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Proceeding contribution from Charles Hendry (Conservative) in the House of Commons on Wednesday, 12 December 2007. It occurred during Adjournment debate on Car Manufacturing.


Car Manufacturing

It is a pleasure to follow the upbeat speech by the hon. Member for Solihull (Lorely Burt). I join other colleagues in congratulating the hon. Member for Chorley (Mr. Hoyle) on once again securing a debate on this issue and on introducing it in the passionate and sincere way that we have come to expect—indeed, there were a few challenges in there for the Government as well. I am glad that the debate has focused on the positive side of the car industry and on what is going on. As the hon. Member for Middlesbrough, South and East Cleveland (Dr. Kumar) emphasised, however, the debate is being held against the background of a decline in manufacturing generally. One million manufacturing jobs have been lost over the past 10 years and manufacturing's share of our GDP has fallen from about 18 to 13 per cent. over the same period. We should be in no doubt, however, that the car industry has been fighting back with great vigour and we should rightly be proud of it. It still accounts for 10 per cent. of manufacturing turnover and it also accounts for £20 billion of exports, or 10 per cent. of the total. As others have said, the industry's output of 1.8 million vehicles is historically good, with the overwhelming majority being exported. The sector is investing heavily in research and development, with £1 billion going into R and D this year. The Society of Motor Manufacturers and Traders estimates that 2,000 businesses around the country are completely dependent on the automotive sector for their business. That has resulted in an extra 140,000 jobs and a turnover of £12 billion, with a further £3 billion in turnover and 50,000 jobs being created among more general suppliers to the industry. We are therefore talking about not only the major names, with which we are all familiar, but a vast range of other companies, which are completely dependent on the success of the British motor industry for their survival. We are seeing much greater specialisation than we have in the past. As others have said, the United Kingdom has become a global centre for excellence in the production of engines, and we will produce 3 million engines this year, compared with 2.4 million in 1999. Ford is creating 250 new jobs at Bridgend, and 25 per cent. of global demand for the company's engines will be sourced from the United Kingdom. I listened with interest to the hon. Member for Dagenham (Jon Cruddas). It is perhaps ironic that it will not be possible for people in London to drive vehicles containing many of the engines made at Dagenham once the Mayor's new super-congestion charge comes in, because those engines will be too large, but we should nevertheless celebrate the success that Ford has brought to the factory. This country has the largest collection of specialist car manufacturers of any country in the world. We have seen an increased commitment from Bentley and a brand-new Rolls-Royce factory. In this day and age, it is remarkable to have a completely new concept for a motor car and a new facility such as that being set up in Chichester. In addition, Ford has invested £800 million in Land Rover, Range Rover and the Jaguar XJ and XK. The hon. Member for Chorley was churlish—or perhaps the hon. Member for Churley was chorlish—in the way he spoke about Ford. We should recognise that some great brands, such as Jaguar and Aston Martin, would have disappeared had it not been for Ford's ownership and investment in R and D and design facilities. The fact that they are now being sold on says more about the global state of Ford than about its affection and love for them.


Secondary information

Type
Proceeding contribution
Reference
469 c89-90WH 
Session
2007-08
Chamber / Committee
Westminster Hall
Subjects
Cars Exhaust emissions Motor vehicles Manufacturing industries Pollution control Production
Link
View this Proceeding contribution on www.publications.parliament.uk