Urgent Questions - Opel-Vauxhall House of Commons


Urgent Questions - Opel-Vauxhall

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To Speaker, this morning, the boards of General Motors and the PSA Group

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announced plans for PSA to acquire GM's Vauxhall/Opel operations. The

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proposed deal is expected to be completed by the end of this year.

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The Prime Minister and I have been engaged in discussions with both GM

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and PSA and the French and German governments to ensure that the terms

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of the agreement could give confidence to Vauxhall's workforce

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now and for the future. Vauxhall is an iconic and successful British, a

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factor. Vauxhall cars have been made in Britain for 130 years, and we are

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determined that they should continue to be for many years to come. The

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car plants at Ellesmere Port and Luton have a proud record is among

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the most efficient in Europe, with workforces that are skilled,

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committed and flexible. Both PSA and GM have confirmed to the Prime

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Minister and me a number of important commitments. But the

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company will honour the agreements they have with the Vauxhall

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workforce. But Vauxhall pensioners will be at least in as good a

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position as they are today. That the treatment of the UK division will be

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equal to those of other countries within the Vauxhall Opel group. But

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the identity of Vauxhall will continue to be distinct and

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prominent. That the strategy of the new company will be one of building

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on existing strengths and commitments, not on planned

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closures, taking opportunities to increase sales around the world. And

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that the company would work with me and the rest of the automotive

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sector to ensure that it can participate in the substantial

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programme of research and investment innovation, in areas like electric

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vehicles and battery technology, which we have as part of our

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industrial strategy. This morning I had a further conversation with my

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French counterpart the industry Minister, and he spoke to his German

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counterpart to agree a consistent approach. I speak frequently with

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Len McCluskey, the general secretary of the largest trade union in

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Vauxhall, and I have and will keep colleagues with particular

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constituency interests updated at all times. It is in everyone's

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interest that Vauxhall should look forward to a successful future. A

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generation ago, the British kind of tree was one that epitomised our

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economic woes. Today, that industry is a beacon of success. Companies

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invest in Britain because our automotive sector has a high quality

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workforce, world-class efficiency and is one of the most exciting

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places on earth for innovation and research in new technology. The

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future of the motor industry is bright in Britain, and we will be

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active at all times are doing everything we can to make it

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brighter still. I thank the Secretary of State for that positive

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response, however there are a number of issues about which I would like

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further clarification. Firstly, although I welcome PSA's promised an

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existing contract, I am deeply concerned about the 40,000 workers

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currently employed in Luton and Ellesmere Port and in the wider

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supply chain who will be worried about the future of their jobs

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today. Can the Secretary of State confirm what assurances he has

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personally received of the future of Vauxhall's plants on wider UK

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workforce beyond existing contracts? In addition, during his discussions

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with PSA, did they confirmed that the production of the new Astra

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model would take place in the UK? Secondly, there has been some

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commentary about the ?1 billion deficit in General Motors' general

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pension scheme, with some commentators stating it could have

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jeopardised the deal. The scheme has 15,000 members and is one of the

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largest in the UK. Can the Secretary of State assure the House that the

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pensions of the UK workforce are guaranteed in full? Thirdly, it is

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increasingly clear that the Government has little power to

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ensure that certain corporate takeovers are in the public

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interest, and accord with Britain's industrial strategy. The present

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legislation allows intervention only in matters relating to national

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security or media concentration, so can the Secretary of State confirm

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whether he plans to broaden the definition of public interest, for

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example to serve stakeholders not just shareholders, and when will he

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published draft legislation to this effect if this is the case? Finally,

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can the Minister confirm what support has been offered to PSA

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following Britain's exit from the European Union? We welcomed Nissan's

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decision to remain in the UK as a result of assurances provided by

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this Government. Has PSA been offered the same deal? If so, would

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it not make sense for the Government to set out its strategy for this

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sector as a whole rather than enlightening businesses one crisis

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at a time. I am grateful to the honourable lady for her questions.

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These have been worrying times for the workforce over the last two

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weeks, and I think the statements that have been made by both parties

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today have been welcomed, not just by me but by the trade unions as

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being very much steps in the right direction. It is very important that

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we should hold the company to account for this. So in terms of the

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points that she mentioned, the company has said that it will honour

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the agreement they have with the company and with the unions. They

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extend to at least 2021 in the motor industry as she will know, new

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models come in at various points in the cycle, we are fortunate that

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both of the principal models in the UK are quite early in the cycle, and

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I want, as I'm sure she will want, for both plants to be competitive in

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expanding their production in the years to come. In terms of the

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pensions, this was something that I discussed in detail and regularly

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with GM and with PSA. They have given an absolute commitment that no

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pensioner, current or prospective, will be worse off in any way, and of

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course the pensions regulator, independent of Government, is

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required to confirm any changes in pension arrangements. In terms of

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the takeover regime generally, she will know that this is one overseas

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owned company being taken over by another, so it is not a listed UK

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company that would fall within the UK merger regime, but I in

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discussions with my counterparts in France and Germany have agreed that

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we should be taking a consistent approach in the assurances that are

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needed, and the trade unions are equally in contact with their

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opposite numbers in other countries. And in terms of the support that is

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available for the automotive sector, as I mentioned the colleagues a few

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moments ago, the automotive sector has been a great success in this

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country. One of the foundations of that success is the cooperation that

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we've had, government sector, but within the sector through the

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automotive Council to invest in research and develop and,

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particularly in electric vehicles and battery storage to make sure

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that we have institutions to train the future workforce. But has been a

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great success, and the future owners of Vauxhall, I hope, will

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participate in the same way as other successful motor industry players.

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Thank you, Mr Speaker, and I thank my right honourable friend both for

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his statement and his engagement with those of us who have employees

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who work in the areas concerned mine in relation to Luton. I would be

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very grateful if he could indicate what reassurance is being given to

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PSA to recognise that part of the strength of the Luton plant arises

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from the quality of the supply chain and the investment that is being

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made in it over recent years, and that you can give some reassurance

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that understanding that will help to secure those jobs not just at Luton

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but also in the supply chain which is so important to the Home Counties

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areas around Bedfordshire. It is both the workforce directly employed

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by Vauxhall, but also the substantial employment in the supply

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chain, and both are very important. So this has been part of our

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discussions. I think there is every opportunity, and I will be vigorous

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in pursuing it, to expand the supply chain that supplies have not only

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the Vauxhall plants but other plants in this country, and in the context

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of our industrial strategy, this is one of the avenues in which we

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intend to expand on during the months ahead. I congratulate the

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honourable member for securing this urgent question, and I welcome the

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comments from the Secretary of State with regards guarantees and

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short-term jobs. Workers are clearly going through uncertainty at the

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moment. I also know from manufacturing plants in the past

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that just being efficient alone does not necessarily protect you from

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wider politics. It is also quite clear from some media vox pops that

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some are concerned about the impact of Brexit going forward, given the

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wider area in France they are combining with. So to complete the

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question, what guarantees has the Secretary of State got for the

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supply chain in terms of components, given in that it will be a much

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larger multinational company. Any discussions about the UK being out

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with the customs union, and what effect that would have. And also

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what discussions has he had with the Chancellor about revision of RND

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money, I'd have the so called investment fund which is clearly

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needed to do what it says to support these plants and continued

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development of electric vehicles and battery storage? I am grateful to

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the honourable gentleman for his question. On the first point, it is

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evident that these discussions are about the restructuring of GM's

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operations, and are not tied to Brexit. In terms of the supply

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chain, I think there are opportunities. It has been very

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clear that PSA have been talking about expanding their production.

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That should create further opportunities in the supply chain.

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And in terms of research and development, this has been an area

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of our success, it has been recognised by companies in the

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sector, and in the industrial strategy challenge fund that was

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announced in the Autumn Statement, we made a specific commitment to

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expand our research into battery technology in particular. That would

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be very attractive to suppliers in this sector. Can I ask the Secretary

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of State what he has learned of PSA's plans to build ultralow

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emissions vehicles in the United Kingdom, whether they are electric,

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hydrogen or LPG. There will be increasing demand in the future, not

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least as we meet our air quality objectives. He is absolutely right,

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and we have had many discussions about the opportunities for

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expanding the provision and manufacture of ultralow emission

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vehicles. We have a very good reputation in this country as a

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hotbed of research. PSA do want to and are expanding their provision of

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that, and I'm determined that we should seize the opportunity that

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that gives us to go from strength to strength in our sector. The plants

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at Luton and Ellesmere Port are productive and have a highly skilled

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workforce which any company would be proud to employ. This is not a

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basket case industry. However, in the face of strong foreign

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government support, we lead an active and interventionist

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government determined to safeguard these competitive skills and

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manufacturing assets for Britain. If the new enterprise plans to become

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profitable in moving production of Opel cars to PSA SMB lands, what

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specific things will Government pledged to do both to win the new

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model Astra for Britain, and also to continue the automotive supply chain

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in this country. Identifying anyone in the French or German Governments

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would think we have been anything other than completely active in

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promoting the strengths of the UK. He is absolutely right, the presence

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of factories in this country is not a matter of altruism. They are

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efficient and make a great contribution to this country. The

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training and development of the workforce, we need to keep them

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equipped for the future. As it develops a renewed commitment to

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research and training in the auto sector.

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Subtitles will resume on Monday In Parliament at 2300.

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