Manufacturing (West Midlands)

Jeremy Lefroy Excerpts

Tuesday 15th January 2013 Westminster Hall

[Gavin Williamson]

The hon. Gentleman makes a valid point. I want to ensure that we have a level playing field in procurement. We must recognise the fact that many Governments—whether in Germany or France—put a great value on ensuring that local employment is created as a result of their procurement.

Northern Ireland has benefited significantly, whether by buses being produced in Ballymena or other things. We would like to see various parts of the UK—whether Northern Ireland, the west midlands, Yorkshire, the north-east or the north-west—all benefiting from a Government who are passionate about buying British. I hope that we are starting to see that, but I would certainly like to see a lot more of it.

[Jeremy Lefroy (Stafford) (Con)]

I am most grateful to my hon. Friend for giving way, and I congratulate him on securing this debate. On Friday, I visited Alstom with the Government’s chief scientific adviser at the Department of Energy and Climate Change, because Alstom is a major investor in energy, particularly high-voltage direct current. One of the points I noted was that our national grid buys most of its transformers from overseas. Stafford is the only place in the UK with a transformer manufacturer. However, the real reason that the national grid is buying from abroad is that in our procurement in the UK we do not take into account the quality of UK products and hence their longevity. The value-for-money approach needs to take longevity into account. If that were the case, I believe that we would be buying more from UK manufacturers.

[Gavin Williamson]

My hon. Friend, who is a constituency neighbour of mine, makes a valid point. Alstom also has a significant impact on my constituency. Looking at how things are procured, the value that is gained over a long period and the investment, in terms of jobs, training and apprenticeships that are brought to the UK, are all incredibly important points that must be recognised in Government procurement.

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[Gavin Williamson]

My hon. Friend is getting a very early bid in there; again, I will leave the Minister to respond to that request himself. However, I of course join her in congratulating that company on its work. I am sure that one of the great reasons it has seen such export success is its investment in research and development. R and D is important in the west midlands. Indeed, 72% of all R and D is derived from the manufacturing sector, so we must appreciate what a significant role the sector plays in terms of our universities and developing new technologies. One of the finest examples is the Warwick Manufacturing Group, which is based in the west midlands and really leading the way. It is a shining example of what we want to see more of, not only in the west midlands but right across the UK.

[Jeremy Lefroy]

I just want to point out the importance of the Government’s regional growth fund. In the case of Alstom—I have already mentioned Alstom, and I would be grateful if the Minister could visit it to see for himself the impact of the RGF—the fund has been used to invest in world-beating high-voltage direct current technology. For instance, last year Alstom received an order worth 250 million euros from the Swedish grid, even in the face of stiff Swedish opposition.

[Gavin Williamson]

I certainly concur with all the points that my hon. Friend has made, and my right hon. Friend the Minister will have a very busy diary by the time that he leaves Westminster Hall after this debate.

I am very conscious of time, and that other people want to contribute to the debate. So I will try to go through some of the points that I want to make very rapidly, and I hope that Members will not think me discourteous if I try not to take too many interventions from this point on. As I say, I am very conscious that others want to an opportunity to speak.

South Staffordshire has seen some enormous manufacturing successes since 2010. Last year, McCain Foods announced it was investing £3 million in its Wombourne factory, introducing new product lines, securing the factory’s future and creating jobs. We have seen a massive investment by Moog’s aviation division, which has moved from its old site in Bilbrook, in my constituency, just a couple of miles down the road to the new i54 site, which is also in my constituency. It has invested many tens of millions of pounds, securing British jobs—jobs that have a significant impact in not only South Staffordshire, but Wolverhampton. We have seen investment from Eurofins. Of course, the most significant investment came from Jaguar Land Rover, which invested £350 million in the i54 business park. That will, I hope, create 750 jobs and make sure that all the company’s engines are manufactured in the UK. The firm is investing significantly in new technology, such as its new four-cylinder engine, which will reduce emissions and, I hope, drive exports and domestic sales.