Aerospace Sector

Business, Energy and Industrial Strategy – in the House of Commons on 21st July 2020.

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Photo of Jane Stevenson Jane Stevenson Conservative, Wolverhampton North East

What support his Department is providing to the aerospace sector during the covid-19 outbreak.

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

This is the last Department for Business, Energy and Industrial Strategy questions before recess and I want to place on record my thanks to you, Mr Speaker, and your staff for the incredible way that they have managed proceedings in the House.

It is Farnborough week and the Government are providing the aerospace industry and its aviation customers with more than £8.5 billion of support, including through UK Export Finance, the covid corporate financing facility, research grants and the job retention scheme. We are discussing further help with the sector.

Photo of Gavin Robinson Gavin Robinson Shadow DUP Spokesperson (Home Affairs), Shadow DUP Spokesperson (Defence)

May I start by thanking the Minister for his personal engagement given some of the difficulties that we have had with the aerospace sector in Northern Ireland, and particularly with Bombardier in my constituency? Given that it is Farnborough Week, let me say that I read with interest the Minister’s comments yesterday on FlightGlobal in the question and answer session, and one of the missing components is the retention of key skills within this high-end engineering sector. Does the Minister accept that, without a clear, bespoke solution to support and sustain jobs beyond the cliff edge of October with the job retention scheme, the aerospace industry is facing a clear and present danger?

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

I am grateful to the hon. Member for his question and for his comments about our engagement with the sector. We are supporting the aviation and aerospace sector with £8.5 billion and rising. If he looks at support from other countries, which we do, he will see that we will also consider further support as we progress, as the Chancellor has said, through the recovery.

Photo of Jane Stevenson Jane Stevenson Conservative, Wolverhampton North East

Wolverhampton North East is home to aerospace companies that have seen an unprecedented and sudden collapse of demand. Collins Aerospace is now sadly considering mass redundancies. What further support can the Government offer to limit job losses in Wolverhampton?

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

We work with the whole aerospace industry. I am the co-chair of the Aerospace Growth Partnership. As well as access to the furlough scheme and the corporate finance scheme, the Secretary of State announced yesterday £400 million in further funding for research and development support for the sector to get to that Jet Zero flight. The Future Flight Challenge is already investing £300 million. We continue to work with the sector to make sure that those skill sets, that ecosystem that has been so brilliant at delivering an incredible industry in the UK, are maintained for the next three to five years, which is the timeline by which the sector looks to recover.

Photo of Lucy Powell Lucy Powell Shadow Minister (Business, Energy and Industrial Strategy)

Thank you, Mr Speaker, for facilitating these virtual questions for the past few weeks, and long may they continue.

Although yesterday’s announcement was welcome, the Minister and I both know that nearly all the projects have been a long time in coming—from well before the current coronavirus crisis—so, in that sense, the funds announced yesterday were already priced in by the sector. In order to protect the aerospace jobs of today, as others have asked, which are highly skilled and in areas of the country that can ill afford to lose them, we really do need further urgent action today. Will the Minister say more than he has so far, which has been warm words but not much real action, to reassure those working in aerospace that their jobs will be protected in the coming months and years?

Photo of Nadhim Zahawi Nadhim Zahawi Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

I take issue with “warm words and no action” as £8.5 billion has been put to work to protect jobs and to protect the sector. It is great to see that, this week, Airbus has shown confidence in the UK with confirmation that the wings for its latest aircraft, the A321XLR, will be built in the UK at Broughton. That demonstrates our engagement not just with Airbus, but with Bombardier and with other major players in the market and, of course, the supply chain as well. We continue to put the support in place and to look at further support as we progress through the economic recovery.