(Rotherham) (Lab) [V]: The economic impact of the
coronavirus pandemic has been immediate and severe. While it is
welcome that the Government have taken some steps to protect jobs
in the short term, the reality for many is that they face losing
jobs that were stable and secure prior to this crisis.
Sadly, that process has already begun in Rotherham. In my
constituency, 75 workers at Rolls-Royce face
imminent redundancy. Those are well-paid, highly-skilled jobs,
and their loss will have a devastating impact on the town.
Rolls-Royce’s Rotherham facility is based at the
Advanced Manufacturing Park, which I know will be familiar to the
Minister. The park is a world-class base for innovation, research
and manufacturing and the jewel in the crown of our local
economy. The Government are more than happy to use it as a
backdrop for policy announcements. What they must do now,
however, is defend its long-term future. The aerospace sector has
been hit especially hard by the pandemic, and I appreciate the
profound challenges that Rolls-Royce faces. The
need for the Government to support this strategically important
industry is self-evident. They must recognise the inextricable
link between aerospace and the wider aviation sector. That is
particularly true for businesses such as
Rolls-Royce which derives revenue from the
flying hours of the engines it produces. The global travel
taskforce is an important step, but the aviation and aerospace
sectors need a clear exit strategy, and one that works
internationally. These businesses are global and do not work just
to a UK boundary.
The UK should use its chairing of the G7 this year to create a
global plan to get aviation flying again. Aerospace and aviation
are industries that may take considerably longer than others to
recover once restrictions are lifted. The Government need to
acknowledge that additional, long-term business support will be
needed. This means also accepting that measures such as furlough
may need to continue beyond September in certain sectors. The
Government should view this as an investment for future
prosperity. As the Chancellor himself acknowledged in the Budget:
“Business investment creates jobs, lifts growth, spurs innovation
and drives productivity.”—[Official Report, 3 March 2021; Vol.
690, c. 527.]
I agree, but the Government’s rhetoric on levelling up the north
will ring hollow if they stand idly by while dedicated, highly
skilled workers lose their jobs.
While I am sympathetic to the challenges that the industry faces,
Rolls-Royce is not without fault. I am concerned
that despite the furlough scheme, it is pressing ahead with
substantial job losses. Furlough’s very purpose is to prevent
that from happening, so why is it not using it? These are skilled
employees who will not easily be replaced as the industry
recovers. To show them the door now is deeply short-sighted and
will have wider implications for the supply chain and Rotherham’s
economy. Taxpayer support for business to survive the current
crisis must aim to protect jobs and not the bottom line of
shareholders.
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