UK Car Industry

Nusrat Ghani Excerpts

Wednesday 17th May 2023 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on the future of the UK car industry.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

The automotive industry is vital. It is a vital part of the UK economy and it is integral to delivering on levelling up, net zero and advancing global Britain. After a challenging period where covid and global supply chain shortages have impacted the international automotive industry, the UK sector is bouncing back. Production is increasing, and in 2022 the UK’s best-selling car was the Nissan Qashqai, built in Sunderland.

The automotive industry has a long and proud history in the UK. We are determined to build on our heritage and secure international investment in the technologies of the future, to position the UK as one of the best locations in the world in which to manufacture electric vehicles. We are leveraging investment from industry by providing Government support for new plants and upgrades to ensure that the automotive industry thrives into the future. Companies continue to show confidence in the UK, announcing major investments across the country, including £1 billion from Nissan and Envision to create an electric vehicle manufacturing hub in Sunderland; £100 million from Stellantis for the site in Ellesmere Port; and £380 million from Ford to make Halewood its first EV components site in Europe.

We will continue to work through our automotive transformation fund to build a global, competitive EV supply chain in the UK, boosting home-grown EV battery production, levelling up and advancing towards a greener future.

[Justin Madders]

Thank you for granting this urgent question, Mr Speaker, and I thank the Minister for her response.

The warnings from Stellantis overnight are deeply concerning, not just for my constituents who work at Vauxhall Motors in Ellesmere Port, but for the automotive sector more widely. She will know of the huge efforts put in over recent years to secure the future of the plant and to move to electric vehicle production; significant contributions have been made from the management, the workforce, the local authority and the Government themselves. So it is beyond frustrating that just a couple of years later we find ourselves once again in a position where there is a threat to my constituents’ livelihoods.

We know what needs to be done to secure jobs in Ellesmere Port and in the wider automotive sector, because the sector has been telling the Government, as have we, that there needs to be a proper industrial strategy. So where is that strategy? Indeed, where is the Secretary of State? The EU is pumping billions into manufacturing as part of its green industrial plan, the US is investing trillions with the Inflation Reduction Act and we are being left behind. Every day this Government sit on their hands, that mountain to climb gets a little higher.

So we need urgent action, but I am afraid that all I have heard this morning is complacency. We need those gigafactories with spades in the ground this year, because we know the timescales that the industry invests across are long and it needs to see progress now. So will the Minister tell us what steps the Government are actively taking to increase the proportion of vehicle parts manufactured in the UK? We need to make sure our trading relationship with the EU is updated to reflect the global supply chain difficulties that all manufacturing industry is facing. So does she plan to make a formal request to reopen negotiations with the EU on the trade and co-operation agreement? It has been made repeatedly clear that without changes to the future trading arrangements, and without a proper industrial strategy, the UK car industry is at risk. What assurances can she give to my constituents that their futures matter to this Government? The UK car sector is the jewel in the crown of our manufacturing industry. If we lose it, it will not be coming back. So please, Minister, take action now.

[Ms Ghani]

The hon. Gentleman will know, when I respond to this question, just how seriously I take the sector, as he does—he and I have worked on this previously. I agree that the automotive industry is a vital part of the UK economy and I will go on to explain all the work we are doing there; if we add it all up, it is more or less a very strategic strategy. We know that it is integral to delivering on our levelling-up agenda, which is why it matters to so many constituents and why there are so many MPs in the Chamber today. We know that it matters to net zero and to advancing Global Britain. We also know how important this is to Members of Parliament because of the number of people who work in the sector.

The automotive industry employs around 166,000 people and includes major manufacturers, such as Jaguar Land Rover, Nissan, Toyota and BMW. We are leveraging investment from industry by providing support for new plants and upgrades to ensure that the UK automotive industry continues to thrive into the future. This includes Nissan’s £1 billion north-east electric vehicle hub, Ford’s £380 million investment in Halewood to make electric drive units, and Stellantis’s £100 million investment in Ellesmere Port for EV van production.

We work closely with the sector through the joint Government and industry-led Automotive Council, of which I am the co-chair, which discusses opportunities for growth, competitiveness and future opportunities. We also meet regularly with individual long-standing and new automotive companies to discuss a range of issues, including future investments.

On Government support, the Government and industry have jointly committed approximately £1.4 billion in innovative projects through the Advanced Propulsion Centre to accelerate the development and commercialisation of strategically important vehicle technologies, strengthening our competitive edge internationally. We also work on the automotive transformation fund, which puts the UK at the forefront of transition to zero-emission vehicles.

Of course, I must not forget the Faraday battery challenge, which, with an overall budget of £541 million since 2017, worked to establish the UK as a battery science superpower. This is what keeps us at the forefront as we try to adapt and use a new technology.

I wish to put it on the record that there are regular reviews of the EU-UK trade and co-operation agreement, but, as the hon. Gentleman will know, that responsibility sits with the Foreign, Commonwealth and Development Office and is not something that I can respond to on its behalf. However, I can provide assurances—[Interruption.] I am just about to do so, if Members will allow me to continue. I can provide assurances that I and the Secretary of State for Business, Energy and Industrial Secretary have raised these issues with our colleagues across Government and have had productive conversations with our counterparts in the European Union. We are aware of the concerns of UK and EU car makers about the challenges and, of course, we continue to make strong representations.

[Mark Pawsey (Rugby) (Con)]

The automotive industry has been a huge success story for the west midlands and can be so in the future as we transition to electric vehicles. However, with 40% of the weight and cost of an electric vehicle being made up in the battery, it is vital that we get a battery manufacturing site in the west midlands. A site has been allocated at Coventry airport, immediately adjacent to the Battery Innovation Centre, where some innovative and brilliant work is taking place. Will the Minister provide Government support for the proposed gigafactory at Coventry Airport?

[Ms Ghani]

I am grateful to my hon. Friend for raising this issue. He and I worked together on the Business, Energy and Industrial Strategy Committee. He has always been a passionate advocate for his constituency. It is indeed a fantastic proposal and we are keen to make sure that we can support as much investment as possible and that sites are set up for gigafactories. We know how important it is to ensure that the supply chain is as reliable as possible. If my hon. Friend would like to meet me, we can go through the proposals in further detail.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I thank my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) for securing this urgent question on an area of fundamental importance not just to his constituency, but to the prosperity of the whole country.

For months now, Labour and industry have been warning the Government that this cliff edge was coming. It is a statement of the blindingly obvious that the lack of battery-making capacity in the UK, combined with changes to the rules of origin, was a car crash waiting to happen. It is a fact that, without domestic batteries, there will be no domestic automotive industry in the UK, yet the Government have no strategy to bring in the investment and infrastructure needed, and the rules of origin just make that even more compelling. This deadline to conform with the rules of origin has not been a secret, but where is the urgency, the ambition and the determination to keep our world-class automotive industry in the UK?

Once again, industry has been treated to a Government who are fond of big-state, top-down targets, but completely missing in action when it comes to how to deliver on those targets. Dare I say it that, despite warning after warning, it is clear that this Government are asleep at the wheel. Labour has a plan, through our industrial strategy—which Members can read as it is published—not just to protect the industry and the jobs that we have, but to deliver even more. We will part-finance those eight gigafactories, create 80,000 jobs and power 2 million electric vehicles, matching the incentives on offer from our rivals.

This is not just about public investment; it is about planning reform, changes to business rates, domestic energy security and supply, and more. That is the action that is needed. With respect, the Minister has not really answered any of the questions from my hon. Friend the Member for Ellesmere Port and Neston yet, so will the Government outline how they will secure the battery-making capacity that we desperately need in the UK? What is the Government’s view on the suitability and application of the rules of origin as they currently stand? Finally, will the Government wake up, grab the steering wheel and get control of the situation before it is far too late?

[Ms Ghani]

It is a good to hear that the Opposition are expecting businesses to make decisions on promises that may or may not come down the line, and on promises of sums of money that have been allocated and reallocated a number of times by the Labour party. This is not just my view: look at the figures from the Society of Motor Manufacturers and Traders, showing that British commercial vehicle production grew by 39% in 2022, the best since 2012, with exports surging by 63%. We are determined to make the UK the best location for export-led automotive manufacturing.

I am going to talk not about a promise, but about the programmes that are in place to ensure that supply chains and gigafactories are here to support the whole automotive sector. I have spoken about the Advanced Propulsion Centre—perhaps the Opposition do not understand how important that is—the Faraday battery challenge and “Driving the electric revolution”. We must not forget the Envision AESC announcement of its investment in a gigafactory in Sunderland or Johnson Matthey confirming its investment in the construction of a factory in Hertfordshire for proton exchange membrane fuel cell components for use in hydrogen vehicles.

Discussions are constantly ongoing with other potential investors into gigafactories in the UK. We are not doing this by ourselves in Government, making decisions that seem good on paper; as I said, I co-host the Automotive Council and just this week—possibly on Monday or Tuesday, I cannot remember—I caught up with Aston Martin, Bentley Motors, BMW, Ford, Jaguar Land Rover, McLaren Automotive, Nissan, Stellantis, Tesla, Toyota and the Volkswagen group. They are keen to continue working with us to ensure that we have supply chains here in the UK.

[Greg Clark (Tunbridge Wells) (Con)]

To secure the future of our vital automotive sector, we need to manufacture batteries in the UK. The industrial strategy in 2017, which my hon. Friend the Minister referred to, established the Faraday challenge to build on our cutting-edge research capability. The battery innovation centre was set up to develop manufacturing capacity. While the strategy is vital, and must be refreshed and continued, it is necessary but not sufficient; we need activism. When Mrs Thatcher lured Nissan and Toyota to this country, she travelled to Japan to make the case for locating here. Does that level of activism exist in the Government, and will the Minister commit to ensuring that we have those investments from companies around the world in the UK?

[Ms Ghani]

I believe that my right hon. Friend was the Secretary of State for Business, Energy and Industrial Strategy when the decision on the Faraday battery challenge was taken. He made sure that £211 million of funding was in place, so that technology could be developed to make batteries as efficient as they can be. That is just one part of our trying to secure investment into the UK. I can confirm that meetings are constantly taking place, including at Secretary of State level, with companies based in the UK and overseas, meeting with chief executive officers and chief financial officers to ensure that the UK is seen as an attractive place to manufacture cars. There is a global challenge around supply chains—it is not just a domestic issue—and we are keen to ensure that the UK continues to be seen as the best place to manufacture cars.

[Mr Speaker]

I call the SNP spokesperson.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

The Minister is sticking her fingers in her ears and burying her head in the sand on this question. The Government were told time and time again about the rules of origin issues, and the car industry seems to be another casualty of the Government’s damaging Brexit. Increasing the uptake of low-emission vehicles is vital to meeting our net zero goals, but the UK’s disastrous trade deals are making the domestic manufacture of those vehicles impossible.

Stellantis has warned:

“If the cost of EV Manufacturing in the UK becomes uncompetitive and unsustainable operations will close.”

Has the Minister made an estimate of how many job losses it would lead to if the world’s fourth-largest carmaker closed its UK factories as a result of Brexit? Andy Palmer, a former chief operating officer, said that we are “running out of time” to get battery manufacturing in the UK, and that a failure to address the issues caused by Brexit will lead to the loss of 800,000 jobs in the UK. Car manufacturing has fallen sharply since the UK chose to leave the EU, from more than 1.5 million in 2016 to just 775,000. Does the Minister accept that the only way for Scotland to stop the decline of our industries is to gain independence and rejoin the world’s largest single market?

[Ms Ghani]

I would not expect anything less than a rerun of the conversation on Brexit. Fundamentally, the hon. Member does not like Brexit, does not like any trade deal, and does not even like the most integrated single market between England and Scotland, so I know that he has nothing appropriate to say.

Let us talk about the situation as it is: confidence in the UK automotive sector, and in the whole supply chain, has meant that Stellantis has invested more than £100 million in the Vauxhall plant in Ellesmere Port. That will see the plant transition to become the first mass-market all-electric plant in the UK, producing electric vans from 2023. That shows the confidence that that particular firm has in the UK.

We know that the production of electric units will go up, whether for private or commercial use, and we are doing everything we can to provide support on some of the more challenging issues in car manufacturing, such as access to energy and the cost of energy, which we have been working on as well. It is internationally challenging—I accept that—but the UK continues to be incredibly attractive for car manufacturing.

[Andrew Selous (South West Bedfordshire) (Con)]

Many of my constituents work at the Vauxhall Luton van factory, which makes the incredibly successful Vivaro, so this issue really matters to them and to me, and it matters for our industrial future. Will the Minister flesh out in a little more detail the plan to get more battery manufacturing capacity here in the United Kingdom? When will there be announcements? What number of battery plants does she believe the United Kingdom needs to have a successful car manufacturing industry?

[Ms Ghani]

I thank my hon. Friend for that incredibly sensible question. I have talked about all the programmes of work we have in place to attract gigafactories to the UK and to ensure that we are using the best technology that we can. We have the automotive transformation fund, which is building globally competitive electric vehicle supply chains, and I have spoken about the Faraday project, which will unlock a huge amount of research and development. We have Envision, too. We are working with and we constantly talk to other investors to help them come and establish gigafactories in the UK. We know how important it is to have supply chains to deal with the remarkable amount of cars being manufactured here.

My hon. Friend will be pleased to know that we also published in the integrated review an updated report on critical minerals to ensure that we are able to access to those minerals and are not relying on a particular nation, but can diversify. As I have said, I co-chair the Automotive Council, and that will provide a huge amount of assurance to his constituents that we are working hand in hand with the sector.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Darren Jones (Bristol North West) (Lab)]

The story overnight came from written submissions to my Committee’s inquiry on the future of battery manufacturing in the UK. Stellantis will be here in Parliament next Tuesday to give further evidence. The Minister will know two things: that she and her departmental officials are in ongoing negotiations with other car manufacturers in the UK beyond Stellantis, and that all the car companies are raising exactly the same issues and are asking for a step up in activity from the Government and an end-to-end industrial strategy to show that the UK is serious about the future of UK production of electric vehicles. Will the Minister confirm for the record that those assertions—that the Department is in negotiations right now with other car manufacturing companies and that they are raising exactly the same issues as Stellantis—are indeed correct?

[Ms Ghani]

I am grateful to the Chair of the Select Committee for being here. I was once on his Committee. Overnight, I went through the transcript and some of the submissions to that inquiry, and I noticed the submission from Nissan. I know that nobody wants to pick out all the positive things that were said, but there was a great point on page 4:

“The UK has strong promise as an EV battery production location due to strong demand, a skilled workforce, and attractive manufacturing sites.”

We somehow seem to be forgetting all the positive things that are said in submissions by the automotive sector.

We are working with those in the sector, as I have said. I meet them regularly and was with them just this week to deal with a number of challenges, whether to do with the Inflation Reduction Act or gigafactories. I can, of course, confirm that we are working with industry to do everything we can to ensure that there is greater commitment to gigafactories here in the UK.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Manufacturing and industry in this country are definitely an ecosystem, and when we start to lose chunks of it, that not only devastates communities but affects wider supply-chain businesses. The Minister will know that steel is crucial to car manufacturing. Can she reassure me and my constituents that she is considering those supply-chain businesses and doing everything she can to ensure that we have a level playing field in this country, not just for the steel industry but for manufacturing more widely?

[Ms Ghani]

My hon. Friend is once again the lady of steel, raising the topic on behalf of the whole industry across the UK. She will know about our recent work to look at procurement and the whole lifecycle of supply chains, and to ensure that we are doing everything we can in the UK. She knows about our commitment to the steel sector—we have provided billions of pounds-worth of support for energy costs, and now there is a huge amount of support for decarbonisation—and because of her work, steel will not be left out of any conversation when it comes to advanced manufacturing.

[Ian Lavery (Wansbeck) (Lab)]

Recharge Industries, the organisation that bought out Britishvolt, is committed to building a gigafactory on the Britishvolt site in Cambois in my constituency. However, there is a huge issue with Northumberland County Council relating to a buyback proposal on the land of the proposed gigafactory. Will the Minister please intervene to facilitate discussions between all parties to ensure that we are not let down again at the site in Cambois, and that Recharge Industries gets every support it needs from the Government to build that gigafactory and bring 9,000 jobs to the north-east?

[Ms Ghani]

We are pleased that Britishvolt has been successfully acquired. We know that investment supports high-quality jobs in industries of the future, and we are determined to ensure that the UK remains one of the best locations. We look forward to learning more about the Recharge Industries plans, and we continue to work closely with the local authority—it is not a Government decision—to ensure the best outcome for the site. Because I am so keen to ensure that we continue to have good news in this sector, I will commit to meeting the hon. Member this week so that he can ensure that the information I am getting from my officials is absolutely correct. If there is anything more I can do in relation to the local authority, I will do my best.

[Rachel Hopkins (Luton South) (Lab)]

I am very proud to have the Vauxhall van plant in my constituency. I was going to ask the Minister whether the Government accepted that setting ambitious targets, such as the zero emission vehicle mandate, without a plan, alongside the issues with the rules of origin, was simply reckless, but I want to impress upon her that what we are debating impacts on people’s lives and livelihoods. Will she accept an invitation to Luton South to visit the Vauxhall van plant and speak with workers there, and their representatives, to see how Government decisions impact on people’s lives?

[Ms Ghani]

We are very much aware of how this impacts on people’s lives. I can tell by the number of Members in the Chamber. I co-chair the Automotive Council, so I know how incredibly important it is that we are sensitive to the needs of the industry while delivering on our other ambitious targets, including net zero. For the meeting this week with the sector, I took a delegation over to the Department for Transport to explain a little further the challenges of the ZEV mandate. There is a huge commitment to delivering electric vehicles, but there are also challenges if we want to ensure that the UK automotive sector continues to be as competitive while delivering on our net zero ambitions. Of course, if the opportunity arises, I would be more than happy to visit the hon. Member’s manufacturing site when she is available. I will do my very best to try to make that happen.

[Sarah Olney (Richmond Park) (LD)]

In a written answer to me in November last year, the Minister said:

“The Government is committed to securing investment into the automotive sector, which will play an important role in levelling up across the UK and driving down emissions to net zero by 2050.”

In the light of that, today’s intervention by Stellantis is extremely worrying. If the Government cannot get an agreement to keep the current rules until 2027, what assessment have they made of the effect that the 10% tariff will have on the UK car manufacturing industry?

[Ms Ghani]

The hon. Member’s premise is wrong. I can list all the investments that have taken place in the sector, including £100 million from Stellantis in Ellesmere Port. That is taking place because there is confidence in the UK and in the supply chains. There has been a £380 million investment in Halewood. We have £1 billion of investment in the north-east hub between Nissan and Envision. That is all investment in the UK. Bentley announced £2.5 billion of investment in 2022 to produce its first battery-electric vehicles by 2026, securing 4,000 jobs at its Crewe plant. None of that was in the hon. Member’s script as she stood up.

We are aware of the rules of origin issue and it is raised with the Automotive Council, of which I am a co-chair. As I said earlier, the FCDO leads on this issue, but my Secretary of State is in constant contact to ensure that we get the best deal we can.

[Mick Whitley (Birkenhead) (Lab)]

Stellantis’ warning that it might be forced to close its UK factories will be greeted with dread by the large number of my constituents who work in the Vauxhall car plant in Ellesmere Port, where I myself was employed for many decades. The automotive sector now faces an existential threat as a result of the Government’s recklessness in setting such ambitious rules of origin targets, with no clear plan on how they would be delivered. With 800,000 jobs hanging in the balance, can the Minister confirm that the Government are prepared to sober up, get real, and work with the EU to revisit the rules of origin requirements in the trade and co-operation agreement?

[Ms Ghani]

Stellantis gave evidence to the Select Committee on a number of issues, and it seems peculiar that just one particular point has been raised, which has been in process for quite some time. The confidence that the hon. Member can give his constituents is that Stellantis has invested over £100 million in the UK—that is the confidence that employees have as well. A series of submissions were made to the Select Committee, and I am sure that the Chair, the hon. Member for Bristol North West (Darren Jones), will see a lot of activity on the website going forward. I read out the submission from Nissan expressing the confidence it has in the UK, as well as in us being able to deliver a huge amount of technological advancement in providing net zero vehicles. I ask the hon. Member for Birkenhead (Mick Whitley) to read the submission in full, not just the snapshot that was in the news.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

As the Minister will be aware, Sunderland is home to Nissan—it is in my constituency—and there are thankfully already shovels in the ground for the Envision AESC’s battery gigafactory, but we need more than one gigafactory. The sustainability of other UK manufacturing operations is at massive risk, as we have heard today, because the Government are incapable of seeing through any strategy. They knew this day was coming. When will the Government renegotiate the trade and co-operation agreement?

[Ms Ghani]

The hon. Member is absolutely right: there is a fantastic project with Nissan and Envision that will support 6,200 jobs in that supply chain, with more than 900 new Nissan jobs and 750 new jobs at the Envision gigafactory. By 2025, that site will see a projected 100,000 battery electric vehicles produced each year by Nissan; it is the first in the UK at that scale. All the other programmes of investment that I explained, whether that is the automotive transformation fund or the Faraday battery challenge, are what we are using to attract further investment in the UK, especially in gigafactories. That is exactly what we are working on—it is what I am working on as the co-chair of the Automotive Council.

[Dame Nia Griffith (Llanelli) (Lab)]

The transition to electric vehicles means not only new battery and engine factories, but significant investment in car component factories such as Gestamp in my constituency, which has developed lighter, tougher car body parts. Multinational companies such as Gestamp are currently making crucial decisions about where to site the production lines of the future, so with the US Inflation Reduction Act and the EU refining its response, what are the Government going to do to reduce energy costs both now and in the long term, to provide a coherent industrial vision and strategy, and real incentives for companies such as Gestamp to invest their new lines here in the UK?

--- Later in debate ---

[Ms Ghani]

Those are the exact conversations that we have been having for quite some time with manufacturers in the UK. Of course, IRA is not just a challenge for us, but a challenge internationally—the hon. Member has no doubt seen the response from Europe. We are also putting together a response collectively for all the manufacturers within the UK. It is important to note all the support we have given to energy-intensive industries, including the energy bill relief scheme, and now we have the supercharger coming down the line as well. Fundamentally, we also have the critical mineral refresh that is in the integrated review, which will provide further assurance that we can get hold of the basic goods—the critical minerals—that are needed to ensure that supply chains are reliable for manufacturers in the UK.

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

Never has an industrial strategy been more needed, and never have a Government been found more wanting. We have just 2.5 GW in production currently with Envision, and as the right hon. Member for Tunbridge Wells (Greg Clark) said, it needs activism, but I am afraid the signals just are not there. As Chancellor, the Prime Minister gave a keynote speech to the automotive industry last May. He spoke for just one minute and 46 seconds, and the delegates were left feeling disrespected by his lack of commitment. Unfortunately, this does affect international corporates that are looking to invest, and between the US with its IRA and the investments in Europe—in Germany, France and Spain—we are in serious danger of losing out. As such, will the Minister please convene a cross-party meeting with the Automotive Council to discuss what the plan is to address this real crisis?

[Ms Ghani]

If Madam Deputy Speaker allows, I will be more than happy to go over the allowed one minute in my response, but I do not want to lose favour with her. The constant requests for the strategy are peculiar because I can tell Members exactly what we are doing. The Chancellor identified five key growth sectors for the UK, which of course include advanced manufacturing, and the Government have announced £500 million per year for a package of support for 20,000 research and development-intensive businesses. We have 12 new investment zones and we are saving £1 billion yearly by cutting red tape that is burdensome for big employers.

But the point is this: there are a number of challenges around supply chains. We are looking at that issue with the Automotive Council, and also through the integrated review and the critical minerals refresh. There was a challenge internationally when it came to energy costs; we had the EBRS and now we have the supercharger. I am the co-chair of the Automotive Council. I am sure that, if the hon. Member for Warwick and Leamington (Matt Western) wanted to attend, he could write to the co-chair and ensure there could be time for him to be there as well. That work is done collaboratively with all the automotive CEOs, CFOs and leading managers across the UK. I do not determine who comes to that meeting and represents the automotive sector; that is for them to decide.

[Kerry McCarthy (Bristol East) (Lab)]

In the UK, we have the largest queue to connect to the grid of any country in Europe, which is affecting the car manufacturing industry, including when it sets up new plants. One manufacturer that wanted to put solar arrays on its plant was quoted 2031 for grid connection and a £9 million cost; another one was quoted 2037. That is clearly hindering our chances of securing a prosperous car industry in this country and attracting more investment. What conversations is the Minister having with her colleagues to ensure that grid connectivity is resolved?

[Ms Ghani]

I thank the hon. Member for that question, because it shows that we have to work across Whitehall. Access to the national grid is a major issue for any of the large manufacturers and of course, as their plans grow, they need to have greater access over a faster timetable than one would have previously thought National Grid would make available. Conversations are taking place, in particular with colleagues who were previously in the Department for Business, Energy and Industrial Strategy, who are now in the Department for Energy Security and Net Zero and are leading that relationship with National Grid. The issue comes up regularly in the meetings that we have with the manufacturing sector, and my priority is to support the advanced manufacturing sector, so the hon. Member can be assured that I am campaigning incredibly hard to make sure that all our advanced manufacturing sites—present or planned—get access to energy at a timetable that suits the business, not just National Grid.

[Dave Doogan (Angus) (SNP)]

It is deeply unimpressive for the Minister to come along today and talk about jam tomorrow—investments in future exotic technology and the investments that industry is making in that scenario—when what we actually need is conventional traction battery manufacturing capacity in the UK now. I am invested in this because of the supply chain in Scotland and because the United Kingdom has done everything it can to avoid any of the automotive foreign direct investment coming to Scotland. What will the Minister do to address the emergency of a lack of manufacturing capacity in traction batteries now, not different types of batteries in the future?

[Ms Ghani]

It is not about jam tomorrow: it is about money committed previously and money committed today. The transition to zero-emission vehicles is being supported by up to £1 billion for R&D and capital investments in strategically important parts of the electric vehicle supply chain, building on the £1.9 billion in spending review 2020. The Government have committed £620 million to support the transition to electric vehicles—that is committed today; it is not jam tomorrow. I ask the hon. Member to read all the submissions to the Select Committee, and to respond to the positive comments that have been made about why businesses continue to see the UK as a great place to manufacture cars.

[Andrew Gwynne (Denton and Reddish) (Lab)]

If levelling up is to be more than just a slogan, we desperately need an industrial strategy that matches historical skills to new job opportunities. I want to impress on the Minister that, in 2002, Oldham Batteries in Denton closed for the last time. It made car batteries for a long time. It had been a company since 1894, but those skills are still there in Tameside. How do we match up future job opportunities that the green transport revolution brings to those skills that still exist in areas such as Denton and Tameside?

[Ms Ghani]

I am grateful for the hon. Member’s point. There is no doubt a huge amount of skills in his constituency and it is absolutely right that he is coming here to represent them today. I have spoken about the Faraday battery challenge, which is about using new technology to ensure that we are producing the best batteries with the longest lifecycle. Forgive me; he is absolutely right: I should have mentioned the national electrification skills framework. That project is being continued by the Faraday battery challenge. It looks at the skills needed today, tomorrow and even further going down the line to ensure that these jobs and opportunities are spread across the UK. If he would allow, I am more than happy to write to him and to make sure, if it does not already, that that part of the Faraday challenge covers his region, too.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

As well as a viable automotive industry, the UK badly needs adequate road infrastructure to drive electric vehicles on. Do the Government recognise that demand for private and commercial electric vehicles is stalling in the UK because there is insufficient charging infrastructure, which makes buyers reluctant to make the move? Will the Minister raise that with Transport colleagues and commit to Labour’s policy of implementing mandated regional targets to ensure that all parts of the country get the charging infrastructure they so badly need?

[Ms Ghani]

As I mentioned earlier, I went with a delegation of car firms over to the Department for Transport, and I can see a Minister from that Department, my hon. Friend the Member for North West Durham (Mr Holden) on the Front Bench. As I mentioned, it included Bentley, BMW, Ford, Jaguar Land Rover—I have to read them all out; they will complain if I miss them off—McLaren, Nissan, Stellantis, Tesla, Toyota, Volkswagen and Aston Martin. I think that is everybody. Infrastructure is absolutely key, and we are doing everything we can to put pressure on the Department for Transport as it works with its stakeholders to make sure that the roll-out of charging points, including fast charging points, is kept up to speed to make sure that buying an electric vehicle is as attractive as it can be.

International Trade and Geopolitics

Nusrat Ghani Excerpts

Thursday 20th April 2023 Commons Chamber

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

I thank the hon. Member for Bristol North West (Darren Jones) for securing this important debate. I too was on the Select Committee with my hon. Friend the Member for North East Bedfordshire (Richard Fuller) and the right hon. Member for Hayes and Harlington, so this feels like a Tuesday morning love-in all over again.

To continue that love-in, I must say that many points that the Select Committee chair made were valid, although unfortunately others were somewhat completely off the mark. As always, I will defer to my hon. Friend the Member for North East Bedfordshire; we played a good tag team on the Select Committee, so it is fantastic to have him here in the Chamber. I thank all colleagues from across the House for their valuable contributions and I will do my very best to reference all of the very important questions that they raised.

[Andy McDonald]

Will the Minister take an intervention?

[Ms Ghani]

Already? I have just said how fantastic you are, and now you are going to cut me to the quick—but go ahead.

[Andy McDonald]

I am grateful for the praise; I just want to point out that I am the Member of Parliament for Middlesbrough—my right hon. Friend the Member for Hayes and Harlington (John McDonnell) is a different guy altogether.

[Ms Ghani]

Goodness—I am no longer on the Christmas card list, so things are already going downhill. You have made it clear, Madam Deputy Speaker, that I do not have as much time to speak as I thought I had, so I will do my best to refer to all the contributions.

First, to the Chair of the Select Committee, you were such an optimist when I was on the Select Committee, but there has been nothing but negativity today. You touched on UK investment—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I think you meant “the hon. Gentleman”.

[Ms Ghani]

Forgive me, Madam Deputy Speaker.

We are one of the leading countries for start-up capital outside the United States. Most recently, we attracted £20 billion into technology, twice as much as France and Germany. The hon. Member for Bristol North West talked about our economy; the recent PwC report said that the UK is the fastest-growing G7 economy up to 2050, which means that our economic growth will outpace that of Germany, France and Italy combined. He talked about the OBR, which has revised its figures and is no longer forecasting our falling into a recession in 2023. I just wanted to ensure that he did not spend his weekend being utterly depressed, but instead looked at some of the stats out there that will perk him up.

I am grateful for the opportunity to respond to the debate, because it is important to understand the link between trade and geopolitics. As the hon. Gentleman mentioned, it is a fast-changing world out there and geopolitics is a challenge awaiting everyone, not just us here in the UK. It is only right that we ask ourselves what kind of country we want the UK to become. What part should we play in helping to shape the world of tomorrow? Should we be an outward-looking, truly global, free-trading nation that flies the flag for progress and stands up against the rise of authoritarianism and protectionism worldwide, or a country that battens down the hatches and shields itself from change?

I know what kind of nation the Prime Minister and I and the rest of this Government want the UK to be. We want to strengthen our country’s role as a global champion of freedom, democracy and the rule of law, driven by free trade and free enterprise. Considering the contributions we have heard, I think we all agree that trade is the most powerful force for progress we have at our disposal.

Only trade can create jobs, drive growth and deliver the long-term prosperity that communities across the UK and around the world need to flourish. Only trade has the power to lift millions more people out of poverty in developing nations, helping to build a more secure and prosperous future for us all. Only trade can drive forward co-operation in the battle against climate change, by building networks of green innovation worldwide.

Only trade can strengthen our critical supply chains, as discussed earlier, as we adapt to the energy security challenges unleashed by Putin’s barbaric illegal invasion of Ukraine. We have shown that by joining forces with our partners to cut the Kremlin’s oil revenues, removing tariffs on Ukrainian goods, signing a digital trade agreement with Kyiv and mobilising British businesses to play a leading role in rebuilding the Ukrainian economy—a task that we will drive forward with our partners when we host the second Ukrainian recovery conference in June.

The global challenges were covered in many speeches in this debate. That is why trade is forged at the heart of our economic security and defence policy as we adapt to the challenges of a competitive and multipolar world, just as we outlined in our refreshed integrated review, and why we are using our post-Brexit freedoms to position the United Kingdom at the centre of a network of free trade agreements that span the globe.

We are making it easier and cheaper for British firms in our constituencies, including smaller businesses, to trade and invest overseas by tackling tariffs and opening markets. We are helping them to unlock the fantastic potential of those deals through the work of our network of trained specialists, based here in the UK and worldwide, who provide the advice and guidance that firms need to do business overseas, from offering specialist market and sector intelligence to connecting British firms to export our investment opportunities on the ground, while flying the flag for the best of British business through the promotional work and other trade activities our teams are doing globally.

We have signed trade deals worth more than £850 billion with more than 70 nations so far, including some of the world’s most diverse and dynamic economies such as Japan and Australia. We are working at both state and federal level to strengthen our economic ties with the United States, our biggest bilateral trade partner, bringing down barriers to business through the memorandums of understanding we have agreed with North Carolina, South Carolina, Indiana and Oklahoma—the International Trade Minister, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), has just got off a flight from Oklahoma—with discussions ongoing with other states

We are also making progress in negotiating an FTA with India, although it is always about getting the right deal, not about rushing ahead. That FTA would boost our trade with the world’s biggest democracy by as much as £36 billion.

Let me shift to the Indo-Pacific, which was touched on by many Members, including my hon. Friend the Member for North East Bedfordshire. A key plank of our policy is to strengthen Britain’s trade ties with markets across the Indo-Pacific as the global economic centre of gravity shifts eastward. China’s increasing assertiveness in the region is set to become one of the most significant geopolitical and geo-economic shifts over the next decade, so our response will define our relationship with the world that is emerging.

The hon. Member for Bath (Wera Hobhouse) in particular mentioned China and Taiwan. In trade talks back in 2021, we agreed to deepen and broaden our trading relationship. In the last talks—held in Taiwan in November 2022, with the previous Trade Minister—the UK progressed market access ambitions in a range of sectors, including energy and offshore wind power, financial services, pharmaceuticals, agriculture, and, of course, food and drink. It gives me great pleasure to reassure the hon. Lady, the House and the good people of Taiwan that there is no change in the UK’s position, as stated at the G7 Foreign Ministers meeting a few days ago. I also note that President Macron has emphasised that position since making his initial comments. The UK remains resolutely against any unilateral change to the status quo, and we agree with our partners that Taiwan’s meaningful participation to international bodies should be possible. Of course, we are obviously aware of attempts to redefine the status quo, but we are fundamentally focused on ensuring that we de-escalate any tensions in the region.

There has been a lot of discussion about CPTPP, which is pivotal to the growth of our economy and will provide access to international markets for all the fantastic businesses in our constituencies. There has been so much doom and gloom in the debate, but it is worth remembering that we have access to markets in Europe and the CPTPP—the only country in the world to have that access. Our membership of the CPTPP was successfully secured by the Secretary of State just last month, and the deal is a game-changer for our country, placing the UK at the centre of a free trade zone of 500 million people, spanning Asia and the Americas, with a combined GDP of £9 trillion. We are the first European country to join the CPTPP, showing what we can achieve as an independent global trading nation. It also shows how we are valued internationally. There is a lot of doom and gloom about how the UK is branded and whether it is respected overseas, but I think this shows our value and what we have to offer.

CPTPP enables us to be a part of a major geopolitical scene. Of course, tilting towards the Indo-Pacific supports jobs and creates new export opportunities for businesses in every part of the United Kingdom. We have signed an additional agreement with Singapore, and a digital innovation partnership with 10 members of the Association of Southeast Asian Nations, strengthening our growing network of prosperity across the region. Those deals are underpinned by our expanding commitment to security in the Pacific, led by the AUKUS defence and security pact that we signed with the US and Australia last year. Without secure trade routes and supply chains, commerce cannot flourish and nations cannot prosper.

There has been a lot of conversation about supply chains. The war in Ukraine has starkly exposed the vulnerability of global supply chains over the past year —particularly energy security—so we are pulling out the stops to identify alternative sources for the critical goods that our economy needs to flourish while boosting our energy independence at home. The integrated review included the critical minerals refresh, which I was pleased to put together. Just this morning, the critical minerals taskforce—a collaboration with industry—met for the first time. I take this opportunity to recognise the work of Katherine Bennett, the taskforce chair. This shows how we are working not only with industry, but internationally, to ensure that UK manufacturers have access to the critical minerals and goods that they need in their supply chains.

As we move towards cleaner, more affordable sources for power, Britain is once again leading the charge and we have a head-start on our global competitors. More than 40% of our energy came from renewable sources last year, and we are ramping up our investment in the sector, directing record sums into new projects, research and innovation. We know that the US Inflation Reduction Act is a significant intervention in the global race for green energy, and we are not attempting to enter any kind of distortive subsidy race with our greatest ally—as my hon. Friend the Member for North East Bedfordshire said, we need to make sure that we always get good value for taxpayers’ money—but although that drive to net zero in the United States should be welcomed, it is, of course, incredibly disruptive. One cannot throw a stone into the water and not expect any ripples, and IRA is a massive stone that has caused ripples worldwide, particularly in Europe. It is incredibly important that we stick to our net zero ambitions and ensure that we have resilience in our supply chains.

We are trying to do everything that we can to ensure that businesses in the UK have a competitive advantage while leveraging billions more in private capital to drive growth—and not just in green energy. We want to grow our nuclear energy capacity, too, through the development of small modular reactors, while investing in our key growth industries—from advanced manufacturing to life sciences and artificial intelligence—forging a British economy that is fit to face the challenges of a fast-changing world. [Interruption.] I am being rushed along, so I will briefly respond to some of the points raised by hon. Members.

My hon. Friend the Member for North East Bedfordshire talked about the Office for Investment. We now have a joint Department—BEIS and DIT have become the Department for Business and Trade—with far more focus. An event in October will focus on global investment into the UK. We are focusing our resources and ensuring that we are reaching out.

The hon. Member for Bath spoke about CPTPP and Taiwan. It is not for us to talk about the accession of other countries, but is it not fantastic that we are at the table to ensure that our voices are heard?

There was also conversation about Liverpool and Mexico—[Interruption.] I am going as fast as I can, Madam Deputy Speaker. I am grateful to the hon. Member for Liverpool, Walton (Dan Carden) for his speech, which was positive about the work that we are doing in Mexico. He talked about the education strategy and the desire to promote exports, especially in education. I can confirm that we are most definitely doing that. If that work continues to be as positive as it is, I am sure that we would work with him to ensure that it is progressed.

The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) spoke about Kashmir. Those issues are fundamentally for the Foreign Office. These conversations often take place behind closed doors, but I do not doubt that her comments are on the record and will be reflected in other Departments, as necessary.

With a new chapter in global history being opened, we must have the courage to stand up for our convictions that only free trade and open markets hold the key to prosperity. It is clear that we are living in dangerous times. Autocracies are emboldened and behaving in a way that many of us have not seen in our lifetimes. The UK stands at the crossroads of the geopolitical stand-off between the international rules-based system as we know it and the system that autocratic leaders would like it to become. Trade and investment are at the very heart of that crossroads. Securing UK prosperity while protecting our way of life must be at the core of our trading strategy. We must work with our partners and allies to forge a freer, fairer future for the global economy, standing up to protectionism and economic coercion wherever we find it, delivering for people across the UK by growing British exports until we achieve our ambition of trading £1 trillion-worth of goods and services by 2030—we have a few years to go before we hit that target —and making our economy the undisputed top investment destination in Europe, so that millions of people across the UK and around the world can be set free to realise their economic potential and enjoy the benefits that only free, fair and sustainable trade and investment can bring.

I do not want to cause you any more upset, Madam Deputy Speaker, so I will finish by saying that I was at the Dispatch Box 30 days ago on the first day of Ramadan. Tonight we may see a full moon and tomorrow may be Eid, so I wish you and the House—especially the staff in the Tea Room—Eid Mubarak. I wish in particular for a full moon tonight so that I and my two brothers, Nasim and Rasalat, who are watching, can celebrate Eid tomorrow.

Investment Security Unit: Scrutiny

Nusrat Ghani Excerpts

Thursday 23rd March 2023 Commons Chamber

[Darren Jones (Bristol North West) (Lab)]

I rise today to give a statement on behalf of the Business, Energy and Industrial Strategy Committee in respect of our memorandum of understanding with the Government on scrutiny of the use of powers contained in the National Security and Investment Act 2021. I am grateful to the Backbench Business Committee for giving me the time to do so.

As the House knows, the National Security and Investment Act established a new statutory regime for Government scrutiny of, and intervention in, investments for the purposes of protecting national security. The Act applies to a wide range of sectors, which themselves are broadly defined, and—unlike in other countries—covers all transactions, not just those involving foreign investment. The investment security unit was then established within the Department for Business, Energy and Industrial Strategy to operationalise the Act. At that stage, the Secretary of State for Business, Energy and Industrial Strategy was the decision maker.

When the Bill was going through the House, the Government confirmed their preference that scrutiny of the use of these powers should be done by my Committee. There was a debate in this House and in the other place about whether a departmental Select Committee had sufficient processes, people and protections in place to scrutinise secret information, and right hon. Members from the Intelligence and Security Committee understandably argued that their Committee was best placed to do that work. However, the Government were not minded to accept amendments for a statutory regime of scrutiny in the Bill, nor to change their position on which Committee should have oversight of the regime. As such, Ministers committed to entering into a memorandum of understanding with my Committee to set out how information would be made available to allow us to do our work.

While negotiating that memorandum, my Committee established a new National Security and Investment Sub-Committee and appointed special advisers. We are also grateful to the House for providing us with national security subject specialist staff with relevant levels of security clearance. In addition, we undertook a short study visit to the United States to understand how congressional oversight of that country’s equivalent regime is conducted.

I am pleased to inform the House that the memorandum of understanding between the Government and my Committee has now been agreed, and that we have published it today in our report. I will not test the patience of the House by reading out the whole memorandum, but I will just make two points. First, it has been agreed that scrutiny will largely be done in private and, in so far as it relates to individual transactions, will be done retrospectively following any appeal or legal challenge. This was agreed to prevent actual or perceived political interference in quasi-judicial decision making, and means that we operate in line with our counterparts in the United States. Secondly, the bulk of our work will focus on the effect of the legislation on investment in the United Kingdom and the effectiveness of Government operations.

When the Committee decides that it wants to understand individual transactions in more detail, we will be able to request information from the Government via a private explanatory memorandum, which we will not publish. If the Committee wishes to see more sensitive information that is not contained in the explanatory memorandum, I as Chair of the Committee will be able to request access to such information, and will be briefed on equivalent to Privy Council terms or by notification under the Official Secrets Act. Lastly, while the recent machinery of Government changes have resulted in the investment security unit moving to the Cabinet Office and the decision maker now being the Chancellor of the Duchy of Lancaster, the Government have confirmed that they still intend for scrutiny of the Act to be undertaken by my Committee and, soon, its successor Committee on the basis set out in today’s report and the letter from the Minister received by other relevant Committees.

[The Minister of State, Cabinet Office (Ms Nusrat Ghani)]

I welcome this report, especially paragraph 11. We have always welcomed scrutiny of our decisions. As the hon. Member rightfully pointed out, the investment security unit has left the Department for Business, Innovation and Skills, but I am still responsible and we now sit in the Cabinet Office. Obviously, we want to support businesses to ensure that investment in the UK continues, while also protecting our national security.

I wondered whether the hon. Member could reflect on the fact that the NSI Act is a leading investment screening regime, and that we have good relationships with like-minded partners through which we share best practice and help other countries with similar regimes. Perhaps he could also comment on when I will be in front of him and his Select Committee, because we do not shy away from scrutiny. Finally, perhaps he would like to indulge the House and thank all of the investment security unit staff who worked with us on the unit and on securing this MOU.

[Darren Jones]

I thank the Minister for her question. Of course, for a long time, she was a member of my Committee. She pushed me quite hard to ensure that we got very effective scrutiny of this legislation, so I look forward to working with her collaboratively on the exchange of information as it relates to our interests as a Select Committee.

The Minister invites me to thank her officials, as well as my Clerks on the Select Committee, and I should do so. It took, I think, nearly 13 months to get to this point, sometimes with some frustration, but we got there. However, much of the work has been done and much of the detail has been agreed at length by our officials and Clerks, and we are very grateful to them for their contributions.

As for when the Minister will be summoned to my Select Committee, it is unusual that people are keen to come and be cross-examined by me and my colleagues on the Committee, but we look forward to welcoming her in due course.

Bus Manufacture in the UK

Nusrat Ghani Excerpts

Monday 31st October 2022 Commons Chamber

[The Minister for Science and Investment Security (Ms Nusrat Ghani)]

I congratulate my right hon. Friend the Member for Selby and Ainsty (Nigel Adams) on securing tonight’s important debate and setting out clearly some of the challenges that UK bus manufacturers face. He knows that if I were on the Back Benches, this is exactly the sort of debate that I would have instigated, so I am actually pleased that he has raised this tonight. I give him an absolute assurance that this is not the end of the discussion; now that I am aware of this, it is only the start.

I share my right hon. Friend’s concerns that the procurement of these Chinese-made buses could adversely impact the UK bus manufacturing network and centre. In particular, I was concerned to hear my right hon. Friend say that some of these procurements that take place with China are not always the cheapest contracts, which is not great when it comes to making sure that we get good value for money. In particular, he mentioned that when councils are writing their specification tenders, UK manufacturers cannot bid as only the cheaper Chinese product fits their specification. I am sure that will be heard loud and clear in my Department and at the Department for Transport, and they will no doubt be writing in response.

It is true that, since 2019, Chinese companies have been enjoying huge volumes of exports around the world, with 98% of electric buses being found in China. I also share the concerns of my right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill), who chairs the bus and coach industry all-party parliamentary group, that we can allow one country to monopolise the market and that we should be doing everything we can to make sure that our supply chains are as clean and as transparent as they can be.

I will try my best to respond to all the points raised, but I will just run through what we are doing within the sector to help bus manufacturers. As my right hon. Friend mentioned, this sector is incredibly important for the Government’s green growth, making sure that we are levelling up across our country and driving emissions to net zero by 2050. In a previous life, I was the bus Minister, making sure that we were indeed supporting zero-emission buses.

My right hon. Friend mentioned how important the sector is to jobs. The sector employs 155,000 people—6.1% of total UK manufacturing employment—and a further 347 jobs are estimated to be supported by the industry in the wider economy. Within the framework, UK bus manufacturers are uniquely positioned, employing more than 3,000 people across England, Scotland and Northern Ireland. This is a sector that we need to protect.

My right hon. Friend the Member for Selby and Ainsty mentioned the prominent British companies, Alexander Dennis, Switch Mobility and Wrightbus, which employ more than 3,500 workers directly and 10,000 indirectly. These manufacturers also have the aptitude and capacity for completing the transition to fully electric bus fleets in the UK by the year 2030 without the need to import buses—that was a very important point to land.

As I am also joined by the Secretary of State for Northern Ireland, my right hon. Friend the Member for Daventry (Chris Heaton-Harris), it would be remiss of me not to mention his visit to Ballymena factory to pay tribute to the company’s net zero emission products and to affirm the Government’s support for hydrogen. I believe that he also declared the innovative technology fund, which provided £11.2 million for Wrightbus. It is incredibly important that we are doing everything we can to support UK manufacturers.

[Ian Paisley]

It was an honour to be at the Wrightbus plant with the Secretary of State. He was so enthusiastic. I think he actually said that he was really into buses—he is a wee bit nerdy about that. It was brilliant to see a person who really took a specific interest in the manufacturing process and in understanding how important it is in terms of jobs leading through to good green technology. Will the Minister take up the point that I made during the debate, which is about ringfencing the next phase of ZEBRA funding for hydrogen buses? If that happens, British manufacturing will be protected.

[Ms Ghani]

To quickly address the hydrogen point, I am not sure that ringfencing is the appropriate word for me to use at the Dispatch Box, but there is funding available for hydrogen buses; I believe the ZEBRA scheme is helping the West Midlands Combined Authority to deliver 124 hydrogen buses and refuelling infrastructure. As my hon. Friend is raising the profile of the business in his constituency, it is right that we do everything we can to ensure that the money is spent locally within the UK.

One point my right hon. Friend raised was why councils were shipping buses to the UK when they are not the cheapest option or carbon neutral. As he mentioned, the DFT’s latest ZEBRA scheme has been designed in line with the principles set out in the national bus strategy for England, placing partnership work between local transport authorities and bus operators at the heart of improving bus services.

That is why the DFT has asked for local transport authorities to submit proposals that have the support of bus operators, to ensure that they work together. Once funding has been awarded to local transport authorities, they will work with bus operators to implement the proposals, but ultimately decisions about the procurement of zero-emission buses will be made locally by local transport authorities or bus operators. DFT is not able to require bidders to design their procurement process in a way that would explicitly favour UK bus manufacturers.

[Nigel Adams]

On the point about not favouring particular manufacturers, is the Minister aware that in March, in its promotional material for announcing the new fund, DFT used a sparkly new electric bus as part of that marketing? The marketing geniuses in the DFT may or may not have been aware that it was a Chinese Yutong bus that was used to promote the scheme, but the idea that we are promoting Chinese buses is slightly alarming—I am turning to the box where the Minister’s officials sit, but I am sure it is not the young lady there who was responsible. Only when UK manufacturers complained was the photograph changed to a British Alexander Dennis bus.

[Ms Ghani]

First of all, it is not a DFT official in the box, but a Department for Business, Energy and Industrial Strategy official. Secondly, as my right hon. Friend knows, I would have kept an eye out to make sure it was not a Chinese bus, but most definitely a UK bus, and I will do so in future.

The answer I am giving is not exactly what my right hon. Friend wants to hear, but I want to repeat the issue he raised: when the procurements are put together, if they deliberately exclude UK manufacturers, that is something that needs to be looked at. Now that it has been raised in this debate, I will ensure that both BEIS and DFT officials respond in writing to ensure that that point is covered.

To quickly cover why China has the largest electric vehicle battery industry in the world, because that is important for resilience and ensuring that we support UK manufacturing, we know that China has 98% of the market. We know that we must be resilient, and that is why we have a number of programmes in place, especially the Advanced Propulsion Centre, the Faraday Battery Challenge and Driving the Electric Revolution.

For example, the Advanced Propulsion Centre provides £11.2 million for the development and manufacture of low-cost hydrogen fuel cell bus technology and the hydrogen centre of excellence with Wrightbus in Ballymena, as mentioned earlier, to further the development of hydrogen technology and drive product sales across the world. We need to be doing more of that kind of work with Members of Parliament, raising the profile of what can be done locally.

We have talked about the grants available through the Advanced Propulsion Centre, but we also have the ESTHER project, which includes the provision of £9.1 million within the £22 million ESTHER project to develop hydrogen fuel cells—again, that was mentioned earlier. Then there is the consortium led by Intelligent Energy, which includes bus maker Alexander Dennis Ltd. Funding has also been provided to ensure that the ESTHER consortium develops and integrates valuable technology delivery skills, and creates supply chain advantages for the UK, so that it can capitalise on this technology and unlock additional research and development funding from UK suppliers.

A lot of work has been taking place on localised supply of key components to meet the growing demand for electric vehicles, but we need to make sure that local companies have the opportunity to bid for tenders. I should mention the net zero strategy produced in October 2021, and the Government’s promise of £350 million over the next three years to deliver the automotive transformation fund.

I keep talking about the funding available, but that may not exactly address the points that my right hon. Friend the Member for Selby and Ainsty raised. To conclude, the issue has been brought to our attention, and I will do my very best to ensure that DFT and BEIS respond fully. My right hon. Friend is aware that if I were on the Back Benches, I most definitely would have raised this issue, even if—especially if—he was on the Front Bench; I would have given him quite a tough time.

I assure hon. Members that this is not the end but the start of a conversation. We need far more transparency, especially regarding those councils that seem to be giving the majority of their contracts to one particular country or place overseas; that is not good news for us here. We recognise the challenges that we face. We need to help our local authorities to procure buses from the UK. Of course, the supply chain for zero-emission buses will always be global, but we want to make sure that UK bus manufacturing remains strong, and this obviously involves the key components. I will end there. I am keen to meet my right hon. Friend as soon as possible to make sure that everything discussed today is put in writing.

Question put and agreed to.

Tributes to Her Late Majesty the Queen

Nusrat Ghani Excerpts

Saturday 10th September 2022 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

I rise with a heavy heart tonight to pay tribute to Her late Majesty the Queen. I want to start by expressing my deepest sympathies to His Majesty the King and the entire royal family, on behalf of my family and the loyal constituents of Wealden. Her late Majesty Queen Elizabeth II was loved and respected throughout my constituency, from the villages of Withyham and Eridge in the north to the town of Hailsham in the south. She was adored for her duty, loyalty and leadership in the UK, the Commonwealth and across the world.

I want to share the words of a constituent who lives in Fletching. Libby Buchanan is 99 years old and has lived through the reigns of five monarchs, from George V to King Charles III. She said to me how deeply blessed she felt to have lived through the reign of Queen Elizabeth. Sometimes, Libby told me, the changes experienced in the world over the Queen’s reign were bewildering, yet the Queen never changed. She was always there, a constant, gentle and ever-present light. That light has now gone out but, as Libby said, the flame has been relit and is held in the safest possible hands: those of King Charles III. Long live the King.

Oral Answers to Questions

Nusrat Ghani Excerpts

Tuesday 9th November 2021 Commons Chamber

[Dominic Raab]

The hon. Gentleman is absolutely right to point to this as a problem, a challenge—and a systemic one at that. It is of course good news that a number of victims have been willing to come forward, talk to the police and report that crime, but it cannot stop there. That is why we are publishing the score cards that I mentioned to the hon. Member for Glasgow North East (Anne McLaughlin). We are looking at every stage of the system, including improving phone technology and digital disclosure. We are making sure that victims can access an online or telephone device 24 hours a day, seven days a week. He will know about Operation Soteria, which is shifting the focus of investigations from the victim to the suspect so that they are suspect-centric, and that we are also trialling section 28 pre-recorded cross-examinations so that vulnerable types of victim do not have to go through the added trauma of giving evidence in front of an assailant.

[Ms Nusrat Ghani (Wealden) (Con)]

Women and girls do not seem to be safe from sexual predators whether they are alive or dead. David Fuller violated 100 bodies at a Kent hospital. Many of my constituents are impacted by these crimes. At present, necrophilia is illegal under the Sexual Offences Act 2003, with a maximum sentence of just two years. Can my right hon. Friend consider reviewing that to ensure that the maximum sentence is extended so that the punishment reflects the gravity of the crime?

Afghanistan

Nusrat Ghani Excerpts

Wednesday 18th August 2021 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

I pay tribute to the armed forces, especially those who reside in my constituency of Wealden. I also want to take a moment to pay tribute to all those Afghan men and women who were brutalised for 17 years under the Taliban, did everything that they could to rebuild their country, and once again will have to face a Taliban without us by their side.

There are many who have served in Afghanistan on these Benches. I had a very brief moment in Kabul. For 17 years under the Taliban, no female voice was heard in the Afghan Parliament, the Loya Jirga. I worked for the BBC World Service and we rounded up some very brave women to make sure that female voices were heard for the first time in the Loya Jirga. We did that under the threat of the Taliban, but I had a British passport, and I knew that I could come home and be safe. I was naively optimistic in thinking that these women’s lives would be improved for the better. I am now receiving phone calls telling me that it is game over.

It has taken 20 years to have 69 female MPs and they will watch us speak here today knowing what will happen if we cannot get them out, and soon. They cannot wait for five years. It is not just them, but their families, everyone who has worked with them, and everyone in an NGO who has worked to un-Talibanise the laws and processes in Afghanistan who are now targeted. It means that, after 20 years, we will have to start all over again. This has been catastrophic, cack-handed, cruel and humiliating. This is the watershed moment of the west’s failure.

I want to say two very quick things, hopefully to try to be constructive. I need to understand how our intelligence has failed, how the imagination of those providing the intelligence has failed, and, if we are relying on this intelligence now going forward, how we can be assured that they know to do the right thing, whether it is in relation to our regional partners, the Taliban or any further security issue. I would like to have a better understanding of where our parameters are when it comes to dealing with the Taliban, of what leverage we have to ensure safe passage, and of whether any aid funding will reach the people whom it needs to get to.

My final point is about the radicalisation that is going to emerge from Afghanistan. There will be not just the extremism that the Taliban will promote, but a fight in the middle east and Asia about who represents Islam. Members may not agree with me, but some countries have been trying to become more liberal since 9/11 to take away the taint around Islam. Will they now have to become even more conservative and brutal to compete with the Taliban? That will bring forward a new version of extremism where we cannot rely on any safety and security for women in the middle east or in any Islamic state.

Finally, may I ask anybody listening—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Sorry, but more than half the people are not going to get in—I do apologise. I call Layla Moran.

Afghanistan

Nusrat Ghani Excerpts

Thursday 8th July 2021 Commons Chamber

[The Prime Minister]

The hon. Lady is absolutely right to draw attention to the problems that veterans of conflicts have experienced, particularly the health and mental health problems. Last year we put another £16 million into veterans’ health—mental health, in particular—and this year the number has gone up to £17 million. We also want to make sure that we are clear with people signing up for our armed forces that we will respect their service throughout their lives. That is why we instituted the railcard for veterans and the national insurance holiday for employers who take on veterans, we prioritise veterans for social housing, we have set up lotteries for veterans, and we have a Minister for veterans in the form of my hon. Friend the Member for Aldershot (Leo Docherty).

[Ms Nusrat Ghani (Wealden) (Con)]

I join the Prime Minister in paying tribute to the armed forces who have served in Afghanistan. On behalf of my constituents in Wealden, I also pay respect to the 457 lives lost.

I know that the Prime Minister is very dedicated to supporting women and girls. I was in Afghanistan post 9/11, and women and girls are telling me now that under the Taliban, regardless of any peace settlement, they are lambs to the slaughter—schools and clinics will be closed. I believe that President Biden is due to make an announcement and provide safe passage to 2,000 vulnerable women, but with those women leaving I would argue that that will leave a further vacuum of women who are able to carry out education and any medical treatment, which will mean more female lives lost in Afghanistan. What support are we going to give the embassy when the Taliban arrive in Kabul? With the growth of the Taliban and, in their wings, Daesh, there will also be an export of violent extremism, so what strategies are in place to protect our children here who may be brainwashed by violent extremism?

Covid-19 Update

Nusrat Ghani Excerpts

Wednesday 12th May 2021 Commons Chamber

[The Prime Minister]

I would not like to accuse the hon. Gentleman, whom I admire greatly, of having missed my opening statement, but of course it will be a full public independent inquiry under the terms of the 2005 Act, and of course it is right that the bereaved, along with many other groups, should be consulted about the terms of reference.

[Ms Nusrat Ghani (Wealden) (Con)]

I welcome the Prime Minister’s statement, and especially that the inquiry will be independent. Without wishing to prejudge the inquiry, I am anxious about institutions such as Public Health England and how they responded early on to key workers. I hope the inquiry will also congratulate the fantastic doctors, nurses and volunteers who helped roll out over 1.5 million vaccines in Sussex; I am incredibly grateful to all the staff in Uckfield, Crowborough and Hailsham.

The Prime Minister can do two things immediately for the care homes in my constituency. First, those who want to reside in a care home currently have to spend 14 days isolated in their room. Will the Prime Minister look again at that isolation period because it impacts so greatly on the physical and mental health of residents? Secondly, the care homes have taken such a big hit, so can we consider putting in place a short financial package to support them so they can support our loved ones throughout this period?

[The Prime Minister]

My hon. Friend is totally right to raise the work of care homes, and we have put in repeated investments; I think another £1 billion went into supporting care homes throughout the pandemic. She is also right to raise the very painful questions of visiting and the ability of care home residents to leave their care home safely, and in that we have to balance the risks to them as well. We tried to increase the number of visitors they can have, and we hope very soon that greater freedoms will be possible.

His Royal Highness The Prince Philip, Duke of Edinburgh

Nusrat Ghani Excerpts

Monday 12th April 2021 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

It is a great honour to contribute to this Humble Address on behalf of my constituents in Wealden in East Sussex, as the House celebrates and records tributes to His Royal Highness The Prince Philip. I express our heartfelt condolences to Her Majesty the Queen and the royal family at this time of personal loss.

The Duke will be greatly missed by so many locals in Wealden, as he had long links to the area on so many levels. One example dates back to the 1960s. The Duke was a patron of London Youth and was instrumental in setting up an outdoor youth project called Hindleap where, nestled in a forest, London kids got to explore new skills. I recall meeting the Duke at Hindleap—he was utterly charming. He was obviously very frank with his banter: on shaking my hand, he declared that MPs were getting younger and younger these days. I took it as a compliment.

As Members can see, the Duke was one of those rare people who can span generations and people of all backgrounds. He touched us with his infectious enthusiasm: all the kids in Hindleap, these London kids, were just beaming from their momentary introduction to the Prince.

If our small interactions with the Duke had such a lasting effect, one cannot imagine the impact of the loss on Her Majesty, having had 73 years of companionship from a loving husband. It was by all accounts a very modern love affair. The Prince was a modern man and recognised his role in the life of his leading wife. I want to reflect on a letter he wrote on his honeymoon in 1947 to his mother-in-law the Queen. He wrote:

“Lilibet is the only ‘thing’ in the world which is absolutely real to me and my ambition is to weld the two of us into a new combined existence that will not only be able to withstand the shocks directed at us but will have a positive existence for the good”.

The Prince was thinking about public service on his honeymoon. The letter continues:

“Cherish Lilibet? I wonder if that word is enough to express what is in me. Does one cherish one’s sense of humour or one’s musical ear or one’s eyes? I am not sure, but I know that I thank God for them and so, very humbly, I thank God for Lilibet and us.”

What a love letter! We can all thank God for the huge good done by the Duke’s choosing to devote himself to Queen, country and Commonwealth—the huge good done over seven decades by the power of the combined existence of the Duke and the Queen.

The Duke will be fondly remembered and much missed. On behalf of Wealden, I humbly send our heartfelt sympathies to Her Majesty. God save the Queen.