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Mr. Geoffrey Robinson: Not only will Ford's credibility be shot if it goes ahead with the removal of assembly operations, but no one will pay the slightest attention to undertakings on headquarters or the wood veneer operation remaining at Browns Lane. Once the assembly goes it is inconceivable that anything will remain there.
Jacqui Smith: My hon. Friend is right. Ford must consider that argument extremely carefully, which is why I began by reiterating our disappointment at its decisions, given the assurances that it made to the work force.
It is important that Jaguar retains its world-leading research and development centre at nearby Whitley. R and D is recognised by the Government in our manufacturing strategy as one of the key enablers
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for manufacturing success, so it is crucial that those efforts continue. Many people affected by Jaguar's restructuring may well find new employment opportunities at Gaydon, where 300 new jobs will be created directly as a result of the growth and success of Aston Martin, Jaguar's sister company within Ford's Premier Automotive Group. But I share the concern of my hon. Friends that what needs to emerge is a viable future and a more robust business footing that will ultimately benefit not only the workers remaining at Browns Lane, but those at Castle Bromwich and at Halewood. That is the result that must ensue from the painful decision being taken. We must ensure that we secure a sustainable long-term future for the company, its products and its work force here in the UK.
Let me address some of the wider comments that have been made in the debate and more broadly about the erosion of the west midlands industrial base. My hon. Friend the Member for Nuneaton (Mr. Olner) made an important point about the removal of Jaguar production abroad. I suppose we can be reassured that that is not what we are discussing. Final assembly of the XJ and XK models is not being removed from the UK to some foreign country, but it is crucial that we find a way to maintain that facility and that production in the west midlands.
On Peugeot, I am delighted to confirm that the European Commission has approved our application to give regional selective assistance to the company for further investment in its plant at Ryton. We fully recognise the significance of the plant to the economy of the west midlands and to the automotive sector in the UK more generally. It employs about 3,000 people directly and many more in the supply chain. By offering a grant to support further investment at the plant, the Government are doing everything in our power to secure its future. It is now for the company to decide how to proceed.
Mr. Cunningham: That is what is causing concern. The company seems reluctant to confirm whether it will accept that grant. That is why those in the Gallery will beat us up tonight. It is important that the Government try to get the company to make up its mind.
Jacqui Smith: I hope the company responds positively to the considerable efforts that the Government have made to assist it in gaining the grant and to ensure that the European Commission approved the application.
Question put and agreed to.
- Adjourned accordingly at eighteen minutes to Eight o'clock.
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