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Peugeot (Coventry)

I know that these issues have given rise to a lot of suspicion locally, and to reassure my hon. Friend and others I shall write to him, so that the company’s assurances are in black and white. My hon. Friend the Member for Coventry, North-West also asked whether the Government recoup grants. As a former Minister, he will know that conditions always accompany such grants and that they have to be met. Usually, the criteria relate, for example, to the meeting of employment targets over a given period. If the targets are not met, we can then recoup the money. The loss of Peugeot is a disaster for those affected, and I do not in any way wish to mitigate that. As the hon. Member for Rugby and Kenilworth said, there are 450 workers and their families for whom we must all work hard to try to secure alternative employment, or training that could lead to other jobs. But I also want to express optimism, because there are good things happening in the car industry and manufacturing in the west midlands. I deliberately chose the west midlands as the first area to visit on my tour of the regions because of my interest in, and commitment to, the manufacturing sector, and because manufacturing is so important to that region. It is the largest sector and employer in the west midlands and it still constitutes 23 per cent. of gross value added in the area. So it is important, and we need to build on it through investment in innovation and research and development, as my hon. Friend the Member for Coventry, South said, using all the levers that we have to ensure the continuation of a strong and modern manufacturing sector.