Extracts from Commons proceedings - June 3

The Parliamentary Under-Secretary of State for Transport (Kelly Tolhurst): ...On business rates, which the hon. Gentleman has, rightly, mentioned before, the Chancellor was clear about where those business rate alleviations would happen and that is obviously a matter for the Treasury. On the impact of the reduction in aviation on the wider jobs market in the aerospace industry, and particularly on Rolls-Royce as I have outlined, the furlough scheme was not introduced in order for businesses to put people on notice of redundancy while they were on furlough. As hon. Members would expect, we will work across Government, including with colleagues in the Department for Business, Energy and Industrial Strategy, to assess the significant impact that will be felt across the economy, and particularly in the wider aerospace sector. We will do whatever we can to ensure that we engage with those businesses and protect as many jobs as possible.

Jack Lopresti (Filton and Bradley Stoke) (Con): The slowdown in the aviation sector is having a big impact on jobs in my constituency—Airbus, Rolls-Royce and GKN employ several thousand people—so does my hon. Friend agree that we must get the aviation sector working again quickly, not only to protect jobs, but to preserve our country’s world-leading industrial manufacturing capability in civil aerospace and, crucially, in defence?

Kelly Tolhurst: I thank my hon. Friend for that. He is right to say that the success of the aviation industry has a direct impact on some of the wider aviation manufacturing technology being developed in this country, and it has a particular effect in my constituency too. We will continue to work across government to understand the full impact this has in the wider supply chain and to provide mitigation as far as we are able.

To read all the exchanges, CLICK HERE

Extract from second reading (Commons) of the Corporate Insolvency and Governance Bill

Edward Miliband (Doncaster North) (Lab):...Secondly, beyond SMEs, I am deeply concerned about particular sectors, with manufacturing top of the list. We have seen thousands of redundancies at Rolls-Royce  real problems in the aerospace sector, issues in the car industry and massive issues facing steel. In France, steel received support within a fortnight of lockdown, whereas here our companies are still waiting. We read stories in the Financial Times about public equity stakes being considered—the so-called “Project Birch. It sounds like an interesting idea, but I say to the Secretary of State that this is taking too long, both for larger companies and for the SMEs in the supply chain...

Lucy Powell (Manchester Central) (Lab/Co-op):...The economic emergency we are in is affecting different sectors of the economy in different ways, some particularly and devastatingly harshly. This will be a sectoral recession, and the Government response must reflect that. We have raised with Ministers the serious issues facing our manufacturers, car manufacturing, steel makers, the aerospace and defence industry, aviation and tourism, the hospitality industry, and other areas such as football. The crisis is also affecting supply chains in those sectors, and we have already seen job losses at premier British companies such as Rolls-Royce and McLaren. There have been layoffs in the airline industry, despite the furlough scheme, and despite warnings from many industry bodies about the failure to provide adequate support and liquidity to business now. Will the Government step up with the more urgent response that is needed for those sectors, which so many Members have asked for today?

To read the whole debate, CLICK HERE

Petition

Future of the aviation and aerospace industry

Gavin Newlands (Paisley and Renfrewshire North) (SNP)

I am proud of the fact that I represent a constituency with the UK’s best airport and, until recent events, a thriving aerospace sector, but those recent events have been catastrophic for the sector. It needs further Government help and it needs it now.

Of course, certain companies’ actions do not help. Willie Walsh’s actions in making almost the entire workforce redundant and rehiring just over two thirds on massively reduced terms and conditions, including pay cuts of up to 60%, is immoral, obscene and thoroughly dishonest. It should be illegal.

It was confirmed today that Rolls-Royce intends to make 700 people in Inchinnan—more than half of the highly skilled workforce—redundant. I have spoken to and corresponded with many devastated and angry workers, but even at this late stage, I urge this Government to intercede and discuss what options are open to support Rolls-Royce jobs. I urge the company to engage meaningfully with the Scottish Government, who are keen to get around the table. I plead with the Department for Transport, the Department for Business, Energy and Industrial Strategy and the Treasury to get their collective finger out and support the sector.

Following is the full text of the petition:

[The petition of the residents of the constituency of Paisley and Renfrewshire North,

Declares that job losses at British Airways, Rolls-Royce and across the aviation and aerospace industry will be a devastating blow to employees of these firms and will cause major economic damage to the whole of the UK; further that this will particularly affect constituencies like Paisley and Renfrewshire North, which have large aviation sectors; supports the early intervention by the Scottish Government in removing the business rates liability for one year and urges the UK Government to follow suit; and welcomes the 1,167 signatories to the related petition from Gavin Newlands on the aviation industry.

The petitioners therefore request that the House of Commons urges the Government to secure a sustainable future for the aviation industry, to ensure that urgent discussions take place between relevant ministers and these firms to protect the maximum number of jobs, and to ensure that workers play a full role in the decisions being taken about this industry.

And the petitioners remain, etc.]