Caravan Industry: Hull and East Riding

Scott Mann Excerpts

Monday 15th June 2020 Commons Chamber

[Emma Hardy]

I am happy to support caravan manufacturing everywhere.

When lockdown began on 24 March, 3,361 caravan parks closed, along with 381 caravan dealerships. Restrictions on travel were introduced, and the public were ordered to stay at home. At a stroke, 2.4 million people were denied the use of their caravan, either static or towed. The result was that the entire caravan manufacturing industry came to an abrupt halt. Notwithstanding the requirements for effective social distancing and hygiene in workplaces, as no more orders were arriving on the companies’ books, 208 caravan manufacturers and 647 suppliers closed, and 90% of the workforce is currently furloughed. The manufacturers have been working hard, ensuring that their factories can reopen safely for their workers, and respecting the relevant distancing and hygiene guidance. However, the caravan industry is a seasonal business, with the prime selling and order period occurring between March and September. This lockdown could not have come at a worse time; it came right at the start of a crucial period.

[Scott Mann (North Cornwall) (Con)]

I am aware of the Deputy Speaker’s insistence that we bring this debate back to the issue of Hull. One great thing about Hull is that it produces this great British manufacturing that trundles down the motorways to places such as North Cornwall. Will the hon. Lady join me in not only supporting this great British manufacturing industry, but calling for the safe reopening of tourism, so that many of the tours can then take place in the south-west?

[Emma Hardy]

I thank the hon. Gentleman for his intervention. Of course, wherever we can prove and make the case for safe reopening, I urge the Government to consider that.

The longer the closures have continued, the greater the losses have become. As I speak here, in mid-June, with possibly the entire season in jeopardy, business failures and substantial redundancies in the winter look inevitable without further Government intervention. The tourer and motorhome industry has lost its income from seasonal sales, and the lack of orders taken will leave it unable to sustain itself over winter. The unsold stock in the supply chain will depress whatever demand there is. The static caravan manufacturers face the prospect that whenever caravan parks and holiday parks reopen, there will be little demand for the production of new units over the winter for the yearly refreshing of rental units. Those businesses will be either unable or extremely reluctant to spend money, because of the loss of revenue, and will choose instead to make do with last year’s model. That is born out of independent forecasts for 2020, with sales predicted to be worse than those experienced in the global financial crisis of 2008. Compared with 2019, touring caravans face a market decline of 49%, holiday or static caravans face a decline of 56% and motorhomes face a decline of 55%. Thousands of employees are currently furloughed. They will be made redundant—current estimates are for about 40% of the entire workforce—or they will lose their jobs through company failure. The economic and social impact will be directly felt in areas already under tremendous economic pressure and with high levels of deprivation.