Bombardier

Lord West of Spithead Excerpts

Thursday 22nd November 2018 Lords Chamber

[Baroness Vere of Norbiton]

The anxiety so clearly outlined by the noble Lord, Lord Empey, is common to many Members of your Lordships’ House. I will certainly make sure that my right honourable friend the Secretary of State for Northern Ireland looks at Hansard and takes his comments on board.

[Lord West of Spithead (Lab)]

My Lords, the United Kingdom in effect leads the world in wing design and wing construction. It is one of our areas of excellence. Bombardier has just posted remarkably high profits. Is there any indication that it is trying to move some of this knowledge and skill to places such as Mexico?

[Baroness Vere of Norbiton]

My Lords, there is no indication that it is trying to do something like that. The UK is a very important hub for the more high-spec and high-tech ends of wing design and wing manufacture. On profitability, Bombardier is not just about aeroplanes; it is also about trains. We know that you cannot look at overall profitability and say, “Okay, it’s all profitable. Surely these sorts of things don’t have to happen”. That is not the case. This is a massive company with many billions of pounds-worth of revenue. While it is true that its profitability has improved, it is nothing like where it should be, given the amount of capital invested in it. If the five-year transformation plan works it will put the company on a firmer footing.