Vauxhall (Redundancies) Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Philip Hollobone
Main Page: Philip Hollobone (Conservative - Kettering)Department Debates - View all Philip Hollobone's debates with the Department for Business, Energy and Industrial Strategy
(7 years, 1 month ago)
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Claire Perry
I am happy to agree with the hon. Gentleman that there has been an incredible level of performance by the people working in the plant. Indeed, Tony Woodley, a long-term member of the union from this plant who sits on the Automotive Council, just cannot speak highly enough about what has been achieved. [Interruption.] I have met him, because I chair that forum. Indeed, I spoke to Len McCluskey only today to discuss this situation.
We have to understand that when sales of models do not pan out as projected, there will inevitably be adjustments to a company’s performance. We have to make sure that we put in place the long-term investment framework, give the company the assurances it needs to invest—as I have said, it has committed to keeping the plant open—and attract the next wave of technology to these shores, rather than see it go elsewhere.
Mr Philip Hollobone (Kettering) (Con)
To lose 400 of the 1,800 local jobs is devastating news for Ellesmere Port, but I am struggling to understand the reasons given by the plant’s French owner, PSA. The Government have said that the UK automotive sector is the most productive in Europe, with 50% higher productivity than overall UK manufacturing productivity, and that last year saw a 17-year high in the number of cars built in the UK, yet PSA has said:
“Current manufacturing costs at Ellesmere Port are significantly higher than those of the benchmark plants of the PSA Group in France.”
How can the Government’s statement be reconciled with the attitude of the French owners?
Claire Perry
I have not looked in detail at the operation and fixed-cost production, but I suspect that if the plant is running below full capacity—as we know it is—because sales are weaker than planned, the cost per unit produced will be higher. That is why, before we have any further conversations with the company about the long-term prognosis, we need to be clear that while there may be blips in sales of particular models, we want PSA and other auto companies to keep their investment coming to the UK.