Bombardier

Rachel Reeves Excerpts

Tuesday 10th October 2017 Commons Chamber

[Greg Clark]

In my view, it underlines the importance of securing free trade not just with the European Union but around the world. The essence of a free trade agreement is that we have proper protections and dispute resolution mechanisms on which we can rely, so this issue underlines the importance of continuing free trade. As I say, it is not unusual in the aerospace sector for complaints to be made in one forum or another. I think all parties were expecting the initial determination to be as it was, and said as much. In terms of our work—we will not give up on this—we will fight to secure the legitimate future of this very important part of our aerospace sector, and we will do whatever it takes to do that.

[Rachel Reeves (Leeds West) (Lab)]

I join other hon. Members in saying that I hope this dispute is resolved as quickly as possible in the interests of everybody in Northern Ireland who works for Bombardier or in the supply chain. May I just pick up on a couple of points the Secretary of State made in his statement? First, he said that the Prime Minister had discussed the matter twice with President Trump to ask the US Government to do all they could to encourage Boeing to drop its complaint. While we welcome those sentiments, is the dispute not, in the end, with the US Government rather than Boeing, because it is up to the US Government, not Boeing, to impose sanctions? I hope the Prime Minister is also making that clear, and I just wanted some clarification on that point.

Secondly, the Secretary of State said he had

“travelled to Chicago to meet Boeing’s president and chief executive to make absolutely clear the impact”

on our future relationship with the company. Can he say a little more about what he has said to Boeing about that future relationship, which I am sure Boeing values, with our Government?

[Greg Clark]

I am grateful for the questions from the Chairman of the Select Committee. In terms of the process, only Boeing can withdraw the complaint. There is an administrative requirement on the part of the Department of Commerce to determine, initially, a complaint, hence the desire—and I think it is highly desirable—that Boeing withdraw this complaint. If it will not—and, so far, it has not—it must be determined in a completely fair and objective way. If it is, it will have no merit, and will be thrown out. Both are therefore important, but it would be in the interests of everyone in the workforce and in the country that the complaint be withdrawn so that this uncertainty can be taken away.

In terms of the points that I put to Dennis Muilenburg, who is the chief executive of Boeing, we were very clear that Boeing has a reputation in this country that was beginning to grow in a positive way through the investment in Sheffield and elsewhere, and to jeopardise that reputation and relationship by doing something that is completely unjustified is something that I do not regard as in the strategic interests of Boeing, and I said that very explicitly in terms.