Manufacturing (North-West)

Oral Answers to Questions — Trade and Industry – in the House of Commons at 12:00 am on 18th January 2001.

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Photo of David Crausby David Crausby Labour, Bolton North East 12:00 am, 18th January 2001

What assessment he has made of the recent performance of manufacturing industry in the north-west of England. [144532]

Photo of Richard Caborn Richard Caborn Minister of State, Department of Trade and Industry

The performance of manufacturing industry in the north-west is being continually assessed by markets operating in conditions of free and fair competition.

The Government are providing the economic stability, which I mentioned earlier, that allows companies to plan ahead with confidence.

Photo of David Crausby David Crausby Labour, Bolton North East

Is my right hon. Friend aware that output, exports and employment have fallen in the past four months in the north-west of England? BAE Systems is threatening thousands more redundancies. Things are therefore becoming difficult, to say the least. Bolton has suffered wave after wave of engineering redundancies and two textile factories have closed recently. It is crucial to tackle the scattering of redundancies constructively. What can my right hon. Friend do to reassure me that he will protect the vital north-west industrial base?

Photo of Richard Caborn Richard Caborn Minister of State, Department of Trade and Industry

The Government have been doing that through several measures since we came to office in 1997. As my hon. Friend knows, we asked the business-led regional development agencies to consider the real structural weaknesses in the regional economies. Those are now beginning to be addressed.

I remind my hon. Friend that the number of manufacturing jobs has increased. For example, approximately 7,000 jobs have been created in fibre optic communications; BAE Systems created 1,700 jobs in Wales. The picture is not all doom and gloom. My hon. Friend knows that more people are in employment now than for many years. The strong macro-economic framework that the Chancellor has created for manufacturing bodes well for the future.

That does not mean that we are complacent; we know that we must move up the value added chain. The regional development agencies and Government offices working with regional partners are addressing those matters.

Photo of Nigel Evans Nigel Evans Vice-Chair, Conservative Party

The Minister says that it is not all doom and gloom, but there is too much doom and gloom in manufacturing in the north-west. Last year, there were several hundred redundancies in east Lancashire alone. There is currently the prospect of perhaps 2,000 job losses in BAE Systems. We have been told that they will probably fall on the military side. That will affect Samlesbury in my constituency, and Warton, which is not so many miles away. The ripple effect on contractors and small businesses in the area will be devastating. What action will the Government take to ensure that those manufacturing jobs are protected?

Photo of Richard Caborn Richard Caborn Minister of State, Department of Trade and Industry

Even as recently as two weeks ago, my right hon. Friend the Secretary of State was lobbying hard for the Hawk in India, and we are hopeful that there will be an order from there. In the wider context of BAE Systems, it is a changing scene and we must manage change. BAE Systems is one of the better companies in this country, and is in constant dialogue with the Government. We can assist it in developing technologies and ensuring that the skills base is commensurate with its needs. We must manage change in these modern, globalised times, and we will do that with responsible employers. I emphasise again that there are more people employed now than there were in 1997, when we came to power.

Photo of Maria Eagle Maria Eagle Labour, Liverpool, Garston

Will my hon. Friend join me in congratulating the work force and management at Jaguar Halewood on the edge of my constituency—it has its front door in my constituency—which is bucking the national trend in car manufacturing and has just taken on 500 extra workers to build the X400? Does my right hon. Friend agree with me that manufacturing on Merseyside is in a very healthy condition?

Photo of Richard Caborn Richard Caborn Minister of State, Department of Trade and Industry

I agree entirely with my hon. Friend. I remind her that in 1997 £3 billion was invested in car manufacturing in the United Kingdom, which created 9,800 new jobs. Jaguar has been part of that, as my hon. Friend said. Success is being achieved, especially on Merseyside, where partnerships are working well.

Photo of Mr Richard Page Mr Richard Page Conservative, South West Hertfordshire

It is understandable, with a general election coming, that the Minister's answer had a tad more spin than substance. The hon. Member for Bolton, North-East (Mr. Crausby) put his finger on the problem. Unemployment is increasing in the north-west in sectors such as aerospace, textiles and food processing, in which there have been serious job losses. Is the Minister aware that the TUC has extreme concerns about trends in the area? Is he also aware that the CBI, in its latest survey, says that the north-west has had the second greatest loss of business confidence? Is he not worried, like us, that the Government are creating a north-south divide?

When will the Minister and the Department of Trade and Industry stand up for manufacturing and argue against the raft of regulations that is driving business down? When will they stand up for the sector in the face of the climate change levy, which will cost thousands of jobs? When will the Minister speak up for manufacturing?

Photo of Richard Caborn Richard Caborn Minister of State, Department of Trade and Industry

I do not know whether a "tad" is imperial or metric: perhaps the hon. Gentleman can tell us how he measures it. Clearly, he has forgotten what was happening three years ago when we came to power and there was real concern in the north-west. What has happened since? Yes, we have increased employment in the north-west. Yes, with partners there, we are finding solutions to the long-term problems with which the Tories left us. We need no lectures from the Opposition on manufacturing and the development of the economy.