Remploy Marine Fife

Debate between William Bain and Lindsay Roy

Tuesday 15th January 2013 Commons Chamber

[Lindsay Roy (Glenrothes) (Lab)]

I congratulate my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) on securing this vital debate. I fully endorse the thrust of his argument and commend his analysis of the key issues that face us in securing Remploy’s survival and possible viability.

I plan to underpin the case for a more flexible, generous and co-ordinated approach in the transition to financial viability by providing some additional detail. The Fife work force provide outstanding service, well above and beyond the call of duty. They are not shirkers. Remploy Marine’s order book is full. As my colleague said, their lifejackets meet international standards; they go to places such as Norway, Denmark and the USA. They are at the forefront of the manufacturing we want to retain in this country.

The employees take pride in their work, and are making a significant contribution to wealth creation. Through their initiative and enterprise, they have cut their deficit in half, as we would expect from a work force so dedicated to continued employment. They have an entrepreneurial spirit. There is a full order book. The workers want to boost our diminishing manufacturing base and extend our overseas market. They remain determined to succeed. It is a golden opportunity.

In an authoritative report, Scottish Enterprise states that

“high growth rates are forecast, despite the underdeveloped sales channel.”

Nearly all the Fife production goes to one distributor, who makes a healthy profit from the Remploy brand. As I said, the export market is extensive, and much more could be achieved through diversification.

As my right hon. Friend said, a one size approach does not fit all. The Government’s support package is entirely inappropriate. Remploy Marine has real strengths and potential viability, given the right support package. That is why we want joint working and a co-ordinated approach, with effective leadership, between the Scottish Government, the UK Government, Fife council and any other important partners.

[Mr William Bain (Glasgow North East) (Lab)]

I am most grateful to my hon. Friend for giving way and I thank my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) for securing the debate.

Does my hon. Friend the Member for Glenrothes recall that when he was elected in 2008 the unemployment rate for disabled people stood at 9%, whereas now it is 12.3%? Is there not a duty to more than half a million disabled people who are out of work for every tier of government to do everything possible to help save those jobs?

[Lindsay Roy]

Absolutely. I am very grateful for that contribution. That is entirely the case that we are making. We want to make sure that all parties concerned do everything they can to support the disabled and disadvantaged in our community, as that is a hallmark of a civilised society.

A viable rescue package is possible, whether it is an employee buy-out, a social enterprise or a private sector purchase. In my view, the proposals are rushed and, ironically, represent a dramatic withdrawal of life support to a group of people who have been life savers for years. An option must remain on the table for an enhanced package for this internationally renowned product. A company such as Remploy Marine, with a substantial number of disabled people, remains a viable, highly competitive option but, as my right hon. Friend the Member for Kirkcaldy and Cowdenbeath said, that cannot be achieved overnight. There are at least two potential buyers, who need all the support that they can get.

At Leven, we have been told that the subsidy is £13,000 a head, but in terms of best value, the Government have been unable to quantify the increased benefits costs if people are made unemployed, nor do we have details of the redundancy payments. Furthermore, we do not know the care and health costs that often result when people become unemployed.

This year, the Leven factory engaged 76 youngsters on work experience placements at no cost to the Government, so there is an added value component. It is my contention that we do not have an accurate balance sheet. With such a small percentage of workers in employment after the July closures, we must do everything that we can together, and there is genuine optimism that we can save the factories in Cowdenbeath and Leven. Like my right hon. Friend, I can vouch for the community spirit and the wholesale backing of the Fife community for these ventures. The support is overwhelming and it is cross-party.

I urge the Government to take a fresh look at the issue, to consider a co-ordinated approach with various partners, and to take this seriously, as I am sure they will. We have a collective duty to reduce the subsidy per individual, and a collective obligation to maximise employment for disabled people. That need not be done by disbanding a potentially viable business. Where there is a collective will, there is a way, and I am confident that with flexibility, good will, effective leadership and co-ordination a successful outcome can be achieved. That is why my hon. Friend the Member for Dunfermline and West Fife (Thomas Docherty) and I have requested an urgent meeting with the Minister, and I trust that she will accede to our request, because by working together we can make a real difference and secure a viable outcome.