Leaving the EU: Workers’ Rights

Jim Cunningham Excerpts

Tuesday 29th October 2019 Commons Chamber

[Mr Speaker]

Order. I called the wrong Jim. No disrespect to the hon. Member for Strangford, but I should have called Jim Cunningham. [Laughter.] I say to the hon. Member for Strangford, you are a very great man, sir, but I was originally going to call Mr Cunningham. We will come to you; don’t worry. I am saving you up.

[Mr Jim Cunningham (Coventry South) (Lab)]

Thank you, Mr Speaker. We now have a situation, under this Government, where we actually have the working poor. We all want to know what the Government’s intentions are regarding workers’ rights. All we have to look at is the Trade Union Bill that one of the Leader of the House’s colleagues tried to take through the House last year. What value or credibility can we give to any of the Government’s commitments on workers’ rights?

[Andrea Leadsom]

The hon. Gentleman talks about the plight of workers. He will know that there are nearly 33 million people in work—an increase of 280,000 since last year—that 80% of jobs created since 2010 are full-time jobs, that real wages are rising, and that the Government are committed to increasing the national living wage to £10.50 an hour. Those are all incredibly important steps to give workers better rights and better conditions.

Retail Strategy

Jim Cunningham Excerpts

Wednesday 10th July 2019 Westminster Hall

[David Hanson (Delyn) (Lab)]

I congratulate my hon. Friend the Member for Blaydon (Liz Twist) on opening the debate this afternoon. I declare an interest as chair of the USDAW group of Members of Parliament and as a member of USDAW, the Union of Shop, Distributive and Allied Workers. I am particularly pleased to take part in this debate. It is very important to send a message to the Minister that we think that the retail sector is an important contributor to the UK economy. It employs millions of people and is key to the regeneration of our local towns and communities, and also key to the employment across the country of many people. Three million people are directly employed in retail; 1.5 million work in related activity that depends on the success of our high streets. Our high streets are the fabric of our communities and we need to look at what we can do to protect them.

My hon. Friend the Member for Blaydon and the hon. Member for Henley (John Howell) have raised some of the challenges on our high streets at the moment. Disposable income is falling for many people. There are real challenges in the economy as a whole, which means less money is spent locally. The issue of online sales is a particularly big challenge. I have bought things online, as everybody else in this House will have done. It is important to look at the context behind that and consider what that challenge poses.

[Mr Jim Cunningham (Coventry South) (Lab)]

It is not only the impact on the shopping centres; there are also the centres in the outlying districts where there is a major impact. Coming back to the point that the hon. Member for Henley made, a lot of banks and even cashpoints are closing down; banks are shedding a lot of labour these days and that has an impact on people in cities.

[David Hanson]

I agree wholeheartedly with my hon. Friend.

Disposable income is one of the big issues. Online sales are also a big issue. The cost of shops and rent and business rates is certainly another, as is the impact of out-of-town shopping, which employs many people in my constituency. Many of my constituents work at Cheshire Oaks in the constituency of my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), but that does not hide the fact that big, out-of-town shopping centres are dragging people away from smaller towns. In many towns, the loss of Government offices such as the local DWP office or the local post office and doctors’ and dentists’ surgeries stop the footfall going through towns, which presents a challenge.

This year, we have seen a 2.4% fall in the number of staff employed in the retail sector. That does not sound like a great deal, but 74,000 people who were employed at the beginning of the year are now not employed in the retail sector. Vacancy levels in town centres are now at 10%, the highest for four years. As my hon. Friend the Member for Blaydon mentioned, some big key employers in many of our areas are folding. I want the Government to recognise that shops are a generator of economic value, so we need to look at what we can do to support them. My hon. Friend mentioned the USDAW’s “Industrial Strategy for Retail”, a blueprint of ideas that are worth discussion. I hope the Minister will focus on some of those ideas, and see whether they are applicable to Government and the devolved Administrations.

I have a couple of points that I want to throw into the mix. First, we need to look at how we can support the maintenance of key drivers of footfall in town centres. That means the Government need to look at supporting post offices, Government businesses and doctors’ and dentists’ surgeries in town centres. They need to ensure that we have an offer in town centres that brings people in because, as has been said, town centres have to be places of destination as well as places of shopping. We can do that by anchoring key Government facilities in town centres and by adding value to town centres through local council and local government support. For example, we can improve the built environment and plant trees and bushes. If shops are empty, finding ways in which the local council and others can use exhibition and display space to bring people in to make them places of venture is particularly important.

Like the hon. Member for Henley, I want to see integrated issues on planning and look at whether we can find ways to bring houses as well as shops into town centres. When I was honoured to be a Minister in Northern Ireland, I oversaw a scheme whereby we used space above shops for single people and newly married couples to live, ensuring they could use the town centre while also filling empty premises.

The USDAW strategy suggests looking at the online shopping tax. Tesco’s chief executive has indicated he wants to look at the potential for a shop tax. An online tax might be a 1% or 2% levy on online transactions, which could help to balance the initiative towards people buying in retail. I do not want to put the cost up for consumers, but it is worthy of consideration.

My hon. Friend the Member for Blaydon mentioned car parking and transport links, which are extremely important, as is the issue of business rates. In my part of the world in Wales, we have a small business rate relief scheme that provides rate relief for businesses up to £6,000 of rateable value with 100% relief, and we have a high street relief scheme that supplies £23.6 million of rate relief for shops in town centres. That helps anchor and keep businesses in those town centres.

Finally, I will give some examples. In Holywell in my constituency, we recently lost all of the banks bar one, but, with the help of a company called Square, we had some potential in the town centre, where we enabled people to use machines for online transactions. That was provided free by Square to help support retailers in the town. We have had support through a range of activities, festivals, theatre and art groups trying to bring footfall into the towns. All of that is part of a retail strategy. It requires not just the shops but local councils, Government and private sector organisations trying to support a focus on retail, and not a drawing away from retail. I commend USDAW’s industrial strategy and recommend that the Minister look at some of the ideas. I look forward to her comments on things that have been raised today.

Climate Change, the Environment and Global Development

Jim Cunningham Excerpts

Wednesday 10th July 2019 Commons Chamber

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

I beg to move,

That this House has considered tackling climate change, protecting the environment and securing global development.

I welcome this timely debate and the work of the Select Committee on International Development, and of many hon. and right hon. Members on both sides of the House, to highlight the urgency of addressing the interlinked challenges of tackling climate change, protecting the environment and ensuring sustainable development.

The challenge has never been clearer and our will to act has never been stronger, as demonstrated by the resounding support from both sides of the House for committing the UK to a target of net zero emissions by 2050. The world faces the challenges of doubling global infrastructure to meet development and of feeding 1 billion more people, while simultaneously halving global greenhouse gas emissions by 2030 to keep pace with the Paris climate change targets.

Globally, we are not yet on track to meet the aspirations of the Paris climate agreement. On our current trajectory, we may hit 1.5° C above pre-industrial temperatures as early as 2030, and 3.5° C above by 2050. This risks 100 million people being pushed into poverty by climate change by 2030, making the sustainable development goals much harder to achieve.

[Mr Jim Cunningham (Coventry South) (Lab)]

What has been the impact of the Americans withdrawing from the Paris agreement? Has there been any dialogue, for want of a better term, with the Americans to get them back into the agreement?

[Andrew Stephenson]

We have regular discussions with the American Government. Obviously we think the Paris climate change agreement is important, but we are seeing reductions in America’s emissions because many states and many bodies across the country have decided to up their ambitions despite the actions of the federal Government. We are seeing some encouraging signs, even if we hope the US Administration would go further and faster.

Sale of New Petrol and Diesel Cars and Vans

Jim Cunningham Excerpts

Thursday 4th July 2019 Commons Chamber

[Peter Kyle (Hove) (Lab)]

I beg to move,

That this House calls on the Government to bring forward the date by which the sale of new petrol and diesel cars and vans will be ended.

I thank the Backbench Business Committee for granting this debate and the Business, Energy and Industrial Strategy Committee for producing the inquiry that inspired it. I also thank my hon. Friend the Member for Nottingham South (Lilian Greenwood) for presenting a report from the Transport Committee. That demonstrates the role that Select Committees are currently having in the life of our politics, and the importance of this Chamber in the absence of a lot of Government business.

Every transition in technology, or indeed social progress, generates resistance. Some people like to focus on the negatives and challenges, and use those as a reason for resisting or delaying change. I want to use this debate as an opportunity to talk about what needs to be and can be done, and shine a light on the many positives that will come from the move to electric vehicles.

Discussion of EVs usually starts with a focus on infrastructure or climate change, but as we are discussing what is ultimately a consumer product in a nation of car lovers, I will start by talking about the driving experience itself. I will start with what, in this day and age, is a confession: I love cars and I love driving. I am a proud member of the Association of Advanced Drivers and Riders, and I love watching Formula 1. Some time ago, however, a conflict began between my head and heart. My heart loved being a car owner and the freedoms that came with that, but my head knew the damage it was doing, and that by living in the centre of a city with a fantastic and award-winning bus service, I could afford to live without driving if I tried.

A decade ago I sold my car, and since then I have been an extremely happy user of the Brighton & Hove bus company, and an often irate user of Southern trains. Crucially, however, I have never regretted the move, particularly as new scientific data emerges on the impact that vehicle emissions are having on the quality of our air and on global warming.

As part of the BEIS Committee inquiry, not only did we undertake the normal avenues of parliamentary investigation, we also got out and about. We travelled to Norway to understand its outlier status as the world’s most successful country in the transition to carbon-free transport. We went to the Milton Keynes’s Electric Vehicle Experience Centre, where anyone can go to try out electric cars for themselves. As somebody who loves driving, I must admit that I was not really looking forward to it. I expected a sluggish, dull experience that pointed to a future in which people who enjoy driving will have to sacrifice their enjoyment for the sake of our environment.

I could not have been more wrong. All questions about range anxiety and charging times go straight out the window once you get going. The first thing you notice is how different the car’s interior is. Losing the need for a driveshaft and traditional gearbox means that designers and engineers have far more freedom to rethink the space used to enhance driver comfort and the passenger experience in an electric vehicle. Then you cannot help but notice how fast they are. There is no need to wait for the process of combustion in an EV, so initial acceleration, even in an entry-level model, is startling. I got a test of this when the hon. Member for Rugby (Mark Pawsey), who is in his place on the Government Benches, and I were going down the dual carriageway. I was on the inside lane and he shot past me on the outside lane. He certainly got around the first roundabout in Milton Keynes before me. You then become aware of the noise or, more accurately, the lack thereof. Few of us can afford cars whose engine noise is a thing of beauty, so doing without it altogether is a godsend.

Finally, because of the use of the reclamation engine to reclaim energy when decelerating, all but the most severe braking is done by lifting the accelerator pedal. It makes for an incredibly smooth ride, much smoother than that of the current automatic cars, although I cannot attest to the smoothness of the hon. Gentleman’s journey that day.

In short, we should not guilt drivers into electric cars. We should start by pointing out how brilliant they are. That is also borne out by the evidence.

[Mr Jim Cunningham (Coventry South) (Lab)]

When my hon. Friend was on his mystery tour, for want of a better expression, did he visit the Jaguar Land Rover plant and look at the electric cars there, or did he go to look at the black cabs made just outside Coventry, in the constituency of the hon. Member for Rugby, and try a ride in one?

[Peter Kyle]

I am extremely grateful for my hon. Friend’s characteristically generous and insightful contribution. The Committee visited JLR—I was not on the visit—and the London Electric Vehicle Company plant. Indeed, the hon. Member for Rugby was a participant in that visit, for obvious reasons. I will talk a little later about that experience and the contribution that that company is making to the streets of London, our capital city.

The proof that driving an electric vehicle is an exhilarating experience and one that consumers enjoy is also borne out by evidence. In Norway, where 30% of new cars sold are electric, 96% of first-time buyers say that they would never consider going back to conventional cars. Evidence also shows that prior to buying an EV, potential customers have concerns about range anxiety. New electric car customers, however, report feeling liberated from petrol stations. Evidence shows that people who buy EVs love them and promote them to friends. People like me who have experience driving them soon aspire to own one.

Just as electric vehicles provide a great consumer experience, we should also see the opportunity they provide for British business, which has not only challenges but huge opportunities in this regard. British industry has already proven itself a world-leading EV maker with the Nissan Leaf, Europe’s best-selling electric car, which is made right here in Britain, in Sunderland.

Our fantastic start is not being sustained, however, and there is no time to waste if we are serious about using the conversion to electric as an opportunity for British industry. Low domestic demand, Brexit and unambitious policy have meant that Britain has lost out on the world-class manufacturing opportunities we should be snapping up. Honda is closing its car assembly plant in Swindon to make its electric cars in Japan. BMW, Vauxhall and Toyota are shipping their high-value parts, including batteries, from abroad rather than making them here. Once these global patterns are established, it will become really hard for British industry to break in.

[Peter Kyle]

My hon. Friend makes an incredibly important point, which is fundamental to not only saving the industry but exploiting it. It is about not just car manufacturers but the supply chain. It is part of a comprehensive industrial strategy that our country cannot afford to miss out on. We will only succeed in the way she mentions, and succeed in achieving the kind of ambition she has for her local industry and her local businesses, if the Government are an active participant in making that happen. That is the lesson we have learned repeatedly in recent decades and repeatedly in the past year alone.

[Mr Jim Cunningham]

Jaguar Land Rover is investing a lot of money in making electric batteries at its research and development centre in my constituency, but not enough has been done to create the infrastructure for electric cars that is badly needed. Does my hon. Friend not agree that more could be done in that area?

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

May I just say that we have a very packed debate afterwards and that the opening speeches are meant to be approximately 15 minutes in length? I hope that helps.

Whistleblowing

Jim Cunningham Excerpts

Wednesday 3rd July 2019 Commons Chamber

[Stephen Kerr]

I thank the hon. Gentleman for that intervention because it underlines the fact—and it is a central purpose of the APPG—that we need to improve the overall perception of whistleblowers, and the attitude to them.

[Mr Jim Cunningham (Coventry South) (Lab)]

I apologise for being a bit late for the start of the hon. Gentleman’s speech. Members who have been in this place for a long time will remember the case that I had of a consultant called Mattu. He was a whistleblower and he was suspended. He was never really employed again by the NHS and the case cost—you could take a guess at the figure—something like £3 million. It ended up in the courts, where they tried to use my letter against that individual. So on the one hand we encourage whistleblowers, but we do nothing to protect them and sometimes we try to destroy their reputation.

[Stephen Kerr]

I am grateful for that intervention. I think I remember taking part in a Westminster Hall debate in which that case was highlighted.

We are going to publish our first report of a series. We have created an ambitious work schedule for our all-party group, but our primary report, based on the first-hand testimony of whistleblowers, should be published soon. I see so many people in the Chamber who have been of so much support to the group’s work, and who have served on the panels that we have put together to receive evidence and witness testimony, so I take the opportunity to thank publicly the Members who have been willing to do that.

We have also worked alongside WhistleblowersUK, which specialises in supporting whistleblowers. I pay tribute to its work and that of other such organisations. Most importantly, I would like to thank the whistleblowers themselves. The whistleblowers who have come before us to give testimony have proven to be caring, principled members of society who have put themselves at considerable risk to call out malpractice and misdemeanour. Some of those people are not covered by the current whistleblowers’ protections and law; many work, but some were not working.

In less than 12 months, we have heard and collected over 400 pieces of individual evidence to contribute to the series of reports that we intend to publish. Many of the testimonies were very difficult to hear and I will tell hon. Members why. These are people who put everything on the line. As colleagues said earlier, when those whistleblowers first spoke up, they did not realise what it would involve. However, having started out on that course, they stuck with it. I have nothing but total admiration and respect for these people. They have suffered mental trauma, loss of their career, loss of their businesses, persecution of their families, stringent gagging orders—all in the name of blowing a whistle on crime, corruption, negligence, wastefulness and cover-ups.

Many of these people are not employees; they are service users, bystanders, parents at school, patients at hospitals, suppliers, customers and taxpayers. Whoever they are, we should be grateful for whistleblowers. They saw themselves as doing their job, doing their duty, doing what was right. They did the right thing to uphold what they thought was the right standard—the professional standard. They thought they would probably be praised and recognised for speaking up, doing the right thing, protecting people, protecting reputations—organisational reputations, individual reputations—and standing up for the public good and public confidence, particularly in our public services.

Oral Answers to Questions

Jim Cunningham Excerpts

Tuesday 11th June 2019 Commons Chamber

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

I recognise the key role that my hon. Friend played in instigating the review when he was in post. Consumer safety is a Government priority and I assure him that we have kept Whirlpool’s action under review. I can tell the House that we have informed Whirlpool of our intention to serve a recall notice as the next step of the regulatory process. This is unprecedented action.

[Mr Jim Cunningham (Coventry South) (Lab)]

T7. I have two universities in my constituency that work very closely with businesses to develop technology. Can the Minister assure me that the Augar review will not lead to funding cuts at these universities, as they get funding from different sources?

[Chris Skidmore]

The Government have been clear in our response to the Augar review that we want to reflect on its recommendations. We will take this forward as part of the spending review while the post-18 review reaches its conclusions. I entirely agree with the hon. Gentleman that the future of research in this country is about ensuring that universities act as magnets to draw business in. Just yesterday, I attended the launch of the University of Bath’s Institute for Advanced Automotive Propulsion Systems at the Bristol and Bath Science Park. It is absolutely right that we must cherish universities’ research capabilities.

British Steel

Jim Cunningham Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

It is not a question of having the funds available; it is a question of the legality of being able to deploy them. The right hon. Gentleman will know, as the House will, that I have a good record of being able to invest alongside private businesses where this secures jobs and innovation. That is absolutely something that I would do in the steel sector. One legal requirement—we are meeting the legal requirements—is to show that there is co-investment from a private investor. In the situation in France, there was substantial investment on both sides. The same was not available in this case, which was one reason why the advice that I was given was of the nature that it was.

[Mr Jim Cunningham (Coventry South) (Lab)]

We have been here on two or three occasions, including with GKN and Bombardier, so one wonders where we are going, as the steel industry is vital to manufacturing in this country and, more importantly, to the defence industry. I thank the Secretary of State for his statement, but I can tell him that I worked at Rolls-Royce when it collapsed in 1971 and there is no worse situation an employee can find themselves in; that situation went on for weeks, until eventually the Heath Government had to semi-nationalise it. I have the feeling that you may be back here in a couple of weeks’ time if you cannot find a buyer, so you will really have to consider that. I hope you will consider that, because if you do not, you will be inflicting a lot of pain on a lot of good employees who work very hard. Once you have experienced something like that, you never forget it.

[Mr Speaker]

The hon. Gentleman raises a very serious point, but I just gently observe that I will not find a buyer and I will not be giving any consideration to this matter whatsoever.

Education

Jim Cunningham Excerpts

Wednesday 15th May 2019 Commons Chamber

[Marion Fellows (Motherwell and Wishaw) (SNP)]

I am a trifle confused. The territorial extent of the regulations is described as across the UK, but in fact they contain not a lot, if anything, that affects Scotland. They do refer to UKRI, which is the amalgamation into one body of all the research funding councils across the UK, no work on which has actually been done by this Government since the amalgamation was announced in the 2017 Act. This will have a great and deleterious effect on Scotland and on Scottish universities. There is a worrying spectre facing the Scottish universities in regard to research funding, which will no longer come from Europe. Scotland has had more, some would say, than its fair share in population terms, but certainly not more than its fair share in excellence terms because of the research done in Scottish universities, quite often by EU nationals who have given a great boost to the Scottish university sector and who are welcome, and still welcome, in Scotland.

[Mr Jim Cunningham (Coventry South) (Lab)]

That will affect not only Scottish universities but English universities, certainly in the midlands and in the Coventry area, where there are two universities. Those universities in Coventry and the midlands do a lot of research and development for Europe, and they sometimes rely on the expertise of employees coming from Europe. We cannot get a guarantee out of the Government that that expenditure will continue at present levels or increase beyond 2020. Does the hon. Lady agree that that is cause for concern for all universities in Scotland and in England?

[Marion Fellows]

I certainly do, but as the hon. Gentleman is aware, I have a particular interest in Scottish universities.

I thank the Minister—it was a bit bad of me not to thank him immediately—for his detailed explanation of the regulations and for the promise that more regulations will be brought forward on research. I gave him—I am sure he remembers it well—a 101 on Scottish universities education when he came to the Education Committee this morning. It was a pleasure to meet him and to listen to what he had to say, and I believe he has the interests of universities at large at heart. I hope he will take up my offer for him to look closely at what is being done in Scotland about funding and widening access, which we discussed this morning. However, I am going off the point and I do not wish to speak for long.

I share the puzzlement of the hon. Member for Blackpool South (Gordon Marsden). No one is against these regulations; they are technical and they will help to ensure that the 2017 Act makes sense after we leave—if we do—the European Union. My preferred option is to stay, of course. The regulations are really just technical, and I am baffled about why they have been brought to the Floor of the House but the Minister has not published the information on research funding that universities need now; that is almost teasing the whole university sector. Universities UK was very pleased because a successor to Horizon 2020 is moving forward, and we may, as a United Kingdom, be a third party and involved with that. Some of the best research done across the UK and across Europe has been the best precisely because it has been pan-European, not confined to the UK.

As has been mentioned in this place before, the Government’s proposals for tier 4 visas for students after three years in the UK will have a much greater impact in Scotland, where a standard degree is generally a four-year degree. That must be dealt with. It also affects those students who carry on, who want to do real and lasting research and want to stay in Scotland. The whole premise of tier 4 visas is to put off—it has already put off—researchers coming to the UK, to Scotland as well, and to make it much more difficult for universities to attract the right kind of research that they can build on and keep the UK in the forefront of research worldwide.

Bombardier

Jim Cunningham Excerpts

Tuesday 7th May 2019 Commons Chamber

[Andrew Stephenson]

My hon. Friend is correct to point out that Bombardier is a growing company that is investing in different sectors; it is just strategically realigning itself. I look forward to visiting a different Bombardier site on Thursday—not the one my hon. Friend mentioned—to talk about other investments within the UK. The decision to sell its operations in Northern Ireland is regrettable, but we will work with the company to ensure that the right buyer is found.

[Mr Jim Cunningham (Coventry South) (Lab)]

Members will recall that the American Government took legal action against Bombardier about 18 months ago, so how big a part did the United States play in this decision? The hon. Member for Glasgow North West (Carol Monaghan) said that this affects 4.5% of the workforce in Northern Ireland, but we can multiply that figure by two or three if we include the supply chain as well, so the problem is much bigger than people realise. We had a similar statement on GKN a couple of weeks ago; is the Minister being conned on this?

[Andrew Stephenson]

Bombardier has told us that this is a strategic decision so that the company can focus on its transportation division, which includes trains and business jets. We have been told that it has not been influenced by any other factors. This is a strategic decision by the company so that it can focus on certain key parts of its core operation.

GKN Aerospace, Kings Norton

Jim Cunningham Excerpts

Wednesday 24th April 2019 Commons Chamber

[Richard Burden]

The hon. Gentleman is quite right, and I thank him for his kind words. This breach of faith needs to be challenged, and I hope that the Minister will assure us that it is not only Opposition Back Benchers who are challenging the decision and that the Government will do so as well.

[Mr Jim Cunningham (Coventry South) (Lab)]

Although my hon. Friend says that 170 jobs will be lost, we actually have to multiply that by two or three because of the supply chain. Such figures can be utterly misleading. I am sure that my hon. Friend will recall that national security and the whole defence industry were mentioned when this matter was first debated. Despite the assurances received by Ministers, such companies have not honoured their agreements. There is a pattern of asset stripping with this company and others, and it is about time that the Government got tough with them. The Government also need to consider national security, because I have worked in the defence industry and know what it means.

[Richard Burden]

My hon. Friend is right to mention national security. It was raised last year, and I will refer to it later in my speech, because GKN Aerospace Kings Norton manufactures windscreens, windows and other transparencies for both military and civilian aircraft.

--- Later in debate ---

[Andrew Stephenson]

No, I think foreign direct investment is a power for good in our economy, and we should work to attract more investment into the economy. Some of our best firms have grown through mergers and acquisitions, and we have seen huge investments in different sectors with the help of foreign direct investment. It is worth saying at this point that GKN has grown through mergers and takeovers, both here and abroad. I think the firm actually bought the site from Pilkington in 2003.

The UK’s merger regime is highly regarded around the world because of how it is designed. It is based on transparent rules that are administered consistently by expert bodies. It recognises that decisions are primarily a matter for the shareholders and restricts the role of Ministers to transactions that raise public interest concerns. As a result, the regime offers clarity for businesses and maintains investor confidence. An example of that is the independent Takeover Panel, which governs the takeover code. The code provides a robust framework to ensure that takeovers of listed companies are conducted in an orderly manner, with fair treatment of all shareholders.

On 12 January 2018, GKN announced that Melrose had made a takeover approach and the Secretary of State spoke to both parties to understand their intentions. The Government’s priority was to ensure that the national security concerns raised by the transaction were addressed. The Government completed a thorough and detailed assessment and concluded that they should not intervene under the Enterprise Act 2002.

Melrose voluntarily agreed post-offer undertakings with the Takeover Panel. As a result, for a period of five years, Melrose committed to sustain GKN’s current level of expensed research and development at 2.2% of sales; maintain a UK stock exchange listing; remain headquartered in the UK and ensure that the majority of directors are UK resident; and guarantee that both the aerospace and Driveline divisions retain the rights to the GKN name. In addition, Melrose agreed to sign a deed in favour of the Department for Business, Energy and Industrial Strategy that commits the company not to sell the core aerospace business before 1 April 2023 without the Secretary of State’s consent.

[Mr Jim Cunningham]

I welcome the Minister to the Front Bench—I should have said that earlier. In response to my hon. Friend the Member for Birmingham, Northfield (Richard Burden), he indicated that he has had discussions with the Ministry of Defence about the current situation. What was the MOD’s view?

[Andrew Stephenson]

The MOD shares my Department’s view that these job losses and this closure are highly regrettable but do not contravene the terms of the deed and the undertakings made during the takeover. Melrose agreed a deed with the MOD that includes clear obligations and commitments to maintain capacity and to support certain military goods, and requires that the Secretary of State for Defence be notified if Melrose plans to transfer production outside the UK. Melrose also made commitments to invest in skills and innovation, support sector deals, and support the supply chain during its ownership of the business.

Since the transaction completed, the Government have been monitoring Melrose’s compliance with the terms of the deal. My officials had a meeting with the company in October 2018 and will meet it again next month. Furthermore, on 1 April Melrose publicly reported that it is in compliance with the post-offer undertakings as required by the Takeover Panel. We are currently content that Melrose is compliant with the commitments that it made to the Government. Although GKN Aerospace’s decision is a huge disappointment for both the Government and the 172 staff members who will be affected, it does not contravene the commitments that were made at the time of the takeover.

The hon. Member for Birmingham, Northfield asked whether I had spoken to my colleagues in the Ministry of Defence; I have spoken to the Defence Procurement Minister, and he confirmed that they are content that Melrose has complied with its requirement under the deed with the MOD.

Prior to the Melrose bid, GKN had itself planned to restructure the business, which could have resulted in job losses, and intended to sell the entire automotive division to the US company Dana, which likewise might have decided to close UK manufacturing sites. The Secretary of State spoke to GKN Aerospace’s chief executive officer, Hans Büthker, and he informed us that the announcement does not in any way reflect a reduction in growth by the company. In fact, he said it is quite the opposite: the decision is the result of an internal strategic review by GKN to invest in high-value technology- driven production. That same review proposes to invest more in other UK sites.

I understand that a meeting has now been arranged between the hon. Member for Birmingham, Northfield, the Secretary of State and the CEO of GKN Aerospace for further discussions on the matter, including on how we can best support his constituents who work at the site. I hope that will be an opportunity to discuss and explore alternatives to the site, and that that is something the hon. Gentleman can take forward from this debate.

As I mentioned earlier, GKN has confirmed that it will be doing all that it can to support the affected employees. We will continue to work closely with the company, the unions, the local enterprise partnership, the Mayor of the West Midlands Combined Authority, Andy Street, and councils to help with this effort and ensure that each and every worker is fully supported in finding new work.

Aerospace is one of our most rapidly expanding sectors and skilled and experienced employees are in strong demand. The UK aerospace sector is a great success story, and we punch well above our weight on the world stage. We are a world leader in the design, manufacture and maintenance of some of the most complex and high-value components of an aircraft, including the wings, engines, aerostructures and advanced systems. Our industry turns over £39 billion a year and the vast majority of what we make in the UK is exported globally.

Around half of the world’s modern passenger aircraft have wings designed and built here in the UK, and GKN Aerospace-manufactured products are on more than 100,000 flights a day. The hon. Gentleman asked what impact the closing of the Kings Norton site will have on the industrial strategy in Birmingham. Yesterday, I attended a meeting alongside five of my ministerial colleagues to discuss the midlands engine and the progress of our west midlands local industrial strategy. This will set out an ambitious long-term vision for the west midlands economy to increase productivity, drive economic growth, and support manufacturing and technology in both Birmingham and the wider region.

The midlands has long been renowned as a hub for manufacturing, and it is not short of opportunities for advanced engineering jobs. More than a third of the UK’s automotive sector employment is in the midlands, and the region boasts many globally recognised companies, including Jaguar Land Rover, JCB and Rolls-Royce. More widely, the midlands is also home to the Manufacturing Technology Centre in Coventry, which operates some of the most advanced manufacturing equipment in the world.

The past year has seen the largest GKN Aerospace UK technology investment since 2012. This includes the announcement of a £32 million UK Global Technology Centre in Bristol and the large investments made to support its additive manufacturing capabilities in the UK—both have been supported by the Government through co-funded research and development grants. This co-funded investment will support GKN’s growth in the UK and will help safeguard and create high-value jobs in the company and its supply chain.

Hon. Members will be pleased to hear that GKN has also confirmed to us that there will be further investment at some of its other UK sites, including those in Luton and Portsmouth, which will soon become technology centres of excellence. This comes on top of GKN’s recent announcement of £300 million in new investment to ramp up its activities in the fast-growing market for electric vehicles, something that I am sure the hon. Gentleman, as chairman of the all-party motor group, will welcome.

I can assure hon. Members that the Government will continue to support those affected by this site closure in the years ahead. Finally, I thank the hon. Gentleman again for giving the House the opportunity to debate this important issue.

Question put and agreed to.