Burton’s Foods (Moreton)

Jim Shannon Excerpts

Wednesday 26th January 2011 Commons Chamber

[Mr Prisk]

I am going to address the specifics of the hon. Lady’s questions, but I wanted to ensure, as the right hon. Gentleman rightly points out, that we looked at the context, because there are good manufacturing stories to be told in the north-west, and it is important to stress that.

The hon. Lady referred, first, to the alternative proposals, in which I know she is actively engaged, and she asked what might happen if they were successful. We have a problem, because Burton’s has decided to wind down its business and to reinvest elsewhere. I shall turn to the Scottish numbers in a moment, because we have made specific inquiries. It is therefore very difficult, at this moment, for the Government to try in any way to override a decision if the company wishes to move from that location to elsewhere—however frustrating I am sure that will be for the hon. Lady. If the company does not wish to remain on that site, it is very difficult for the Government to change the fundamentals of that particular business.

On the Scottish Government grants that have been allegedly applied for, we have made specific inquiries to try to help the hon. Lady, and at the moment we understand that no detailed discussions have taken place between the company and the authorities. There has been an initial discussion, but no business plan, details or finance plan have been discussed. The location in question in Scotland would not qualify for regional selective assistance, however, so we wait to find out what the discussions may or may not be about between Burton’s and the Scottish authorities. I have asked my officials to monitor the situation closely, and if we receive that information we will of course share it with the hon. Lady, so that she is able, in her local discussions, to deal with it. She will appreciate, however, that at this moment and at this Dispatch Box it is very difficult and, indeed, probably inappropriate for me to second guess what may or may not be offered.

On the question of the company’s accounts for last year, which show a credit of £418,000 for, as the hon. Lady put it,

“the release of Government grants”,

we have spoken to the Northwest Regional Development Agency, and I am disappointed to tell her that, as of an hour ago, it has not been able to provide us with that information. I have pressed upon the RDA the need for it, and the moment I receive a reply I shall of course share it with the hon. Lady, so that she can understand the background to the situation and what

“the release of Government grants”

actually means.

The hon. Lady referred to two other businesses, Typhoo Tea and Manor Bakeries. She asked whether there is a danger of a domino effect because the security and amenities on the site are shared. I am concerned that the closure of the plant should not have unreasonable adverse effects on the neighbouring businesses. I am not familiar with the exact site and with what those effects might be, and I am not sure whether it would be £1.5 million, £2 million or £3 million. However, we are in direct contact with the RDA to establish the specific facts and itemised numbers on that. She said that the data centre that the company offered is not yet operational. If we get that information from the other companies through the RDA, we will bring it to her. It is difficult for me, in the circumstances, to make a commitment at this moment, but I am happy to come back to her in due course when we have more information on that issue.

The hon. Lady said that the Moreton site was effectively the only land in the area that is suitable for industrial development and zoned for that use. She asked what the situation would be if there was a closure, because it could be serious. A number of avenues are open, and I urge her to work with business and civic leaders in this area, as I know she already is. She mentioned the regional growth fund, the first round of which closed today.

[Jim Shannon (Strangford) (DUP)]

rose—

[Mr Prisk]

We are in the last minute of the debate, so I will not give way.

The £1.4 billion regional growth fund has been set up. The first round has closed, but the second has not. The hon. Lady might want to consider that. In addition, there is the £1.5 billion business growth fund that the banks have established to deliver investment. As I said, if things do not work out, Jobcentre Plus help is available.

I appreciate the difficulties in the hon. Lady’s area, and it is important that we remain in conversation and contact on this matter. It is early days, but I hope that a satisfactory conclusion can be reached. At this moment, it would be unwise of me to make a carte blanche offer of help in monetary terms, because we are not fully conversant with the facts. When we are, I will be happy to have further conversations with her, or her neighbouring colleagues if that is appropriate. On that note, I will draw my remarks to a—