Ford Motor Manufacturing

Debate between John Denham and Ian C. Lucas

Tuesday 6th November 2012 Westminster Hall

[Ian Lucas (Wrexham) (Lab)]

I had not intended to speak, Sir Roger, as I am conscious of the local interest in Dagenham and Southampton in this matter, but I would like to make one point relating to the UK Automotive Council. Will the Minister ask that organisation whether any aspect of Ford’s actions was raised with any officer or individual from the council? The organisation is, of course, jointly chaired by the Secretary of State. Has the issue as a whole been contemplated in discussions of automotive strategy that take place at that organisation? It is an important body, which has been a key part of the renaissance of British manufacturing and the automotive sector in the UK economy.

Much depends on frankness between the parties involved. It means that the Government come to the aid of the industry when it is in trouble. The right hon. Member for Eastleigh (Chris Huhne) mentioned the car scrappage scheme. Ford was extremely vocal to me at that time of great crisis in the UK automotive industry, calling for the introduction of the scrappage scheme. At that difficult time, all political parties supported the scheme’s introduction. If there is no frank relationship between the industry and the Government, it means that should there be a difficult time in future and should a similar call be made, the Government and those who have taken part in this debate will think twice before assisting businesses such as Ford.

Ford must realise the ill will among good people caused by its decision, and in particular by the fact that individuals who had worked hard with the business over the years to improve its prospects and help it in times of need were given no opportunity to try to safeguard the future of the jobs at Southampton and Dagenham. That has a cost. It is unfortunate that we are in this position, but I hope that that message is carried back to Ford at the highest level, because there will be a major impact on the relationship between the automotive sector and the Government, and particularly, between Ford, Members of the House, and the Government.

[Mr Denham]

While my hon. Friend is on that theme, does he agree that there is a sharp contrast between the way in which companies such as Nissan, Toyota, Honda and BMW responded to the assistance that they were given after the global banking crisis? They worked together through the Automotive Council to build up vehicle assembly in this country, so that it is now one of the success stories of the British economy that we can celebrate. The Ford Motor Company has pursued a very different strategy: although there has been investment in engines, it has run down its vehicle assembly in this country.

[Ian Lucas]

There is a marked contrast. One of the most disappointing aspects of the announcement was that it followed positive announcements on the automotive industry over the past four years. Britain has become an investment destination of choice as far as the international automotive industry is concerned, so it is very difficult to understand why Ford was not even prepared to engage with the UK Government and MPs to try to address the difficulties that the company had in continuing the manufacturing in Southampton and in those parts of the Dagenham operation that are to cease.

I hope that Ford will listen carefully to the debate, and that it will consider closely its relationship with both the Automotive Council and the Government. I hope, too that it will engage and be open in discussions and ensure that this type of decision—without notice, without partnership—does not happen again.