Mr Mark Hendrick (Preston) (Lab/Co-op) (Urgent Question): To
ask the Minister of State, Department for Business, Energy and
Industrial Strategy if she will make a statement on the likelihood
of over 1,000 jobs being lost across the north of England at BAE
Systems Military Air & Information sites. The Minister of
State, Department for Business, Energy and Industrial Strategy
(Claire Perry) ...Request free
trial
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Mr (Preston)
(Lab/Co-op)
(Urgent Question): To ask the Minister of State, Department
for Business, Energy and Industrial Strategy if she will make
a statement on the likelihood of over 1,000 jobs being lost
across the north of England at BAE Systems Military Air &
Information sites.
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The Minister of State, Department for Business, Energy and
Industrial Strategy (Claire Perry)
I know that the Government, and indeed all of us, are
disappointed to hear the news that BAE Systems is considering
reductions of up to 1,400 staff in its military air and
information business, 375 in its maritime services division
and 150 in its applied intelligence business. This is a
concerning time for those working for BAE Systems,
particularly in the run-up to Christmas. That is why I can
assure the hon. Gentleman that the Government stand ready to
support fully those affected. Indeed, colleagues across the
Ministry of Defence, my Department and others are reviewing
what support we can offer the company as it goes through this
process. Of course, the Department for Work and Pensions is
also standing by to provide whatever advice or support is
required.
I would like to set out three main points. First, I will
provide an update on the process; secondly, I will explain
the rationale for the changes; and thirdly, I will set out
what the Government are doing to support BAE Systems and this
vital sector with our business. The company will now enter a
30-day statutory consultation process, and no final decisions
will be taken about the level or type of redundancies until
that process is complete. The Government will continue to
work with BAE Systems to ensure that compulsory redundancies
are kept to a minimum, and the company assures us that the
reductions will be managed on a voluntary basis as far as
possible. I emphasise that, as is usual in such cases, the
DWP rapid response team is engaged and standing by, ready to
deploy. It is incredibly important that the skills that
people in the workforce have built up are retained in the UK
industry as far as possible. That is why we will be using the
talent retention system that was designed by my Department,
working with the sector, to ensure that vital skills are not
lost to the UK.
I turn now to the rationale for the announcement. The House
should be absolutely clear that BAE Systems has taken this
decision as a result of normal business practice. The
decision is the result of internal restructuring and a drive
to transform its business so that it can continue to be one
of our most efficient and effective companies, generating
export orders across the world. This is not related to any UK
defence spending decisions. [Interruption.] Labour Members
can shout all they like, but I hope that we can avoid getting
politics into this. It was very striking how during
conference speech after conference speech Labour Members—not
the hon. Members opposite me, for whom I have great
respect—went out of their way to criticise the industry that
we are talking about. I suggest that we calm down and think
about the people affected and what we can do to support them.
In the last year, the Ministry of Defence has spent almost £4
billion with BAE Systems, as part of the £18 billion—half of
which is spent in the manufacturing sector—that we spend
across Government buying products and services from UK
industry. We continually bang the drum and lead the charge
for our world-leading defence industry right across the
globe, maximising export opportunities for companies such as
BAE Systems and the thousands of people employed in their
supply chains. Indeed, only last month the Defence Secretary
signed a statement of intent with Qatar to buy 24 Typhoons
and six Hawks from BAE Systems. This is extremely positive
news, and it demonstrates continued confidence globally in
Britain’s defence and aerospace industry. We will continue to
work with BAE Systems to maximise opportunities for the
Typhoon and the Hawk training aircraft, and the Type 26
global combat ship, in markets such as Saudi Arabia,
Indonesia, Belgium, Finland, Canada and Australia.
In conclusion, we absolutely understand that this is a
worrying time for those affected. We are determined to do all
we can to support BAE Systems’ future export opportunities,
and I stand ready to meet workers, unions or MPs who are
concerned about the potential impact of the announcement in
their constituencies.
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Mr Hendrick
Thank you, Mr Speaker, for allowing this urgent question.
Today’s announcement by BAE Systems has come as a huge blow
to thousands of workers and their families across Lancashire
in the run-up to Christmas. The majority of Lancashire MPs
have today written to the Prime Minister seeking immediate
action and offering to establish a taskforce to avert the
disaster. We ask the Minister for a swift, meaningful and
positive response to our request.
What intermediate and longer-term actions are the Government
taking to win contracts around the globe, to fly the flag and
to sell the Eurofighter Typhoon and the Hawk? That is
essential to sustaining the UK’s leading-edge technology and
sovereign capability, as well as highly skilled jobs and the
massive supply chain in the north-west of England. In order
to maintain a leading edge, we must look to the future. BAE
Systems has taken a big step by developing a £12 million
academy in Lancashire. Will the Government play their role
and announce an industrial strategy for aerospace, as they
have done with shipbuilding, and will they commit themselves
to assisting BAE Systems to develop a sixth-generation manned
fighter aircraft?
With my right hon. Friend the Member for Chorley (Mr Hoyle)
and my hon. Friend the Member for Hyndburn (Graham P. Jones),
I met Prime Minister Cameron to urge him to secure vital
contracts with Japan and India. We were assured that there
was good news on the horizon, but there clearly was not. The
Minister mentioned Qatar and that is obviously positive, but
it is nothing like the size of the other contracts.
Lancashire builds the finest because we have the best
workforce in the world. We do not want to be let down again,
so I ask the Minister to use her good offices to impress on
the Prime Minister the major concerns of Lancashire MPs and
indeed of MPs from across the House.
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I commend the hon. Gentleman and many of his colleagues for
their absolutely resolute support both for the company and
the sector. Of course I would be delighted to meet the
taskforce, and I think we should extend the offer to the
workers and unions affected. It is absolutely clear that we
need maximum communication about the process, or to encourage
the company to ensure maximum communication, particularly at
this worrying time.
The hon. Gentleman is right to say that the Government have a
vital part to play in banging the drum for British exports. I
have mentioned the Qatar statement of intent, and clearly
there are ongoing conversations with countries, such as Saudi
Arabia, that have expressed an interest in this technology.
There is an appetite around the world for this technology.
For every unit that is sold, the whole provision—supply and
maintenance—will have a measurable impact on the work
available for the hon. Gentleman’s constituents and those of
other Members.
The hon. Gentleman asked about the industrial strategy for
this sector. We are very keen—we are already having
conversations about this with the aerospace sector—on a
bespoke sector deal. He will know that we have worked with
the industry, on initiatives such as the technology for the
future combat air system, to set out what we need to do both
across this export-facing part of the business and right
across the supply chain to ensure we have the right level of
investment and skills.
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Mr Speaker
I call the good doctor— .
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(New Forest East)
(Con)
When BAE Systems says to the Government that this is normal
business practice, will the Government reply to BAE Systems
by reminding it that it is not a normal business, because it
enjoys a near monopoly position in many parts of the British
defence procurement structure? Will they therefore extract
from BAE Systems a promise to work closely with the
Government to examine to what extent any streamlining is
really necessary and to what extent it can be ameliorated by
common action, bearing in mind the special treatment that BAE
Systems so often receives from the United Kingdom Government?
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My right hon. Friend is right to remind us that we spend
almost £4 billion in procuring products and services from BAE
Systems. Again, if we want to have a globally competitive,
highly efficient bastion of success in this vital industry,
it is really important to allow the company to go through its
management processes. Of course we want to procure from BAE
Systems, but we also procure from a wide range of other
suppliers. It would be wrong for the Government to try to
interfere in business processes, but we can say that we are
committed to making sure that the company does this as
sensitively as possible.
We also want to explore other opportunities. I am struck by
the locations of some of the plants that may be affected, and
I am also struck by the investment opportunities with, for
example, the Siemens investment in offshore wind turbine
production in Hull. There are opportunities for skilled
engineering staff right the UK and right across the region.
[Interruption.] I am sorry to hear the hon. Member for
Kingston upon Hull East (Karl Turner), who knows Hull very
well, talking down a major investment in skilled engineering.
We remain absolutely committed to working with this company.
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(Llanelli) (Lab)
Employees and families across the country will be hit hard
by the news that has come from BAE today. The loss of
nearly 2,000 highly skilled jobs is nothing short of
devastating for communities and local economies that have a
proud history of defence manufacturing. Moreover, if these
redundancies go ahead, there is a very real risk that these
skills will be lost forever, with a knock-on impact on this
country’s manufacturing capability. What support will the
Government be offering to those highly skilled workers who
have lost their jobs, and how will the Government support
the communities affected?
A vibrant defence industry is vital for the security of
this country and it brings immense economic benefits. In
its statement, BAE points to uncertainty in future orders
as a reason for the job cuts, and we know that the
Government have pursued a stop-start approach which has not
given the industry the long term stability that it
desperately needs. Will the Minister now agree that it is
time for the Government to come forward with a proper
defence industrial strategy to enable the sector to plan
ahead? I know from my conversations with those in the
industry that they are very concerned about the gaping
funding holes in the MOD’s defence equipment plan. What
action are the Government taking to address those and to
give the industry confidence?
UK-based defence companies are also facing a great deal of
uncertainty owing to the Government’s handling of Brexit.
We know that the defence and aerospace industries have
wide-reaching supply chains that cross many borders, so
what steps are the Government taking to ensure that the
sector is not disadvantaged by Brexit, and that companies
do not take their manufacturing elsewhere?
Finally, the slowdown in Hawk production was also cited as
a reason for cuts, but the Government could take immediate
steps to counter that by bringing forward orders for nine
new Hawk aircraft for the Red Arrows, thus securing their
future as the face of the RAF and a global ambassador for
British engineering across the world. That would provide a
much needed boost to the industry. Can the Minister commit
to doing that today?
This is no time for Government to stand by and do nothing.
Ministers need to rise to their responsibilities and
realise that proactive engagement with the industry could
make a real difference to the workers concerned and to the
future of our country’s defence industry.
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I am entirely in agreement with the hon. Lady about the
need to engage closely to understand the reasons for this.
To reassure her on a couple of points that she raised, this
is not due to any stop-start change in the Government’s
procurement; this is in fact due to gaps in bringing
forward some of the export orders. As I mentioned, the
Secretary of State has signed a statement of intent with
Qatar, and indeed we are standing by to do everything
possible to support further export opportunities.
The hon. Lady may not have heard, but I mentioned the
talent retention system. She is absolutely right: for too
long we have not thought about people and their skills and
worked out whether there are other opportunities,
especially in the region, to ensure that those skills are
not lost. That is why we will be deploying the talent
retention system that has been developed by my Department
with this industry, and looking to see what more can be
done.
To allay some of the hon. Lady’s questions about our
commitment to shipbuilding, I can tell her that we have
published the national shipbuilding strategy. I am told
that we will be bringing forward the refresh of the defence
industry policy document very shortly.
We need to focus on the people who may be concerned about
this, meet them to gain an understanding of their concerns,
and see what more can be done, particularly to ensure that
those vital skills are not lost to this or other sectors.
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Mr (Rayleigh and
Wickford) (Con)
The tranche 3 variant of the Typhoon aircraft, especially
when equipped with the new electronically scanned radar,
will be one of the most capable and effective combat
aircraft in the world. The Minister has already mentioned
the letter of intent with Qatar for 24 Typhoons, and there
are, as she has intimated, a number of other countries
around the globe that are still interested in Typhoon, not
least Saudi Arabia. Can she assure Members in all parts of
the House that, just as the Government gave strong support
to the Qatari deal, they will strain every sinew to try to
support further Typhoon exports, not least in Saudi Arabia?
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I am nervously rising to answer a question from my right
hon. Friend, who knows more about this than many of us will
ever know. He is absolutely right: not only have we signed
the statement of intent, but only last month the Secretary
of State got on a plane to Saudi Arabia to press the case
for using these aircraft, not just for the upfront sale but
for the thousands of jobs that depend on the long-term
upgrade and servicing.
All Members across the House should be supporting these
export deals and the jobs that are reliant on them. It was
a shame that hon. Members—[Interruption.] Well, they say,
“Here we go.” Perhaps they were not listening at
conference. It was a shame that the right hon. Member for
Islington South and Finsbury (Emily Thornberry) used her
moment on the Labour party conference podium to attack the
Government for strengthening co-operation and the deals
that this brings with our key regional ally. Let us get
behind this industry, so that we can protect and invest in
this technology for the future.
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(Glasgow North West)
(SNP)
This morning’s news is deeply worrying for BAE workforces
across the UK, and we have only just heard that that
includes 15 workers in Fife. Of course, it is not just the
2,000 BAE workers who will be affected but the small and
medium-sized enterprises, the supply chains and the
communities as well. The SNP offer our sympathy this
morning to all those who are affected directly and
indirectly by today’s announcement.
This is the latest evidence of the Government failing to
deliver on defence programmes, and this is not just about
an export industry. This is about undermining skilled jobs,
undermining our own defence industry and undermining the
defence of the UK as a whole. What are the Government doing
to investigate what has gone wrong in BAE?
Skilled workers have been mentioned a number of times.
Skilled workers are exactly that—skilled. They cannot
easily move from one position to another; extra training is
required, so what are the Government doing to assist them
in this? And what has been done to provide guarantees to
those who are currently still employed in the sector?
Finally, can the Minister now confirm that future MOD
orders will come as a steady drumbeat, and not be plagued
by the dithering, delays and indecision that have
contributed to today’s announcement?
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I appreciate that point, and of course the hon. Lady is
right to speak for those who may be concerned about their
job future, but she represents, proudly, I know, a country
that has built two of the largest ships the Royal Navy has
ever purchased and that has contracts to build eight Type
26 frigates and five offshore patrol vehicles—two decades’
worth of shipbuilding contracts signed by this Government.
She refers to a stop-start approach. That is why the
strategic defence and security review system has been
brought forward. That is why we are absolutely determined
to spend taxpayers’ money wisely, and supporting British
industry, UK industry, is fundamental to that. I suggest
that she has a look at some of those proud ships—the QE2
class—and perhaps she will come back just a little bit more
cheerful.
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(Fylde) (Con)
As the Member of Parliament for Warton, where final
assembly of Hawk and Typhoon takes place and where 750 of
the jobs that will be lost are largely located, I urge the
Minister to work, as the Government did in 2011, to
mitigate job losses. Then a 3,000 headline figure was
mitigated to 100 compulsory losses. A similar effort must
be put in this time.
Secondly, thank you for the work that the Government are
doing on supporting defence exports, particularly to Qatar
and Saudi Arabia, with the Prime Minister’s visits to
Bahrain and Saudi and the Defence Secretary’s visit to
Qatar. Please will the Minister not be put off by siren
voices that want us to disengage from the largest export
customers for these aircraft?
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My hon. Friend makes the case very powerfully. Of course,
at Warton there are some additional benefits from the F-35
contracts being brought forward, but he is absolutely right
to say that we must be really focused on these jobs and the
uncertainty, but we must also be resolute in pursuing
export opportunities for this fine British company.
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(Kingston upon Hull East)
(Lab)
The Red Arrows renewal programme is well overdue and is
entirely in the Government’s gift. If it was renewed, it
would save jobs at Brough and the Lancashire plants. Get on
with it!
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I am sure that the hon. Gentleman’s pulses beat a little
faster when the Red Arrows come over, as mine do when they
fly over my constituency. I hear what he says and will
discuss it with Ministers, but will he please work with me
and others to ensure that this uncertainty is minimised for
those in his constituency?
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(Broxtowe) (Con)
Does my hon. Friend agree that it is somewhat concerning,
if not a little peculiar, that those who are standing up,
notably representatives of the SNP, to condemn these job
losses sing the praises of BAE, quite rightly, yet support
a policy of being opposed to all arms sales, notably to
Saudi Arabia?
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My right hon. Friend knows that I share her position. I
would make the point that these are potential job losses
and that we are at the start of the process. There has to
be a consultation period. A significant amount of work
needs to be done with the unions, the workforce, broader
industry and skilled employers right across the affected
regions to ensure that we do not lose skills, that we
minimise job losses, and that any job losses that do come
forward are managed through voluntary redundancy.
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(Barrow and Furness)
(Lab/Co-op)
The bottom line is that, had exports gone to plan, these
sites would not be in this position. We have heard a lot of
commitment in words, but we need to see action from the
Government. May I make what I hope is a constructive
suggestion? The Minister’s point on participation has been
heard and I suggest she does not repeat it now. There are
ambassadors all around this House, including on the Labour
Benches, who could help in an official position to deliver
and to get orders for their workforces in their
communities. Will she please consider that?
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I commend the hon. Gentleman, and the people he represents
in Barrow, for flying the flag and doing such an amazing
job for such a vital British industry. He knows better than
anyone else the importance of maintaining those skills. At
this point, I think we will all put our shoulders to the
wheel and do whatever we can to fly the flag for British
exports. I would be delighted to work cross-party to do
just that.
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(Louth and Horncastle) (Con)
BAE Systems is a vital employer in my constituency. It
maintains the Typhoon jets that fly from RAF Coningsby and
many of my constituents commute to Brough in Humberside,
where BAE Systems provides highly skilled careers and
apprenticeships. Sadly, we have heard today that Brough is
to lose 400 jobs. In that spirit, I very much hope the
Government will work with BAE Systems to ensure
opportunities for employees and apprentices at Brough. Can
my hon. Friend confirm that the commitment to spend 2% of
our budget on defence will continue, and that the
Government will continue to support this great British
company?
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We will of course spend at least 2% of our national income
on the defence budget. We will do all we can by working
with the company and other players, in particular through
the talent retention system. One crucial point, in response
to the hon. Member for Llanelli (Nia Griffith), is that we
cannot lose these skills from the British workforce. They
are vital and they have been acquired over many years. We
have to ensure that they are maintained and that the
productivity they generate is developed.
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(Caithness, Sutherland
and Easter Ross) (LD)
What are Her Majesty’s Government doing to sell the Type
31e frigate to the United States? The Secretary of State
for Defence has mentioned that that is a possibility.
Secondly, will the Minister urge the Secretary of State for
International Trade to come to the Chamber to explain what
exactly he is doing for BAE?
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The hon. Gentleman will know that my right hon. Friend the
Secretary of State for International Trade is flying the
flag relentlessly for all aspects of the British economy,
including British ships. I am sure he would be delighted to
answer a written question or a letter from the hon.
Gentleman on that point.
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Mr (Isle of Wight)
(Con)
I spoke to BAE this morning as soon as I heard the news.
What support will the Department for Work and Pensions
provide to those affected? Will the Government assure me
that any support package includes Isle of Wight workers
affected at the BAE Cowes plant in my constituency? May I
also highlight the importance of the advanced radar
programme on the Isle of Wight, both for UK defence and for
island jobs?
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The Department for Work and Pensions has a well tried,
tested and effective rapid response deployment process to
get in and talk to companies and people affected during the
consultation process to make sure they are aware of any
statutory rights and responsibilities, but also of any
opportunities. I understand my hon. Friend’s point about
the Isle of Wight and I will make sure it is reflected in
any work going forward.
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(Warley) (Lab)
I am afraid the Minister really does not get it. When the
French, the Americans or the Russians pursue a contract,
they take a relentless whole-of-government approach.
Incidentally, that is how it was under Prime Minister
. On behalf of the
industry and its skilled workforce, will the Government up
their game and secure new contracts, especially with Saudi
Arabia and the Gulf states?
-
The right hon. Gentleman is brave to mention the former
Prime Minister’s name. Of course this is a
whole-of-government responsibility. [Interruption.] In
other countries, leaders of the official Opposition do not
stand up in public and criticise exactly the sort of
defence deals we are trying to sign, or put at risk the
renewal of technologies such as Trident, which are
absolutely vital to our technology and knowledge base. I
suggest he has a word with the Labour Front Bench and then
perhaps we can have more of a conversation.
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(Gloucester)
(Con)
BAE’s huge contribution to skills, jobs and exports depends
not least on cross-party political support for our exports
to foreign Governments. Some on the Opposition Benches
absolutely understand that, but the fact of the matter is
that the Labour party leadership loses no opportunity to
criticise what those of us in the Prime Minister’s trade
envoy team are trying to do. Will the Minister confirm that
although there will be job losses in some parts of BAE,
there have been significant increases in other divisions,
for example at least 350 new jobs in its cyber division?
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My hon. Friend is absolutely right to point out that this
is a very dynamic business, which has to respond to
globally changing conditions. It employs almost 36,000
people right across the UK. He is also absolutely right to
point out other opportunities. It is absolutely critical
that we back these British businesses, focus on export
opportunities and work together. Many of us represent
constituencies affected by these sorts of announcements and
we all fly the flag for one the most successful companies
in the world—BAE Systems. Let us get on and do it.
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(Stoke-on-Trent North)
(Lab)
Our thoughts are with the workforce and their families who
have received such devastating news. Let us be clear that
the people who build and develop our military platforms are
as vital to our national security and sovereign capability
as those who operate them. We simply cannot afford to lose
their skills. Will the Minister commit to developing a
defence aerospace strategy, and to meeting immediately
unions and employers across the sector to ensure we are not
in this position again and can retain our sovereign
capability?
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Like me, I am sure the hon. Lady is very pleased that we
now have an industrial strategy that focuses on these vital
sectors, putting together sector deals working with unions,
employers and government. The offer has been made to all
sectors to come forward with deals. As I understand it, the
aerospace sector deal is well advanced.
-
(Makerfield)
(Lab)
What actions is the Minister taking to ensure that all the
young people who have started apprenticeships with BAE
Systems and may be affected will be able to complete them,
not only retaining the current skills we have but building
the skills base for the future?
-
The hon. Lady is right to highlight the vital role of
apprentices. I think we are all proud of the fact that we
now have over 3 million apprenticeship starts. Until we
know—this will become clear through the consultation
process—the details of any redundancies and the types of
jobs that are being laid off, it is too early to comment,
but she raises a very important point and I will take it
under consideration.
-
(Blackpool South)
(Lab)
The job cuts at Warton and Samlesbury are twice what they
were in November 2015, so it is not surprising that people
in Blackpool and Fylde will be concerned. The supply chain
has been mentioned. What specifically will the Minister and
the Department do with buyers to ensure apprenticeships in
supply chains are also supported, and that the Lancashire
local enterprise partnership is given the support and
resources it needs to support both BAE and the supply
chain?
-
We stand by ready to understand any potential impact, once
the scale of any job reductions is known, and to support
the Lancashire local enterprise partnership and other
companies in the area to process, cope and adapt to any
changes.
-
(Glasgow South West)
(SNP)
I have constituents who are BAE employees and, even though
they are perhaps not directly affected, I know that they
will be nervous. May I press the Minister on Ministry of
Defence procurement processes? Specifically, will the
Department look at work that is currently going out to
international competition? I think that that could be
avoided and that the work could be held in the UK.
-
I refer to my earlier answer about the level of UK
Government investment in Scotland, particularly in
shipbuilding. We have to look at every procurement decision
and understand whether it has the right capabilities for
the sorts of conflicts that we ask our armed forces to
undertake and what is best value for money for the
taxpayer, so it will always be a mix. We should all be
proud of the fact that the Government directly spend almost
£4 billion a year with BAE Systems and about £18 billion a
year with the British industrial sector.
-
(Kingston upon Hull
North) (Lab)
The Minister will win no friends in east Yorkshire by
saying that people who might be made redundant from BAE
Systems can go and get jobs in the renewables industry at
Siemens. We need both sets of jobs in both industries—both,
not one—to flourish in our area. I am not convinced at all
that the Minister is taking our sovereign capability
seriously if these jobs go. That is important to our
national security, so what will she do about protecting it?
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The hon. Lady speaks passionately on behalf of her
constituents. To put this in context, we are talking about
a company that employs around 36,000 people right across
the UK. It has to go through—as all companies do—a process
to make itself as efficient and effective as possible so
that the maximum number of productive jobs can be
maintained. The level of engagement of the MOD and
Secretaries of State is striking—getting on planes, signing
the statement of intent with Qatar and pushing for the
Saudi deal. This is what we need to do. She is right to say
that we need both sorts of jobs. We need a vibrant, highly
productive industrial sector that operates right across the
UK, which is why she should welcome the industrial strategy
and the work going on in the low-carbon economy.
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(Liverpool, Walton)
(Lab)
I worked at the Unite trade union when this country was
faced with the steel crisis. This Government had to be
dragged, kicking and screaming, from a position where it
would take no action to a position where it was willing to
take a 25% stake in the industry. We are seeing the exact
same thing again. If there was a serious industrial
strategy, the Minister would take action and guarantee
those jobs for the future of the industry.
-
I lead for the Government on the steel industry. Indeed, I
am working with the steel sector on its sector deal right
now. The steel sector is dependent on the opportunities
that come from companies such as BAE Systems being able to
invest and thrive in the UK economy. The hon. Gentleman
should commit to work with the steel companies’ customers,
as we want to do, to ensure that they can offer the maximum
market for the products of the vital and critical steel
industry.
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(Plymouth, Sutton and
Devonport) (Lab/Co-op)
It has been a bad week for the defence industry. These job
losses come on top of rumours that the Government are
scrapping the Royal Navy’s amphibious ship capability, and
the threat to the Royal Marines. Does the Minister agree
that the Government are presiding over emerging sovereign
defence capability gaps, and do something about it?
-
I gently say that the hon. Gentleman should focus more on
the facts and less on the rumours. We have committed to
raising our national spending target to more than 2% of
national income. We have undertaken strategic defence and
security review programmes that have clearly set out a
defence strategy for the future. We have invested in two
decades-worth of shipbuilding contracts north of the
border. I am always happy to discuss the facts. I suggest
he puts down the muck sheets and focuses on the facts.
-
(Burnley) (Lab)
The Minister talks about seeing things in perspective, but
the perspective is this: the loss of 750 jobs in Lancashire
is absolutely devastating for individuals, families,
communities and the industry itself. Will she not only work
hard with BAE Systems to mitigate these losses, keep them
to the lowest possible number and protect as many jobs as
possible, but look to protect jobs in the supply chain in
constituencies such as mine in Burnley, whose very success
and existence relies on BAE Systems thriving?
-
As I said, we are keen to work closely with the company as
it goes through this process. The offer is there for the
hon. Lady and others who have important companies in their
constituencies to work together, speaking to workers and
the unions to ensure that we minimise the number of job
losses and maximise skills retention both in this company
and in the supply chain.
-
Mr (Glasgow North East)
(Lab/Co-op)
When I worked at BAE Systems, more than 1,700 of my
colleagues across the British shipbuilding industry were
made redundant in 2013. At the time, that was predicated on
investment to create a world-class industry, but that
investment is no longer happening. We see the same across
these cuts. Every time it happens, a major plank of British
industrial capability is lost, whether it is the ability to
build tanks or carry out the final assembly of the F-35
aircraft. We cannot compete in shipbuilding internationally
or in submarine manufacturing to the same extent that we
could. Will the Government commit to reviewing how they
finance capital infrastructure investment in defence and
ensure that we are doing this in the best possible way?
-
The hon. Gentleman raises the point—I defer to his
considerable knowledge of the company—that companies need
to be competitive in order to thrive and export, and we are
told that that is the reason for today’s announcement. But
we are spending £60 billion over the next 10 years on
shipbuilding in the UK. That is one of the biggest
investments in shipbuilding that I can remember. We are
doing what we need to do domestically but, equally, we need
to support the export opportunities for these companies
right across the world.
-
(Kingston upon Hull West
and Hessle) (Lab)
The latest announcement of the loss of 400 jobs in Brough
will be devastating to communities such as Hull and East
Riding. I am sorry, but the response so far reeks of
complacency. It is not good enough to say that Siemens have
created jobs in Hull so that workers from Brough can find
jobs elsewhere. We want more jobs, not fewer. So here is a
simple question for the Minister: will she choose to save
jobs by bringing forward the order for Hawks for the Red
Arrows, or will she choose to see 400 jobs go?
-
The hon. Lady should be incredibly proud of the fact that
one of the highest rates of jobs creation has been in
Yorkshire and the north-east. We have to support our
industries, which we do through our procurement strategy
and our support for exports. I was told that in the recent
years to 2015, the county of Yorkshire created more jobs
than the whole of France. We should be celebrating that
success.
-
(City of Chester)
(Lab)
In order to be competitive, we have to retain the skills
that it looks like we are going to lose, but things are
going in the wrong direction. Has the Minister seen the
estimates from Unite that suggest that 25% of our defence
expenditure by 2020 will be in the United States alone? Are
we not missing a defence industrial strategy that will stem
that, so that we are paying people for skilled jobs, not to
be unemployed?
-
I am happy to look at the sums, but I am sure that the hon.
Gentleman understands that we have to ensure that we are
buying the technology we need from the best places across
the world when we are supporting our future defence
capabilities. We are continuing to invest in and support
this vital sector. He will be pleased to know that we are
working closely with Unite and other unions where we are
producing industrial strategy sector deals. The role and
commitment of the workers that—particularly in the steel
industry—has been vital in getting us to where we are
cannot be underestimated. That is why the door is open for
consultations and conversations with workers, the unions
and colleagues from across the House.
-
(Lancaster and Fleetwood)
(Lab)
Some 750 of these potential job losses are in Lancashire,
which rightly worries many of my constituents who work
there. The loss of these highly skilled and well-paid jobs
will have a devastating impact on the Lancashire economy.
Will the Minister tell us more about what conversations she
is having with the local enterprise partnership in
Lancashire, what resources and support we can have in the
area, and what conversations she is having with the
Department for Work and Pensions about the potential job
losses and the devastating impact on my constituents?
-
We are right at the start of the process. Indeed, the
company was not supposed to make the announcement until
tomorrow, as I understand it. We want to have those
conversations with the LEP and other employers with the aim
of minimising the number of potential job reductions made
by the company and maximising the redeployment of those
people who have acquired such valuable skills over their
time of work.
-
(Warrington North)
(Lab)
Those of us with constituents who work in the supply chain
for BAE Systems, as well as those who have constituents
directly employed by the company, are disappointed to hear
the Minister’s statement because she talked about managing
decline. The Opposition want to see proper investment in
the skills we need and in defence industrial strategy so
that we do not have to buy technologies from abroad. We
need the Government to bring forward orders in order to
protect jobs. They can do that now. Why is the Minister not
doing that?
-
This is not about managing decline. We have a record number
of people in work and have committed more than 2% of our
national income to national defence. [Interruption.] And we
have more than 2 million apprentices, I am told. The hon.
Lady will understand that businesses and companies evolve and
grow and invest in different technologies. The procurement of
the F-35 fighter has brought forward jobs for BAE Systems. I
appreciate her passion, but if she wants to stand on the
platform of a party that wants to support exports in this
vital sector, she needs to come across to the Government’s
side of the House.
-
(Heywood and Middleton)
(Lab)
The Minister has made a great deal of what was said at the
Labour party conference, but what impact will these job
losses have on making this a country that works for everyone,
and how will it help my constituents to live the British
dream?
-
I commend the hon. Lady for doing her homework. As the
company goes through its normal business processes, we all
have to stand by ready to do whatever we can through the
consultation process to ensure that the minimum number of
people lose their jobs and the maximum number, with those
vital skills, find other opportunities. The whole Government
stand by ready to do that. Looking ahead, I call that
maximising the British dream.
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