UK Automotive Industry

Jeremy Lefroy Excerpts

Tuesday 1st April 2014 Westminster Hall

[Gavin Williamson]

The hon. Gentleman is absolutely right. Let us not forget that the west midlands are the beating heart of the automotive industry in this country. The west midlands are what drive the automotive industry and have the most to gain from an expanding automotive industry. Almost one third of those employed in the industry live and work in the west midlands. That is why many hon. Members from the west midlands are present for today’s debate. We know that it is important to our constituencies and our region to drive economic growth and success. We have to be committed, both as a Government and as constituency Members of Parliament, in order to support businesses, whether foreign or domestic, to invest.

While much has been done, there is much more to do. The hon. Member for Coventry South (Mr Cunningham) pointed to the success of Jaguar Land Rover, much of which is down to research and development and which, importantly, leads to excellent products that people want to buy.

[Jeremy Lefroy (Stafford) (Con)]

I congratulate my hon. Friend on securing this debate and on all the work that he has put in to ensure that JLR’s move to South Staffordshire will be a great success.

Does my hon. Friend agree that one of the areas in which the UK has a tremendous competitive advantage, based on excellent, top-quality R and D, is the development of engines? We have engine plants all over the country, including in my constituency—although not for the automotive industry—Perkins Engines, which makes the largest engines. It is vital that long-term investment in research and development in an area in which we have such a competitive advantage continues to grow.

[Gavin Williamson]

My hon. Friend is absolutely right. He is right to point out the valuable work that Perkins Engines does to supply the heavy construction sector. We are seeing a build-up of expertise in engine design and manufacture, not just in the west midlands but right across the UK. That can be seen not just in JLR’s investment in its new plant or in Perkins’s work, but in BMW, which produces many of its engines in Hams Hall, and in Ford, as a third of its cars, which are produced across the globe, have engines manufactured in the UK. That is why it is vital that the Government keep their commitment to invest in research and development, whether through the Technology Strategy Board or the regional growth fund.

I am pushing for the Government to support and commit to the regional growth fund, and I hope the Minister will reassure us on that. I seek real Government commitment to help British industry and automotive production so that the technology and research and development bases may grow and develop. It is vital that R and D is based here in the United Kingdom, because if we can get businesses to invest in R and D in the UK, they will often base their manufacturing here, too.

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[Gavin Williamson]

I congratulate companies such as Ford on their work. In the run-up to 2018, the automotive sector hopes to take on 7,600 new apprentices and 1,700 new graduates. The sector is a growth area for young people, which is one reason why I am championing a £5 million investment in an engineering studio at my local high school in Codsall. Such a studio will concentrate on training the engineers and designers of the future so that South Staffordshire can provide the very best work force to Jaguar Land Rover and the aerospace sector and companies can grow with the best talent.

[Jeremy Lefroy]

Does my hon. Friend agree that we also need electronic engineers and software engineers? So much of the inside of a car these days is made up of electronics and software.

[Gavin Williamson]

My hon. Friend makes a valid point. At the weekend, I took my two daughters to the Enginuity museum at Ironbridge near Telford. We saw a cross-section of a Mini. Although the design is amazing and out of this world, it is all pulleys and levers. Now, much of a Mini’s design is down to electronics. We must not forget how high tech or capital-intensive the automotive industry is, but it is about getting the skills and technology in line, and the Government have an important role in ensuring that that happens. Let us not forget that if youngsters and people of all ages do not have the skills, and if we do not support companies constantly to skill up and improve their work force so that they can move forward, we will lag behind.

I am conscious that other people want to take part in this debate. In summary, I seek assurance from the Minister that the Government are committed to ensuring that the regional growth fund continues to deliver jobs and investment not just for the west midlands but for the whole country. The fund has already achieved a great deal, but it can do more. Let us not kid ourselves, because the automotive sector is one of the most international industries in the world. The sector can move to virtually any country. We would be very naive to think that countries such as Germany, Italy, France, Spain, Portugal, India, China, Russia, Brazil and the United States are sitting back and not being proactive in attracting investment, because those Governments are going out to seek and deliver investment. I want to see the Government continuing to do that, ensuring that it is clear to everyone not only that we have the most skilled work force and the best designers in the world and produce the best cars, but that we are the best place to produce them.