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Mr. Richard Burden (Birmingham, Northfield): Is it not a fact that the people of Longbridge, the workers of Rover and, indeed, everyone else, were assured by BMW that it was in for the long term? It was not just in words. New plant for the new Mini was still going in at the very time that BMW made the announcement; indeed, work was still going on last week.
Is it not important that we look to the future? Is that not the real issue in the interests of workers at Longbridge and elsewhere? After the huge rally in Birmingham on Saturday, does not a message need to go to BMW that it is not acceptable to trade away the future of entire communities in secret boardroom deals, and that the long-term interests of its employees and the communities that rely on Rover must be a central part of its decisions and negotiations in coming weeks?
BMW should consider all credible potential bidders. The long-term interests of those communities should be one of its central considerations. Will the Secretary of State back the people of Longbridge and all Rover workers in asking for those things to be done?
Mr. Byers:
My hon. Friend has been a powerful advocate for the work force at Longbridge. I will certainly take his important points into account.
My hon. Friend touches on the decision by BMW to continue in January and February with the investment in the Mini at Longbridge, a clear sign that it was committed to Rover and to the UK. Running alongside that were further signs. BMW had a team working with the Department of Trade and Industry to submit the application for European Union aid, which went in on 24 February. It called together its UK Rover dealers and
encouraged them to invest in new showrooms for the future. At the Geneva motorshow on 28 February, Professor Milberg said:
Dr. Vincent Cable (Twickenham):
May I first express solidarity and support for the workers of the west midlands, whose livelihoods, despite the valuable measures that the Government have announced, look extremely bleak, particularly for the older and more specialised workers?
The following point is probably the only one with which the Secretary of State will agree. Does he not agree that it is pathetic for the Conservative Opposition to launch an amateur detective story about who said what to whom--almost certainly because of their inability to deal with the fundamental issues affecting manufacturing and the motor car industry as a result of their ideologically driven belief that the exchange rate, which is the price at which British manufacturers compete overseas, should always be set in the free market, and that the British economy should be delinked from the euro area, in which the British motor industry is so heavily integrated?
I have a specific question for the Secretary of State. Given how much British industry and manufacturing depend on foreign investment in this country, does he now regret that he cast doubt on the good faith of the German manufacturers, and does he doubt the wisdom of those of his ministerial colleagues who attacked the trustworthiness of foreign investors in general?
Finally, has the right hon. Gentleman rethought his belief that manufacturers considered the exchange rate to be an excuse, in light of statements from Honda, Ford, the engineering union and the CBI that the exchange rate is absolutely fundamental to the industry's competitiveness?
Mr. Byers:
A number of manufacturers--including some that export into Europe--have raised with the Government the question of the relative strength of sterling against European currencies. However, it is worth re-stating that the pound has remained at par against the dollar for five or six years, and that it has depreciated in value against the Japanese yen. That leads one to think that there must be economic reform in continental Europe if those currencies are to strengthen against the pound. I happen to believe, as does my right hon. Friend the Prime Minister, that the agreement secured at Lisbon 10 days or so ago will go a long way towards achieving that economic reform.
Interestingly, however, a number of manufacturers are being very successful, even in these difficult times. Although Honda has raised concerns about the strength of sterling, it decided 10 days ago to invest in a new plant at Swindon, which will employ 1,000 people. We heard on Saturday that Honda was planning to reduce production levels. The great irony is that that was somehow interpreted as a bad-news story, even though Honda had stated very clearly that the reduction was due to the installation of an assembly line for the new model
car being developed at Swindon. There is good news in the manufacturing sector, and it is about time that people recognised that.
Mr. Martin O'Neill (Ochil):
I thank my right hon. Friend for explaining clearly the role and responsibilities of the taskforce, and how it is to be funded, as much of the hopes of the people of the west midlands depend on it at this time. However, to end the paranoia of the second-rate Miss Marples on the Opposition Front Bench--
Madam Speaker:
Order. That description is quite unnecessary, and I hope that the hon. Gentleman will rethink it.
Mr. O'Neill:
I am sorry, Madam Speaker, if that description caused gratuitous offence. I thought a reference to one of Agatha Christie's minor detectives was not inappropriate.
Madam Speaker:
I know exactly who the hon. Gentleman means, but quite frankly his reference causes me offence.
Mr. O'Neill:
In that case, I withdraw it without reservation, Madam Speaker.
Will my right hon. Friend the Secretary of State save the House time and, before the end of business today, place in the Library of the House copies of the conversations that he has had with Professor Milberg?
Mr. Byers:
My hon. Friend is Chairman of the Select Committee on Trade and Industry and I certainly intend to supply the Select Committee with those details before its hearing on Wednesday. I will also make those details public more generally, provided that BMW agrees.
Miss Julie Kirkbride (Bromsgrove):
The Secretary of State will know that 1,500 workers at the Longbridge factory live in my constituency. I represent them, and their jobs are directly affected by the company's decision. They, and others in the west midlands, are not impressed by the headless chicken act performed by Labour Members who are determined to blame only BMW for the problems at the plant, even though most of the failure is due to the Government's economic management and the Secretary of State's failure to get an EU loan in time for the investment to be approved.
The right hon. Gentleman said earlier that it required a leap of imagination to know that the factory was in trouble, but Professor Milberg has insisted that he told the Department that
Mr. Byers:
On occasions such as this, there will be comments such as those. It is probably more beneficial to the House to see what BMW has said about those matters.
The hon. Lady raises an important point about European aid. Let me quote from Professor Samann's evidence before the Select Committee on Trade and Industry last week, with specific reference to aid. He said:
We are committed and steadfast to Rover in the United Kingdom.
There were all those public demonstrations, which every reasonable person would have assumed meant that BMW and Rover were in for the long haul. That is the reality of the situation. There was no indication that it intended to pull out of Rover and the UK.
if structural aid is not approved, the BMW Group has to reconsider its investment plans for the R30 at Longbridge.
Does not the Secretary of State know that car making at Longbridge, in volume terms, depends entirely on the R30? Without the R30, there is no long-term future for volume car making at Longbridge. If he does not know that, he is either naive or ignorant. Either way, it is his fault that Longbridge now faces an uncertain future.
There is no direct relationship between the grant aid issue and the situation now of us selling the Rover cars and the Land Rover business . . . We never mentioned that the grant aid deal would lead to a survival of Rover or would be absolutely necessary for Rover.
When asked specifically whether the aid last June would have made a difference, Professor Samann said:
We would be in exactly the same position.
Mr. Ken Purchase (Wolverhampton, North-East):
Does the Secretary of State agree that, given the promises made earlier by BMW and throughout the piece, it has used the veneer of commercial confidentiality as a cover for treachery? That is all that I can see has happened. The Secretary of State negotiated, spoke and exchanged information honestly, while not all the cards were on the table, which should not happen in international dealings of this kind.
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