KP Foods Factory (Halifax) (Hansard, 16 May 1988)

§ Mrs. Alice Mahon (Halifax)

I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely, The decision to close KP Foods factory, with a loss of 1,000 jobs. On Thursday morning, without any warning or prior consultation, 950 of my constituents, employees of KP Foods, part of United Biscuits, of which Sir Hector Laing is chairman, were told that the decision had been taken to close the Halifax factory. That was despite the fact that, last year, KP had a trading profit of £36.8 million—up 23 per cent. on the previous year. The Halifax factory played a great part in that profitability by increasing productivity.

If the closure goes ahead, there will be a net loss to the community of £2.5 million, an increase in unemployment benefit of £1.6 million, and an knock-on effect leading to the loss of a further 250 jobs. KP Foods provides nearly 1,000 jobs in a deprived part of Halifax. Unemployment in that area is already running at over 12 per cent. KP is the only significant employer of women in the area. Although wages are low, the factory provides the only opportunity for employment.

The skilled and loyal workers at KP have done everything that the Government have asked, yet they are to be scrapped because, once again, British manufacturing is up for sale. It is a telling indictment of the Government and their lack of any coherent policy on manufacturing and the work force that a catastrophe of that magnitude can occur, when they are giving highly publicised support to Business in the Community. Halifax has been a major part of that focus.

Business in the Community was launched with royal patronage and enthusiastically supported by the whole town. Because of disastrous Government policies, the town has suffered massive job losses, with the social consequences that they bring. Sir Hector Laing is chairman of Business in the Community. If the factory closes, he should resign, because he will have betrayed the trust that was placed in him.

700 It is both tragic and ironic that, only days ago, I asked the House for a debate on the hostile Nestle hid for Rowntree—the largest private employer in Halifax. If Rowntree goes, another 3,000 jobs will be lost. The Minister should tell us what the Government plan for manufacturing in the run-up to 1992. Many Opposition Members believe that there will be dozens of UK Foods and Rowntrees in every constituency, unless the Government act soon and give a commitment to protect British jobs. I urge you, Mr. Speaker, to consider a debate.