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