Bombardier

Barry Gardiner Excerpts

Thursday 22nd November 2018 Commons Chamber

[Barry Gardiner (Brent North) (Lab)]

I thank the Minister for his statement. I would like to say, “And for advance sight of it”, but, as he will know, that was hardly the case. Indeed, when it was emailed to me less than 25 minutes before the end of business questions, I texted back to my office to ask whether it did indeed end at that point. I was advised, “Yes, that’s it.” That most certainly is not it. Bombardier’s presence is vital to the economy in Northern Ireland, representing 8% of Northern Ireland’s GDP and about 40% of the Province’s manufacturing output. The company employs 4,000 people across Northern Ireland as a whole, so this announcement will be a devastating blow, and not only to the 490 families who will be directly affected by it in the run-up to Christmas, because this involves an estimated 20,000 indirect jobs throughout the UK supply chains and many of those families may also be affected by the company’s decision. Downsizing its UK operations has significant implications for the whole of the UK and this matter is therefore of national public policy importance. For the Minister to say that the Government have no role here is simply unacceptable.

I visited the plant in Belfast last year when the company was under attack from President Trump in his attempt to impose tariffs of 292% on Bombardier aircraft exported to the US. I spoke to the unions there and I know what a relief it was when those unfair tariffs were not applied as a result of a ruling by the International Trade Commission and Commissioner Meredith Broadbent, whom I also met when I visited Washington to argue Bombardier’s case. I pay tribute to the way in which both Unite and GMB worked with Michael Ryan and Bombardier’s management at that time to fight those job losses, but I am sure the whole House will be disappointed that the same spirit of co-operation appears not to have been the case here and that Jackie Pollock, the Unite regional secretary, has indicated that the unions were not made aware of the extent and scale of the job losses that the management were contemplating. The trust and co-operation that was built up last year should have been respected and maintained, particularly when the company reported a 57% rise in its profits only nine months ago.

The industry is not unused to coping with fluctuations in the workforce. In May 2015, at least 220 jobs were lost. In February 2016, it was announced that about 20% of the Northern Ireland workforce would go, with 580 jobs lost in 2016 and 500 in 2017. In April 2016, those job cuts were revised up from 580 to 630. In September and October 2017, another 375 job cuts were announced. These 490 proposed job losses are just the latest in a long line of redundancies at Bombardier. There have been more than 1,700 since May 2015. Such huge cuts to the workforce, so highly concentrated in one area, will have devastating consequences for entire communities. The company has said that the job cuts are part of a global drive to cut costs, but a disproportionate number of the 5,000 Bombardier jobs to be cut globally are in Northern Ireland, representing more than 10% of the workforce there. Bombardier represents 8% of Northern Ireland’s GDP and 40% of its manufacturing output.

What recent discussions has the Minister had with Bombardier regarding the global restructuring plans? Has he received any suggestion from the company that its restructuring plans have been influenced in any way by Brexit? When will he be travelling to Northern Ireland to meet the unions and the families affected? What discussions has he had with the Secretary of State for Northern Ireland about securing alternative inward investment into Northern Ireland? What provision will be put in place for advice and support for the affected families? Has he spoken yet to Invest Northern Ireland and the officials at the Department for the Economy about the future of manufacturing in the Province? Finally, many ordinary people in Northern Ireland wish to know when the Government will make serious efforts to get the Northern Ireland Assembly back up and running so that issues such as these can be properly responded to at a local level.

[Richard Harrington]

I have a lot of time for the hon. Gentleman, and I have many private conversations with him. I know that he is generally a positive person, so I feel disappointed at the way in which he has talked down Northern Ireland and its economy in his response to the statement. There is a lot of good news coming from Northern Ireland. For example, the recent significant investment by Artemis Technologies has shown that the economy of Northern Ireland is expanding. A lot of the expansion is technology-based around aerospace, and Bombardier—we usually call it Shorts, as that is what it was originally—is very much part of that. We have also had the announcement of the Belfast city deal, which is worth about £350 million, so I do not write off what is happening in Northern Ireland at all.

The hon. Gentleman mentioned tariffs. I have broad shoulders—just as you said you had, Mr Speaker—but I disagree with his implication that the Government did not do a huge amount in dealing with the United States authorities. This was not just a trip to Washington with a press release; we had continual meetings with the State Department, and my right hon. Friend the Secretary of State met the Commerce Secretary several times. The outcome was the result of all of us—Bombardier, the Government, the Northern Ireland Office and the unions, as the hon. Gentleman correctly said—pulling together. That was an example of the trust between all of us.

I have jotted down the hon. Gentleman’s questions and I shall try to answer some of them. This is not a Brexit issue. That was confirmed to me this morning in my discussions with Mr Michael Ryan. The hon. Gentleman asked about my discussions with the Secretary of State for Northern Ireland. I have many such discussions, including from a sedentary position today as I am pleased to say that she is sitting beside me on the Front Bench. We discuss Bombardier a lot. The hon. Gentleman also asked what dealings the Government had had with the company, and I can tell him that they are regular and ongoing. Only this week, a team of officials from the Department for Business, Energy and Industrial Strategy visited the company. On the question of whether they discussed what was announced yesterday, I can tell him that that was not the case. Clearly, the company has to deal commercially, and it discussed this matter with us—and, I presume, with the trade unions—when it put out its statutory notice yesterday. As soon as I heard about it, I contacted the company, as did my officials. I spoke to Michael Ryan on the phone this morning and I have arranged to meet him in London this afternoon. This is not something that we take lightly, because we know that—as the hon. Gentleman fairly pointed out—the impact in Belfast of anything that happens to Shorts can be very serious.

I am always delighted to see the unions. In fact, I met them on my first visit, when I had just taken over this job, to Bombardier in Belfast. Although they might not agree with me on some things, I hope they would agree that my door is always open to them—not just in respect of Bombardier, but for aerospace generally and for the automotive sector and all the other sectors that I deal with. I have benefited from the knowledge I have got from speaking directly to unions, not only nationally but at plants when I visit them.

I am not in any way implying or insinuating that this is good news—it is not very good news at all—but I accept the fact, and hope the hon. Gentleman does, that Bombardier’s main concern is that it is dealing in a very competitive international market. It has competition coming up in Russia, China and elsewhere and is fighting hard for every contract it gets, so it has to make sure that the company is efficient.

I am pleased that the technology that I saw is absolutely first class and that the Government are part of that work. We have support from the local MPs, and I was delighted to deal regularly with the hon. Member for Belfast East (Gavin Robinson), whom I see in his place. I commend him on his work to help with everything that we have done on Bombardier. [Interruption.] Mr Speaker is getting impatient, so I shall sit down.