- Motion made, and Question proposed, That this House do now adjourn.—(Mike Freer.)
- 7:25 pm
- Julian Knight (Solihull) (Con)Thank you, Mr Speaker. We finally move to the main business of the day. Obviously, it is a great pleasure to follow the Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Surrey Heath (Michael Gove), and I am sure that my speech will be just as resounding as his. That fantastic oration is not at all a hard act to follow.I secured this debate prior to the announcements of job reductions at Jaguar Land Rover in the west midlands. We have unfortunately seen a slow trend over the past year, with a drip, drip of job losses in the Jaguar Land Rover group, but the announcements that have just been made are much more substantial and have brought forward the Jaguar Land Rover development partnership. I know that my right hon. Friend the Member for Meriden (Dame Caroline Spelman) is playing a leading part in that, as well as in the work being done in the House to promote the needs of the UK car industry, and of Jaguar Land Rover in particular. I am sure that all hon. Members, including the hon. Member for Coventry South (Mr Cunningham), will join me in wishing that organisation great success.I believe that in order to take the right action to support the British car industry, and the towns and families that depend on it, politicians must have an accurate understanding of the real drivers behind the current challenges, and not allow this issue to get caught up in the arguments over Brexit, for example. I therefore want to use my speech to set out why Jaguar Land Rover is so important to Solihull and the wider west midlands economy and the real reasons behind its current difficulties. I shall also set out my recommendations for what Ministers can do to support this crucial industry.Solihull is rightly proud of that the fact that it is one of Britain’s great manufacturing towns. It is home to some of our country’s most popular global brands and, as I said in the House the other day, it is one of only a few constituencies to enjoy an actual trade surplus in goods with the European Union. As a consequence, thousands of local residents are employed in those industries, including at the JLR plant at Lode Lane, and they have played a big role in shaping the character of our town.
- I congratulate the hon. Gentleman on bringing forward this debate and I understand his reasons for doing so. It is also good to see other Members with a particular interest in the matter here in the Chamber. A similar situation in Northern Ireland is the Bombardier issue. Does he agree that consideration must be given to bringing work back from foreign plants—such as Slovakia in the case of Jaguar Land Rover—and to keeping jobs here in the United Kingdom? This is what should be happening with Bombardier. Does he agree that the Government should be looking at incentives to encourage the retention of jobs in the big manufacturing bases here in the United Kingdom?
- Julian KnightI thank the hon. Gentleman for his intervention. The way to bring jobs into the UK is to create a business environment in which investment can flourish, and that is basically the point of my speech.
- I congratulate the hon. Gentleman on securing this timely debate. He is right that not a lot can be said about the meetings we have had with Jaguar Land Rover, because that information is confidential, but Jaguar Land Rover is in a totally different situation from Bombardier. We want to support the hon. Gentleman, as he knows, in ensuring that Jaguar Land Rover goes on to create more jobs, and I am sure that he will want to touch on the question of the supply line. I have had a number of letters from small companies that are a bit concerned about the situation, although we have had some reassurances and there will be further discussions. I wish the hon. Gentleman all the best.
- Julian KnightI thank the hon. Gentleman for his intervention. I wonder whether he has seen my speech, because I am just about to mention Jaguar Land Rover’s successes, which are manifest. I mentioned employment at the start of my speech, and the reality is that we have gone back to the situation that we were in in 2016.
- I congratulate my hon. Friend on securing this important debate. I have a feeling that I know what he is going to say, and he will have huge and strong support from my constituents in the royal town of Sutton Coldfield due to Jaguar Land Rover’s critical importance in our region.
- Julian KnightI thank my right hon. Friend for his intervention. I know for a fact that many people who work at Jaguar Land Rover live in his constituency, and the royal town of Sutton Coldfield is a close partner with Solihull in many respects, so I welcome his comment.JLR faces serious challenges, but it is important not to allow them to eclipse what is still an encouraging picture overall. In 2010, it employed just 12,000 people in the UK. However, even after the latest reductions, it will still employ over 38,000 workers across the country, including 10,000 in Solihull—a more than threefold increase nationwide. The past eight years have also seen substantial revenue growth, from £6 billion a year to £25 billion a year—a more than fourfold increase. Over the past five years, JLR has invested some £80 billion in the UK, which is basically the same as the defence and education budgets put together. It is an enormous investment, and a further round of investment was announced alongside the job news last week.Overall, the UK continues to enjoy the most productive automotive manufacturing sector in Europe, and productivity remains about 50% higher than the British manufacturing average. In short, Solihull remains a great place for British manufacturers and exporters, and I will do everything I can to help them succeed as part of the new Jaguar Land Rover development partnership, to which I will return later.We must ensure that the details of this important issue are not confused or obscured. There is no doubt that our relationship with the European Union is a matter of serious concern to JLR and every other manufacturer that depends on international just-in-time supply chains, but JLR’s management has been clear that the driving forces behind the current reductions are twofold: a serious fall in demand in China and a slump in demand for diesel cars in the aftermath of the Volkswagen emissions scandal. Exposure to downturns in foreign markets is part and parcel of being an exporter, but the second reason—the fallout from the VW emissions scandal—is a problem made in Wolfsburg that is threatening jobs and investment in the UK.For years, Governments of both parties encouraged Britons to buy diesel and, by extension, encouraged British car makers to service that need. According to Professor David Bailey, more than 90% of JLR’s domestic sales are diesels. But after Volkswagen was found to have been fiddling its emissions scores, we suddenly saw a scramble to be seen to crack down on diesel, which has had predictable results. Jaguar sales are down 26% so far this year, and that pattern has been repeated across the UK car industry, where overall diesel registrations have plunged by a third since January to March 2017.
- I congratulate my hon. Friend on securing this debate. He is doing a great job of trying to rehabilitate the truth about new diesel engines, which will help to justify the huge investment that both JLR and the Government have put into developing them. I hope that this debate will help to disabuse people of the myths about the differences between petrol and diesel.
- Julian KnightI was recently diagnosed as asthmatic, which, for someone who cycled up mountains less than two years ago, is a frightening and life-altering experience in many respects. I am very conscious of the fact my right hon. Friend raises, but we need to get it right so that we do not end up ensuring that older polluting diesels are kept on the roads longer because people are afraid to change them as they will lose money. We need to encourage people to transition to new technology, but at the same time, we need to fill that gap with cleaner diesel until the capacity is there.
- I thank the hon. Gentleman for bringing this important and timely debate before us. Having worked with him and other colleagues on the automotive industry and Jaguar Land Rover, I know he shares my passion.I think the hon. Gentleman agrees with me that the transition he describes is critical and that the Government must work with manufacturers to ensure that we get a co-ordinated, managed transition away from diesel and petrol towards cleaner fuels. Will he speak about diesel taxation and how we should not penalise consumers but support them in the transition? That would particularly help Jaguar Land Rover.
- Julian KnightThe hon. Gentleman has put his thoughts on the record. He is correct about the transition, and we cannot ask car manufacturers to move at pace to those new technologies and then take EU policy that could potentially damage the income streams that allow them to invest. We need to be nuanced and thoughtful about that while protecting our environment.
- My hon. Friend is making some excellent points. Jaguar Land Rover has invested a huge amount of money in south Staffordshire, on the border with Wolverhampton, precisely to build those engines at its engine plant. That has brought huge numbers of excellent job opportunities to both Wolverhampton and Staffordshire. Will he join me in paying tribute to its foresight on those clean engines?
- Julian KnightI certainly will, and I know the impact that investment has had on my hon. Friend’s local community and on the wider west midlands economy. Those jobs are fantastic. The pay is much higher than the national average wage, which creates jobs in the local economy through the multiplier effect. They are jobs that we have to keep and develop. The key word is “transition.”
- Will the hon. Gentleman give way?
- Julian KnightI am conscious of time. Sorry.Jaguar Land Rover has announced that all new models will be electrified from 2020, and I have no doubt that other manufacturers will follow suit. It is a simple fact that we do not yet have the infrastructure to handle a wholesale shift towards electric vehicles in the near future.As I told the House during the passage of the Automated and Electric Vehicles Act 2018, the current capacity for public charging points does not come close to that provided by traditional filling stations. It will take time to put the necessary infrastructure in place and, until it is ready, our environmental goals are best served by encouraging motorists to switch to cleaner, modern vehicles of all types before we get rid of the internal combustion engine by 2040.As the MP for a car-making town, and as a former chairman of the all-party parliamentary group for fair fuel for UK motorists and UK hauliers, I am grateful for the Government’s proactive approach to the sector. The previously mentioned sector deal is welcome, and I am proud to have the opportunity to serve on the new JLR development partnership, which will give the company, firms in its supply chain, trade union officials and others the opportunity to liaise directly with the Business Secretary, the Mayor of the West Midlands and other local politicians.I also note the £500 million investment in the new advanced propulsion centre, which is intended to research, develop and industrialise new low-carbon automotive technologies, and in other initiatives such as the Faraday battery challenge and the supplier competitiveness and productivity programme. The car industry has proven itself more than willing to collaborate with Ministers in this field, match-funding not just the advanced propulsion centre but also another £225 million for R&D investment.We face a period of economic uncertainty, especially for exporters, as we negotiate our future relationship with the European Union and start to pursue our own independent trade policy. It is vital to the wellbeing of constituencies such as mine and the entire British economy, not to mention the Government’s own long-term environmental and technological ambitions, that we do everything we can to offer stability and certainty to companies such as Jaguar Land Rover. Only then will they be able to make the investment needed to protect jobs, drive growth and make our eventual transition to electric cars a reality.