Vauxhall (Redundancies)

John Bercow Excerpts

Monday 16th October 2017 Commons Chamber

[The Minister for Climate Change and Industry (Claire Perry)]

Just over 53 years ago, the first Vauxhall Viva rolled off the production line at Ellesmere Port. Since then, seven generations of Astra have been built at the port. Most recently, the plant secured the contract for the mark 7, primarily based on the productivity and co-operation of the local workforce. That is why it is particularly disappointing to hear that Vauxhall is considering voluntary redundancies of up to 400 staff at the Ellesmere Port plant.

As we said last week, this is a concerning time for families, particularly in the run-up to Christmas. I assure the hon. Gentleman and other right hon. and hon. Members that, once again, the Government are standing by to do all we can to support those affected. The Department for Business, Energy and Industrial Strategy is continuing to speak with the company, the unions and the wider supply chain and the Department for Work and Pensions is standing by to provide advice and support to those affected.

I will address three points. First, I will set out what is actually happening to try to reassure people who may be affected by the announcement today. Secondly, I will give some background to what I understand are the reasons for it happening. Thirdly, I will put the announcement in the broader context of the automotive industry.

Today, I have spoken to the head and deputy head of Cheshire West and Chester Council, the chief executive of the local enterprise partnership, the general secretary of Unite the union and the chief executive of Vauxhall UK. The consensus view is that this is due to a downturn in the sale cycle, particularly that of the Astra model, and the company is working through questions about the plant’s overall competitiveness.

I am told that workers at the plant have been informed. The statutory consultation period will now take place and no final decisions will or should be taken until it has been completed. The company is hopeful that reductions can be managed on a voluntary basis, and we will continue to work closely with it on its planning.

I was pleased to hear today from the leader and deputy leader of the local council that a redundancy action support plan, which has been used before, will be put in place and will involve the LEP, the council and the Department for Work and Pensions all working together. Given that many of the people working in the plant travel across the border from Wales to their jobs every day, it is particularly important to note that the Welsh Government have been involved and stand by, ready to support any activities.

Given how many skilled workers may be affected by the announcement, we are particularly keen, as we discussed last week, to ensure that those skills are not lost to the industry. I have asked that the Government’s talent retention scheme be deployed, if appropriate, and both the company and Unite the union have agreed that that would be helpful and will agree to work with us. As I have said, I understand that this is a particularly troubling time and we are all absolutely concerned to minimise worries, particularly in the run-up to Christmas.

As I have said, I am told that this is happening because the C-segment class, in which the Astra vehicles sit, is not selling brilliantly across Europe and, in particular, the sales forecast for that model has not been as desired. Therefore, a decision has been taken to maintain the competitive position of the plant, and that announcement is being made today. The Secretary of State and I have consulted the company extensively on its future plans, both for the plant in Elsmere Port, particularly given its long and illustrious history, and for the company and its footprint in the UK.

That brings me to my third point about the broader context. As we have seen with many other companies, the technology in the auto sector is pivoting away from the traditional models, towards electric, potentially connected and autonomous vehicles. We are doing all we can to support manufacturers in that shift, and to position the UK as the leading place for those decisions and investments to be taken.

We have already delivered more than £500 million of public and private money through the Advanced Propulsion Centre. We will spend £1.25 billion of Government investment over the next five years to support that. The Faraday challenge is particularly important—we have invited all operators to contribute to it—and will help us ensure that we are the leaders in developing the electric battery technology of the future.

Of course, the auto industry has been an incredible success story. Thanks to the workers in the plants, we now have the highest productivity levels in Europe and sales of cars made in the UK are up 70% since 2009. It is a huge success story and we have generated many exports.

All of us in this House should think really hard about the message we are sending to those looking to invest in this industry in the UK—[Interruption]—and back the fact that we have highly productive plants and highly skilled workforces. Regardless of the changes that may happen in this sector, this is the place for auto companies to invest in the future. Perhaps Members who want to chunter otherwise should think about the messages we are sending to those investors.

Another important point—

[Mr Speaker]

Order. I am sure there are a lot of important points that could be made, but I gently say to the Minister that she has exceeded her allotted time by two and a half minutes. I think her other important point can either be neatly shoehorned into one of her, I hope, pithy replies, or it can be put in the Library, where in the long winter evenings that lie ahead colleagues will be free to consult the relevant material.

[Claire Perry]

rose—

[Mr Speaker]

No, the hon. Lady has finished for now. We will hear from her again, probably before very long, but what I am trying gently to say to her is that was taking too long. I call Rebecca Pow—[Interruption.] Order. It is so long since the start of the ministerial reply that I had forgotten that we have not yet heard from the hon. Member for Ellesmere Port and Neston (Justin Madders). We shall hear from him first.

[Justin Madders]

Thank you, Mr Speaker, and I thank the Minister for her response.

This is deeply concerning news for those at the plant and for the automotive sector more widely. It will have a significant impact on the local economy. What action can the Minister take to ensure that there are no compulsory redundancies? As she said, the consensus is that the reason for this decision is changing consumer trends, but PSA has also given a very clear warning about the future. Nature abhors a vacuum, as does business. Industry is crying out for the clarity that it needs to invest in the future of this country, but all it sees coming out of Westminster is the squabbling, plotting and manoeuvring of Ministers in a Government completely paralysed by their own self-indulgent activities. If this news tells us anything, it is that business will not wait around while Ministers argue among themselves. I should make it clear that I do not include the Minister as one of those concerned more with their own future than with the country’s, but I ask her to say to her colleagues that the posturing and prevarication has to stop.

It has been made repeatedly clear that without clarity on future trading arrangements, the UK car industry remains vulnerable. What assurances can the Minister give to my constituents that their future matters to all in the Government? The plant union, Unite, has shown that it can work positively with management, but it cannot do it on its own. It needs backing across the board from the Government, and support in the Budget that is approaching. I hope that the Minister will confirm that she is making a very strong case to the Treasury for a much greater level of support in terms of reducing plant costs and expanding the local supply chain. To that end, will she seek to meet those at the highest level of PSA and other stakeholders, including trade unions and local MPs, so that we can discuss how this support can be delivered as an urgent priority?

These are not just my constituents; they are my friends and neighbours. When I go back home, I want to tell them that Parliament is united and determined to give them all the backing required, so that the redundancies announced today are the last.

[Mr Speaker]

That was commendably within time, and a good example to other colleagues on both sides of the House.

[Claire Perry]

I absolutely assure the hon. Gentleman that we stand ready to work with him and his colleagues, the local LEP, the local council and anyone else, including the unions, to make sure that we have a good outcome and also an investment outcome for the future. As he will know, there is a huge amount of cross-party consensus on our industrial strategy and our clean growth strategy. The resulting confidence is shown by the fact that over the past few months we have seen some very significant investment news from auto industries in Sunderland, in Burnaston in the east midlands, and in Oxford. There is a vote of confidence: let us make sure that it continues.

--- Later in debate ---

[Maria Eagle (Garston and Halewood) (Lab)]

rose—

[Mr Speaker]

Ah! A sisterly contest. I call Maria Eagle.

[Maria Eagle]

Thank you, Mr Speaker; it is not helpful to call it a contest.

The Minister keeps saying that she wants frictionless access to the single market, but most of her colleagues in Government, in particular many in the Cabinet, are talking up the idea of leaving with no deal and walking out of the single market and the customs union. Given that the Ellesmere Port plant is weakened by going to a single shift and by losing skilled workers, as is inevitable, does she not understand that the general uncertainty caused by the lack of progress in the Brexit negotiations puts the plant at even greater risk in future of being fully and totally closed?

--- Later in debate ---

[Matt Western (Warwick and Leamington) (Lab)]

Thank you for calling me, Chair. Let me begin by saying that I feel very much for the people and families who are affected by this announcement.

Earlier in the year, the Prime Minister sought reassurances about safeguarding jobs. Clearly that was all a bit “peace in our time”. This is not actually about petrol, diesel, electric or C-segment; otherwise, why has the plant in Gliwice, in Poland, not been affected by similar closures? Carlos Tavares, the PSA chief executive, has said that it is hard to decide on the group’s strategy owing to a lack of clarity over the UK’s plans to leave the European Union. The jobs—

[Mr Speaker]

Order. I do not think that the hon. Gentleman quite understands. In these situations, what is needed is a short question, and the Chair—as the hon. Gentleman generously described me—needs evidence that a question mark will appear before long. It is not an occasion for a series of observations; it is a question to the Minister.

[Matt Western]

Thank you for clarifying that, Chair. [Laughter.] Sorry—Mr Speaker.

May I suggest that the Minister speak to Professor David Bailey of Aston university, and find out more about the impact on the components business, which underlies the reason for seeking to reduce the number of jobs in the UK? It is about the supply chain and Brexit; it is not about the C-segment.