Pat McFadden
MP for Wolverhampton South East · Labour · United Kingdom
“In his review Alan Milburn considered that issue and said that, “the UK’s NEET crisis is much more long-term and deep-seated than any decisions taken in the last few years.” As I said earlier, 400,000 more people are in work this year than last year, and the number of young people in employment is up since the election.”
“Since our last DWP questions, both Alan Milburn and the Pensions Commission have published their respective interim reports on young people and on the current state of saving for retirement. I look forward to receiving their final reports later in the year.”
“As Alan Milburn pointed out in his recent report, the UK’s NEET crisis is much more long-term and deep-seated than any decisions taken in the last few years. There are 400,000 more people in work than last year. The number of young people in employment is up by 74,000 since the election.”
“I thank the right hon. Gentleman and send him commiserations for whatever has left him reliant on his crutches today. I am happy to congratulate the businesses he mentioned in his constituency. He raises a serious point: it is important not only to come up with the right policy, but to make it simple for businesses to use.”
“My hon. Friend is right, and I thank Cardiff football club for being a partner. We are supporting nearly 1 million young people and creating up to half a million opportunities for jobs and training.”
“We are making strong progress on expanding youth hubs, with around 130 already in operation across Great Britain. In March, I announced the locations that we want to open in this year, and I have just announced a further 180 locations for the following two years.”
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“Constructive discussions between the Government and Jaguar Land Rover are continuing. The Government are keen to help, but of course the terms must be right. I assure my hon. Friend that the Government are not seeking to delay help at all, but we want to ensure that the help that we give is in line with the aims of the scheme as set out when we launched it. I remind my hon. Friend, who represents the area covering Longbridge, that only last week we were being criticised for being too ready to put Government money into the car industry. It is absolutely right that we ensure that in doing this we get appropriate value for money and do it for long-term reinvestment projects that can help to secure the long-term health of the UK automotive industry.”
“The hon. Gentleman echoes a point that has been raised by several potential applicants under the scheme about the £5 million threshold. My officials have worked with companies in that position to help them to brigade potential projects. We want to take a flexible and helpful attitude to this; we are not in the business of turning away companies for no good reason.”
“I have to disagree with the hon. Lady when she says that no help has been given to the automotive industry. She ignores the car scrappage scheme, which has been in place for some months and has helped to boost a significant number of sales in the UK automotive industry. That is giving real help in the short term to automotive companies. I think that it is widely recognised as being a success. This scheme is different in that it is geared towards long-term reinvestment, not only towards the short-term issues facing the car industry. We are working diligently, carefully and productively with the companies that are making applications under the scheme.”
“We have had regular discussions with steel industry representatives in recent weeks. I have spoken on several occasions with Mr. Kirby Adams, the chief executive of Corus, and Mr. Michael Leahy of the trade union Community about the future of the industry in the UK. The Prime Minister will be meeting representatives of Corus later today.”
“In my discussions with the company, Corus has said that demand is the critical issue. Global demand for steel has fallen sharply, and the United Kingdom is not exempt from that. At the moment, Corus has the capacity to produce around 3 tonnes of steel for every tonne that it sells in the UK market. That is why it is critical that we maintain both the capital expenditure programme, in construction for example, which uses half the steel that Corus produces, and the car scrappage scheme, which has helped to boost automotive sales, and that we resist the pressure for public expenditure cuts, as advanced by the Opposition, which would hit demand and threaten steel jobs even further.”
“Just last week we announced more social housing, which will help to stimulate demand in the construction sector and increase demand for steel. My advice to the hon. Gentleman would be to speak to his Front-Bench colleagues, because I very much agree with the sentiments of Mr. David Blanchflower of the Monetary Policy Committee, who has said: “If you want to transform a recession into a depression, go ahead and cut public spending. I would advise against it…Voters want jobs.” I heartily agree.”
“I believe that Corus values its work force, and that it is doing its best to maintain capacity in a very difficult trading situation. As I have said, it has the capacity to produce roughly 3 tonnes of steel for every 1 tonne that it is able to sell at the moment. In those circumstances, it is also working with the Government on extra training help for the work force, and we have offered £5 million of help for that training effort in order to work with the company to help maintain its work force through this difficult period.”
“Our Department is focused on creating the conditions for business success, promoting enterprise, innovation and science and making sure people have the skills and opportunities to succeed. To that end, this week we have published the life sciences strategy and, together with our colleagues in the Department of Energy and Climate Change, the low carbon industrial strategy. That is because we take the view that the Government have an active role to play in helping Britain make the most of the changes we will need in how we transport ourselves, how we build and heat our homes, and how we produce our energy for the future.”
“The focus for those who are unemployed for a short time is to help get them back into work as soon as possible. That is why it makes sense to give the extra help for retraining for those who have been out of work for that bit longer. I have to say to the hon. Gentleman that if he thinks there should be more expenditure on helping the unemployed, perhaps he should resist his own party’s plans to cut public expenditure now in the middle of a recession.”
“The “Digital Britain” strategy published a few weeks ago is a very good example of the active role we take in helping to shape the economic future of the country and making sure that opportunities in it are maximised. The report said that those on low-income tariffs would not have to pay the levy mentioned, so it is not universal regardless of income; instead, it is a measure that would step in where the market would not to make sure the opportunities presented by next generation broadband are not just enjoyed by those two thirds of the population or so that the market would provide for, but are enjoyed throughout the country.”
“As the Secretary of State announced in the other place a couple of weeks ago, the market conditions have not been conducive to getting the best value for the taxpayer from the partial sale we have proposed. Where I agree with the right hon. and learned Gentleman is that that does not mean that Royal Mail does not face significant problems and challenges. It is important that the company gets on with its plans for modernisation, and that the union, which has said it is up for change, shows that that means something in practice—and I have to say that continued strikes and industrial action within Royal Mail will do nothing in the end to help it on the necessary road to modernisation, which is absolutely essential for the future of the universal service.”
“I know that my right hon. Friend has been campaigning hard for the Corus workers in his constituency. As he said, the Secretary of State is to visit Rotherham tomorrow. We appreciate that credit insurance has been an issue, not only in the steel industry, but in other sectors of the economy. That is why we put a credit insurance scheme in place and recently announced that we would backdate the help available under it.”
“I see that the Conservative party is now free from whatever influence the mainstream centre-right in the European People’s party had on it and is giving full rein to the instincts that would see us look away from the European Union. I remind the hon. Gentleman that 3 million British jobs are dependent on trade with the European Union, and I do not think that his proposal would advance the interests of those people or of the UK economy.”
“I am always happy to pay warm tribute to the work of the Business and Enterprise Committee, chaired so ably by the hon. Gentleman. The report on post offices was something that the Government and the Committee worked on together. It is a good and constructive report, and I assure him that it will be considered positively.”
“The Secretary of State is always a speedy mover, and I will pass my hon. Friend’s thanks to him. The story shows the advantages that this Labour Government are clearly having for the people of York.”
“Outreach post offices can be very successful, especially for small rural communities, such as the many in the hon. Gentleman’s constituency. In some ways, we have already responded to the need: for example, my colleagues at the Department for Transport were able to announce a new contract with post offices for the renewal of driving licences. That comes on top of the decision taken some months ago to renew the Post Office card account. So already the Government are putting more work the way of post offices.”
“We have already published a consultation on the number of people in that category, and I am pleased to inform my hon. Friend and the House that regulations to prohibit the use of tips, gratuities and service charges to make up the minimum wage were passed some weeks ago. That change was overdue, and I have been committed to it since I came into this job. It is good news for service workers throughout the country.”
“The Government have every sympathy for people who have lost their jobs as a result of the recession, and we are trying to do everything that we can for them. We know that there are many such people, in the hon. Gentleman’s constituency and around the country. Yes, unemployment has gone up, but I remind him that when the right hon. and learned Member for Rushcliffe (Mr. Clarke) was Chancellor unemployment was running at 10 per cent., with 3 million people out of work. The position was a great deal more difficult than the one that we face today.”
“I hope and believe that the company is genuine about consultation and open-minded about possibilities. The UK Government will continue to work with the company and my right hon. Friend, and to engage with the work force about the best way forward on this crucial issue. Question put and agreed to.”
“Campaigners in Scotland have urged Diageo to consider seriously any alternative options that the workers and Scottish Enterprise can come up with, including the possibility of relocating to different sites in Kilmarnock and Glasgow if suitable proposals emerge. The business of devising alternative solutions involves the First Minister, the Secretary of State for Scotland, the chairman of Scottish Enterprise and many others. They are working on putting together an alternative proposal for the company. As my right hon. Friend the Member for Kilmarnock and Loudoun said, a meeting yesterday was convened by the Scottish Government’s Finance Minister, John Swinney. For our part, we believe that the work that the Scottish Government and their agencies are taking forward is crucial.”
“Such is the product’s worth that owning one bottle of a particular Johnnie Walker blue label of which I understand there are only 200 in existence would set one back an estimated $30,000. The affinity between the town and the brand helps explain why the proposal to close the plant in Kilmarnock has aroused such passionate and vocal opinion in the local community. As my right hon. Friend said, there is a 90-day consultation on the plans, and Diageo has given guarantees that there will be no compulsory job losses in the next 12 months. My right hon. Friend the Secretary of State for Scotland has met the Diageo chief executive, to whom I spoke briefly about the matter today.”
“The association of the brand with real people and real places helps make Johnnie Walker such a distinctive and successful whisky. In fact its influence goes beyond the pleasure of drinking, as it has a wider cultural influence. I could name Leonard Cohen, Van Morrison, The Band, The Streets and ZZ Top as just some of the artists to have featured Johnnie Walker in their lyrics. Films such as “The Dirty Dozen” and great television programmes such as “The West Wing” contain references to Johnnie Walker. Indeed, there is even a Japanese novelist, Haruki Murakami, who went so far as to create a character called Johnnie Walker. Johnnie Walker is a whisky renowned throughout the world, with a far-reaching cultural influence. Perhaps that is one reason why there are yearly sales of more than 120 million bottles.”
“As he said, when people buy whisky, they are not just buying a drink—they are buying into a story about place, heritage and tradition. That is one of the major reasons for whisky’s success. This particular whisky has been blended in Kilmarnock for almost two centuries, ever since Johnnie Walker himself blended it and sold it in Kilmarnock high street back in 1819. In fact, one of the earliest incarnations of the whisky was called Walker’s Kilmarnock. Since then, generations of Kilmarnock families, including Johnnie Walker’s descendents, Alexander Walker and Alexander Walker II, have added to the story of the whisky, whether through the iconic square bottle introduced in 1870 or the distinctive label applied, I understand, at the precise angle of 24°.”
“Friend said, and we have worked with Diageo in developing export markets. We very much appreciate the importance of that company and of the industry in general. Diageo’s proposal is twofold. The first part is to close the packaging plant in Kilmarnock—one of three in Scotland—along with the cooperage in Port Dundas that was mentioned. The second part is to make a new investment of some £100 million, creating 400 new jobs elsewhere in Scotland. I understand that, as my right hon. Friend said, this has been greeted in Kilmarnock, where the greatest number of jobs will go, with deep disappointment and dismay. My right hon. Friend outlined the history; if someone knows the history, it means something to them. Kilmarnock is known as the home of Johnnie Walker whisky. Place has a huge role to play in whisky brands.”
“Overall, the equivalent of more than 1 billion bottles of Scotch whisky were shipped all over the world—to north and central America, Australia, Europe and Asia. Whisky also means jobs. About three quarters of the UK’s distilled alcoholic drinks enterprises are located in Scotland, with an estimated 41,000 people employed just in making, distilling and bottling whisky. Diageo is a major player in all this. It owns 29 whisky distilleries in Scotland, and houses all its maturing Scotch whisky in Scottish warehouses. Twenty-eight per cent. of its net sales are from Scotch whisky; that is a very large figure when one considers that it has sales of about £8 billion. Diageo directly employs 4,500 people across 50 sites. The Government, through UK Trade and Investment, have strongly supported the Scotch whisky industry, as my right hon.”
“I congratulate my right hon. Friend the Member for Kilmarnock and Loudoun (Des Browne) on securing this debate. I have spoken to him about this issue several times in recent weeks, and I know how much it means to him and to his constituents. He is of course deeply concerned about the jobs of the Diageo workers in his constituency and the effect that the loss of those jobs will have not only on the families involved but on the wider community in Kilmarnock and the rest of Ayrshire. The Scotch whisky industry is hugely important to the UK economy. Figures published last month by the Scotch Whisky Association put the value of annual whisky shipments at more than £3 billion, earning £97 a second for the UK last year.”
“I beg to move, That this House has considered the matter of UK manufacturing. The business of making things—manufacturing—matters to every Member of this House: it has been a defining part of our economy for hundreds of years; it has contributed to our reputation across the world; and it is a significant part of our economic strength.”
“Not for the moment, as I am only one sentence into my speech. Since the time of the industrial revolution when we were dubbed “the workshop of the world”, manufacturing has helped the UK to punch above its weight, and one of my principal points today is to counter the impression that we are not still a country that excels at making things; we most certainly are, but where once we led the way as producers of iron, coal and cotton, we are now blazing a trail in new areas such as robotics, software, new technology and advanced manufacturing.”
“Manufacturing is still a critical part of our economy, employing 3 million people directly, with more in supplies and associated services, and contributing £150 billion to the UK economy.”
“I do not accept the assertion that we are not a manufacturing nation. We are the sixth largest manufacturer in the world, and I believe that manufacturing is a critically important part of our economy. I see the pride, passion and commitment of UK manufacturing in my own constituency week in, week out. When the Prime Minister visited Wolverhampton last Friday, my hon. Friends the Members for Wolverhampton, South-West (Rob Marris), for Wolverhampton, North-East (Mr. Purchase) and I were able to introduce him to many local manufacturers such as Goodrich in aerospace and Nuclear Engineering Services Ltd in my constituency, where people have built up excellent manufacturing industries employing hundreds of other people and making excellent products.”
“I did not dismiss the old industries; I reject that assertion. I believe that traditional manufacturing and the newer industries can combine to contribute to our manufacturing strengths, so I am certainly not dismissing any manufacturing industries.”
“I am prepared to be open-minded and to accept criticism of Government policy from many quarters, but I will not accept criticism from the Conservative party about being late to the game on the new generation of nuclear power stations. The hon. Gentleman’s party has changed its position on that issue more times than a Highland dancer in the middle of the most active reel. I hope that the Conservatives now accept the need to move forward in that regard. I was explaining the importance of manufacturing to the UK economy; as I said, it contributes some £150 billion to the economy, accounts for half of Britain’s exports and is responsible for 75 per cent. of our business research and development.”
“I am happy to be corrected by my hon. Friend, who anticipates what I am coming on to say about the importance of the low-carbon economy in our manufacturing future. He rightly stresses that, and the Government are actively working with Nissan and other manufacturers on that agenda. This country has excellence and world leadership in some manufacturing sectors—for example, aerospace. We have the second biggest aerospace industry in the world, with more than 100,000 people directly employed in the manufacture of aircraft systems, engines and equipment. We are fortunate to have world-class companies, such as Rolls-Royce, based here in the UK. It is a world leader in the production of aero engines and provides a prime example of the kind of innovative and forward-looking manufacturing that is certainly part of our economic future.”
“My Department works very closely with the Department of Energy and Climate Change on these issues, and we will jointly be publishing a low-carbon manufacturing strategy in the not-too-distant future. We have worked on that co-operatively. It is important to remember that our manufacturing base also helps us to attract significant inward investment. The UK is the world’s second most popular destination for foreign inward investment. Investment projects in advanced manufacturing have increased this year by 18 per cent, so even in the midst of a downturn inward investment in manufacturing is a UK success story, and we must not forget it.”
“That kind of policy is the last thing that our manufacturing industries need, particularly in the midst of a downturn when we hope that hard-pressed industries are able to take investment decisions in order to prepare for the upturn when it comes. The Conservative party has come up with a policy that would strike at the heart of those investment decisions, and that is the very opposite of the support that manufacturing industry needs.”
“We are determined to ensure that those affected get a second chance to retrain and reskill, and to start again. That stands in stark contrast to what happened in previous recessions, when people in manufacturing sectors and others lost their jobs and were left with little more than a giro cheque to keep body and soul together. They certainly did not get the active help that they needed to have a second chance.”
“The importance that we attach to that plant was evidenced recently by the visit of my right hon. Friend the Secretary of State. We are doing everything we can to ensure that General Motors continues with its manufacturing base here. We have manufacturing excellence in this country. I have mentioned one or two sectors, and there are others, such as plastic electronics and bluetooth technology—things that we use every day that are made here in the UK and are an important part of our manufacturing future. Of course, we must also acknowledge that, amid those strengths and our strong position overall, manufacturing has had a tough time during the recession. Some companies have gone, including some well known names, and people have lost their jobs. We understand the pain that that causes for individual families and communities.”
“We must do more to prepare for the upturn, and that is why we have brought together the former Department for Business, Enterprise and Regulatory Reform and the Department for Innovation, University and Skills in the Department for Business, Innovation and Skills. That will help to prepare the country for the economic upturn and ensure that we put the support in place where it will have most value. We will certainly not stand by and watch the recession take its course, as we were advised to a few months ago by the Opposition. We believe that we have an active part to play and that that philosophy of industrial activism that was once the vogue on the Opposition Benches, before being abandoned, is still important.”
“During the past year, the Manufacturing Advisory Service, which does an excellent job, has helped nearly 8,000 manufacturing companies to improve their efficiency and effectiveness, improving gross value added by some £120 million and, in many cases, helping to generate new sales. The vehicle scrappage scheme, which my hon. Friend the Member for Houghton and Washington, East (Mr. Kemp) mentioned, has had a serious impact, with 94,000 orders for new vehicles. As my hon. Friend the Member for Wolverhampton, South-West mentioned, we also have a £50,000 investment allowance, meaning that the 95 per cent. of businesses that invest less than that sum a year are able to write those investments off, giving them the confidence to make the investment that our manufacturing industry needs.”
“Let us consider the European comparisons. We are not alone in our manufacturing industries being affected by the recession. There has been a decline in trade in goods across the world. In the year to April, manufacturing output declined in this country by 13 per cent. In the US, the figure was 14.6 per cent., in France it was almost 20 per cent., in Germany it was 24 per cent. and in Japan it was more than 30 per cent. The effect has been felt around the world, and it has often been greater in other countries than here in the UK. No Government can say that they can stop an economic recession having an impact, but we will do everything we can to ensure that the recession is as short and as shallow as possible. I shall tell the House about some of the measures that we are taking to support manufacturing through the recession.”
“My hon. Friend makes a good point. We cannot insulate the country from closures—I do not pretend that we can—but we do what we can to avoid them and to give help where they take place.”
“We are working with colleagues from the Department of Energy and Climate Change on a low-carbon industrial strategy to ensure that as we come out of the downturn we back the best of British industry in initiatives such as wind and wave power and low-carbon vehicles, as well as others, and that we take advantage of the opportunities represented by the low-carbon economy. As the G8 meets and discusses these things, it is of course a challenge to respond to climate change, but it is also an industrial opportunity. This Government are determined to ensure that British industry has the help and support it needs to take advantage of that.”
“Let me talk about our industrial policy, as published in “New Industry, New Jobs”, and some of the support and initiatives available from the Government. We have set aside £750 million for a strategic investment fund. About a third of that will go to low-carbon initiatives, because we understand that how we build and heat our homes, produce our energy and transport ourselves will all change profoundly in the years to come. As a Government, we take the view that we want British industry to be in the best possible place to take advantage of those opportunities.”
“I have been in active contact with Corus in recent weeks. My sympathies go out to my hon. Friend’s constituents who are affected by job losses, and those of other hon. Members. Corus has told me that the critical issue it faces is demand for the product that it makes. Half that product goes into construction, so the best thing that we can do is to try to ensure that there is demand for the product that is made. We have brought forward spending for social housing, for additional investment in schools and hospitals and for initiatives such as the car scrappage scheme so that there is demand for the steel that is made. In the long term, that will be more effective in supporting the steel industry than any short-term wage scheme. I must stress that.”
“Manufacturing is a hugely important sector, and we are a country that makes things. We are the sixth biggest manufacturing economy in the world, and we will continue to be a major manufacturing economy in the future.”
“That is not what our manufacturing industries need. What those industries need is co-ordinated support and help from the Government, directly where it makes a difference. They also need the Government to be a smart customer, because we are a major purchaser of many goods and services right across the economy. In the past, Governments may not have looked so actively at their role as a customer, but we are determined to do that in the future. A critical part of our manufacturing strategy is that we take advantage of the opportunities presented by the change to a low-carbon economy, whether that involves new nuclear capacity, low-carbon vehicles, or wind and wave power. That is what we intend to do, through the strategic investment fund and other initiatives. This debate is critical to our economy.”
“It was announced in the Budget and plans will be brought forward over the coming months. The hon. Gentleman is critical of spending; I point out to him that his party is determined to cut spending by an extra £5 billion this year. I do not see what hope that would give to manufacturing industry, which needs support to invest in some of the opportunities that I have mentioned. I could say the same about training. We believe it is important that our workers have the skills to take part in modern manufacturing, which is why we will put £1 billion into Train to Gain next year. That is money that the hon. Gentleman’s party, as recently as Monday, pledged in this House to abolish. The Opposition have pledged to cut spending on training, and they are committed to cutting support for spending overall.”
“I agree that there has traditionally been difficulty in bringing great ideas from the laboratory to the market. That is why, as part of “Building Britain’s Future” we have announced an innovation fund, to be shared between Government and levered-in private sector funding, to do precisely what the hon. Gentleman is talking about. I hope he welcomes that initiative.”
“That is why manufacturing is such a crucial part of our economic future. Question put and agreed to. Resolved, That this House has considered the matter of UK manufacturing.”
“He rightly said that the Government made a choice as the recession hit to do what they could to stimulate demand, be that through construction, other capital projects, the car scrappage scheme or action in other areas. We have done what we could to stimulate demand. I accept that we must continue to work on the schemes that we have announced to ensure that they are effective. We have been active on some of the specific problems that have been mentioned, for example in respect of discussions between Corus and EDF Energy about energy prices. The final theme of this debate that I wish to mention is local pride. That can be seen in the companies mentioned by hon. Members from across the House. Manufacturing gives shape and identity to our constituencies, and what goes for our constituencies also goes for our country.”