Car Production: Solihull

Matt Western Excerpts

Wednesday 16th January 2019 Commons Chamber

[Julian Knight]

I was recently diagnosed as asthmatic, which, for someone who cycled up mountains less than two years ago, is a frightening and life-altering experience in many respects. I am very conscious of the fact my right hon. Friend raises, but we need to get it right so that we do not end up ensuring that older polluting diesels are kept on the roads longer because people are afraid to change them as they will lose money. We need to encourage people to transition to new technology, but at the same time, we need to fill that gap with cleaner diesel until the capacity is there.

[Matt Western (Warwick and Leamington) (Lab)]

I thank the hon. Gentleman for bringing this important and timely debate before us. Having worked with him and other colleagues on the automotive industry and Jaguar Land Rover, I know he shares my passion.

I think the hon. Gentleman agrees with me that the transition he describes is critical and that the Government must work with manufacturers to ensure that we get a co-ordinated, managed transition away from diesel and petrol towards cleaner fuels. Will he speak about diesel taxation and how we should not penalise consumers but support them in the transition? That would particularly help Jaguar Land Rover.

[Julian Knight]

The hon. Gentleman has put his thoughts on the record. He is correct about the transition, and we cannot ask car manufacturers to move at pace to those new technologies and then take EU policy that could potentially damage the income streams that allow them to invest. We need to be nuanced and thoughtful about that while protecting our environment.

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[Richard Harrington]

And indeed myself, although not at taxpayers’ expense. In addition, it is not a “supertoy”; it is a more modest model.

Tonight’s subject is very important and I wish to thank other Members who have contributed. Jaguar Land Rover has an excellent group of MPs in the area, and I was pleased to meet them last week to discuss the announcement that was made. [Interruption.] I see the hon. Member for Warwick and Leamington (Matt Western) shaking his head. I do hope I have not affronted him if I have not met him—most Members were there. If I have, I really apologise and I will make sure he is always invited.

[Matt Western]

I do not believe I was invited, but I very much hope that I will be invited in future.

[Richard Harrington]

If the hon. Gentleman was not invited, I would like to apologise to him. This was all done at the last minute. I will meet him whenever he likes, either informally or in a meeting with officials. The point I was making is that JLR is a cross-party matter, and it is treated in that way by the Government and by the company.

In the time we have, I wish briefly to outline the steps the Government have taken since JLR announced last Thursday that it will reduce its global workforce by about 4,500 people. I will then move on to address the arguments put forward by my hon. Friend the Member for Solihull. As he highlighted, the UK automotive industry remains one of our great success stories, and global demand for UK designed, engineered and manufactured vehicles is strong. Our industry is regarded internationally as very productive. Our industrial strategy builds on these strengths and invests in the future, to put the UK at the forefront of the next generation of electric and autonomous vehicles. JLR is a key part of our automotive manufacturing base, supporting high-quality jobs, both directly and across the automotive supply chain.

As my hon. Friend noted, last Thursday, Jaguar Land Rover confirmed that it is offering voluntary redundancy packages to its UK workforce, to reduce the headcount. As this is a voluntary redundancy programme, the company cannot give any figures on the number of Solihull workers who might be affected. However, JLR has made it clear to us, in a call that the Secretary of State and I had with its chief executive just before the announcement, that those working on production lines are not part of this programme; this predominantly relates to marketing and management staff. I do not make light of that; these people will be made redundant—we hope it will be with their agreement—and what job they do does not particularly matter. He also stressed to us that the apprenticeship programme, which has been supported so well by my hon. Friend and other local MPs, will continue, as will graduate recruitment and the recruitment of specific staff that the company needs.

The decision to offer these redundancies is the next phase of a £2.5 billion “Charge and Accelerate” turnaround plan, which the company announced last September. As I say, I have spoken several times to the chief executive and he has explained how these redundancies will streamline the business and help to ensure the company’s long-term health for the future. As I say, I do think a lot of every member of staff and their families, who face an uncertain time. I assure the House that we are working closely with colleagues throughout the west midlands to offer whatever support we can.

We are also working to support the company itself. We have a long-standing relationship with the firm and its parent company in India. Since the turnaround plans were announced last September, we have worked even more closely with the company in support of its long-term strategy as it invests and transitions to autonomous, connected and electric vehicles.

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[Richard Harrington]

I do not have it within my power to shout from the rooftops, but I will shout from this Chamber for those people who are listening. The new clean diesels are really, really good. I confess to having a penchant for this particular kind of vehicle.

[Matt Western]

I thank the Minister for being so generous with his time. Let me return to this important point. He is speaking about shouting from the rooftops. Perhaps the most critical point to shout about is taxation. I appreciate the points that have just been made by the hon. Member for Solihull (Julian Knight). There is a global issue, as we have seen in north America and across Europe, on diesel, but it is in the Government’s gift to change taxation and not to penalise. The maximum vehicle excise duty addition that was put in was £560 on a vehicle.

[Richard Harrington]

I am bursting to respond to the hon. Gentleman’s point, but I have two minutes left, Madam Deputy Speaker, and I do not want to torment your time—well, you will not let me; you would tell me not to.

My hon. Friend made the same point. I am pleased to remind the House that, on 19 December, the Treasury published a review of the impact of the worldwide harmonised light vehicles test procedure on vehicle excise duty and company car tax. The review is open until 17 September[Official Report, 21 January 2019, Vol. 653, c. 2MC.]. Officials from the Department have been working closely with Jaguar Land Rover and others to ensure that the industry’s evidence is considered in the review and I look forward to the outcome.

I congratulate my hon. Friend. He really is a major spokesman for the company, together with his colleagues,. This debate is but a small part of the work that he does. My door is always open to him and to the company. I look forward to a great future for Jaguar Land Rover, and I know that the west midlands will be a key part of that.

Question put and agreed to.