PARLIAMENTARY DEBATE
Vauxhall at Ellesmere Port and Battery Manufacturing Strategy - 1 March 2021 (Commons/Commons Chamber)
Debate Detail
The Government are absolutely committed to ensuring the future of manufacturing at Ellesmere Port and to secure the jobs and livelihoods of the workers at the plant. Since I was appointed Business Secretary last month, I have held a number of meetings with both Vauxhall and its new parent company, Stellantis, to support the company to make a positive investment decision. Only last week, I also held a constructive meeting with the general secretary of Unite, Mr Len McCluskey. Over the coming days and weeks, I, fellow Ministers and officials at BEIS will continue this intensive dialogue with the company.
More widely, the Government are continuing their long-standing programme of support to keep the British automotive sector at the forefront of technology and maintain its competitiveness, building on the work that my right hon. Friend did through the automotive sector deal.
It is my priority as Business Secretary to ensure that the UK continues to enjoy the benefits from our transition to ultra low and zero emission vehicles by continuing to build an agile, innovative and cost-competitive supply chain, which we need to secure vital international investment. With that in mind, we remain dedicated and absolutely committed to securing UK battery manufacturing. As part of the Prime Minister’s 10-point plan, we have already announced £500 million to support the electrification of vehicles and their supply chains, and other strategically important technologies, through the automotive transformation fund over the next four years. We continue to work with investors through the automotive transformation fund, and to progress plans for manufacturing the batteries that we will need for the next generation of electric vehicles here in the UK.
The Government and industry have jointly committed almost £1.5 billion through the Advanced Propulsion Centre and Faraday battery challenge to support the research, development and manufacture of zero and low emission technologies. Between 2013 and 2020, the Advanced Propulsion Centre has funded 67 collaborative R&D projects, creating and safeguarding nearly 47,000 jobs, with projected CO2 savings of 244 million tonnes.
I repeat: we are 100% committed to making sure that the UK continues to be one of the best locations in the world for automotive manufacturing, and we are doing all we can to protect and create jobs while securing a competitive future for the sector here in the UK in particular, including at Ellesmere Port.
I am grateful to the Secretary of State for his response to my urgent question and for his kind words. The industrial strategy made a number of commitments. One was to make Britain a home for vaccine development and to build vaccine manufacturing capability. Another was to make Britain a leading manufacturer of electric vehicles, including the batteries that power them. I mention them both not to claim special prescience, but rather the opposite; both are obviously required if our industrial strengths are to continue in the future.
In the case of electric vehicles, there are three important facts. First, we have one of the most important, diverse and efficient car industries in the world, employing over 800,000 people in all parts of Britain. Secondly, by 2030 no new car will be sold in Britain with simply a petrol or a diesel engine. Thirdly, unless the batteries for vehicles made in the UK are manufactured in Britain within five years, the cars that they power will no longer be able to be exported tariff-free to the EU. We therefore urgently need to install the manufacturing capacity in the UK. That means not just one gigafactory, but many. It all needs to be planned, built and operating at scale within five years.
In the case of Vauxhall at Ellesmere Port, as the Secretary of State says, a decision is imminent as to whether a new electric model will be built there. The same is true of Jaguar Land Rover in the west midlands and supply chain companies such as GKN. A laissez-faire approach will not do it, and neither will just general encouragement. It requires sleeves-rolled-up concrete action to be taken now between Government and industry, just as was the case with vaccines. Will the Secretary of State, for whom I have a high regard, make this commitment today and do whatever it takes urgently to ensure that Britain is a global force in manufacturing electric vehicles long into the future?
The uncertainty facing Ellesmere Port and other car plants speaks to a deeper problem caused by the Government’s inaction on automotive. They have been asleep at the wheel. First, automotive has had no sectoral support during covid, despite the worst trading levels in 50 years, while it has received billions of euros in France and Germany. Secondly—[Inaudible.] The green transition for car makers is not underpinned by any meaningful investment or strategy. They need more than the platitudes of the 10-point plan. They need a world-leading gigafactory plan.
Thirdly, Ministers said that the Brexit deal would unleash Government to back British industry, but it has not. Instead, our EU competitors are unashamedly pumping support into their car makers, while ours are left hamstrung by new red tape. It is no wonder that international companies such as Stellantis are looking at their long-term investments and wanting more from our Government.
What further guarantees can the Secretary of State give to Stellantis and others that he will back the switch to electric with real support? What is he demanding from the Budget for automotive? Will he bring forward plans to create green jobs today by raising his ambition on gigafactories and other infrastructure? Finally, will he actually do whatever it takes to help British industry post Brexit, to ensure the bright future that our businesses and workers deserve?
On Brexit, the mess is clear for all to see. Indeed, the owner of Ellesmere Port said last month that it might make more sense to invest in Europe because
“the biggest market is on the continental Europe side”.
The Tories need to own their mess, as indeed does the Labour party, which has happily pushed a deal over the line. Does the Secretary of State now, even grudgingly, accept that the deal is not fit for purpose?
On vehicle emissions, the shift towards electric and, perhaps even more so, hydrogen is vital to deliver the reductions necessary, but we need to ensure that we create a supply chain at home that supports vehicle manufacturers to make an affordable transition. The Secretary of State will likely accept this point, but does he not agree that his Government need to go further and faster in their financial support?
More widely, we have heard great rhetoric from this Government on electric vehicles, but the action is lagging. For example, we have seen nothing from the £3 billion zero emission bus fund, while the Scottish Government power ahead. When will a sustainable strategy be delivered to support factories like Ellesmere Port to not only survive but thrive?
The continued and future success of electric vehicle manufacture, including good skilled jobs for my constituents, is reliant not only on battery production and gigafactories but on investment in rapid-charging infrastructure, so will the Secretary of State confirm the Government’s commitment to securing investment in this much-needed green infrastructure?
However, electric vehicle components are different from those of petrol and diesel cars and include rare minerals, such as cobalt, that are mined overseas. What discussions has the Secretary of State held about developing a strategy for sourcing rare minerals in an environmentally sustainable and ethical way, particularly by supporting domestic extraction and imports from our safe, reliable, democratic allies?
My hon. Friend will also appreciate that the Faraday battery challenge, which we have mentioned a number of times, is funding research to reduce our dependency on raw mineral supply and make better use of global resources. That obviously will involve looking at how we can reduce and replace critical raw materials.
My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) is leading the charge to attract private sector investment in a gigafactory in Coventry. Does the Secretary of State not see and support that move? It would supply both Luton and Ellesmere Port, but also Halewood and the Jaguar Land Rover factories in the midlands. Would that not be a great outcome?
I am always very happy to engage with colleagues across the House in order to get the right outcomes. It is not just a question of the right hon. Member for Birmingham, Hodge Hill (Liam Byrne); there are MPs in his area across the House representing midlands seats very ably, and I am very happy to engage with them on this.
The Secretary of State has had lots of bids from Members across the House, from all parties, on battery development. I think that I can go one better. On 10 February, the Prime Minister announced to the House that Bridgend would have a world-beating battery development plant; it was later clarified by No. 10 that perhaps the Prime Minister misspoke or mixed up his Bs—Bridgend and Blyth, two very different parts of the country.
May I ask the Secretary of State whether he would agree to meet me and, indeed, the hon. Member for Bridgend (Dr Wallis), to discuss the options for a battery plant for the Bridgend borough? My constituents have lost the Jaguar Land Rover contract with Ford, which has now gone, and Ineos has run away to France with the Brexiteer who runs that company, so we need the Government to look at bringing in real investment to keep those highly skilled jobs in my borough.
I am suspending the House for three minutes to enable the necessary arrangements for the next business to be made.
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