Stellantis Luton
Debate between Jonathan Reynolds and Matt Western(3 weeks, 5 days ago)
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Jonathan Reynolds
Yes. In the conversations we had with representatives of Stellantis, they raised every aspect of the previous Government’s policy, including the flexibilities, the ability to cap and trade and some of the allowances, and what they would mean for the bottom line. I take those concerns seriously, which is why I am willing—in a way that does not undermine the destination —to consult on how this policy works alongside my colleague the Secretary of State for Transport. Although I understand the previous Government’s aspiration and why they introduced this policy, I do not think that when that decision was made, they considered the kind of falling demand that we have seen in Europe. We have to work pragmatically across all bits of Government to make sure this policy does not lead to the kinds of outcomes that many of us who are aware of how exactly this sector works are concerned about.
Matt Western (Warwick and Leamington) (Lab)
I refer Members to my entry in the Register of Members’ Financial Interests. I welcome the Secretary of State’s statement and am greatly saddened by Stellantis’s decision. May I suggest that plant and platform rationalisation would have been a major factor? Let us be honest: the industry wanted certainty, but automotive manufacturers faced the challenge of meeting the ZEV mandate introduced by the last Government, which was more stringent than that in Europe and most other markets. Put simply, consumer uncertainty was introduced by the last Government, so I find the remarks of the shadow Secretary of State disingenuous.
Matt Western
I withdraw it, Mr Speaker. Thank you.
I urge the Government to introduce more flexibility in the annual targets from 2024 to 2029, introduce consumer incentives, and consider redirecting any penalties towards EV charging infrastructure, not to Chinese Government car companies.
Jonathan Reynolds
My hon. Friend makes some very good points about the fact that while nearly every major market has policies of this kind, ours operates in a different way from how the French, for example, proceeded with theirs. I agree that the major failing of the former Prime Minister’s speech was to keep this policy in place, but change the destination—that makes no coherent sense whatsoever. Logically, he should have done one or the other; doing both undermines confidence while still not providing the pragmatic flexibilities we are talking about today. The specific points that my hon. Friend has mentioned will all be part of the consultation that my right hon. Friend the Secretary of State for Transport will lead on.
Port Talbot Transition Project
Debate between Jonathan Reynolds and Matt Western(3 months, 1 week ago)
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Matt Western (Warwick and Leamington) (Lab)
That is incredibly gracious of you, Mr Speaker. [Laughter.] I think your words were heard across the Chamber.
May I welcome the Secretary of State to his place, and underline the importance of his commitment and the strength of his negotiation? I add my voice to those who talk about the importance of public procurement, but may I draw his attention to the carbon border adjustment mechanism? As I understand it, we have a disadvantage in this area because of how the mechanism was established in the UK. It is due to be introduced on 1 January 2027, which is later than in the EU, clearly disadvantaging our UK producers. Will he update the House on what he plans to do in that area?
Jonathan Reynolds
I am grateful to my hon. Friend for his question and to you, Mr Speaker, for your very skilful introduction. He is right to talk about that wider business environment, and specifically asks about the carbon border adjustment mechanism. We have inherited this situation of the UK being out of line with the EU. Obviously, because our carbon prices are lower, there is a potential carbon barrier to UK exports to the single market. I can tell him that we are looking at that. The carbon border adjustment mechanism is a key part of a wider policy environment that must deliver decarbonisation, which is not deindustrialisation. We must recognise that the current policy environment is not doing that in the way that any of us would want.