is easy sometimes for people to imagine that those affected will just sit at home on Zoom or Teams and have those conversations. That view of the world is much easier for someone in a desk job, perhaps in management. It is much harder for someone in a rural community or for a hospital porter or cleaner who needs to get to the hospital. The very people being hurt most by these strikes that never seem to come to a conclusion on the railways are the hardest-up in society. This Government will stand behind them with minimum service levels.

[Ian Lavery (Wansbeck) (Lab)]

One minute the Secretary of State is clapping the key workers, and the next he is sacking them. What is really behind this legislation? Only time will tell, but why is he looking to criminalise the great key workers who brought us through this pandemic, and whose only crime is to demand decent wages and terms and conditions, as well as a safe environment for themselves and the general public?

[Grant Shapps]

I appreciate that the hon. Gentleman is an enthusiastic supporter of everything that the unions do, and they are an enthusiastic supporter of the hon. Gentleman. [Interruption.] Perhaps not all of them. But if one of his constituents has a heart attack, stroke or serious accident on Wednesday, I do not understand why he would seriously have an objection to a national level of agreed safe services? That is what we propose and I am surprised that he would vote against the safety of his own constituents.

Future of Postal Services

Ian Lavery Excerpts

Tuesday 10th January 2023 Westminster Hall

[Tahir Ali]

I agree with the hon. Member’s comments and I hope to cover that specific issue later in my speech. The longer interventions are, the less time other Members will get.

All Royal Mail deliveries were achieved in a way that satisfied most service users. Some 83% of residential customers said they were satisfied with Royal Mail’s service, while 79% of small and medium-sized enterprises said they were satisfied. That was all the result of hard work and sacrifice by Royal Mail staff, who increased the revenues of Royal Mail by a huge 40%, generating healthy profits of £758 million for the company in 2021.

However, £576 million of those profits were promptly paid out to shareholders, with the chief executive officer of Royal Mail, Simon Thompson, paying himself a massive bonus of £140,000. Let us pause for a minute and think about what that £570 million could have done if it had come into the Treasury. It could have contributed hugely towards money to pay nurses, doctors and ambulance drivers.

[Ian Lavery (Wansbeck) (Lab)]

I congratulate my hon. Friend on securing this timely debate. He mentioned the chief executive officer of Royal Mail, Simon Thompson. Does my hon. Friend agree that if Royal Mail is to be sorted out for the future, which the CWU was trying to do, Simon Thompson has no place as chief executive officer?

[Tahir Ali]

I agree with my hon. Friend. Where a chief executive does not have the interest of the workforce at heart, they need to consider their position.

--- Later in debate ---

[Kevin Hollinrake]

We do not get involved in negotiations, as Royal Mail is clearly a private company. I welcome the fact that the CWU and Royal Mail are now sitting down with ACAS and trying to resolve the dispute. We should give that process time to reach a resolution. I understand that any strikes have been suspended until the outcome of those negotiations. As I say, the Government are not involved in negotiations because Royal Mail is a private company, but we will monitor the dispute closely, and urge Royal Mail and the Communications Workers Union to reach a resolution as soon as possible.

To ensure that consumers receive an adequate service, Royal Mail is required by Ofcom regulation to, among other things, meet certain performance targets relating to the delivery of universal service products. The regulator has the power to investigate and take enforcement action. Indeed, in 2020 it fined Royal Mail £1.5 million for missing its 2018-19 first-class national delivery targets. Ofcom investigated Royal Mail’s service quality performance in 2021-22, and in doing so considered evidence submitted by Royal Mail of

“exceptional events, beyond the company’s control”

that may explain why targets were missed. In that instance, Ofcom accepted that there had been a continued impact of covid-19 on Royal Mail service delivery, and concluded that

“it was not appropriate to find Royal Mail in breach of its regulatory obligations”.

However, Ofcom was clear that it does not expect covid-19 to have a continuing significant impact on service going forwards. It stated:

“We are concerned by the fact that Royal Mail’s performance in the early part of 2022-23 fell well short of where it should be. We believe the company has had plenty of time to learn lessons from the pandemic, and we are unlikely to consider the factors outlined above as exceptional and beyond its control in future.”

When it comes to renationalisation, we probably part company with many of those on the Opposition Benches who expressed views on the subject, including the hon. Member for York Central (Rachael Maskell), the right hon. Member for Islington North, the hon. Member for Birmingham, Hall Green, who sponsored the debate, the hon. Member for Llanelli (Dame Nia Griffith), and the hon. Member for Motherwell and Wishaw. I do not believe that renationalisation is the answer. Although there are undoubtably challenges facing Royal Mail, the Government are clear that renationalising the business is not the answer.

One of primary reasons for the sale was to enable Royal Mail to access the capital it needed to invest in and grow the business. When Royal Mail was independently reviewed in 2008 under the last Labour Government, we were told that it was underfunded and had not kept pace with equivalents around the world, which were 40% more efficient. Compare this to the present day: Royal Mail has invested over £2 billion in the UK business since privatisation, including £900 million over the last three years and £441 million in the last financial year in areas such as electric vans, two new parcel hubs, automation and improving its poorest performing delivery offices.

The hon. Member for Birmingham, Hall Green, mentioned the £576 million pounds distributed to shareholders. I point out that there are good years and poor years in terms of financial performance. In the first half of this financial year, I think Royal Mail declared a £219 million loss. That is in the marketplace, so it is not breaching any confidentiality.

[Ian Lavery]

Royal Mail made a £758 million profit, gave £567 million to shareholders and then, shortly afterwards—weeks afterwards—it said that it was making a loss of £1 million a day. The hon. Gentleman is a successful businessman. Would he not be asking questions?

Oral Answers to Questions

Ian Lavery Excerpts

Tuesday 29th November 2022 Commons Chamber

[George Freeman]

I thank my hon. Friend, the chair of the all-party group for the future of aviation, and I take this opportunity to invite the whole House to celebrate the world-first achieved by Rolls-Royce and easyJet: the first run of a green hydrogen-powered auto engine. I am happy to reconfirm our commitment to aerospace technology. That is why we have put £685 million into the Aerospace Technology Institute programme and £125 million through the industrial strategy challenge fund into the UK Research and Innovation future flight challenge. The UK is leading in clean energy for the aviation sector and jet zero.

[Ian Lavery (Wansbeck) (Lab)]

The Government set a goal of the development of eight gigafactories before 2040. Will the Minister say how that is progressing, and will he reassure my constituents that the Government are in conversation with Britishvolt to secure its gigafactory site at Cambois in my constituency?

[George Freeman]

The hon. Member is absolutely right that we are committed to growing that supply chain for the gigafactory revolution in the north-east, the midlands and all around the country. That is why we set out, in our critical minerals strategy, a coherent plan for making sure that the country has the whole supply chain, as well as those factories. I know that the Minister with responsibility for energy technology will be happy to talk to the hon. Member to make sure that the supply chain is working locally as well.

Britain’s Industrial Future

Ian Lavery Excerpts

Tuesday 15th November 2022 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

This debate is really interesting. In his introduction, the Minister mentioned that there is a litany of woe and failure in the Labour motion. Of course there is, because we have seen an abandonment of the business strategy from the Government. We have all experienced it. The Minister also mentioned the amount of money that the Government have given through the automotive transformation fund to Bentley, Vauxhall, Ford and Nissan, but he did not mention Britishvolt in my constituency once.

Britishvolt, a promising start-up company that is seeking to build a gigafactory in Wansbeck, is on the brink of collapse because the Government have not come forward with a promised £100 million grant from the automotive transformation fund. In my constituency, 8,000 jobs have been promised, but the Government will not listen. Once again today, many examples have been given, but not one related to my constituency and there was nothing about Britishvolt. It is the one gigafactory in the country that has planning permission, but the Minister never mentioned it, and we have to ask why. Why are the Government not even sitting down with Britishvolt to agree a way forward? We talk about levelling up in a constituency like mine—there would be 8,000 jobs, of which 3,000 would be with Britishvolt developing electric batteries. That is the future. The Minister continually said that he wanted to talk about the industries of the future. How futuristic can we get? We are talking about electric battery production.

That has not been carried through because the ministerial team in the Department for Business, Energy and Industrial Strategy said, first, that it would not grant any finance. It then said that Britishvolt would be granted £100 million, but that that would be after certain milestones at the end of 2023, but the company requires financing now. Does the Minister understand what that actually means for people in my constituency? We have been left behind for generations and there is an opportunity for 8,000 jobs. There would be 3,000 at Britishvolt and 5,000—perhaps even more—in the supply chain. We have to conserve that.

When the Secretary of State for International Trade was asked about Britishvolt a couple of days ago, she said that there has to be “value for money”. We are talking about 8,000 jobs in a constituency that has had the highest unemployment rate in the country for decades. Is that not value for money? Do people in my constituency not deserve the same as other people around the country? It is not really fair, Minister. I urge him to have a look at Britishvolt situation with all urgency.

We have a lot going on with regard to the automotive industry. It has been reported that Jaguar Land Rover is interested in moving its manufacturing base to Slovakia. BMW has set up shop in China. Electric van start-up Arrival has relocated to the US from the UK. If that trend continues, we will have no automotive industry and thousands more people will be on the dole or facing redundancy.

Other things are happening elsewhere. Northvolt in Sweden has successfully entered the electric car market backed by its Government’s Swedish Energy Agency. That will create thousands of high-quality local industrial jobs. Even the German Government have pledged more than $500 million to Northvolt to construct its gigafactory in northern Sweden. While gigafactories open up across Europe from Germany to Sweden, we are sadly lagging behind, crippled by a zombie Government unwilling to support crucial new developments that would create jobs, boost productivity and grow the economy. When the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) was Prime Minister, I asked him where the money for Britishvolt was. He said at the Dispatch Box that it was in the post, but we have not yet received a ha’penny for that company in my constituency. I ask again: where is the money?

My constituents and the potential investors want assurances that the sound of workmen marching from the site in Cambois is not akin to a death knell for the promised decade of growth and prosperity for our long-held-back region, or the final nail in the coffin for levelling up. Sadly, given the promises about the site from a long line of politicians over the past few months and indeed the past couple of years, I will have to take any commitments with more than a pinch of salt. The company has seemingly been cast aside by this Government, but its request for an advance grant of £30 million to guarantee up to 8,000 jobs is entirely realistic and reasonable. It is value for money, Madam Deputy Speaker—you’d better believe it.

Shale Gas Extraction

Ian Lavery Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

Except that thermal energy has no seismic limit on it, whereas there was a 0.5 limit on shale gas, which made it almost impossible. That was a policy that was designed to stop any shale gas being extracted.

[Ian Lavery (Wansbeck) (Lab)]

Can the Secretary of State confirm what recoverable reserves of shale gas we have here in the UK? What percentage of global or even national demand would that shale gas be likely to meet, and what impact would that have on the global price of natural gas?

[Mr Rees-Mogg]

We need to get on with the exploration and the test drilling to see how realistic the forecasts are. A report in 2012 set out the potential for shale gas, which is very large, but the question that the hon. Member raises—how much of that will be realistically extractable?—is the right one, and it requires drilling to take place to find out.