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Mr. Byers: My hon. Friend has already privately raised with me his concerns about the situation at Goodyear. We are engaging with the company to see what help we might to be able to give to overcome the difficulties that Goodyear may have.
On the possibility of European restructuring and consolidation, much of that has already taken place. We know, for example, that Renault has gone into a partnership with Nissan. We know that there is overproduction in the European car market, which is bound to lead to further restructuring. The only way in which the change that we are witnessing will bring benefits and new opportunities is if we can manage that change. It is a matter of great regret, as far as BMW and Rover are concerned, that because the Government were not involved, we never had the opportunity of taking BMW through the arguments and the debate about what steps it should have taken and, in the process, putting the needs of the community in the west midlands and the individuals affected first.
Sir Norman Fowler (Sutton Coldfield):
I declare an interest as a member of the Rover taskforce. Should not great credit be given to the workers at Longbridge who have worked hard to reverse the previous reputation of the plant? Will the Secretary of State confirm that whatever happens, they will provide an invaluable skilled resource in the west midlands? In that regard, can he say whether
Mr. Byers:
I thank the right hon. Gentleman for agreeing to serve as a member of the taskforce. Its deliberations will be enhanced by his presence.
The right hon. Gentleman makes an important point about the improvements in productivity at Longbridge. The figures that I saw showed that in just over 12 months, there was a 24 per cent. improvement in productivity from Longbridge workers. I have no doubt that in the months ahead that will stand them in good stead. They have shown real commitment and dedication to trying to turn Longbridge around.
In discussions with me, BMW has been guarded about negotiations with Alchemy Partners. It has made a commitment that no action will be taken before negotiations are completed, which provides some reassurance. However, job losses appear likely at Longbridge and the precise figures depend on the negotiations between BMW and Alchemy Partners. That is why it was important to have BMW give an assurance that it would do all that it could in those negotiations to minimise job losses.
Mr. Ian Pearson (Dudley, South):
May I tell my right hon. Friend that we in the west midlands are not saft? We know that the blame for Rover lies with BMW, which has betrayed midlands workers at Longbridge.
Miss Kirkbride:
Your Government.
Mr. Pearson:
If the hon. Members for Bromsgrove (Miss Kirkbride) and for Tiverton and Honiton (Mrs. Browning) had been at the march on Saturday, they would have seen the men, women and young children who are worried about their future livelihoods. That might have made them start to talk some of the common sense in which their party is supposed to believe. The hon. Member for Bromsgrove should take a leaf out of the book of the right hon. Member for Sutton Coldfield (Sir N. Fowler) and be a little more constructive in trying to find solutions that will help people.
Mr. Byers:
My hon. Friend made an important point, as always. Difficult decisions and questions lie ahead, and the answers will affect individual workers, their families and the whole community of the west midlands. The people of the west midlands know where responsibility lies. An understanding was reached between the work force, the Government and BMW that, up to 2002, BMW would make losses, but would bear them and move on to break even. On that basis, we were prepared to give a commitment to provide £152 million. On that basis, working practices at Longbridge changed and productivity improved directly. That is why we all feel so badly let down--I should not be more intemperate than that, Madam Speaker--by the decisions taken in the dark by BMW without consultation or prior discussion.
Mr. John M. Taylor (Solihull):
Is the Secretary of State able to say more about the security of retirement
Mr. Byers:
I understand the concern felt by individuals at Land Rover or Longbridge about the possible effects of decisions by new owners. We have held discussions with BMW, and with Ford, which is likely to be the new owner of Land Rover at Solihull. BMW gave me assurances about pensions being protected at a meeting on 24 March. We must continue to revisit the point as it is clearly a cause of concern for existing workers and former employees who rely on the pension. The hon. Gentleman and the hon. Member for Meriden (Mrs. Spelman) will doubtless continue to raise the matter, and I welcome that. We shall certainly continue to do all that we can to ensure security for those who receive a pension from Rover and BMW.
Mr. Dennis Turner (Wolverhampton, South-East):
I, too, represent a constituency in which thousands of workers will be affected by the decision taken on Rover. They and their families do not look forward to facing problems in the weeks and months ahead when many of them will be laid off. I want to say to the Opposition--[Interruption.] I hope that this will be the last time that we shall hear an issue as important as Rover raised in the way in which they have raised it today. [Hon. Members: "Ask a question."] May I ask--
Madam Speaker:
Order. This is a very emotive issue. Members know that thousands of their constituents may be laid off. I understand the emotion felt by many Members, but I ask the hon. Gentleman to put a question to the Secretary of State. That is what private notice questions are all about.
Mr. Turner:
I want to ask the Secretary of State not to rule out any possibilities; I know that he has said from the Dispatch Box today that he will not rule any out. I hope that the Government will keep an open mind on any situation that might arise where a proactive response from the Government is needed to save many of the jobs that are currently involved.
I hope that the Government will listen to the people who were with us on Saturday's demonstration, marching and telling us what they want of this House of Commons and of this Government; and I hope that the Opposition will be more positive in future, and speak on behalf of those families, as Labour Members do.
Mr. Byers:
We have no intention of walking away from this problem. This Government will discharge their responsibilities to the people of the west midlands and those individuals directly affected by BMW's decision. A number of economic regeneration programmes are already in place; these can be used as they provide a range of initiatives, which may well be appropriate to the situation that we now face at Longbridge.
I can give my hon. Friend an assurance that we do not rule out any of the proposals that might emerge from the taskforce. We need a comprehensive programme of economic regeneration and job creation. In the long term, that will be the only way forward for those affected by BMW's decisions.
Mrs. Caroline Spelman (Meriden):
The Secretary of State said in his statement that he would like to support
Mr. Byers:
The £129 million that I have pledged is the Government's contribution towards the £152 million. The remainder is made up of a local package, and I hope that the local partners might feel able to make a contribution in kind to take us up to £152 million.
Mr. Robin Corbett (Birmingham, Erdington):
I am among those who have constituents affected by BMW's betrayal, both directly and among the component manufacturers and suppliers. However, may I say to my right hon. Friend that Jaguar demonstrates that, on the back of real commitment and sustained long-term investment, the motor industry in Birmingham and the west midlands can succeed and is succeeding? To overcome this particular problem, will he consider adding, let us say, £20 million to the budget for the objective 2 status money for the west midlands, to give the taskforce time to come up with plans and proposals to ease the impact of this blow?
Mr. Byers:
My hon. Friend refers to the great success story that is Jaguar--nearby Peugeot has also been extremely successful--demonstrating that the car industry is strong in the United Kingdom. He raises the point about additional funding for the taskforce. The £129 million has been an immediate reaction to the needs of the taskforce--money which we had identified for alternative purposes. Of course, if good programmes come forward from the taskforce, we shall reconsider whether additional resources need to be made available.
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