§ 8. Mr. Jeff Ennis (Barnsley, East and Mexborough)What recent meetings he has had with the German Foreign Minister to discuss manufacturing industry. [117174]
§ The Minister of State, Foreign and Commonwealth Office (Mr. Keith Vaz)My right hon. Friend the Foreign Secretary discussed the subject with the German Foreign Minister at the General Affairs Council meeting in Luxembourg yesterday.
§ Mr. EnnisDoes my hon. Friend agree that Vodafone's recent takeover of Mannesmann shows that British companies can compete in Germany? Does he further 175 agree that in order for British companies to compete in the future, Britain must maintain its central role within the European Union?
§ Mr. VazI agree with my hon. Friend. Bilateral trade with Germany last year was worth £49 billion, and 700,000 British companies invest and create jobs in Europe. It is extremely important that we keep that relationship going.
§ Mr. Nicholas Winterton (Macclesfield)When the Foreign Secretary met his German counterpart, did they discuss the problems that Germany and, to an extent, this country are encountering with manufacturing costs? Is he aware that, for the first time in recent years, Germany has started to export its manufacturing capacity to other parts of the world—not least the far east—because of the heavy social and other costs involved with manufacturing within the EU, and within Germany in particular? Until recently, we have had some advantage—but we are giving it away.
§ Mr. VazI do not know whether that exact point was discussed by my right hon. Friend, but I know of the hon. Gentleman's great interest in this matter as chairman of the manufacturing group in this House. Our relationship with Germany is a good commercial one, based on the creation of jobs in both countries. We want to make sure that German firms are able to succeed in this country, and that our firms succeed in Germany. That is what being part of the EU is all about—a market of 390 million people; soon, we hope, to be enlarged by a further 120 million to create the largest single market in the world. We want the climate and conditions for our manufacturing industry to survive and prosper.
§ Mr. Richard Burden (Birmingham, Northfield)Does my hon. Friend agree that the anger and opposition felt by so many people in this country at BMW's decision to break up the Rover Group is directed against BMW as a pan-European company, rather than against German industry or the German people as a whole? Does he agree that German companies—including those that located to Britain in support of BMW's presence here—and Rover dealers in Germany stand to lose out as well? Will he ask his counterpart in the German Foreign Ministry to join us in asking BMW to consider seriously all credible alternative bids for Rover, so that German and British industry can thrive?
§ Mr. VazI congratulate my hon. Friend on what he has done as a west midlands Member of Parliament in promoting the need for jobs in the area following what has happened. I assure him that the Government have put their faith in the taskforce, to which £129 million has been allocated. BMW is working with Alchemy and the British Government, particularly my right hon. Friend the Secretary of State for Trade and Industry, to ensure the best possible outcome. We shall do everything that we can to help that process. The record of past taskforces is good. Within nine months of the 1998 Fujitsu closure, when 580 jobs were lost, 97 per cent. of the work force were in employment again. I assure my hon. Friend that we shall do all that we can to help the process.
§ Mr. Francis Maude (Horsham)In his foreword to the Department's annual report, the Foreign Secretary places 176 great stress on the role to be played by his Department in what he refers to as a "joined-up organisation", with the Department of Trade and Industry to promote trade and investment. What effect does he think that it has on the efforts of those trying to attract inward investment when they read reports of the Secretary of State for Trade and Industry and the Secretary of State for Defence calling the management of BMW liars? Does he think that helps?
§ Mr. VazAs the right hon. Gentleman knows, my right hon. Friends did not say that. He will also know that we were disappointed by BMW's decision, because a commitment was made to the company. Rather than making cheap political points, the right hon. Gentleman should work positively to ensure that those who have lost or may lose their jobs are put back in employment.