Vauxhall (Redundancies) Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Rachel Reeves
Main Page: Rachel Reeves (Labour - Leeds West)Department Debates - View all Rachel Reeves's debates with the Department for Business, Energy and Industrial Strategy
(6 years, 6 months ago)
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Claire Perry
I have not looked in detail at the operation and fixed-cost production, but I suspect that if the plant is running below full capacity—as we know it is—because sales are weaker than planned, the cost per unit produced will be higher. That is why, before we have any further conversations with the company about the long-term prognosis, we need to be clear that while there may be blips in sales of particular models, we want PSA and other auto companies to keep their investment coming to the UK.
Rachel Reeves (Leeds West) (Lab)
Eighty per cent. of the cars produced at Ellesmere Port are for mainland Europe and 75% of the parts to make the cars come from mainland Europe. What assurances can the Minister give that, when we leave the European Union, there will not be additional customs checks or barriers to trade, because if there are, more jobs will inevitably be lost, not just at Ellesmere Port, but elsewhere in the car sector and in manufacturing more widely?
Claire Perry
The hon. Lady and I are in complete agreement about the need for a frictionless and close relationship with the single market. However, I think that we would both welcome the fact that, since 2011, the value of parts that UK manufacturers source from the UK supply chain has increased from 36% to 41%. Of course, one of the opportunities for manufacturers is thinking about onshoring production that they would currently buy overseas. The hon. Lady and I want the best long-term outcome, but the Government want to make it clear that the supply chain is as supported as possible for the future, through the Brexit negotiations and beyond.