Automotive Industry
Debate between Jonathan Reynolds and Luke Evans(1 year, 4 months ago)
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Jonathan Reynolds
I am incredibly grateful to my hon. Friend for making those points. The approach of the Front Bench—from her, from me on industrial policy, and from my hon. Friend the Member for Sheffield, Heeley on transport policy—must bring those two things together. We need the policies in place that will make this country a world leader in the production of vehicles and ensure that it also works for consumers. She raises the fact that there are more charging points in Westminster—I know my hon. Friend’s constituency, which is not far from mine—and the difference between comparable parts of this country, north and south, in the level, density and availability of chargers is unthinkable, let alone in comparison with Norway, for instance. Not only do we not have enough chargers but grid, maintenance and connection issues often mean they are out of order. I absolutely assure my hon. Friend that when we as a shadow Cabinet and a potential Government think about these issues, both vehicle production and consumers are paramount. Clearly, consumers want to purchase electric vehicles—that is the growth part of the market—but too often we do not have the infrastructure in place. It cannot be some form of novelty. I have driven electric vehicles around Greater Manchester when it was something of a novelty—I could get access to chargers and, at times, preferential parking spaces near Deansgate, which is no small thing—but for mass market usage, neither the policies nor the infrastructure are yet in place. That needs to be widely recognised.
On the international trade position, it was always imperative to have a domestic battery industry, but it has become an existential issue because of the Government’s approach to our trading relationship with the EU. As discussed in relation to regional export markets, eight in 10 vehicles made in the UK last year were exported, so it is widely recognised that the impending cliff edge in the trade and co-operation agreement with the EU on rules of origin is a serious challenge to the future of the sector in the UK. The Government have been far too slow to realise the scale of that danger, and while they may promise that a deal is coming soon, I am afraid that “soon” cannot come soon enough. Major UK manufacturers including Stellantis, Jaguar Land Rover and Ford have all warned that a failure to reach a deal would cost jobs in the UK.
It has been two and a half years since the trade and co-operation agreement was formally signed. That is precious time that could have been used to plan and prepare, but those are two words that this Government often fail to understand. What have they done in that time? They have not secured investment in battery capacity. They have not improved our relationship with our biggest export market, and they certainly have not worked with industry to find solutions.
We know that a breakthrough is needed, and we would use our plans to make Brexit work to ensure that the rules of origin work for British manufacturers. We cannot achieve a compromise without working with our partners in Europe, and I believe that only Labour can be that good-faith partner. Our plan to invest in battery capacity, alongside compromises on the rules of origin, is the sensible way forward to meet our climate objectives and trade obligations and retain our industrial base.
We will make the UK a clean energy superpower by 2030, with net zero carbon electricity lowering costs for the UK car industry by no longer leaving UK industry prone to the volatility of international gas prices, alongside better grid connections and planning reform to ensure that “made in Britain” does not become a thing of the past. That is the prospectus for action we need. Right now, this country needs some optimism. The mantra of this Government—that this is as good as it gets—is as depressing as it is wrong.
Dr Luke Evans (Bosworth) (Con)
I rise to speak in this debate because it is called “Supporting the Automotive Industry”. With the sense of humility that the Opposition asked for, I read the motion. It states:
“this House recognises that the automotive industry is the jewel in the crown of British manufacturing and believes it can have a bright future creating good jobs for people across the UK”.
Then it falls apart, because it states that it
“regrets that after 13 years of Conservative neglect the UK risks losing this world-class industry”.
I thought, gosh, as a matter of humility, have I missed something? What have the Opposition been talking about that I have so obviously missed? So I thought I would do a quick search on Hansard to see when the automotive industry has been talked about. The Leader of the Opposition, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), has mentioned it once since 2015, and that was when he was quoting my right hon. Friend the Member for Surrey Heath (Michael Gove) confirming that the automotive sector was ready for Brexit. The shadow Secretary of State for Transport, the hon. Member for Sheffield, Heeley (Louise Haigh), has never uttered the words “automotive industry” in Hansard. To be fair, the shadow Secretary of State leading the debate, the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), has mentioned it six times, so once every two years, which is really useful to note.
Jonathan Reynolds
I am sorry, but that is not credible. Was the hon. Gentleman in the Chamber for the urgent question when Britishvolt, the flagship automotive battery policy, fell apart? Was he there when Stellantis gave evidence to the Select Committee or when we asked two urgent questions? On both occasions, the Government objected to us using Parliament to raise those important issues, so I am afraid I do not find his position credible.
Dr Evans
That will lead me on to what I want to talk about, which is the positive side of this. Britishvolt wanted to have its headquarters in my constituency, and I met it to see what would happen. The Government protected £100 million of British taxpayers’ money. If that had gone to the wrong place, the shadow Secretary of State would have been at the Dispatch Box lambasting the Government for frittering away taxpayers’ money, so I will take no lectures on that point.
I am here to talk about the positive side of the automotive industry. In the east midlands, we are very proud of what we have to offer in the manufacturing industry. It has been through a tough time for the past 50 or 60 years, but we are making real progress. Only recently, Bosworth was noted as a net zero hotspot and described as
“connected areas with concentrated net zero activity, where businesses create jobs and add to the local hotspot’s economy”.
That means better paid jobs, better opportunities locally, better local businesses and, nationally, 840,000 jobs. Within that context, the average wage for someone in the industry is £42,600, compared with the national average of £33,000.
What does that look like in reality on the ground? That is what I want to spend a few minutes talking about. On Monday, I was at a place called Horiba MIRA. For those who do not know it, imagine the silicon valley of the automotive industry. Imagine the Google complex of anything to do with the car industry. From designing to manufacturing to testing, it all happens in this one space. It is unique in the world in what it can do. It was supported by Government from 2010 all the way through, with investment to grow as an enterprise zone, and was then allowed to flourish and attract international investment from the likes of REE, an Israeli company, bringing hundreds of millions of pounds in and bringing 300 jobs with it.
That is just a start in describing what is going in the automotive industry. I agree with those on both sides of the House who have said that this really is a revolutionary opportunity. Everyone in the world is trying to work out the best way to take it, and the best way is to support our research going on right here, including in happening in my constituency. MIRA Technology Park has over 600 high-value jobs, with specialisms in anything from autonomous car driving to battery technology, road safety and defence. Those technologies are all being tested right here in the UK. In November 2022, Horiba MIRA’s assured connected autonomous vehicle testing won the test facility of the year prize at the Vehicle Dynamics International awards, based on innovation in products, teams and technology. In June 2023, MIRA won an award from Jaguar Land Rover at its seventh annual global supplier excellence awards, demonstrating outstanding achievements in JLR’s global supply based on
“customer love unity, integrity, growth, impact.”
That all sounds very good, but when I ask my constituents whether they are aware of what is going on in our constituency, they do not really know what MIRA is. That is part of why I am so pleased to speak in this debate, because actually the UK is fantastically good in this space. It is not just about creating jobs—at MIRA, someone can go from being an apprentice all the way through to a PhD level qualification on cyber-security in cars. It is also innovating for the future to get to net zero and create energy security. It has been partnered by local enterprise partnerships, investment zones and the Midlands Engine to help drive investment, change policy and bring inward investment from the international community.
On Monday, I was very proud to welcome the president of Horiba, Mr Horiba. We saw two things: the research it is doing with Ceres on hydrogen battery technology to allow us to have battery technology in houses and vehicles; and driving simulators. If someone wants to break into the industry and is designing a car, they can now use a simulator to test how it will handle, what it will look like, and how it will feel in terms of comfort and safety. All that can be done simply in a computer-generated room, which takes out the need to make 50 to 100 prototypes and collapses it down to about one or two. But Horiba does not just have dark rooms with TV screens—there is an entire race track to test every single condition one can think of that a car might need to go through. That is right here in our country, leading the world on the international stage on how to bring in investment. I am really pleased that we can talk about that.
There is more in my constituency. We have Triumph Motorcycles. For those who do not know, Steve McQueen leapt away on a Triumph motorcycle. James Bond was seen going over the rooftops on a Triumph motorcycle. I am very proud to have Triumph Motorcycles’ headquarters in my patch, creating over 1,000 jobs. In the last three years, it has broken records for the number of bikes it has sold, which has gone up by 30% across the world. All across America and into Latin America, it is breaking into the industry and the market. That means high-end innovative jobs designed and manufactured right here in my constituency. This is the kind of thing that Members on both sides of the House are not good enough at talking up and talking about. That level of innovation and finishing makes a huge difference to my local community.
I want to mention two other businesses. Flying Spares, based in Market Bosworth, is a second-hand remodelling firm for cars such as Rolls-Royces. If someone need a part, it will ship it anywhere across the world. That is an innovative way of creating longevity and helping achieve net zero by recycling our high-end products. JJ Churchills is a fantastic advanced manufacturing aeronautical and defence agency, which employs 110 people, with high-end apprenticeships, in the middle of the countryside. This is happening right in my constituency—it is 85% rural, yet I have businesses like that.
The final jewel in the crown is Caterpillar, which last year made £59 billion worth of sales worldwide. The company, which has 1,000 people working in Desford in my constituency, is looking at making green hydrogen-fuelled electric tractors, forklift trucks, dumper trucks—you name it. I have had the pleasure of sitting there and driving Caterpillar vehicles in Arizona remotely. That is the sort of innovation that we can do. Caterpillar is sourcing its manufacturing right here in Desford, and has been for 70 years.
I mention all this to highlight some of what is going on in my small area of Leicestershire. People choose the UK because of the skillsets we have, the tech environment we create, the regulation we have in place and our stability in the global market. That is why they come here. Does that mean we should shut up shop, because we have done enough? No, of course not. It is important to make sure that there are signposts and avenues so that people know where to invest. When I speak to the likes of the Midlands Engine, which is looking for ways to drive investment in the 11 million people in its area, among the questions that come up are: where should businesses go, and how do they connect with Government?