Bombardier

Lord King of Bridgwater Excerpts

Tuesday 10th October 2017 Lords Chamber

[Lord King of Bridgwater (Con)]

My Lords, I welcome the robust position in the Minister’s Statement. I particularly welcome the fact that this position has been endorsed by all sides of the House. I have a personal interest in this because I went to Seattle and met the board of Boeing when they worked very closely with Shorts, so they have no excuse for saying they do not know much about the situation in Northern Ireland. There is a long history of collaboration. In my time as Secretary of State, I also arranged the sale of Shorts to Bombardier, and I am very proud indeed of the success it has been over the years, the employment it has given and the importance it has for the Northern Ireland economy.

I take very well the point made by the noble Lord, Lord Fox, that this could drag on for a long time and be extremely damaging. We are told that President Trump is very keen on US jobs. I was interested to hear in the Statement that there are 23,000 US jobs involved in the Bombardier aeroplane, if the Statement is correct, so there is that defence, as presumably those people could lose their jobs.

I think that at last Boeing is beginning to realise the damage this is doing to its reputation. Anybody who looks at today’s Evening Standard will find a four-page wrap-round paid for by Boeing about its importance to the UK and what it is doing. I think the PR advisers in Boeing have just woken up to the damage that this is doing to Boeing. The earlier that Boeing can use its influence on the various authorities—it has some influence there—the better. Boeing did not quote for this plane. No US jobs are put at risk by Delta buying these planes. There is no evidence that they could come from an alternative American supplier, as far as I am aware. Against that background, I strongly hope that we can put this behind us. Boeing is a wonderful company. It does a lot of good work, and it has made a very silly move on this occasion, and the sooner it withdraws it, the better.

[Viscount Younger of Leckie]

I tend to agree with my noble friend. It is interesting to hear about his direct involvement in Shorts going back a number of years. He is right that it is perhaps rather ironic that there are so many jobs—23,000 is the correct figure—in the US. I would argue that Boeing taking this view is an own goal.

However, Boeing remains very important to us in the UK. Its contribution to the UK is considerable. There are 2,200 people directly employed by Boeing, and that figure is expected to rise to 4,000 by 2025. The annual supply chain spend is £2.1 billion and the annual UK R&D spend is £11 million per annum. The House may know that Boeing has a new civil aerospace manufacturing facility in Sheffield. It is Boeing’s first civil factory in Europe. There is also a hangar in Gatwick and a repair facility in Lossiemouth. It is important for us to continue to develop the long-term partnership with Boeing, and as I said earlier, its action, which is inexplicable, must be overturned. I hope, as my noble friend said, that Boeing will see sense and withdraw its petition.