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Peugeot (Coventry)

I thank you, Mr. Speaker, for granting this Adjournment debate, which is not only appreciated by Labour Members but, I am sure, by the workers at Peugeot. This is the second Adjournment debate that we have had on this matter, as there are really two issues. There is the general issue of manufacturing in the west midlands, and I am sure that some of my colleagues know exactly what I am talking about. Not too long ago, there was the Rover issue. More locally, the Standard motor car company has been an issue over the years. Then we had problems with Jaguar about 18 months ago. With regard to Peugeot, some months ago, we heard the announcement that it would close its plant next summer. Last week, however, it was announced that the plant will close in January. If we look at that company’s record, we see that it has played ducks and drakes with the labour force and, to a certain extent, one could argue, with the Government at times. Over the past two years, I know that Ministers have had great difficulty in getting answers from the company about its long-term plans in relation to the Coventry plant in particular. There is therefore nothing new about the way that the company does it business, but I thought that it was brutal, callous and, to say the least, totally insensitive, to announce that the workers at Peugeot will lose their jobs just after Christmas. Someone—not me, but a former Prime Minister—once said that that was one of the unacceptable faces of capitalism, which sums the position up adequately. I want to raise one or two issues. First, publicity has suggested that Peugeot originally bought the site for £1. Were any inducements or sweeteners used on that occasion? The Minister might not be able to answer that tonight, but I would be grateful if she would look into it. Secondly, what amount of grants, not just nationally but on a European level, have been paid to the company over the years? What conditions were attached to those grants? Those are important points. The reason that the company has given for its recent announcement is that a quarter of the labour force have left. By that logic, three quarters remain who want to keep their jobs. We also know that it is a profitable company, so it is a strange logic. Another aspect of the company’s argument that has changed—again, one cannot rely on anything that it says—is that it had proposals for eastern Europe. We have now found out that it has cut back on those proposals. It has also announced redundancies in France and Spain. The evidence suggests that the company has been secretive over the past three or four years and, at worst, that it has played ducks and drakes with the labour force, not only in this country but in Europe. I want to thank my right hon. Friend the Minister for visiting Coventry some weeks ago. She discussed with us how we could start to replace some of the industries that we are losing, certainly in the Coventry area. I am sure that my hon. Friend the Member for Coventry, North-West (Mr. Robinson) will agree that the meeting was useful. She banged heads together and got some movement on the new medical technological park that will be located at Ansty. We want to thank the Minister for something else. We made representations to her about employment, which, as I am sure she knows, is a complex issue, certainly in Coventry. We were very concerned about Jaguar, and about what would happen if assisted area status was withdrawn. The Whitley site employs 3,000 or 4,000 people, and there are proposals for further developments. We raised the issue of the Peugeot site itself, and also the way in which Rolls-Royce might be affected. I am pleased to say that we secured some positive movement, which many people, especially the trade unions, will appreciate. What is also appreciated is that, when the story broke, the Chancellor of the Exchequer offered us a quick meeting, along with the unions. The unions’ problem at the time was that they could not persuade representatives of the company to sit down and talk about alternative proposals. As a result of the Chancellor’s intervention we got talks going, although they did not work out in the way that we wanted. We have had major debates about the west midlands economy. There have been indications that Ministers are considering a new industrial strategy for the west midlands. As I said earlier, they are enthusiastic about the new medical and technological park. While on the one hand we are losing jobs, on the other there are some positive signs. Nevertheless, we see it as our job to put pressure on Ministers to ensure that manufacturing jobs start to be replaced. According to various reports, there is a drift to the service industries in the west midlands. We want to see a halt to that, and more of a balance. There are pockets of social deprivation in some parts of the west midlands. Not everything is rosy. Some good things are happening, but training and skills are needed to end that social deprivation. I know that the Government are investing in those. The west midlands is famous for research and development. The Chancellor has made extra money available, but we must keep up the momentum. The more research and development money we can put into the universities of the west midlands, the better. I am sure the Minister knows that we have taken a great interest in RAF Cosford. Welsh Members have been lobbying hard, but we think we have much more to offer in the west midlands. We have a number of first-class universities, and a good many skills. We want to retain those skills at Cosford and we also know that the creation of a further 2,000 or 3,000 manufacturing jobs is a possibility. All in all there are some positive signs, but we must not be complacent. We must continue to push as hard as we can. Thank you very much for granting me this debate, Mr. Speaker. I hope that the Minister will respond to the points I have made, some of which are very serious. I am sure that it will help those affected in Coventry if she can provide some answers—although we cannot help them completely, because they will have a very bad Christmas: they are going to lose their jobs.