Vauxhall at Ellesmere Port and Battery Manufacturing Strategy

Lord Field of Birkenhead Excerpts

Tuesday 2nd March 2021 Lords Chamber

[Lord Callanan (Con)]

There are a number of good proposals around the country, including from Coventry, for the location of gigafactory investment. Ultimately, of course, the decision will be a commercial matter. Ministers and officials are in close discussion with those developing the Coventry proposals, the Blyth proposals and other factories around the country.

[Lord Field of Birkenhead (CB) [V]]

I thank the Government for their statement. What do the Government need to bring to the table? What does Vauxhall need to bring to the table to ensure that we have in Wirral one of the centres for battery production?

[Lord Callanan (Con)]

A bid from Coventry, bids from the north-west, a bid from the Wirral as well—we totally understand that. The noble Lord will understand that these are commercial decisions. We are willing to stand behind companies and help them develop their proposals, but there are a number of exciting proposals in different parts of the country. I have outlined the financial support that is available. With regard to the future of Vauxhall, or Stellantis as it now is, we are in discussions with it; my right honourable friend the Secretary of State has had a number of meetings with it, and senior officials are meeting it. Those discussions remain confidential at the moment but we are doing all that we can to assist.

Nissan in Sunderland

Lord Field of Birkenhead Excerpts

Monday 4th February 2019 Commons Chamber

[Greg Clark]

I gently correct the hon. Gentleman when he talks about disinvestment in Sunderland. It is very important that the House understands that far from being a disinvestment, the commitment that has been given actually involves an increase in the capital investment into the plant. Given that that comes from a company that has other uses for its capital, we should recognise that it is putting more money into Sunderland and into securing its future. With regard to the future, he is right to draw attention to the fact that the reason companies have located very successfully here in this country is partly because of the excellent workforce that we have, partly because of our track record of innovation, and partly because they have had access to a large market that has come from the European Union. It seems to me that we need to continue with all of those.

[Frank Field (Birkenhead) (Ind)]

Have any of the other large car manufacturers in this country sought and gained similar-sized packages of support—I am thinking about Vauxhall—and if they have been refused, why?

[Greg Clark]

As I said in my statement, there has been a regular and long-standing programme of support for companies right across the automotive sector. It is conducted independently. Companies make applications either through the Advanced Propulsion Centre or through the scrutiny of the Industrial Development Advisory Board. This has been a success. Nissan has applied for it, and many other companies have done so as well. For example, I commend the investment that Toyota made in its Burnaston facility. I had the pleasure of opening the production line for the new Corolla there a few weeks ago.

Oral Answers to Questions

Lord Field of Birkenhead Excerpts

Tuesday 8th January 2019 Commons Chamber

[Greg Clark]

The hon. Lady will recognise that our package immediately introduced legislation for those rights that can be legislated for with secondary legislation. Primary legislation will shortly be brought forward for the Business, Energy and Industrial Strategy Committee, which she chairs, and the Work and Pensions Committee to scrutinise.

[Frank Field (Birkenhead) (Ind)]

rose—

[Mr Speaker]

Order. I was not looking for the right hon. Gentleman, although it is always a pleasure to be reminded of the fact of his presence.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

My hon. Friend should know that I have listened carefully to her question. In the first instance, a meeting between myself, herself and a representative from the Department for Transport might be a way to get that moving.

[Frank Field (Birkenhead) (Ind)]

Last week I wrote a letter to the Secretary of State about the taskforce in Liverpool and Birkenhead that wishes to save Cammell Laird from any further redundancies. Will he meet us this week, as a matter of urgency?

[Greg Clark]

I am grateful for the right hon. Gentleman’s advice and his advocacy for a solution to the difficulties that Cammell Laird faces. We are meeting the trade unions and others on Thursday, and I hope he will be able to come to that meeting.

Good Work Plan

Lord Field of Birkenhead Excerpts

Monday 17th December 2018 Commons Chamber

[Greg Clark]

I am delighted to have a history lesson from my hon. Friend. I do not think he was there at the time to witness that important breakthrough, but it is important to remind ourselves, as my right hon. Friend the Member for Harlow (Robert Halfon) did, that the Conservative party has always believed that free enterprise should be associated with high standards for consumers, for workers and for members of our community. That is very much in our tradition, and it has not required imposition from outside this Parliament. We embrace our responsibilities with enthusiasm.

[Frank Field (Birkenhead) (Ind)]

As the Secretary of State knows, we have had reports from Select Committees and from Andrew Forsey and myself on how the gig economy works to the detriment of careworkers, Hermes couriers, Uber drivers, DPD couriers, Parcelforce drivers and Deliveroo drivers who are forced into self-employment against their will. When his package of reforms hits the statute book, will he be able to give all those workers a guarantee that no one in this country will be forced into self-employment against their will?

[Greg Clark]

I am grateful to the right hon. Gentleman and the Work and Pensions Committee for their proposals. He and the hon. Member for Leeds West (Rachel Reeves), the Chair of the Business, Energy and Industrial Strategy Committee, have suggested a Bill so that these measures could be enacted straightaway. We have acted in that spirit, and this day we have tabled a large number of statutory instruments to bring them into effect immediately.

My ambition is exactly as the right hon. Member for Birkenhead (Frank Field) says, that the flexibility of the gig economy is offered rather than compelled, and that flexibility, in the words of Matthew Taylor, should be two-sided, rather than one way. That is the intention of this package of reforms. The Work and Pensions Committee will be rigorous in scrutinising the effects, but that is precisely the intention of the reforms.

Oral Answers to Questions

Lord Field of Birkenhead Excerpts

Tuesday 1st May 2018 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

5. What progress he has made on implementing the good work plan.

[Frank Field (Birkenhead) (Lab)]

24. What progress his Department has made on implementing the recommendations of the Taylor review of modern working practices.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

We are proceeding with work on 52 of the 53 review recommendations made by Matthew Taylor, and we are currently engaged in consultations on how best to implement those measures. We are committed to ensuring that we protect and enhance workers’ rights in the modern economy, and to legislating for that purpose. We will ensure that employment law and practices keep pace with modern ways of working, while striking the right balance between flexibility and worker protection.

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[Andrew Griffiths]

The Government recognise that unfortunately some employers continue to offend repeatedly in this way. We are looking at what further measures we can take in the work plan, and more widely in the work of the Department for Business, Energy and Industrial Strategy, to ensure that such repeat offenders are clamped down on.

[Frank Field]

Given the work that the Business, Energy and Industrial Strategy Committee and the Work and Pensions Committee have done on the gig economy, will the Government undertake to ensure that, when they introduce a Bill based on the Taylor report, we will have a chance to stage pre-legislative hearings?

[Andrew Griffiths]

We have worked closely with the right hon. Gentleman’s Select Committee, and, as he knows, we greatly value his contribution. We are consulting on the work of Matthew Taylor, and I pledge to the right hon. Gentleman today that we will work hand in hand with his Committee to ensure that it properly scrutinises that proposed legislation as it comes forward.

Domestic Gas and Electricity (Tariff Cap) Bill

Lord Field of Birkenhead Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 30th April 2018 Commons Chamber

[Dr Whitehead]

Indeed, but both have equal merit, and I would not want to distinguish between them in what they would add to the Bill. They both have the central concern that vulnerable customers should not be treated adversely as a result of the overall tariff cap coming in. That is the point that I wish to pay attention to. I am sure that my hon. Friend the Member for Leeds West (Rachel Reeves) will also want to do so when she speaks to amendment 9.

[Frank Field (Birkenhead) (Lab)]

Without wanting to enter into a beauty contest regarding whose amendment is best, will not my amendment 1 be quite consistent with what the Government wish to achieve, which is to require Ofsted—I mean Ofcom—[Hon. Members: “Ofgem.”] Yes, Ofgem—or Ofcap, perhaps. The Government wish to require Ofgem to write to companies to ensure that those who are poorest and least likely to change have been offered the best deal by their provider. I promise that by the time I speak to my amendment, Madam Deputy Speaker, I will know which regulatory body it is.

[Dr Whitehead]

Yes, there is certainly merit in that idea. It is true that some of the amendments take some of the specific actions that may be taken a little further than is suggested in amendment 7. However, whichever of the amendments one wishes to pin the first-place rosette on to, the key point is that vulnerable customers need to have proper protection as the tariff cap comes forward.

It is in the Government’s interests, I think, to clarify exactly what they intend the Bill to do regarding that protection. That can easily be done by the Minister clearly stating today, as I hope she will, that vulnerable customers will not lose the current safeguard tariff as the overall tariff cap comes in. Indeed, if the overall price cap consumes the safeguard tariff, vulnerable customers could see their prices could go up by more than £30 as a result of the difference between the safeguard and the absolute tariff. That would, as I am sure she will agree, be a perverse outcome that she would be anxious to disavow.

The Minister will have to clarify for us that the Bill means that Ofgem can bring forward the extended safeguard tariff at the same time as the standard variable tariff cap; that the extended safeguard tariff can continue after the absolute cap has ended; and that she will bring forward the necessary secondary legislation before the summer to enable the data sharing needed to extend the safeguard tariff. I am sure that she will be able to reassure us on these points. I look forward to what she has to say about all the amendments before us.

Amendment 8 seeks to introduce to the Bill the symmetry in architecture that appears to be missing from what Ofgem must consider in introducing the cap. As hon. Members can see, the Bill lists a number of matters to which Ofgem should have regard in setting the cap, which relate to

“protecting existing and future domestic customers who pay standard variable and default rates”.

However, when we cast our eyes forward in the Bill, we see that those conditions are wholly absent from the matters that Often is required to consider when it reports to Government on whether circumstances exist that allow the cap to be terminated, as it is required to do by clauses 7 and 8.

Indeed, there is no guidance in the Bill at all on what Ofgem will have to take into account, except, alarmingly, for one consideration: the extent to which progress has been made in installing smart meters, a provision that, if taken too literally, might mean that the cap will be with us until the end of 2023. Our amendment essentially seeks to place in the outbox—the point at which Ofgem reviews the expiry of the cap—the same considerations that it is required to pay attention to in its inbox when it sets the cap.

Finally, we seek in new clause 1 to start the process of introducing what needs to be in place to ensure that the market works well for customers and does not recreate the anomalies that have led us to where we are today. I have no doubt that there will be a number of such provisions, but in our view one of them should be that the arrangement of tariffs by energy companies should not continue as it is.

That is also the substance of amendment 2, tabled by the hon. Member for Weston-super-Mare (John Penrose), whom I salute for his unflagging work in bringing the idea of a price cap to this point. He introduces in his amendment the suggestion that tariffs should have a piece of elastic on them for each company, to prevent companies from introducing customers to apparently low tariffs initially, only to place them on much higher tariffs when the first offer expires and relying on their loyalty to gain a lot of profit and cause an unfair outcome for customers. That is essentially the instrument that his amendment would introduce, but it is cast as a relative price cap. We do not think it is a satisfactory mechanism for a price cap, but he will no doubt argue his corner. The relative nature of a tariff range restriction means that it can be introduced at any price and is not therefore a cap as such. It is, however, a vital means of keeping prices and fair dealings with customers on a steady trajectory.

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[John Penrose]

Much would depend on the size of the cap on the gap proposed by Ofgem, and much would depend on the rest of the pricing structure of the energy firm in question with regard to where it chooses to put its default tariff. Many of these things are, as my hon. Friend points out, yet to arrive. They are starting to be introduced, but they are a relatively new innovation, with small but growing penetration. He is absolutely right that we need to make sure that we do not disincentivise such tariffs. They certainly will not be to everybody’s taste, but they may be to the taste of an increasingly large number of people.

I would prefer to start from a simple cap—capping the gap—and then have to make a couple of adjustments, rather than making even more complicated something that is, as I have described, already hideously complicated. If we manage to take care of all the complexity and bureaucracy by establishing a link to the competitive switching market—hey presto!—we will have driven a stake through the heart of the rip-off tariffs. Switching supplier would still be worth while, and there would be far fewer jobs for bureaucrats, lawyers and lobbyists. The customer would be king.

My amendments would make a relative cap either possible or required, depending on which version was chosen. I do not expect or intend to press the amendments to a Division, but I want everybody to realise that there is a more competitive, more flexible, less bureaucratic, more customer-friendly and generally better alternative, and that at the moment we are not taking it.

It is not just free market Tories such as myself who think that capping the gap is the right way to go. The Labour Front-Bench team, as we have heard, have tabled an amendment that proposes something similar. They might disagree with my description of it, and they have a fancy-schmancy name for it, but, broadly speaking—as my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) pointed out earlier—the wording is very similar and the amendments would effectively do the same thing.

Labour Front Benchers and I disagree over timing, however. The effect of their proposal would be permanent, whereas ours would be temporary while we fixed the underlying anti-competitive problems in the market. There is, none the less, clear cross-party consensus on the principle, at the very least, so why does the Bill ignore this cross-party opportunity? Why are a notionally pro-competition Conservative Government choosing the less competitive, more bureaucratically inflexible and more complicated version instead? Why are we snatching defeat from the jaws of what ought to be a famous free market victory? I look forward to hearing the Minister’s answer.

[Frank Field]

I will not press my amendment to a Division either, but I am very happy to speak to it for 30 seconds. It is designed to request an undertaking from the Minister that she will ask Ofgem to look at the poorest consumers on which it has data and offer them an automatic switch to the lowest rate that suits their expenditure pattern. On that happy note, because I am sure the Minister will give way later, I shall sit down.

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Amendments 1, 7 and 9 bring us to the extremely important point of how we ensure that the cap does not in any way reduce price protection for the most vulnerable customers. I am proud to say that those customers have, over the past few years, been protected through the prepayment meter cap and through the extension of that price to customers in receipt of the warm home discount. We all believe that that is absolutely vital. Indeed, as the hon. Member for Leeds West said, it would be perverse for the cap to come in and for prices to go up for those customers. The requirements in the Bill for Ofgem to pay attention to its existing powers, which of course include a duty to protect the most vulnerable, are sufficient, and the Bill is in addition to and does not replace or replicate those duties. I am extremely keen to examine the point further without amending the Bill, so I will take it away and consider it to see whether there are other messages that we might convey to Ofgem to ensure that this extremely valuable point is not missed.

[Frank Field]

Might the Minister meet people to discuss amendment 1 further?

[Claire Perry]

There has been a huge amount of scrutiny, and I am hoping that we can get the legislation through to the other place, but my door is open. We want a well-functioning energy market that works for everybody and provides competitively priced energy.

I was asked an important question about the statutory instrument, which is also going through the House, that enables data sharing between the DWP and others. It has completed its pre-legislative scrutiny and will be introduced during the passage of this Bill. It is a vital and necessary part of ensuring that the powers in the Bill work.

GKN

Lord Field of Birkenhead Excerpts

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

That is right, and I would also welcome consideration of these matters. Right from the beginning, I have made a commitment to the House that I would take a considered, comprehensive view and use the powers that I have, and that where I did not have statutory powers, I would say what I expected. When it comes to research and development, to the ownership of assets and, for today’s purposes, to national security, a long-term commitment is required, and it has been important to obtain undertakings in all those areas. I hope that the Committee will take a look at this.

[Frank Field (Birkenhead) (Lab)]

In his statement, the Secretary of State said:

“GKN is a very important business, performing vital work in industries—aerospace and automotive in particular—with an expanding global market in which British innovation and excellence offer great opportunities.”

Does he understand from his regular meetings with Melrose that it is thinking of adapting its business model so that these vital interests can be kept for a longer term than they would otherwise have been? If not, would this British company consider selling first to another British company?

[Greg Clark]

I am grateful to the right hon. Gentleman for his question, because I wrote and said that deliberately. I regard this company, operating in the sector that it does, as having an important long-term role. One of the reasons that there was a vigorous contest for this business was the recognition that there are immense opportunities involved. It is my purpose as Business Secretary to ensure that we reap those opportunities. That is why I requested what was in effect a change to the previous commitments that this company or any other had made, and I was able to do that on the aerospace side. As I said in response to the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), it was clearly not possible to extract another commitment on the automotive business, given that the incumbent management had committed to selling it forthwith. In the spirit of what the right hon. Gentleman has said, I think that he will reflect on what has been obtained for the first time in the UK takeover—namely, a commitment to a much longer-term perspective than had been the case, including the right for the British Government to approve any subsequent purchaser of defence assets—and agree that that is a significant step forward.

GKN: Proposed Takeover by Melrose

Lord Field of Birkenhead Excerpts

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

The hon. Gentleman, who served as a distinguished Defence Minister, knows that these are squarely in the field of national security, for which there are statutory powers on which I will be advised by the Ministry of Defence and the agencies. What I have been discussing today are areas that are outside that statutory regime. There is still a very profound public interest that Melrose should set out its intentions. That is what it has done and that is now in the public domain.

[Frank Field (Birkenhead) (Lab)]

You, Mr Speaker, have a well-known prowess on the tennis court. If I had a fraction of those skills, I would have made it for the beginning of the statement, but I did at least beat the delivery of the statement, so I am immensely grateful to you for calling me.

The Secretary of State talks about the role of the Pensions Regulator. He does not know, I do not know and no pension trustees know on this deal which is the best longer-term buy to go for. Will he put forward and defend the strategic interests of pensioners by waiting for the Pensions Regulator to report to him on where the long-term interest lies, and block the deal if the strategic interests of pensioners are not met?

[Greg Clark]

I am grateful that the right hon. Gentleman made it for the statement. The role of pensioners is of course very important and it is why I set it out there. The Pensions Regulator, as I understand it, has been in discussion with the trustees, and it is for the Pensions Regulator to form its view. The right hon. Gentleman knows very well that media plurality, financial stability and national security are very specific grounds. They do not include, in terms of that statutory regime, the consideration of pensions, but I set out in my letter that I expect that the trustees and the Pensions Regulator should be satisfied that either proposal will operate in the interests of the pensioners.

Vauxhall Factory, Ellesmere Port

Lord Field of Birkenhead Excerpts

Tuesday 20th March 2018 Westminster Hall

[Justin Madders]

Yes, I would like to say that they are, but we are now being judged by a new benchmark. I will go into some detail about how things are being counted against the workforce’s excellent productivity.

The cuts in sales have led to cuts in the workforce, with 400 jobs going in October and another 250 earlier this year. In the past, a downturn has led to agreements between the unions and management about reduced hours to protect jobs, but the new owner, the PSA Group, has shown a different approach. That must act as a warning that we cannot expect any sentimentality from it, and that, as it has said consistently from the day it took over, plants will be judged on their efficiency.

History tells us that the local unions and management are well capable of meeting that challenge, but numerous factors are at play that will impede their ability to do that. It is our job—not just the job of the Opposition, but of the Government—to help them to overcome those obstacles in a highly competitive market.

Let us start with the big challenge: Brexit. Uncertainty across a sector can have a real impact on investment decisions. As we know, investment decisions in the automotive sector are traditionally made three to five years in advance, so decisions about investment in the post-Brexit world will begin to be made shortly.

In that respect, the timing could not be worse, as the current model in production in Ellesmere Port is due to be discontinued around the same time, in 2021. The chief executive of the PSA Group recently said:

“We cannot invest in a world of uncertainty.”

Some might say that is an excuse. Some might call it a distraction. I do not mind what it is called, as long as we do not ignore it.

After the Prime Minister’s Mansion House speech, the PSA Group and other manufacturers in the sector made similar points about the lack of the clarity, so I asked her to provide certainty by confirming that the trading arrangements in the automotive sector will be no less favourable than they are now. I am sorry to say that her answer did not give any clarity and there was certainly no unequivocal guarantee.

[Frank Field (Birkenhead) (Lab)]

Might I put on record what we have spoken about in private, that we should go to see the Secretary of State for Exiting the European Union and push for a sectional deal, particularly for Vauxhall and other companies producing cars and vans in this country? A second stage could be that we get unions and management in France and Germany to effectively lobby their Governments.

[Justin Madders]

My right hon. Friend is absolutely right to say that the sector is too important to be left on its own. It directly or indirectly employs around 800,000 people and generates almost 10% of the country’s manufacturing output. Half of all the UK’s car production is exported to the EU, and that figure goes up to between 70% and 80% for the Vauxhall plant in my constituency.

Domestic Gas and Electricity (Tariff Cap) Bill

Lord Field of Birkenhead Excerpts

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Greg Clark]

I want to make a bit of progress, but I will give way to the right hon. Member for Birkenhead (Frank Field).

[Frank Field (Birkenhead) (Lab)]

On protecting the vulnerable, we know that the most vulnerable do not move around, despite having shining examples of people doing that. Will the Secretary of State consider putting a duty on companies, running alongside capping, which is a key part of the Bill, to put their poorer consumers on the lowest tariff, so that it is not up to them to try to match the skills of the right hon. Member for New Forest West (Sir Desmond Swayne)?

[Greg Clark]

The right hon. Gentleman makes an important point. That is not within the scope of the Bill, which is meant to protect those consumers from the excesses that can be visited on them by the market. The Bill is narrow in scope and particular in its effects.

[Frank Field]

I am pushing the Secretary of State on this, but even if we cannot get an amendment because the long title is drawn so carefully, may I ask him to consider the need to introduce such a measure, so that the poorest constituents are automatically looked after by their company and put on the lowest rate for the range of consumption?