Automotive Industry

Debate between Sarah Owen and Ian Lavery

Wednesday 12th July 2023 Commons Chamber

[Ian Lavery]

I thank the hon. Gentleman, but he should come and have a look. He can drive his electric vehicle up the road and call in to see the obvious difference between my constituency and his.

[Sarah Owen]

This is indeed a UK-wide issue in that if one of us succeeds in the sector, then we all succeed. However, we are talking about not just the jobs of the future that need to be created and maintained, but, unfortunately, the jobs now that need to be saved. There are just not the equivalent jobs for people to go to. Is this not a serious problem for the sector? It is not just about future jobs, but about saving the jobs now.

[Ian Lavery]

That is an excellent point. The reality is that we have lost 37% of production in 13 years. If there is not a halt to that and if there is not the investment that is required to maintain and then increase employment, we will see a total loss of the automotive industry in this country. It is as simple as that. Members have mentioned the different new rules coming into place, the state of origin rules and issues such as that. It is getting more and more difficult to maintain and increase what we have, on top of a 37% decline. The reality is that we do not have anything in place to make that transformation from where we are now to where we need to be. We need to have, I think, nine new gigafactories. We have one. In fact, it is half a gigafactory. That is just not good enough. We keep being told by the Conservatives that they are on the case, that the development is coming, and that they will be developing it—whether it be in Coventry, in the midlands or wherever; hopefully, the next one will be in my constituency—but it is not right to continue saying that we are on track. We are not on track. There needs to be some investment. We need the readies. We will not get people rolling up to different areas saying that they will build a gigafactory unless they have support from the Government.

We should look at the support that other countries have given to their businesses in grants and loans: CATL in Germany received a loan of €750 million, 22.8% of the total build cost; Northvolt in Sweden got €505 million, 17.1% of the build cost; GM in North America got $2.5 billion; Stellantis $1 billion; Tesla $1.3 billion; and Ford $884 million. Britishvolt, which had so much promise, were promised £100 million, 2.3% of the build cost. That was heavily caveated to the point where the company never had a penny of Government support.

We should take a look at the stats. What Labour is suggesting would provide a fantastic opportunity. It needs to be grasped. Regions up and down the country will benefit greatly as a result of what has already been described as turbocharging electric vehicle manufacturing. There could be £30 billion-worth of investment in the regions. We cannot turn that down, but we have to get on with it, which is why I hope that once the election comes and we get elected as the next Government this can be introduced without delay. It will make a huge difference to areas such as the north-east, which will have 13,000 jobs in vehicle manufacturing. Its share of the £30 billion in economic benefits from the Labour plans will be £2.45 billion. Areas such as the west midlands will have 57,000 such jobs, and it will receive £10.76 billion in its share of the investment. The list goes on. The north-west will have 22,000 jobs in vehicle manufacturing and £4.13 billion-worth of investment.

That Labour party turbocharging of electric vehicles is so important and so exciting, but my constituency has been absolutely battered. It has been bruised by the deindustrialisation programme of past Conservative Governments. The lack of an industrial strategy from the Government is still holding my area back significantly. Levelling up means an active state willing actively to protect and invest in the interests of people in held-back areas such as my constituency of Wansbeck. The area where the site would have been developed lies in Cambois, a coastal area in the parish of East Bedlington. Bedlington and Wansbeck—not in Blyth. Britishvolt was never in Blyth. A number of people have mentioned that today, and I have already mentioned it to the Minister a few times. Britishvolt was not in Blyth; that is a Conservative seat next door. Britishvolt is in Wansbeck—my patch. I thought that I would make that point once again, because it appears that very few people listen to what has been said.

We have a proud history in the industrial revolution. It is a coal area. My patch was coal town. We were built on coal. We were part of the great industrial revolution, not only extracting the coal that powered it, but being the birthplace of wrought iron rails in the Bedlington Ironworks, which triggered the railway age. Why should that industrial heritage not be continued at the site of what could be the heart of the green industrial revolution—the transport industrial revolution—simply because once again the Government have failed to deliver for the people of Wansbeck and south-east Northumberland? We need to do a lot better for my constituents.