Automotive Industry

Lord Borwick Excerpts

Wednesday 19th March 2014 Lords Chamber

Asked by

[Lord Borwick]

To ask Her Majesty’s Government what assessment they have made of the effect on Midlands-based industrial component companies of the increase in automotive production in the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)]

The revival of the automotive sector has created component supply opportunities across the UK. Sertec, for example, a Midlands-based supplier to JLR, has seen its turnover quadruple and will create 400 new jobs over the next four years. The Automotive Council has identified a potential £3 billion in opportunities for UK-based manufacturers where components are currently sourced overseas. To help marry this opportunity with investor appetite, we have created the Automotive Investment Organisation.

[Lord Borwick (Con)]

My Lords, I thank the Minister for his Answer. There are many small companies that survived somehow through the recession and showed great courage to keep their teams together and to continue to invest, often while reducing their own pay as directors. Does the Minister agree that these companies should be praised for doing the right thing?

[Viscount Younger of Leckie]

I acknowledge my noble friend’s comments and applaud those small companies that have maintained customer relations through often tough trading conditions, sometimes by ploughing back past profits into the business. They in turn rely on large manufacturers remaining here in the UK. For example, General Motors’ decision to retain its Ellesmere Port facility and grow its local supply chain while making cuts elsewhere is testament to our flexible, skilled workforce and collaborative working between government, industry and the unions.