Motorsport Tyre Manufacturing

Matt Hancock Excerpts

Wednesday 26th February 2014 Westminster Hall

[Mr Jim Hood (in the Chair)]

Order. I must have notice if hon. Members wish to speak and I have received no notice from the Minister or the hon. Member for Birmingham, Erdington (Jack Dromey) that the hon. Member for Birmingham, Northfield (Richard Burden) wishes to speak. Without that notice, the hon. Member for Birmingham, Northfield cannot speak, unless the Minister and the hon. Member for Birmingham, Erdington consent.

[The Minister for Skills and Enterprise (Matthew Hancock)]

I am content.

[Jack Dromey]

Likewise.

--- Later in debate ---

[The Minister for Skills and Enterprise (Matthew Hancock)]

Thank you, Mr Hood, for your flexibility and chairmanship. At this stage, the Minister normally congratulates the hon. Member who has secured the debate, and I do so wholeheartedly not only on that but on his approach to the issue. The campaign is truly cross-party work between local Members, the Government, the Secretary of State for Business, Innovation and Skills, the Prime Minister, local BIS officials in the west midlands and local authorities who are working to obtain a positive resolution in difficult circumstances.

The central argument that the UK is a leading player in motor sport is important. Around 4,500 companies are connected with motor sport and they employ more than 40,000 people, with around 40% of the world’s high performance motor sport engineers in the UK. As the hon. Member for Birmingham, Erdington (Jack Dromey) said, eight of the 11 Formula 1 teams are based here, and last year 17 of the 19 races were won by British-built cars. Britain has a cluster of motor sport expertise. Dunlop’s long and proud history on its Birmingham site goes back to 1902, and it sells some 300,000 bespoke tyres around the world. Those exports from Birmingham are important, and we do not want them or the skilled work force to be lost.

The hon. Gentleman said that the Prime Minister has written to Dunlop. We are urging it to look again at a UK option during this period of statutory consultation. We are working with the council and BIS locally in the west midlands, and with the company to try to persuade it to take up options. Possible new sites have been discussed and financial aid remains on the table—I stress that. The final decision is a commercial one for Dunlop, but we are working extremely hard to try to retain its presence here in the UK.

The hon. Gentleman referred to Goodyear Dunlop’s moral and legal responsibility. We are trying to ensure that its commercial decision will be to remain in the UK. This debate has demonstrated the full-throated support of the Government and local Members and it has been an opportunity for us all to reiterate that support.

If the company decides to proceed with the proposed closure, the Government will ensure that the people affected will receive the best possible support to help them to find new jobs. They will do so with Birmingham city council, which is engaged in case that happens. Goodyear Dunlop has confirmed that it remains committed to the UK through its Tyre Fort sales and distribution centre in Birmingham and the manufacturing plant in Wolverhampton, which together employ around 700 people We remain hopeful that we can work with the company to retain motor sport research and development in the west midlands.

Whatever the outcome, the situation with Dunlop motor sport should not be allowed to overshadow the wider success of the automotive industry, which the hon. Member for Birmingham, Erdington mentioned. The plant is next to the Jaguar Land Rover plant, which is a great symbol of the automotive industry’s renaissance. There has been striking growth in recent years with a sales increase of 19% in 2013 to more than 425,000 vehicles, and revenue up 17%. In September 2013, JLR announced plans to create 1,700 more jobs in Solihull as part of a £1.5 billion investment.

JLR, the supply chain and others tell a positive story, which reiterates that the UK, and particularly the west midlands, has a cluster of some of the most advanced automotive skills in the world. Development in most areas is positive and moving forward. The Government’s commitment at all levels—local and national—is very clear, and I hope that that message goes out from today’s debate, not least because ensuring that we have a high-productivity automotive sector is a big opportunity for a future with great potential. However, that does not make this specific decision any easier. We are playing our part to try to bring a positive solution, and both immediately and in the medium and longer term, we are absolutely committed to doing everything that we can.

The Secretary of State for Business, Innovation and Skills has put personal time and commitment into trying to bring a positive outcome. We are doing everything we can, and I hope that we can continue to work with the hon. Member for Birmingham, Erdington and colleagues from across the west midlands to try to make an offer that is as positive as possible, and communicate that to Goodyear Dunlop, while, with realism, ensuring that we are prepared should the proposal go ahead. I look forward to working with colleagues in Government and across the House to do all that we can to keep this great and historic production facility here in the UK.