Dagenham Diesel Engine Production

Debate between James Cartlidge and Jon Cruddas

Friday 27th April 2018 Commons Chamber

[Jon Cruddas]

I support precisely what the hon. Gentleman has said; indeed, I was going to mention those 1,000 job losses and cover some of the issues he has raised in my remarks.

The number of 3,000 at the Dagenham plant sits alongside 1,500 UK engineers dedicated to the development of Ford’s latest and future clean powertrain technology. The total turnover stands at some £1.75 billion. Dagenham is a strong export story for this country, as 89% of these engines leave our shores, and customers include Jaguar Land Rover, Peugeot, Citroen and Fiat. In 2014, Ford invested £490 million in the next generation of clean diesel engines, specifically designed to meet the new Euro 6 emissions standards. The engines will also satisfy Transport for London’s ultra-low emissions zone. All Dagenham diesel engines will comply with the next phase of Euro 6 emissions standards—these will include “real driving emissions” requirements, not factory-based testing. Put simply, the plant is at the cutting edge of diesel technology and produces engines that comply with the most stringent emissions standards on the planet.

Today, however, there is a crisis of confidence in diesel vehicles and diesel technology, with many arguing that we are witnessing the demonisation of the technology. In the current climate, there is little or no separation between old and new diesel technology: between dirty engines and state-of-the-art diesel technology. If this is allowed to continue, it will have disastrous consequences. Yesterday, it was widely reported that the number of cars built in UK factories in March fell by some 13%. The current debate—or, rather, panic—lacks both facts and nuance. The danger is that this will lead to unfair criticism of the engines built in Dagenham; will threaten many thousands of high-quality jobs in my constituency, and in others across our economy and our country; and will undermine the managed transition to 2040 and a world beyond the combustion engine.

So today I speak up on behalf of Dagenham diesel engine production. Over the past months, I have been in talks with the company, the unions the Mayor’s office and council leaders, and we all stand united on the need for new arguments for modern diesel—to push back against some of the current hostility to this technology—and to make the case for the Dagenham plant and the managed transition to 2040. This is not about defending the indefensible in terms of the older engines, which, paradoxically, the present debate might simply ensure stay on our roads for longer; it is about arguing for the most efficient modern diesel technology. Today I am just asking the Government to join this new partnership to push back against the demonisation of diesel.

In truth, Volkswagen has not done us many favours. Diesel appears to have become a dirty word since it emerged that Volkswagen had cheated regulators and misled customers by using software to suppress nitrogen oxide emissions during testing. In 2015, VW admitted it had fitted “defeat devices” in some 11 million of its cars worldwide, with about 1.2 million of those being in the UK. This cost Volkswagen £22.5 billion. What worries me is the collateral damage now being played out across the whole sector.

Today, there is a real danger that Britain’s auto industry is on a cliff edge, with collapsing sales of diesel and the loss of thousands of manufacturing jobs and dealerships. Consumer confidence is vital and Government have a key role to play in that. In Dagenham, for example, plans to recruit for 150 new jobs in 2017-18 were shelved due to the fall in demand. Over the past few weeks we have heard more bad news, with Vauxhall revealing plans to slash UK dealerships, Nissan preparing to cut hundreds of jobs due to falling demand, and, as we have heard, Jaguar Land Rover cutting 1,000 jobs as it seeks to offset falling diesel sales. European diesel share continues to decline, now at 33% of sales compared with 50% in 2011.

[James Cartlidge (South Suffolk) (Con)]

I congratulate the hon. Gentleman on securing the debate, which is very relevant to me. In my constituency, we have a large company called Delphi Diesel Systems, and we will lose 500 jobs in Sudbury. It points to precisely what he is talking about—the forecast falling demand in Europe because of the much tougher measures that are being introduced. To an extent, I accept some of that, but my concern is that if that is going to happen, we need to see the strongest possible strategy from the Government—much of which we will see, I think—to support the new technology and ensure that investment goes into plants such as his and mine and those all around the UK.

[Jon Cruddas]

That shows the cross-party agreement on some of the points I am making today. The trouble is that in the UK, Germany, France and Spain—the markets where anti-diesel rhetoric is highest—diesel consumption is declining fastest. Sales of diesel cars have slumped as regulators and politicians announce plans for bans, levies and additional taxes in many cities.

In truth, we in Dagenham fear that diesel has become a bit of a political football. In 2001, Gordon Brown introduced a new system of car tax aimed at protecting the environment—a sliding scale to make it cheaper for cars with lower CO₂ emissions. That helped stimulate a dash for diesel after its introduction in 2001 and its extension in subsequent years. There are now some 12 million diesel cars on British roads, while back in 2000 there were only 3 million.

In recent years, diesel has accounted for around half of the new car market. In 2000, by comparison, only one in seven new cars was a diesel model, yet following a 2017 BBC report on the dangers of diesel, the Environment Secretary jumped into the debate to make political capital:

“The dash for diesel was pursued under a Labour government…This is yet another example of a Conservative government having to clean up Labour’s mess…We are taking action…ending the sale of new diesel and petrol cars and vans by 2040.”

Political game playing should have no role, given the challenges facing the sector, as reflected in the comments made by colleagues across the House today.

Since the 2015 VW revelations, cities have taken the lead over national Governments. Berlin banned the oldest, highest-polluting diesel cars from its centre, Paris, Madrid, Mexico City and Athens have said they plan to ban diesel vehicles from city centres by 2025, and Sadiq Khan ordered the replacement of the capital’s diesel bus fleet and enforced a £10 toxicity charge, or T-charge, on the highest-polluting cars as of October. The measures are part of a wider plan to create an ultra-low emissions zone in central London from April 2019. I do not dispute the push back against older diesel vehicles—it has to be the right way to proceed—but the danger is that we throw the baby out with the bathwater and fail to challenge the wholesale demonisation of the technology.