ExxonMobil: Mossmorran Debate
Full Debate: Read Full DebateRichard Baker
Main Page: Richard Baker (Labour - Glenrothes and Mid Fife)Department Debates - View all Richard Baker's debates with the Department for Business and Trade
(1 day, 11 hours ago)
Commons Chamber
Chris McDonald
I agree with the hon. Member that at its crux there has been a failure of long-term planning in industry. We can see that when we contrast the two ethylene plants in Scotland. The plant at Grangemouth imports a lot of its ethylene from the US, which is in plentiful supply and comes at a much lower cost. That required a significant investment in the port infrastructure at that plant. ExxonMobil was aware that, in order to ensure that Mossmorran was sustainable, it would need to make a similar investment. It would have been possible for it to have made that investment some years ago, but at this stage, an investment of about $1 billion that would not come to fruition within the next five years is judged by the company not to be sustainable. Of course businesses require some certainty in order to invest; I made that point at Energy questions this morning. The certainty provided by our industrial strategy—in particular, this Government’s commitment to renewable energy technologies—is allowing investment to come in.
I agree with the hon. Member that our focus absolutely needs to be on the employees. I understand that no employees have been offered relocation yet, but it is the company’s view that 50 such posts are available and it is inviting expressions of interest from employees at this stage. I understand that the other plant is a very long way away, and that relocation will not be suitable for everyone—perhaps people do not want to uproot their families or they are embedded in their local communities—but if some workers want to take up that opportunity, I am pleased that it is there. With the offer of relocation for 50 employees and 50 employees being retained, we can see a way forward for about 60% of the permanent employees at the moment. Clearly, I would expect the taskforce to provide support for the other 40%, and the UK Government are working with the Scottish Government and the local authority on that.
We must not ignore the jobs that are being created every day and every week in Scotland in our new clean energy industries, with up to 60,000 jobs by 2030. Fundamentally, this is about supporting that transition. It is my expectation that, as these new jobs are created, people will transition across. As I have said, I lived through a terrible transition in the past. The mission of this Government is to ensure that we have a supportive transition for workers and communities in Scotland and around the UK.
Richard Baker (Glenrothes and Mid Fife) (Lab)
This decision by ExxonMobil, and the manner in which it has been taken and announced, is a very poor way to treat workers who have given so much to the company and their communities. Given that only last year the company was announcing four-year apprenticeships at Mossmorran, including for some of my constituents, will the Minister do everything in his power to ensure that those apprenticeships can continue and that the company, which has made record profits in recent years, recognises its duty of care to those young people?
Chris McDonald
I was pleased to meet my hon. Friend earlier to discuss some of these issues in detail, and I am pleased that he has raised the issue of apprentices. I raised that personally with the chairman of the company earlier today, and I have established that there are approximately six apprentices involved. It would be usual in this situation for those apprentices to be found positions in local industry, and that will certainly be a priority. With only six apprentices, I do not think it will be a problem. Local industry tends to respond very rapidly in these situations, and of course it is a priority for us to ensure that those apprentices can continue their apprenticeships.