:00:24. > :00:31.To Speaker, this morning, the boards of General Motors and the PSA Group
:00:32. > :00:36.announced plans for PSA to acquire GM's Vauxhall/Opel operations. The
:00:37. > :00:39.proposed deal is expected to be completed by the end of this year.
:00:40. > :00:44.The Prime Minister and I have been engaged in discussions with both GM
:00:45. > :00:47.and PSA and the French and German governments to ensure that the terms
:00:48. > :00:54.of the agreement could give confidence to Vauxhall's workforce
:00:55. > :00:58.now and for the future. Vauxhall is an iconic and successful British, a
:00:59. > :01:02.factor. Vauxhall cars have been made in Britain for 130 years, and we are
:01:03. > :01:07.determined that they should continue to be for many years to come. The
:01:08. > :01:10.car plants at Ellesmere Port and Luton have a proud record is among
:01:11. > :01:14.the most efficient in Europe, with workforces that are skilled,
:01:15. > :01:18.committed and flexible. Both PSA and GM have confirmed to the Prime
:01:19. > :01:21.Minister and me a number of important commitments. But the
:01:22. > :01:23.company will honour the agreements they have with the Vauxhall
:01:24. > :01:30.workforce. But Vauxhall pensioners will be at least in as good a
:01:31. > :01:34.position as they are today. That the treatment of the UK division will be
:01:35. > :01:40.equal to those of other countries within the Vauxhall Opel group. But
:01:41. > :01:44.the identity of Vauxhall will continue to be distinct and
:01:45. > :01:48.prominent. That the strategy of the new company will be one of building
:01:49. > :01:51.on existing strengths and commitments, not on planned
:01:52. > :01:54.closures, taking opportunities to increase sales around the world. And
:01:55. > :01:59.that the company would work with me and the rest of the automotive
:02:00. > :02:02.sector to ensure that it can participate in the substantial
:02:03. > :02:06.programme of research and investment innovation, in areas like electric
:02:07. > :02:10.vehicles and battery technology, which we have as part of our
:02:11. > :02:14.industrial strategy. This morning I had a further conversation with my
:02:15. > :02:17.French counterpart the industry Minister, and he spoke to his German
:02:18. > :02:23.counterpart to agree a consistent approach. I speak frequently with
:02:24. > :02:26.Len McCluskey, the general secretary of the largest trade union in
:02:27. > :02:29.Vauxhall, and I have and will keep colleagues with particular
:02:30. > :02:31.constituency interests updated at all times. It is in everyone's
:02:32. > :02:37.interest that Vauxhall should look forward to a successful future. A
:02:38. > :02:42.generation ago, the British kind of tree was one that epitomised our
:02:43. > :02:49.economic woes. Today, that industry is a beacon of success. Companies
:02:50. > :02:52.invest in Britain because our automotive sector has a high quality
:02:53. > :02:55.workforce, world-class efficiency and is one of the most exciting
:02:56. > :03:00.places on earth for innovation and research in new technology. The
:03:01. > :03:02.future of the motor industry is bright in Britain, and we will be
:03:03. > :03:10.active at all times are doing everything we can to make it
:03:11. > :03:12.brighter still. I thank the Secretary of State for that positive
:03:13. > :03:16.response, however there are a number of issues about which I would like
:03:17. > :03:21.further clarification. Firstly, although I welcome PSA's promised an
:03:22. > :03:25.existing contract, I am deeply concerned about the 40,000 workers
:03:26. > :03:27.currently employed in Luton and Ellesmere Port and in the wider
:03:28. > :03:33.supply chain who will be worried about the future of their jobs
:03:34. > :03:36.today. Can the Secretary of State confirm what assurances he has
:03:37. > :03:42.personally received of the future of Vauxhall's plants on wider UK
:03:43. > :03:44.workforce beyond existing contracts? In addition, during his discussions
:03:45. > :03:50.with PSA, did they confirmed that the production of the new Astra
:03:51. > :03:53.model would take place in the UK? Secondly, there has been some
:03:54. > :03:57.commentary about the ?1 billion deficit in General Motors' general
:03:58. > :04:01.pension scheme, with some commentators stating it could have
:04:02. > :04:05.jeopardised the deal. The scheme has 15,000 members and is one of the
:04:06. > :04:08.largest in the UK. Can the Secretary of State assure the House that the
:04:09. > :04:13.pensions of the UK workforce are guaranteed in full? Thirdly, it is
:04:14. > :04:16.increasingly clear that the Government has little power to
:04:17. > :04:22.ensure that certain corporate takeovers are in the public
:04:23. > :04:24.interest, and accord with Britain's industrial strategy. The present
:04:25. > :04:30.legislation allows intervention only in matters relating to national
:04:31. > :04:33.security or media concentration, so can the Secretary of State confirm
:04:34. > :04:36.whether he plans to broaden the definition of public interest, for
:04:37. > :04:40.example to serve stakeholders not just shareholders, and when will he
:04:41. > :04:45.published draft legislation to this effect if this is the case? Finally,
:04:46. > :04:51.can the Minister confirm what support has been offered to PSA
:04:52. > :04:55.following Britain's exit from the European Union? We welcomed Nissan's
:04:56. > :04:58.decision to remain in the UK as a result of assurances provided by
:04:59. > :05:03.this Government. Has PSA been offered the same deal? If so, would
:05:04. > :05:07.it not make sense for the Government to set out its strategy for this
:05:08. > :05:14.sector as a whole rather than enlightening businesses one crisis
:05:15. > :05:19.at a time. I am grateful to the honourable lady for her questions.
:05:20. > :05:24.These have been worrying times for the workforce over the last two
:05:25. > :05:28.weeks, and I think the statements that have been made by both parties
:05:29. > :05:33.today have been welcomed, not just by me but by the trade unions as
:05:34. > :05:37.being very much steps in the right direction. It is very important that
:05:38. > :05:41.we should hold the company to account for this. So in terms of the
:05:42. > :05:46.points that she mentioned, the company has said that it will honour
:05:47. > :05:52.the agreement they have with the company and with the unions. They
:05:53. > :05:56.extend to at least 2021 in the motor industry as she will know, new
:05:57. > :06:01.models come in at various points in the cycle, we are fortunate that
:06:02. > :06:06.both of the principal models in the UK are quite early in the cycle, and
:06:07. > :06:09.I want, as I'm sure she will want, for both plants to be competitive in
:06:10. > :06:15.expanding their production in the years to come. In terms of the
:06:16. > :06:21.pensions, this was something that I discussed in detail and regularly
:06:22. > :06:27.with GM and with PSA. They have given an absolute commitment that no
:06:28. > :06:31.pensioner, current or prospective, will be worse off in any way, and of
:06:32. > :06:36.course the pensions regulator, independent of Government, is
:06:37. > :06:42.required to confirm any changes in pension arrangements. In terms of
:06:43. > :06:47.the takeover regime generally, she will know that this is one overseas
:06:48. > :06:52.owned company being taken over by another, so it is not a listed UK
:06:53. > :06:57.company that would fall within the UK merger regime, but I in
:06:58. > :07:01.discussions with my counterparts in France and Germany have agreed that
:07:02. > :07:07.we should be taking a consistent approach in the assurances that are
:07:08. > :07:11.needed, and the trade unions are equally in contact with their
:07:12. > :07:15.opposite numbers in other countries. And in terms of the support that is
:07:16. > :07:20.available for the automotive sector, as I mentioned the colleagues a few
:07:21. > :07:24.moments ago, the automotive sector has been a great success in this
:07:25. > :07:31.country. One of the foundations of that success is the cooperation that
:07:32. > :07:34.we've had, government sector, but within the sector through the
:07:35. > :07:36.automotive Council to invest in research and develop and,
:07:37. > :07:41.particularly in electric vehicles and battery storage to make sure
:07:42. > :07:45.that we have institutions to train the future workforce. But has been a
:07:46. > :07:51.great success, and the future owners of Vauxhall, I hope, will
:07:52. > :07:56.participate in the same way as other successful motor industry players.
:07:57. > :07:58.Thank you, Mr Speaker, and I thank my right honourable friend both for
:07:59. > :08:05.his statement and his engagement with those of us who have employees
:08:06. > :08:09.who work in the areas concerned mine in relation to Luton. I would be
:08:10. > :08:15.very grateful if he could indicate what reassurance is being given to
:08:16. > :08:19.PSA to recognise that part of the strength of the Luton plant arises
:08:20. > :08:24.from the quality of the supply chain and the investment that is being
:08:25. > :08:27.made in it over recent years, and that you can give some reassurance
:08:28. > :08:31.that understanding that will help to secure those jobs not just at Luton
:08:32. > :08:38.but also in the supply chain which is so important to the Home Counties
:08:39. > :08:42.areas around Bedfordshire. It is both the workforce directly employed
:08:43. > :08:46.by Vauxhall, but also the substantial employment in the supply
:08:47. > :08:51.chain, and both are very important. So this has been part of our
:08:52. > :08:56.discussions. I think there is every opportunity, and I will be vigorous
:08:57. > :08:59.in pursuing it, to expand the supply chain that supplies have not only
:09:00. > :09:02.the Vauxhall plants but other plants in this country, and in the context
:09:03. > :09:07.of our industrial strategy, this is one of the avenues in which we
:09:08. > :09:14.intend to expand on during the months ahead. I congratulate the
:09:15. > :09:38.honourable member for securing this urgent question, and I welcome the
:09:39. > :09:40.comments from the Secretary of State with regards guarantees and
:09:41. > :09:44.short-term jobs. Workers are clearly going through uncertainty at the
:09:45. > :09:45.moment. I also know from manufacturing plants in the past
:09:46. > :09:50.that just being efficient alone does not necessarily protect you from
:09:51. > :09:53.wider politics. It is also quite clear from some media vox pops that
:09:54. > :09:57.some are concerned about the impact of Brexit going forward, given the
:09:58. > :09:59.wider area in France they are combining with. So to complete the
:10:00. > :10:06.question, what guarantees has the Secretary of State got for the
:10:07. > :10:09.supply chain in terms of components, given in that it will be a much
:10:10. > :10:13.larger multinational company. Any discussions about the UK being out
:10:14. > :10:16.with the customs union, and what effect that would have. And also
:10:17. > :10:18.what discussions has he had with the Chancellor about revision of RND
:10:19. > :10:20.money, I'd have the so called investment fund which is clearly
:10:21. > :10:23.needed to do what it says to support these plants and continued
:10:24. > :10:28.development of electric vehicles and battery storage? I am grateful to
:10:29. > :10:33.the honourable gentleman for his question. On the first point, it is
:10:34. > :10:37.evident that these discussions are about the restructuring of GM's
:10:38. > :10:43.operations, and are not tied to Brexit. In terms of the supply
:10:44. > :10:44.chain, I think there are opportunities. It has been very
:10:45. > :10:48.clear that PSA have been talking about expanding their production.
:10:49. > :10:54.That should create further opportunities in the supply chain.
:10:55. > :10:56.And in terms of research and development, this has been an area
:10:57. > :11:00.of our success, it has been recognised by companies in the
:11:01. > :11:04.sector, and in the industrial strategy challenge fund that was
:11:05. > :11:08.announced in the Autumn Statement, we made a specific commitment to
:11:09. > :11:13.expand our research into battery technology in particular. That would
:11:14. > :11:19.be very attractive to suppliers in this sector. Can I ask the Secretary
:11:20. > :11:23.of State what he has learned of PSA's plans to build ultralow
:11:24. > :11:30.emissions vehicles in the United Kingdom, whether they are electric,
:11:31. > :11:34.hydrogen or LPG. There will be increasing demand in the future, not
:11:35. > :11:38.least as we meet our air quality objectives. He is absolutely right,
:11:39. > :11:41.and we have had many discussions about the opportunities for
:11:42. > :11:46.expanding the provision and manufacture of ultralow emission
:11:47. > :11:51.vehicles. We have a very good reputation in this country as a
:11:52. > :11:54.hotbed of research. PSA do want to and are expanding their provision of
:11:55. > :11:56.that, and I'm determined that we should seize the opportunity that
:11:57. > :12:04.that gives us to go from strength to strength in our sector. The plants
:12:05. > :12:07.at Luton and Ellesmere Port are productive and have a highly skilled
:12:08. > :12:13.workforce which any company would be proud to employ. This is not a
:12:14. > :12:17.basket case industry. However, in the face of strong foreign
:12:18. > :12:19.government support, we lead an active and interventionist
:12:20. > :12:24.government determined to safeguard these competitive skills and
:12:25. > :12:28.manufacturing assets for Britain. If the new enterprise plans to become
:12:29. > :12:33.profitable in moving production of Opel cars to PSA SMB lands, what
:12:34. > :12:39.specific things will Government pledged to do both to win the new
:12:40. > :12:46.model Astra for Britain, and also to continue the automotive supply chain
:12:47. > :12:49.in this country. Identifying anyone in the French or German Governments
:12:50. > :12:53.would think we have been anything other than completely active in
:12:54. > :12:59.promoting the strengths of the UK. He is absolutely right, the presence
:13:00. > :13:05.of factories in this country is not a matter of altruism. They are
:13:06. > :13:18.efficient and make a great contribution to this country. The
:13:19. > :13:24.training and development of the workforce, we need to keep them
:13:25. > :13:31.equipped for the future. As it develops a renewed commitment to
:13:32. > :13:41.research and training in the auto sector.
:13:42. > :13:46.Subtitles will resume on Monday In Parliament at 2300.