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Manufacturing and Employment

That is a worry. However, other jobs are created on the back of the scheme, for example in the dealer network and the supply chain for spares. The problem is that the Mondeo is classed as an imported vehicle, even though the powertrain, and therefore most of the car, is produced through UK manufacturing. It is easy to state a figure for vehicles that come from abroad, but, as I have said, there is a difference between a Mondeo and a Prius. The Mondeo's powertrain comes from the UK, whereas the Prius contains nothing from the UK. We must get that balance right. If there is a way to support British car manufacturing, I am happy to look at it. However, we come back to the point about European rules. We can do more, but we should not forget that many cars from abroad have content from the UK, and many do not. The absence of a comprehensive cross-governmental manufacturing strategy puts at risk our ability to meet today's demands and to enable future growth. We need a jobs summit that brings together the Government and all social partners to set out a strategy. A clear direction for UK manufacturing that centres on investment, infrastructure and the work force must be agreed. There should be regional job summits where the Secretary of State brings regional manufacturers together and listens to what they say. Those manufacturers must work together to ensure that they have a future. They must state their needs and what they want to see from Government, rather than be told what is good for them, which we are very good at. The challenge is to listen to them and to work together. It is important that there is a clear direction centred on investment. The Government, business and trade unions must work together if manufacturing is to survive. The unions must play a role in the growth of this country, as they are the best lobbyers for procurement contracts. They led the lobbying on behalf of BAE Systems on the Typhoon, the joint strike fighter and submarines. They do a great job of ensuring that UK jobs survive. We want to see a new practice of working together and do not want to return to the problems of the '70s. New social partnerships are being built in which the unions work hand in hand with companies for the betterment of UK manufacturing. Who would have thought that Lord Digby Jones would be seen hand in hand with Unite leaders, marching for jobs? Who would have thought it? The bastion of self-enterprise—[Interruption.] I did say "bastion"—the last bastion. Many may wish to think differently of Digby, but I know that his parents were married. He has become a champion of British jobs and of working with the trade unions. Nobody would have dreamt of seeing a march for jobs in Birmingham with Digby and Unite trade union leaders at the front. I welcome that and look forward to his application card coming through. That demonstrates the change we have seen and suggests what will happen in future. A new approach to manufacturing is needed. We must not abandon the view that the market has the answers. It does not have all of them, but it has some. Although we do not like to use the word, we have seen intervention in the banking and car industries. It does not have to be a dirty word that we turn our noses up at. Intervention is important and the market matters—we must bring the two things together. If we do not, within 20 years, countries like China and India will make everything we use. Our European counterparts recognise that they cannot have a successful economy without a robust manufacturing base and have acted quickly to defend it. The UK, too, must adopt a more active industrial policy and should not be afraid to intervene to support and protect jobs, and to incentivise investment where appropriate. The state should step in to provide the necessary support for manufacturing companies. It is not acceptable to stand by and watch skilled jobs and companies such as LDV go to the wall. We must look at new ways of working that are used in Europe and the United States. Many problems in the automotive industry are shared. In the global market, we must explore and work together where possible, for example to invest in the production of more environmentally friendly vehicles, to which the Government are committed. It is right to have long-term policies on investing in greener vehicles, but we must not miss out on the short-term policies that are needed. I congratulate the Government on working with Jaguar Land Rover. It is important that such major companies continue and there can be no excuses if they do not. The Government were right to intervene to tackle the financial crisis and should not hesitate in acting to support other jobs. Such action benefits business, workers, the economy and the taxpayer. The Government could adopt a number of measures to help manufacturing contend better with the downturn. More direct support is needed to protect jobs. One option is a time-limited wage subsidy targeted at keeping viable businesses open. Short-time working and temporary lay-offs are now a reality. In some cases, they are a stepping-stone to redundancy. For example, workers at Leyland Trucks are being forced to accept short-time working because of the downturn in the orders for vehicles. Each week, more businesses are forced to do the same. Such companies and their workers deserve our support. A time-limited wage subsidy scheme should be introduced with sufficient safeguards to ensure that only firms directly affected by the recession qualify and to avoid dead weight. It could bring significant benefits such as employers avoiding immediate redundancies and retaining essential staff and skills. If linked to training, it could be a long-term work force investment. Surely it makes more sense to invest in people in the work force, rather than in the jobcentre. Rather than subsidising people to be unemployed, we should subsidise them to keep their jobs.