Lower Thames Crossing

Debate between Jackie Doyle-Price and Stephen Metcalfe

Tuesday 14th January 2014 Westminster Hall

[Jackie Doyle-Price]

My hon. Friend pre-empts much of what I was about to say. I completely agree with him. That is really the mistake in the present options before us—to be honest, they are just lines on a map. They are sticking plaster, informed more by cost than by what is in the best interests of developing a sustainable road infrastructure that will actually meet the needs of our growing economy. We all have great ambitions for the Thames Gateway as a powerhouse of economic regeneration, but they will not be realised unless we have adequate road infrastructure in place. That means developing a new lower Thames crossing much further east so that we open up the whole of south Essex and north Kent to new opportunities.

My hon. Friend the Minister will be aware that the two options still under consideration both go through my constituency, but I must say that my objections are not based on nimbyism. My reasons for opposing them relate entirely to the resilience of the road network, by which I mean both the local and the strategic road network. On the local network, Thurrock is a major logistics hub with substantial port infrastructure, so a functioning road infrastructure is crucial to our continued economic success. I advise the Minister that the problems caused by traffic congestion are without doubt the biggest issue in my postbag. I hear from not just residents, but businesses, and they tell me that it is costing them jobs and business.

I am concerned that although the Highways Agency will advise the Department for Transport about the effect on the national road network, insufficient consideration has hitherto been given to the impact of either option on the local road network. I am sure that my hon. Friend the Member for Dartford (Gareth Johnson) agrees with me. The reality is that either option A or C—the two still under consideration—would have a critical impact on Thurrock’s local network.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

I congratulate my hon. Friend on securing such an important debate. She is talking about the resilience of the road network and the economic potential of south Essex. Of the two remaining options on the table, A and C, does my hon. Friend agree that as well as not addressing or helping to deliver the full economic potential of south Essex, option C would also have an incredible environmental effect by dividing an established rural community and wrecking one of the most significant remaining rural parts of south Essex.

[Jackie Doyle-Price]

My hon. Friend is entirely right to identify that environmental impact of option C, which is perhaps the biggest barrier to that option. In addition, option A would have a significant effect on air quality. Taken together, both of those impacts—we are talking about serious environmental damage—show that we are looking at the wrong options.

I would like to say a little more about option A, which, as my hon. Friend the Member for Dartford said, is at the site of the existing Dartford crossing. I understand the Highways Agency’s reasons for recommending option A—I have been down to the control room.

--- Later in debate ---

[Jackie Doyle-Price]

I will resume my critique of option A. As I was saying, it is the Highways Agency’s preferred option, due to the current challenges of managing traffic flow into the tunnels. However, as things stand, Thurrock routinely experiences gridlock whenever there is an incident at the Dartford crossing, and that would only get worse if option A was chosen. To give an example, over the Christmas period, the bridge was closed on three occasions due to high winds. Those in my constituency who live inside the M25, including myself, are totally cut off when such incidents take place. The traffic conditions are utterly miserable. On 23 December, it took me 105 minutes to travel two miles between Lakeside shopping centre and my house. Dartford crossing may be part of our strategic road infrastructure, but when things go wrong, it has a great impact on the local road network in Thurrock. To add insult to injury for the local users who crossed via the tunnels, the tolls continued to be levied during the disruption, after many commitments that at times of serious congestion they would be lifted.

The Minister will also recall the security incident that took place last September, when both the bridge and the tunnels at the Dartford crossing were closed. The disruption that that caused illustrated clearly how dependent the road network is on that one crossing, which makes the argument strongly that any new crossing should be not at that location but at a new one. In my view, the interests of the strategic road network would be best served if we considered creating a new outer ring road to complement the M25. That brings me to what is wrong with option C, which would link up on the north side with the M25 and the A13, which is already severely congested.

Another issue with option A that the Minister should reflect on arises from representations made to me by Vopak, which has a fuel terminal sited just east of the Dartford crossing. Vopak has advises me that if option A were to be built, it might require the closure of Vopak’s West Thurrock terminal. That would have serious implications for the resilience of the fuel supply to London and the south-east. That is the final nail in the coffin of option A—I hope.

I am aware that option C has generated considerable support from the local enterprise partnership, not least because it is also supported by Essex and Kent county councils. To be fair to Kent, it has developed its own vision of how the road network should look on the south side, but, unfortunately, that type of thinking has not really been done on the north side. As I have said, the result is that there would be greater burdens on the M25 and the Al3, so, for me option C is not the answer.

I remind the Minister that at the time of the 2009 study, there were two further options, D and E. I believe those options might lead to the creation of a proper new orbital road, which would add significantly to our road transport infrastructure, but it appears that they have been ruled out on the basis of cost. Dare I say to the Minister that that is a false economy? Sooner or later, we will have to build a new outer ring road, particularly if we are to realise the economic potential of the Thames Gateway. It is also worth bearing in mind the additional connectivity of the eastern region that such a road would create. It would add to the connectivity of Stansted airport, which would help us to deal with our aviation capacity challenges. In particular, option D—a crossing at Canvey—would allow connectivity with the Al30, which is a very under-utilised road.

I am very aware that what I am suggesting would slow down the timetable for the new crossing, but it is really important that we get the right solution to this problem and that we do not just apply a sticking plaster.

[Stephen Metcalfe]

My hon. Friend is making some powerful points, particularly about option C. To maximise the potential for future growth in south Essex, does she agree that looking again at options D and E would also allow us to make the most of Southend airport, which is now a growing hub and making great strides in providing additional airport capacity? Now, if someone wants to get to Southend, they have to come all the way to the M25 and then go out along the A13. A new outer ring road might start to address that problem.

[Jackie Doyle-Price]

My hon. Friend makes an excellent point that illustrates again the importance of looking at transport issues not just in terms of rail, roads, or airports, but in terms of the whole picture. Let me remind those people just down the river at city hall who talk about a Thames estuary airport that we already have one at Southend. It is very popular with my constituents because going there is almost as nice an experience as going to London City airport—you will know that, Mr Streeter, if you have ever used it. If you are flying short-haul, I recommend that you use Southend. My hon. Friend is entirely right about that.

I am really disappointed about this entire debate. I congratulate Kent county council on the work that it has done. It has taken the 2009 study and used it as a prompt to develop its vision of what it needs for its road network, so it is very disappointing that that type of thinking has not taken place on the north side of the river. Essex county council and Thurrock borough council should hang their heads in shame, because we are now on the back foot as we respond to these proposals. In 2009, the highways engineers of those two authorities should have sat down and come up with a sensible solution. Actually, there is evidence that Southend council is starting to do that—as my hon. Friend pointed out, the council is recognising the opportunities, with its growth strategy based around the airport. Nevertheless, all this shows that communities can be very badly let down by poor leadership of their local authorities. We are now having to respond to decisions that are being made without being at the table, and that is regrettable. However, never say die. Both my hon. Friend and I are loud in being champions for our communities, so we will try to shift the agenda ourselves. Having said that, it is rather difficult, because—as I have said—we are on the back foot.

I make a real pitch to the Minister please to look again at option D, a crossing at Canvey. Look at how that crossing would connect with the A130 and look at the impact that the other options would have on the M25 and A13. I must point out that the A13 is only dual carriageway after Tilbury docks, which again shows the weakness of Essex and Thurrock councils in responding to the road traffic infrastructure challenges facing them, to which they should respond more strongly if we are to maximise our economic competitiveness. I know that what I am suggesting will slow things down, but I implore the Minister to bring to this issue the long-term vision and thinking that the Department for Transport has brought to aviation and particularly to rail, including the development of High Speed 2. I say that because this project is an investment that will bring more bang for the Department’s buck.

In closing, I thank the Minister and the Department for responding positively to the requests that we made locally for investment in junction 30 of the M25, which will go a long way to help tackle the problems affecting the M25. I also thank him for the concessions that he has given the residents of Dartford and Thurrock for use of the Dartford crossing, which are very welcome and have gone down well. The Department has always engaged very openly with representations made to it, and I hope that he will reflect on the representations that have been made to him today in the same spirit.

I will put one last thought into the Minister’s head. The options before us are based on bridges and tunnels, but if we are to take a longer-term view, an interim solution may be needed. I simply point out that the Woolwich ferry carries a million vehicles a year. Perhaps we should look at the potential of ferries to boost crossing capacity on the Thames.

Ford and Visteon UK Ltd

Debate between Jackie Doyle-Price and Stephen Metcalfe

Thursday 12th December 2013 Commons Chamber

[Stephen Metcalfe]

I have not, but I have confined my research to this issue. There was a trend back in the late 1990s and early 2000s for large motor companies to spin off their parts manufacturer and create separate entities, but Visteon never had a chance, certainly in the UK, as demonstrated by its profit and loss. It never made a profit, and no company that never makes a profit can succeed. Inevitably, in March 2009 Visteon collapsed, shortly before the global corporation went into chapter 11 in the United States. Following the collapse in the UK, it emerged fairly quickly that the UK pension fund was underfunded to the tune of about £350 million. That required the pension fund to be placed in the Pension Protection Fund for assessment, which ultimately left former Ford employees with much reduced pensions. Some suffered cuts of up to 50% to a pension they had paid into and had earned. Indeed, my constituent Dennis Varney, who has been leading the campaign so vigorously with me in the past few years, told me his story and I would like to share it with the House.

Dennis joined Ford in 1967 as an apprentice toolmaker. He studied, worked, gained qualifications and got promoted. In 1973, he became a press toolmaker. In 1976, he transferred to the Basildon radiator plant and became responsible for maintaining press tools and related equipment in the manufacture of heat exchange components. In 1978, he was promoted again, with responsibility for the press shop. In 1986, he was promoted to senior manufacturing engineer and then to a management position in 1990. He went to university to study between September 1998 and 2000, and completed a degree course in engineering manufacturing. In 2000, he was transferred to Visteon UK after more than 32 years with Ford. At Visteon he held a management position in a simultaneous engineering group, and had 20 engineers reporting to him directly. In 2006, after 38 years of combined service, Dennis retired. He had worked a lifetime for a company he respected and trusted, and looked forward to a well-deserved and well-earned retirement. We can therefore imagine his dismay—I put it mildly—when Visteon collapsed and his pension was cut by almost 50%. What had he done to deserve this, other than provide decades of loyal service? This was Ford’s response to the plight of Dennis and the many others affected:

“While Ford recognises the severity of the situation for former Visteon UK employees, Visteon became an independent company in 2000 and was responsible for its own business decisions…Ford fully fulfilled both its legal and moral responsibilities to former Visteon UK employees.”

I, for one, do not think it did. I do not intend to comment on whether it fulfilled its legal obligations, as that matter may well go before the court. I remind Members of the words of Madam Deputy Speaker—to be cautious in what they say. Let me say, however, that in my view Ford has not met its moral obligations.

[Jackie Doyle-Price (Thurrock) (Con)]

I congratulate my hon. Friend on all the work he has done to try to secure justice for the Visteon pensioners. On that specific point and to avoid this situation in future, would he welcome the Government reflecting on the legal obligations of employers to employees who have their rights transferred to a spin-off company? One big weakness in this case is that the employees who transferred did not have access to good financial advice. We need to ensure that protections are in place for workers.

[Stephen Metcalfe]

My hon. Friend makes an excellent point. The root of the issue does not lie at the door of the Government, but the Government can do more to protect workers, particularly on how the Pension Protection Fund cap operates when long service is involved. The Government need to ensure that people receive proper, independent, sound financial advice when they are transferred to a new pension fund. That would be a good and sensible step forward.

This is not a personal issue and I have no particular beef with the individuals I have dealt with at Ford. I have great respect for those who have worked with me on this issue over the past three and a half years—the former Ford UK chairman, Joe Greenwall; Christophe Clarke from the government affairs team; and, most recently, the director of government affairs, Madeleine Hallward—but is time for Ford globally to face up to its responsibilities and to do the right thing. I, with colleagues across the House, have been campaigning on this issue for nearly four years and we want to see it resolved.

Some might argue, agreeing with Ford, that this has nothing to do with Ford, but I disagree. Yes, Visteon was an independent company, but as we have heard from my hon. Friend the Member for Finchley and Golders Green (Mike Freer), it never stood a chance, and someone somewhere knew it. I submit that Ford recognised it could source its parts cheaper from other companies around the world and needed to get rid of its expensive in-house manufacturing plants, so it spun them off. That is what Tim Leuliette said. He said it did not stand a chance: the cost base was too high, the overheads were too high, the labour costs were too high. It was totally out of sync with the running of a profitable motor business, so it was sent floating off on its own into the great blue yonder.

That is why I am calling on Ford to meet its moral responsibilities. It knew that Visteon had no long-term future and that among the casualties when it inevitably collapsed would be thousands of former employees who had given loyal service. Those employees have now suffered serious pension losses. They transferred their pensions from Ford to Visteon in good faith, on the basis of trust. People trusted Ford, so when it gave them its assurances, they took them at face value. Why wouldn’t they?

I would like to quote the words of John Hill, a former Ford employer, then Visteon pensioner, who unfortunately is no longer with us:

“I had absolute faith in Ford, and I trusted them. Although over the years we had our ups and downs, everybody had a great respect for the company and a degree of affection for being part of its traditional values and the ‘family of Ford’. A long heritage, and the fact that they had been around for so long formed part of that trust. I just cannot believe that this could happen, and we have been betrayed.”

Unfortunately, he is one of the pensioners who will never benefit, whatever the outcome of the court case and our campaign.

Trust is important, as is family, and Ford likes to talk about family. When Bill Ford celebrated Ford’s 100th anniversary in the UK in 2011, he said:

“I have always thought of Ford employees, dealers, suppliers and partners as members of our extended family. My visit here has confirmed that belief—it has felt like a homecoming.”

He also said:

“Ford of Britain has a proud heritage…The United Kingdom quickly became the most important market for our cars outside of the United States.”

There is no doubt that Ford UK is a vital cog in the global Ford machine and Ford family, yet “family” is probably not the word that Visteon pensioners would associate with their former employers any longer. Simply put, people trusted Ford, and now they wish they had not. That is sad. Ford is a great company and has the potential still to be great in the future, but it is allowing its reputation to be tarnished by not stepping up to the plate. I am asking, in all good faith and in recognition of Ford’s contribution to the UK, that Ford do what is right by its former employees and resolve this issue. Yes, times are tough for the motor industry, especially in Europe, but this goes further than just a financial transaction; it is about restoring trust in what should be a rock-solid brand and removing a stain from Ford’s rich history.

Finally, I can do no better than refer colleagues and the Government to the wording of the motion. That is why we are here and that is what we want—put simply: justice for our constituents.

Marine Navigation (No. 2) Bill

Debate between Jackie Doyle-Price and Stephen Metcalfe

Friday 19th October 2012 Commons Chamber

[Jackie Doyle-Price (Thurrock) (Con)]

I pay tribute to my hon. Friend the Member for South East Cornwall (Sheryll Murray) for introducing the Bill. I do not think that anyone is unaware of how deeply she cares about the maritime industry and it must be a particular pleasure for her to introduce the Bill today.

It is fairly true that, as my hon. Friend said, many of the measures in the Bill appear arcane. That is because we do not see maritime Bills very often. For those of us on the Conservative Benches, that probably goes to prove that industries thrive best when Governments and politicians do not get in their way. Considering the maritime traditions of this country, it is perhaps a great surprise that we do not talk about them more often. I for one value hugely and am well aware of the maritime industry’s contribution to our economy, particularly in the area local to me in Thurrock, where the port of Tilbury and its associated shipping and logistics interests are so significant for jobs and wealth creation.

As my hon. Friend the Minister takes on his new responsibilities, I ask him not to neglect the maritime sector but not to get in its way either.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Does my hon. Friend agree that unlike airport capacity, with which we know we have a problem and with which we are trying to grapple, port capacity is growing rapidly in the UK? That shows the success of the sector. My hon. Friend will know that it is true because of the presence of the largest construction site in Europe next to her constituency in Thurrock.

[Jackie Doyle-Price]

My hon. Friend makes his point extremely well. I know he has been very proud to witness the growth of that new major port facility in his constituency. The emergence of that port further strengthens the role of the Thames and the estuary in our port infrastructure and the ports in my constituency are looking forward to its becoming functional. They do not view it as competition but think that it will strengthen the maritime sector overall. The interesting thing about my hon. Friend’s comparison with aviation is that a lot of heat has been generated about aviation capacity and, as we have said, the maritime industry tends to be neglected by politicians. Sometimes that is a good thing, but when the Mayor of London makes noise about the availability of the Thames estuary as a potential airport location, he has not thought about its impact on the maritime sector. I hope that the Minister and his colleagues in the Department for Transport will consider fully the impact on the shipping and maritime industries of their considerations about airport capacity in the south-east.

I want to focus on clause 7 and the provisions on port police. I draw the House’s attention to the Register of Members’ Financial Interests, which records that I am an unpaid adviser to the port of Tilbury police in my constituency. Six port police forces serve the ports of Dover, Felixstowe, Bristol, Liverpool, Tees and Hartlepool and, last but not least, Tilbury. The Port of Tilbury police are the second oldest police force in the country. It is the heir to the port of London Authority police force, which followed on from the Thames River police force, which was ultimately merged with the Metropolitan police. We are proud of our historic role in the development of policing in this country.

The point is that when we talk about port police, we are not talking about something separate from the established police forces that people recognise; we are talking about police constables and their powers. That is why clause 7, which will extend the jurisdiction of port police officers, is so important.

As I mentioned, the need for a change to legislation was identified back in 2008, so for me, the clause is extremely belated, and I am grateful to my hon. Friend the Member for South East Cornwall for including it in her Bill, particularly as the Bill contains a number of provisions; it is ambitious, and it is a tribute to her that she has included so many measures in it.

I am sure that many Members will be surprised to learn that there are separate port police forces. Perhaps it is worth reminding the House, and acknowledging, that there are a number of non-Home Office police forces in the UK. The most well known are probably the Ministry of Defence police and the British Transport police. The role of port police forces is to undertake policing activities in port areas. My local port police force in Tilbury polices an area the same size as the City of London. Those Members who have not been to a port may not realise that ports are big communities in themselves and do need a police function. Port police forces are funded entirely by the ports that they serve; they take no resource from the taxpayer.

The six ports with police forces account for more than 40% of the UK’s non-oil traffic, which means that those police forces are the guardians of millions of pounds-worth of traded goods every year. I mentioned that their responsibility is to police the port area. It is worth saying a little bit about exactly what kind of activity that involves. In the public’s mind, the presence of police in a port would tend to be associated with concerns such as drug smuggling, anti-terrorism and immigration control. Those matters are the responsibility of the UK Border Agency, Her Majesty’s Revenue and Customs and special branch, but the port police work in constructive collaboration with those agencies. That is additional support for Government activities—at, I emphasise again, no cost to the taxpayer. Although these constables are privately funded, they enjoy exactly the same rights, responsibilities and roles as any normal constable. They owe allegiance in a personal capacity to the Crown, and they are sworn in by local magistrates.

Clause 7 extends the jurisdiction of port police constables beyond the existing limit of one mile outside the port area. That one-mile jurisdiction is enshrined in the Harbours, Docks, and Piers Clauses Act 1847. I am sure that all Members of the House will recognise that our docks were very different places then. They were places of intensive employment, and faced lots of labour issues, more than anything else. Also, the goods coming into the docks would have been a lot less technical and valuable. The pattern of policing has therefore changed. The fact that there is less employment in ports means that crimes tend to be a lot more sophisticated. The suggestion that the crimes and activities that forces will be involved in can be kept within the realms of the port is an historical anachronism.

Looking at what else has happened in the more than 150 years since the 1847 Act, obviously, there have been changes in patterns regarding holding prisoners in custody and the provision of courts. The reality is that when port police officers are prosecuting offenders for crimes in the normal way, through the Crown Prosecution Service and the courts, most of them have to attend courts beyond that one-mile jurisdiction, and by definition, they then do not have their powers as constable while they are in court. It is a bit dangerous to highlight that issue, but the situation needs to be addressed. Having been the best kept secret, since 2008 the press in Dover have realised that the port police there often act beyond their jurisdiction. That fact is out there and needs to be dealt with. A matter addressed in the House can often be the best kept secret, so we can have a frank debate about it.

Port police officers have to travel all over England and Wales to attend courts, but do not have the powers of a constable when they do so. On occasion, officers have attended court, have been directed by judges to arrest people and have had to explain that they do not have the power to do so. It is important for public confidence that we deal with the issue. As port police officers travel outside their port in marked cars, they are a visible presence and the public expect those officers to act and intervene when something happens—for example, if they came across a scene of crime or disorder, or to stop drunk drivers. At present they cannot do so. We have been looking for an appropriate legislative vehicle to deal with this anomaly.

[Stephen Metcalfe]

Can my hon. Friend give the House any practical examples where officers have not been able to use their powers, whereas under the changes proposed in the Bill, they would have been able to intervene in a crime or misdemeanour and the outcome would have been different?

[Jackie Doyle-Price]

I have been told by the chief constables of both Dover and Tilbury police forces that on a number of occasions officers have been asked to intervene, particularly in episodes of disorder such as street assaults, while they have been out on patrol. In practice, their current status has not prevented them from doing so, but they well know that, if challenged, they would not be able to defend their actions in court. The proposed changes would put everybody on a more secure and legitimate footing.

In making the case for the change, I want to highlight the contribution that port police make to national policing priorities. Although port police are dedicated to serving the ports where they operate, they have, as I said, the same powers as other constables, and much of the work that they do in the port is indistinguishable from and complementary to that of Home Office forces. As was said before, they prosecute crimes in the same way as any Home Office force by sending files over to the Crown Prosecution Service with recommendations for prosecution. Let me illustrate that national contribution with a few examples.

The port of Dover police is the largest of our port police forces and its presence at a busy border crossing means that the Home Office relies heavily on services that it provides. The force’s officers often play a role in detaining people subject to football banning orders. They regularly intercept people with histories of violent crime who are attempting to travel. I am advised that in 2010 the port of Dover police arrested 180 people who were wanted by Home Office forces. That illustrates that they are very much part of the fabric of our police infrastructure.

Both the port of Dover and the port of Tilbury have automatic number plate reading systems installed at the ports, which are connected to the police national computer. As a result, nearly 700 vehicles were intercepted in 2010 by just those two port police forces. Almost all those vehicles had had their details circulated by the police national computer from Home Office colleagues across the UK.

In addition, the work of the port police complements that of the local forces. Many port police forces engage in traffic control outside their ports, for example, thereby preventing traffic gridlock as a result of vehicles queuing to get into the ports. It is also worth mentioning that in the event of a major incident, port police forces are ready to support their Home Office colleagues. From my own perspective, given the number of COMAH—control of major accident hazards—sites that exist in my constituency, they are a fantastic additional resource that the Essex police would be able to call on in the event of a major incident. I know that the port of Tilbury police value and attach great importance to their readiness to support them in serious incidents. It is also worth noting the contribution of the port police forces to our successful Olympics this year. They were very much part of the powers to combat terrorism and made a full contribution to public safety.

[Stephen Metcalfe]

My hon. Friend gives a glowing account of port police. Does she think that our ports would not be so well policed without them, and, if so, would she recommend that the new port being constructed in my constituency next door to hers by DP World, the London gateway port, would be best served by adopting its own police force, rather than relying on those supplied by the Home Office?

[Jackie Doyle-Price]

The power of the port police, as opposed to any other supplier of security provision or support, is that they have the powers of a constable. The strength of that, and the support that we give to our police officers, speaks for itself. The port in my hon. Friend’s constituency has reserve powers to create a force if it so wishes, and I would encourage it to do so. My experience of the port of Tilbury police is that, given the amount of high-value commercial activity in a port, there is every opportunity for serious and organised crime, which requires the expertise and dedication of sworn-in police officers to combat that effectively. To be frank, it will give a level of service that contract providers such as G4S would never be able to provide.

Coryton Oil Refinery

Debate between Jackie Doyle-Price and Stephen Metcalfe

Wednesday 27th June 2012 Commons Chamber

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Thank you, Mr Deputy Speaker, for giving me the opportunity to express the grave concern that surrounds yesterday’s announcement that the Coryton oil refinery in my constituency will close. When the company was placed into administration five months ago, many of us believed that, because of its profitability and its productivity, it would not be long before it found new owners. So, five months later, and with no buyer coming forward to operate the site as a refinery, I have to say that this is a very sad day. I had hoped that this debate would never have to take place.

The intention of my debate before the announcement was to lay out the fact that this was not just another business in administration. I would have explained to the House and the Minister the importance—strategically, economically, socially and historically—of the Coryton oil refinery. Before I proceed, I want to place on record my heartfelt thanks to everyone who has been working so hard over the last five months to keep the refinery operating.

[Jackie Doyle-Price (Thurrock) (Con)]

I associate myself with those comments and pay my own personal tribute to my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe), who has worked tirelessly behind the scenes to bring all the interested parties together. He has done so with dedication to achieving the outcome rather than to generating column inches, which has been the characteristic of some Opposition Members. Does he agree that the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), who will reply from the Dispatch Box today, has also been absolutely sincere in his commitment to achieve a positive outcome for the refinery?

[Stephen Metcalfe]

I thank my hon. Friend for her comments. Yes, I would like to thank the Minister personally for his help and support. I would also like to thank Ministers from the Department for Business, Innovation and Skills and from the Treasury for what they have done to help me work with all those involved to find a solution.

--- Later in debate ---

[Stephen Metcalfe]

Yes. When the company went into administration, finding that all the debt was leveraged against that one refinery must have come as a shock to all concerned. That just shows the mismanagement of the parent company in Switzerland.

Once appointed, the administrators stabilised the situation and began looking for a long-term solution. Two options soon emerged, although I am sure that many others were investigated: sale to a third party and financial restructuring. The financial restructuring process began very well, but it became obvious fairly quickly that there was a large funding gap and it would not be workable. As for the sale side, PWC invited expressions of interest and numerous possibilities emerged, from lift and shift to sale as a refinery and, finally, sale as a fuel terminal, which would give a fuel company greater access to the Thames and therefore to the south-east. The site has always been considered particularly attractive owing to its close proximity to London and its deep water jetty, but ironically those factors are now to be the refinery’s downfall.

I understand that following examination of the offers, a Russian consortium was identified as having presented the most favourable bid. It wanted to operate Coryton as a refinery, thus saving the 900 to 2,000 jobs that it supports. The next best bid came from a bidder that wanted to operate the site as a terminal. In the light of yesterday’s announcement, many have expressed surprise that no one wanted to buy the site as a refinery. Although I do not possess all the details, I do not believe that that is the case. What I do believe is that a number of credible, sustainable bids were presented, but that none of them ultimately exceeded the bid for an alternative use. I shall say more about that later.

Last month, despite all that hard work, the administrators, PWC, made the announcement—which I think we had all prayed we would never hear—that no credible offer was on the table and no one was willing to operate the refinery, and that therefore it was proceeding towards closure. As I have said, I believe that there were credible offers on the table, but that they were not high enough. Yesterday, PWC struck a final blow and announced that it had done a deal with Shell to operate the site as a terminal. The timing of that announcement—before tonight’s debate—made redundant much of the case that I wanted to build to save the refinery, but I ask the House to bear with me none the less.

As Members can imagine, following that announcement the situation has been very fluid over the last 24 hours. The one thing that has been constant is the contact that I have received from numerous parties expressing deep concern about the way in which the administration has been conducted. They talk of great secrecy surrounding the sale; they say that alternative outcomes could have been explored but were not, and that barriers were put up.

Following yesterday’s announcement, I have a better understanding of the events that led up to it, and I think it important to examine those events. My current understanding is that the Russian-led team bid the highest amount, and that the bid was proceeding well until something happened. I have no idea what that something was. I have a number of notions, but I cannot confirm any of them. Whatever happened, however, the upshot—so I am told—was that that information was not communicated properly by the administrators to the buyers. I have to say I find that extraordinary—although in light of my own experiences, not surprising. I still have not been officially informed by PWC that a deal has been done. Although I have attended every stakeholder meeting, I found out yesterday, when the press contacted me—although I did subsequently have an e-mail from one of the partners, Vopak.

[Jackie Doyle-Price]

Naturally, as we have reached the endgame, there is lots of rumour and speculation, and certainly the Russian bid has been trying to get its case across since discovering it has not won. Is there not the following alternative theory, however: far from this having been in the hands of the administrators, a view was taken that perhaps the company in question was not good for the money and was looking for an opportunity to drop the price? Shell is part of the winning consortium, and given that Shell Haven has been closed, and given, too, the supremacy of this location—as my hon. Friend described—would not Shell have gone for any price?

[Stephen Metcalfe]

It is difficult for me to speculate about what might, or might not, have happened and what discussions might have taken place, but I will say that more than one company has been in touch with me.

I find it extraordinary that the administrators, charged with getting the best deal for the bond holders—to whom, after all, they are responsible—did not inform the company with the largest bid at the time that there was some problem or the situation had changed. Perhaps if things had been different and if communications had not broken down, we might have been in a different position. I do not know what happened, but the upshot was that the bid was dropped. I believe that at that point trust broke down between the administrators and the Russian consortium wishing to buy the refinery. For the record, I have been aware for some time that both parties in this main bid were represented by PWC and while I make no comment about the existence of a Chinese wall I would be very interested to hear how both sides view the behaviour of the other, bearing in mind they were both from the same firm.

As I said many times in the run-up to yesterday’s announcement, there has always been another bidder. I am concerned that it might not have been given a fair crack of the whip. I do not know whether that is true. This is a complex situation and I do not pretend to have the expertise required to pick through the detail and assess the quality of the arguments, from both sides, about what happened.