Ford and Visteon UK Ltd

Debate between John Whittingdale and Bob Russell

Thursday 12th December 2013 Commons Chamber

[Mr John Whittingdale (Maldon) (Con)]

I, too, congratulate my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) not just on securing the debate from the Backbench Business Committee but on how he has led the campaign, which has been supported on both sides of the House, as demonstrated this afternoon. It is a pleasure to follow the hon. Member for Swansea West (Geraint Davies), who has also been tireless in pursuing the matter. It is notable that four parties are represented in the House this afternoon. Sometimes MPs put aside their party differences and come together when it is plain that there has been an injustice that needs to be put right. That is certainly the case with the issue we are debating this afternoon.

There is a danger in such a debate that one simply repeats the points that have been made. We have already heard some powerful speeches from both sides of the House, such as that from my constituency neighbour, my right hon. Friend the Member for Chelmsford (Mr Burns), who represents many of the Essex Visteon pensioners, as I do. As has been pointed out, it is particularly sad that it is necessary to have this debate a second time—I participated in the debate in Westminster Hall—because we all still have great respect and admiration for the Ford Motor Company. It has a proud history in this country and a strong reputation across the world, yet this is a terrible stain on that reputation.

It is perhaps because Ford has previously been seen as such a strong company that it was understandable that its employees, who had given many years of service, should believe the assurances they were given when they told that they were being transferred to the Visteon company and that their pensions could be transferred to a new Visteon pension fund. I will not repeat the quotations given by many hon. Members about how they were told that there would be no detriment and that their pensions would be guaranteed under the same terms and conditions. Of course they believed that, yet today they find that the position is very different.

It is particularly sad when one meets and talks to employees who gave many years of service to Ford that now seem to be ignored and forgotten because for a few years—or even, in some cases, for a few months—they transferred to the Visteon company. In particular, I mention Mr Steve Sharpe, my constituent from Heybridge, who spent 27 years working for the Ford Motor Company and three months working for Visteon, yet has lost 50% of his pension. On any grounds, that is clearly wrong and should be recognised as such by the Ford Motor Company. What makes it worse is that—we have heard reference to this—it appears that Ford knew perfectly well that the Visteon company could not succeed, and indeed took actions after its establishment which made absolutely certain that it was not viable in the long term.

Also, we know that the Visteon pension fund was underfunded right from the start. In the discussions that we have had as part of the all-party group, we have talked to the Pensions Regulator, for instance. It is perhaps a matter of regret that the Pensions Regulator was not in place at the time that this happened. It is perhaps worth speculating that had we had the Pensions Regulator, this situation would not have been allowed to arise. I am grateful to see on the Front Bench the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb), who responded to the previous debate so is familiar with this injustice.

At that time we talked about the way in which the cap on the Pension Protection Fund affected some former employees of Visteon. That is something that the Government have sought to address, but it is still impacting severely on some pensioners of the Visteon company. Perhaps the Minister might touch on that in his response.

As we know, there is a legal case pending, and I of course hear the instruction from the Chair. We do not want to prejudice in any way the legal proceedings that are under way. It should not be necessary because ultimately it is not a question of whether or not Ford acted within or outside the law. It is, as Members in all parts of the House have said, a question of corporate social responsibility. It is a question of the reputational damage that this is doing to Ford across this country and beyond, and it is a question of morality and decency.

[Sir Bob Russell (Colchester) (LD)]

The Minister will have noticed the unity of Essex MPs. Does my hon. Friend agree that the legal skirt behind which Ford is trying to hide is shrinking all the time and the petticoat of morality is now around its ankles?

[Mr Whittingdale]

The hon. Gentleman puts it in his unique style. I think I agree with the message he is giving.

As I say, we will wait to see what happens in the courts, but I hope we do not have to, and that the Ford Motor Company will hear the message being sent from this Chamber this afternoon. My hon. Friend the Member for Rochford and Southend East (James Duddridge) talked about the possibility of a Select Committee hearing. Whether or not we could force the Ford Motor Company to come to this country to a Select Committee is not entirely clear. I have had some experience of forcing people to come before Select Committees, and there is a problem if they are on the other side of the Atlantic. Again, that should not be necessary.

What should be apparent from hearing all the Members who have spoken this afternoon is the overwhelming moral case of the people who gave years of service to the Ford Motor Company and were told that they would be looked after in the future, yet now have suffered real loss due to the fact that they were transferred to the new company, which in a sense was almost bound to fail.

It is just a couple of weeks before Christmas. If the Ford Motor Company wanted to give a Christmas present, it should honour its moral obligations to the Visteon pensioners.

Ford UK (Duty of Care to Visteon Pensioners)

Debate between John Whittingdale and Bob Russell

Tuesday 4th December 2012 Westminster Hall

[Mr John Whittingdale (Maldon) (Con)]

It is a pleasure to serve under your chairmanship, Mr Caton. I know that you would probably rather be in the body of the Chamber, since you, too, have many constituents affected by this very sad affair. I congratulate my hon. Friend the Member for Finchley and Golders Green (Mike Freer) on his success in securing the debate—a number of us entered the ballot, but he was the one lucky enough to be selected. We have an opportunity for the many Members who represent people who have suffered as a result of what has occurred to speak. As others have done, I would like to single out my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe), who has led the campaign so well and ensured that it remains in the public eye. I must first apologise to my hon. Friends and other Members. I have to chair a Select Committee at 10.15 am, so I will be brief. I am grateful to be called early. I will not repeat the facts that were set out so ably by my hon. Friend the Member for Finchley and Golders Green and the hon. Member for Swansea West (Geraint Davies).

The saga is fairly clear, but it is always important to bear in mind the real distress caused to individuals. I shall mention two. Mr McDonald of Danbury in my constituency was employed by Ford for 33 years and then spent four years working for Visteon. He believed the assurances given to him about the pay, conditions and pension entitlements, which would mirror those that he had enjoyed during his time at Ford, and he therefore agreed for his pension to be transferred. Another of my constituents, Mr Sharpe of Heybridge, was employed by Ford for 27 years and by Visteon for three months. Both those individuals have seen their pension reduced by 50%. They believed that the Pension Protection Fund would offer some protection, which I hope the Minister will say a little about in his reply. The PPF suggested that it would guarantee that such people would receive 90% of their pensions, but that has proved not to be the case, as a result of how the rules work and the cap that has been applied.

[Sir Bob Russell (Colchester) (LD)]

My hon. Friend is an experienced parliamentarian. Does he agree that a turnout such as the one today indicates that the issue is not restricted only to Visteon plants? Visteon pensioners are spread far and wide. As someone who has witnessed many parliamentary debates, does he agree that the story that has unfolded is not so much “Ford” as “fraud”?

[Mr Whittingdale]

I agree with the hon. Gentleman; like him, I have attended debates in Westminster Hall where there have often been only one or two Members plus a Minister and the Whip on duty. The fact that so many Members turned out this morning demonstrates, first, the wide area from which Visteon employees have come, and, secondly, the strength of the feeling among many Members that Visteon pensioners have been treated badly and that justice must be done.

I shall quickly turn to another aspect of the case that I hope the Minister will talk about. The PPF has not protected my constituents in the way that they hoped it would—of course, the Pensions Regulator was not there at the time. We have met representatives of the Pensions Regulator, and I think it would be fair to say that it dropped heavy hints that if the powers that are available now had been available at the time, the transfer would have been looked at extremely closely, because, as has been mentioned, the sum transferred into the Visteon pension fund left it in deficit from the start.

As my hon. Friend the Member for Finchley and Golders Green said, not only was the pension fund in deficit, but the arrangement between Ford and Visteon meant that Visteon was almost bound to fail. It never made a profit. The pension fund became steadily further in deficit. Visteon was unviable from the start and it was almost inevitable that sooner or later it would go into administration.

Court cases are pending, so we must await their outcome, but I think that all of us feel that whether those cases prove that Ford has a continuing legal liability to its former employees is not, in a sense, the main thing. We all feel strongly that Ford has a strong moral obligation. It is a blue-chip company with a worldwide reputation. It is trusted, but how it has behaved to its former employees tarnishes that reputation. As has been said, that will reflect on how people view it, unless it does the right thing and gives justice to the people who gave it such devoted service for so long. The issue is not going away. We will continue to campaign until Ford meets its moral obligations.

Olympics and Paralympics (Funding)

Debate between John Whittingdale and Bob Russell

Monday 27th February 2012 Commons Chamber

[Mr Whittingdale]

I am most grateful to my hon. Friend for putting the precise position on the record. However, I am sure that we will come on to debate security at great length, and I want to say a little more about the cost of the games and how it is to be met, which is the area that we focused on to begin with.

The candidature file that was submitted to the IOC originally stated that the cost of staging the games would be £1.5 billion, and once inflation was taken into account that figure increased to an estimated £2 billion. That has largely remained unchanged. The current budget for staging the games is £2.16 billion, 36% of which will come from the IOC, 18% from sponsorship, 20% from ticket sales and 12% from official suppliers. The budget has just about been raised in its entirety, and there is left within it a contingency of £93 million, with risks identified of £88 million. The headroom left in the budget is pretty small; indeed, it was described by the chief executive of LOCOG as being very “finely balanced”. Nevertheless, the Government have so far indicated that they hope that the cost will come in within that figure—understandably, since they will have to fill the gap should it overshoot.

[Sir Bob Russell (Colchester) (LD)]

How much will be spent on the two opening ceremonies and two closing ceremonies, and how many billions of people around the world does the hon. Gentleman estimate will watch them on television?