JTI Gallaher

Sammy Wilson Excerpts

Monday 27th October 2014 Commons Chamber

[Ian Paisley (North Antrim) (DUP)]

On 7 October, my constituency received the devastating news that a 150-year-old manufacturing industry was to be brought to an end.

JTI Gallaher employs 900 people in Ballymena. It has existed in Northern Ireland since its foundation 150 years ago in the city of Londonderry, and it has been a mainstay of employment in Northern Ireland. It has stood along with key industries such as linen-making, textiles, rope-making and shipbuilding, and it has itself been part of one of the key industries in Northern Ireland. In my constituency, it alone employs those 900 people. It is regarded as one of the largest employers in the constituency, and, indeed, in Northern Ireland as a whole.

Let me put this into a local perspective. In a country of 1.8 million people, that employer’s wage input into my local economy is £60 million, and it puts a further £100 million into the entire Northern Ireland economy through transport, packaging and other associated industries.

In philanthropic terms, the company supports—and indeed is the lifeblood support of—key charities, including Age UK, the Harryville partnership in Ballymena and the Ulster orchestra. We are hearing much locally about the future of the Ulster orchestra. Let us be absolutely clear about this: without JTI Gallaher there would be no Ulster orchestra.

I want to put the 900 jobs into a UK-wide perspective. If those jobs were lost here on the mainland of the United Kingdom, it would be the equivalent of 32,000 people being told that their jobs are over. I welcome the fact that we have a Minister at the Dispatch Box, but I have been totally underwhelmed by the response of this Government to that blow to our economy. There has been no statement from that Dispatch Box about it. The Secretary of State has not come to that Dispatch Box. To say the sense of betrayal in my constituency is palpable would be an understatement.

[Sammy Wilson (East Antrim) (DUP)]

Does my hon. Friend agree that the Government have surrendered to the lobby from those who oppose smoking? They have put people out of jobs and yet their very objective will not be achieved, because all that will happen is that people will move over to an illegal market, with far more dangerous tobacco products and the financing of criminal gangs?

[Ian Paisley]

I thank my hon. Friend for his intervention.

There are three reasons why this factory is going to be closed. The first of the two main reasons is over-regulation. I am the first to say that smoking needs to be regulated—I do not smoke, I do not want my children to smoke, and the product is harmful so it has to be regulated—but to over-regulate it to such a degree that we close the industry down without stopping people smoking is just foolishness.

The second key issue is the illicit trade. As a result of over-regulation—my hon. Friend pointed to this—one in four cigarettes smoked across the whole of the United Kingdom is an illicit cigarette that has been smuggled in. That damages not only the economy and the country, but these jobs.

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[The Parliamentary Under-Secretary of State for Northern Ireland (Dr Andrew Murrison)]

I am grateful for the opportunity to respond to my hon. Friend the Member for North Antrim (Ian Paisley) and congratulate him on the robust way in which he has put the case. His constituents will be very pleased with that, and I think that it does him great credit. The closure of the JTI Gallaher factory in Ballymena and the loss of hundreds of jobs and some £60 million from the town’s economy, and indeed from the whole economy of Northern Ireland, is a major blow. He is quite right to put that in proportionate terms, making a comparison with Great Britain and how we might view such losses on the mainland. He is quite right that this is indeed a major blow for the whole of Northern Ireland. I will do what I can to assure him that the Government are doing what we can, under the terms of the 1998 agreement, to protect jobs in his constituency and promote the prosperity agenda in Northern Ireland at this difficult time.

As my hon. Friend said, the factory in his constituency has been producing tobacco for 150 years and is the last tobacco manufacturing concern in the UK. I recall my own visit to one of the last tobacco factories in the UK, in Bristol 30 years ago—ironically, I was at medical school. Cigarette factories then were commonplace, and I think that he would admit that their decline is in some respects a good thing, since it tracks the fall in smoking, but not if production is simply shifted abroad. Of course we would all much rather have those jobs here in the UK and, specifically in the context of this evening’s debate, in Northern Ireland.

The announcement takes place against the background of the Northern Ireland economy continuing to move away from its reliance on industrial production. It is still too reliant on the public sector for jobs, as he knows. The economy in Northern Ireland is rebalancing, with the generation of creative industries, life sciences and the knowledge-based sector, which accounts for the large majority of all foreign direct investment into Northern Ireland. Aerospace, for example, continues to perform well in a very competitive market.

I accept, of course, that it is cold comfort for JTI employees to be told that software and financial services are experiencing the fastest growth or that Belfast is the No. 1 destination globally for financial technology investment. My hon. Friend will be aware, however, that the prospects for the tobacco industry overall are not very good. Indeed, they point to long-term decline as demand for cigarettes continues to fall and smoking rates edge downwards all the time. This is of course good news for health, but very bad for jobs in his constituency.

In 1974, almost half the UK population smoked—a remarkable thing to reflect on now. Last year, the figure had fallen to 18.7%. About 68% of smokers want to quit and are increasingly aware of the dire health implications of smoking. The tobacco industry has recognised the declining market caused by consumers’ health concerns and is diversifying into electronic cigarettes and associated technology that is deemed to be safer.

[Sammy Wilson]

rose—

[Dr Murrison]

If my hon. Friend wants to intervene, I ask him to do so briefly as I do not have much time.

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[Sammy Wilson]

Does the Minister accept that while there may be a decline, the irony is that while the Government are encouraging the private sector to grow in Northern Ireland, in this instance Government policy has squeezed the private sector?

[Dr Murrison]

I think that is a little unfair. Perhaps as I go through my remarks, my hon. Friend will be somewhat assured that the Government are doing what they can to promote the private sector, in particular, in Northern Ireland. I think he should know that from his experience of Northern Ireland overall, where the private sector is doing relatively well and the economy is, without a doubt, rebalancing, albeit at a rate that is perhaps not as fast as we would have liked.

There have also been job losses from the mechanisation and streamlining of tobacco production, and that has had a greater impact on jobs than tobacco control measures implemented by this Government. My hon. Friend the Member for North Antrim would probably accept that, given the changing nature of this industry, which he will have seen over many years.

On the tobacco products directive, my hon. Friend should know that I am generally loth to accept anything that comes out of the European Union, particularly when it results in regulation. However, it is fair to say that the tobacco products directive aims to protect health—that of his constituents, my constituents, and all constituents. Tobacco use is responsible for an estimated 700,000 avoidable deaths in the EU every year, and smoking accounts for over one third of respiratory deaths, over one quarter of cancer deaths, and about one seventh of cardiovascular disease deaths. I have seen these cases; I saw them day in, day out when I was practising regularly. I am sure he would agree that if we are to make any progress in improving public health, we have to cut the consumption of cigarettes. I do not think there is any difference between us on that.