European Union (Future Relationship) Bill

Sharon Hodgson Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 30th December 2020 Commons Chamber

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I thank the House staff who have made today’s proceedings possible. They have come at the 11th hour, as the Prime Minister was desperate for a Christmas miracle, but this deal is better than no deal and gives us something to build on.

The Nissan plant in my constituency is the largest Nissan plant in Europe, proving the north-east’s worth to the world’s automotive industry. It must continue to be so in the post-Brexit world. I welcome the work of both negotiating teams to avoid immediate tariffs on vehicle exports in the new year. However, the deal states that all vehicles exported into the EU must be of at least 55% UK or EU content by 2027. As manufacturers such as Nissan work hard to adapt to those requirements, what support will be offered to the sector to meet that threshold?

To comply with the rules of origin, electric vehicle batteries and their components must be of UK or EU origin by 2024. I welcome Britishvolt’s announcement of a battery gigafactory in Blyth in Northumberland that will be manufacturing by 2024. However, the battery manufacturer Envision AESC in my constituency, which serves Nissan, recently cut 100 new jobs because of coronavirus pressures. What will the Government do to support existing battery manufacturers in the UK and encourage further investment into the UK by battery manufacturers?

Brexit has always been about damage limitation for the automotive industry. However, if the Government act accordingly, the next three years offer an incredible opportunity to level up, especially in the north-east. The Government must commit now to ensuring that areas with large car manufacturing plants, such as the north-east, are the beneficiaries of the development of a domestic supply chain of components such as electrodes, which are at the moment predominantly imported from Asia. By 2024, they must be sourced within the rules of origin.

There is no Christmas eve miracle that can magic up an electrode factory overnight. The localisation of the supply chain is essential to the just-in-time supply model that is so important to Nissan’s success and will minimise any delays. Will the Government commit to developing a localised supply chain in their upcoming refreshed industrial strategy, to ensure that our automotive giants such as Nissan can continue to trade tariff-free? We have got the deal, which I will vote for, but we are not at the end of the road for the UK automotive industry just yet, so I look forward to the Minister’s response.