Rolls-Royce (Aerospace Group) Debate

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Rolls-Royce (Aerospace Group)

Jack Dromey Excerpts
Wednesday 5th November 2014

(9 years, 6 months ago)

Commons Chamber
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Matt Hancock Portrait Matthew Hancock
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That issue has not been raised with me directly. However, the question of whether we impose sanctions on Russia, and the question of how we deal with Russia, must be considered in the context of the national interest as a whole. Furthermore, international stability and ensuring that sovereign territory is not violated by other sovereign states constitute a crucial principle of global order, and that in itself means that it is necessary to take sanctions against Russia following its action in Ukraine. Some UK interests may be directly affected, but there is a much bigger picture: the need to ensure that we have a more stable international order.

Jack Dromey Portrait Jack Dromey (Birmingham, Erdington) (Lab)
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As one who, in his former being, dealt with Rolls-Royce and many other companies and conducted many processes of consultation, I find it extraordinary that the Minister should say that the role of the Government is “to help Rolls-Royce to make the changes”. The purpose of any consultation is first and foremost to establish whether proposed changes should go ahead. Given that, in this instance, there are significant national interest issues ranging from defence to engine development, will the Minister meet representatives of the company to establish whether it would be prepared to change its decision in whole or in part?

Matt Hancock Portrait Matthew Hancock
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As I said earlier, I have met Rolls-Royce executives and spoken to them about the decision, as has my right hon. Friend the Secretary of State. Rolls-Royce faces a competitive international environment, and if it is to be successful in the future, it will need to be competitive in the future. As has been mentioned, there have been financial pressures on the company, and it is important for it to defend itself against them. Our job is to support those who are affected, and also to talk to the company while it is making its decisions about who will be affected. It is doing that in a consultative way, which I think is the right approach, and we will continue our own engagement.