Nissan in Sunderland

Paul Sweeney Excerpts

Monday 4th February 2019 Commons Chamber

[Greg Clark]

It is important for the hon. Gentleman to recognise that the investment being made in Sunderland is greater than was planned two and a half years ago. The company is investing more of its capital in Sunderland than it originally intended. That is significant because the pace of change in the sector means that there are great opportunities for investment right across it. We have a reputation because of a long-term commitment to the sector that started before this Government for being at the leading edge of innovation. If we can resolve the question of our future relationship with the European Union, I believe that substantial investments will be made very quickly, to the great benefit of this country and the people who work across it.

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

When I started my career in manufacturing, I had the great benefit of being taught by experts in lean manufacturing from Nissan, Toyota Burnaston and Airbus. One thing that was drilled into me from a young age was the concept of the seven wastes: transportation, inventory, motion, waiting, over-production, over-processing and defects. The worst of those wastes was inventory. As a result of the uncertainty facing British industry, inventory levels are increasing, putting British industry at a permanent competitive disadvantage. Does the Minister recognise that the absence of a customs union will put British industry at a permanent strategic competitive disadvantage?

[Greg Clark]

I am impressed at the hon. Gentleman’s recall of the principles that he was taught. He is right that one of the benefits and sources of efficiency in our production system is that companies do not need warehouses or inventory. It is clearly a matter of huge regret that companies are having to invest in inventory and warehouses and divert capital from more productive uses. I agree that we need a deal and an agreement that allows just-in-time production to continue. I strongly share his analysis of that.