Rolls-Royce Redundancies

Paul Sweeney Excerpts

Thursday 14th June 2018 Commons Chamber

[Greg Clark]

I will certainly do that. My hon. Friend characterises the situation well; this company has issued profit warnings in the past and has committed to take action to be efficient. These are the decisions of the management, but I think every Member of the House would acknowledge that it is important that our companies are competitive. He is right to say that the skills of the people employed in Derby, whether in management or in other supporting roles, are in great demand in the expanding economy there; unemployment has halved since 2010 in the east midlands. I will work with the neighbouring LEPs to make sure they have every support and that businesses that want to employ those people have every support in identifying what could be talented and welcome additions to their workforce.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Rolls-Royce is an iconic industrial asset for Britain, and its relationship with Glasgow goes back as far as the second world war. Even to this day it drives huge innovation in the city, from the Advanced Forming Research Centre to supply-chain companies such as Castle Precision and East Kilbride Engineering Services, all of which benefit from the huge industrial presence of Rolls-Royce. One difficulty that the company has had in recent years is the development of new products, particularly for the small airliner market, which is restricted because of this country’s lack of capacity for long-term industrial investment through state investment banks. Will the Secretary of State consider how we can support industrial development in the longer term by developing such capacity in the UK through a state bank for new product development?

[Greg Clark]

Part of the reason for the development of the industrial strategy, which prominently includes the aerospace sector, is so that we can have the long-term support that is required. When I talk about support, I mean for research and development programmes, which can take many years to come to fruition. We are known as and have a reputation for being one of the best places in the world for that, and that is a deliberate policy objective. It is exactly the same with skills.

On what the hon. Gentleman describes as a state bank, we have various means, including the British Business Bank and UK Export Finance, which have been set up to support businesses in pursuance of our industrial strategy. Rolls-Royce is an active participant in that.