§ Motion made, and Question proposed, That this House do now adjourn.—[Mr. Kemp.]
§ 6.2 pm
§ Mrs. Iris Robinson (Strangford) (DUP)I should like first to place on record my utter condemnation of the mindless thugs who were responsible for an arson attack in my constituency, which totally destroyed three businesses and left approximately 30 local people out of work. I am sure that the Minister will share my relief that no one was injured, encourage the shopkeepers to open their businesses again, and appeal to the public to come forward with any information that could assist the police in apprehending those vandals.
I am grateful for having had the opportunity to secure this Adjournment debate. I thank Ministers for their attendance in the Chamber. I want to touch on a number of points that will highlight my concerns for the future economic prospects of my Strangford constituency, although I cannot divorce that from the impact of closures of factories in East Belfast, which abuts my constituency.
During the past five years, the constituency of Strangford has witnessed a colossal downturn in its indigenous manufacturing industries. The peace that was promised over five years ago has not been delivered, while the peace dividend, which was hyped up, has never really materialised. Industries and businesses, which have formed the foundation of the local economy, are now declining and disappearing at an alarming rate. If one takes into consideration the repercussions of the demise of Harland and Wolff and the huge losses from Bombardier-Shorts alone, the number of manufacturing jobs that have been lost to my constituents easily runs into tens of thousands. In the past 18 months, in excess of 5,000 manufacturing jobs have been lost in the Strangford-East Belfast area, while the past 12 months show the figure of 1,500 for Strangford alone.
For ease of reference, I shall break up the constituency into the three council areas that cover Strangford. The Ards borough council district of my constituency has witnessed a constant decline in manufacturing in recent years. The loss of major employers such as the Crepe Weavers and the Lee factory means that the textile presence in the area has almost died out. Last year, Carpets International went to the wall, with the loss of 144 jobs at its Killinchy plant.
Through the fleet at Portavogie, we have witnessed the extreme problems faced by the fishing industry. In the past 10 years, the Northern Ireland fleet has shrunk by 30 per cent.; 84 vessels have been decommissioned since 1994. I am wholly convinced that our continued participation in the common fisheries policy will result in the industry's decline to a point from which it will be unable to recover. Only when the Faroese and Icelandic models are properly investigated and when this country once again commands authority over its national waters can we hope to see the resurgence of the fishing industry. In the meantime, fishermen participating in the voluntary tie-up scheme have failed to receive their compensation, despite being five weeks into this year's cod-recovery programme. 1147 There are two major plans in the pipeline that will be of huge economic benefit to the Newtownards area. The first is the multi-million pound Castlebawn development, which will bring hundreds of new jobs and much-needed economic investment to the area. In addition, as part of its planning approval, the development will extend the local road network and alleviate the traffic congestion in and around the town. The other major plan, which has not yet been approved, is in connection with the location of a B&Q superstore on the site of the former Scrabo high school. The scheme will bring approximately 250 jobs to the Ards area. The proposal is tied up at the planning stage; last week, along with retail unit officials, I had a meeting with the chief executive of the Department of the Environment planning service to try to resolve a number of outstanding issues. I urge the Minister of the Environment in Northern Ireland to look sympathetically on the application and to take account of the cross-party support that it enjoys, not least because of the 250 jobs that it will create.
One indirect measure that could be taken to assist the local economy is the provision of an adequate roads infrastructure. I thank the Department for Regional Development, under its former Minister, my hon. Friend the Member for Belfast, East (Mr. Robinson), for the completion of phase 2 of the Comber bypass, which has gone some way to easing the traffic burden on the town, which actively dissuaded inward investment. The priority now for Comber is the provision of phase 3 of its bypass. Completion of phase 3 will greatly improve Comber's ability to attract much needed investment to the area.
The latest jobs blow to the dwindling manufacturing base in the Down district council area of Strangford has brought the total number of lay-offs in the area to almost 400 in just five months. International Leathers, based outside Killyleagh, says that job losses are the result of a major slow-down in the worldwide leather market. Since Christmas 2003, the company has laid off 37 workers, and the remaining 20 employees are on short time.
Also in the Down district council area, Saintfield Yarns, with 20 years' experience in textiles, was regarded as a modern, progressive, forward-thinking company in which working conditions were so positive that there was no need for union involvement on the site. The company had been experiencing increasing financial difficulties owing to the rise in energy costs, but it was the failure of the insurance sector to provide adequate cover that sounded the death knell, leading to the firm's closure and the loss of 250 jobs. Other companies in the area, such as Northern Ireland Plastics and McCleery's Yarns have been hard-pressed to remain financially viable and have had to implement severe rationalising programmes within their company structures to remain in business.
The Under-Secretary of State for Northern Ireland, the hon. Member for Dudley, South (Mr. Pearson) will understand my shock and despair when I learned that the Department of the Environment planning service had refused permission for the exciting and imaginative Gocean development in Killyleagh. The developer would inject £35 million of investment into the area, and would ensure the town's economic future well into the 21st century. 1148 For decades, there has been a slow but constant decline in the manufacturing industries on which local communities depend, and Killyleagh is one such place. Industry prompted settlement in the area, but little has been done to attract new investment. The economic revitalisation of Killyleagh and its hinterland depends on the completion of the Gocean development. Construction jobs on the development would be assured for approximately nine years. The plan outlines a unique mix of social and private housing, as there is an overwhelming demand among local people to remain in Killyleagh. The proposed nursing home would provide about 100 jobs for the town, and the marine, restaurant and chandlery would attract the tourist interest that Killyleagh deserves.
The development has the backing of the overwhelming majority of people in Killyleagh, all political parties and all Members of the Northern Ireland Assembly. It also has my unreserved support as the Member of Parliament representing the constituency. The developer has spent considerable time and effort appealing against the decision to refuse permission, and the Under-Secretary of State for Northern Ireland, the hon. Member for Basildon (Angela Smith), who has ministerial responsibility for the environment, has now—I believe—passed the matter to the Secretary of State for Northern Ireland for a ruling. I appeal to him for a positive response in his deliberations. I cannot overemphasise the importance of the proposal to the future economic and social well-being of the Killyleagh area; it is fair to say that the Government will not invest £35 million over a number of years.
The people of Castlereagh borough have always been intimately connected to the industries of East Belfast. They have suffered equally from the demise of Harland and Wolff, which once employed 30,000 people. More recently, the downturn in fortunes at Bombardier-Shorts has resulted in the loss of thousands of jobs over the past few years. The latest bombshell came only a few weeks ago, when TK-ECC, the constituency's largest private employer, announced that it was closing, with the loss of almost 1,000 jobs in its final year. That has had a truly devastating effect on the wider community. In many cases, more than one member of the same family was employed at TK-ECC, and in one instance five members of a single extended family were affected.
Some TK-ECC employees came from industries that had closed down. Every time a factory closes, opportunities for employment decline, and if action is not taken to address the situation, our local manufacturing industry may simply disappear. To compound the trauma of redundancy, over a few weeks it has come to light that there is a £32 million hole in the TK-ECC pension fund, which only rubs salt into the wounds of a loyal and committed work force.
TK-ECC did not go bankrupt; it was simply axed by its parent company, Takata, which is now offering a paltry £6 million towards the deficit. There are major concerns about the disposal of land then owned by the industrial development board. In 1995, TK-ECC purchased 23 acres adjacent to its factory in Dundonald for £1.5 million on a freehold lease. In February 1996, that land was sold to a Netherlands-based sister company, TREK-VB, for the princely sum of £2.25 1149 million. Investigations by independent sources suggest that, with planning permission, that land is worth about £20 million.
A company has therefore come to Northern Ireland, taken advantage of generous Government grants and been sold 23 acres of Government land on the premise that it was for business development. It has then sold the land for a profit of £750,000 to a company in the same group, which has abandoned its Dundonald work force and is free to sell the land for its own financial gain. It is alleged that Takata will fulfil its pension obligations only if the land is re-zoned and sold for residential development.
So if we retain that precious land for future industrial use, 550 people will be robbed of their full pension entitlements. Alternatively, if it is re-zoned for housing development, the industrial land bank in Dundonald will disappear and there will be no prospect of attracting new industries to the area. That is astounding, and the Department of Enterprise, Trade and Investment must accept full responsibility for selling the land without any conditions or limitations on its future use. The onus is on the DETI to sort out the mess.
There is equal concern about the provision of industrial land throughout my constituency. Although I acknowledge the expansion that is due to take place at the Ballyharry business park in Newtownards, the Strangford constituency, not least in Castlereagh, has little land zoned for industrial use. That must be addressed if we are serious about encouraging inward investment.
Energy costs are another cause of major concern for Northern Ireland industry. A report carried out last year by the CBI confirmed that on average Northern Ireland business is paying 50 per cent. more than its mainland counterparts. For some companies the figure is more than 90 per cent. Reducing electricity prices to industry must be a priority and urgent action must be taken by Government to address the issue. Public service obligation and system security charges must therefore be minimised to ensure that Northern Ireland pays similar unit costs to mainland business. A transparent and pro-competitive restructuring of current long-term contracts must be completed urgently, and be assisted by Government finance to help deliver competitive indigenous generation. A review of how the costs of the Moyle interconnector are recovered must be undertaken to ensure that expenditure remains reasonable.
I challenge the Minister for Enterprise, Trade and Investment to explain why the remit of the integrated development fund has been restricted to West Belfast and Londonderry. To date, the DETI has shown little interest in pursuing any sort of strategic approach to the matter, or in exploring new innovative avenues to address the decline in Strangford. Neither the Minister nor his departmental officials displays any sense of urgency on addressing the decline of our manufacturing industry and the loss of so many thousands of jobs.
If 5,000 jobs had been lost in, say, West Belfast, Strabane or Londonderry, there would be a markedly different response from the DETI. Instead, there seems to be a fundamental unwillingness to develop a strategic approach to the crisis. The Department seems more 1150 concerned with re-routing investment to nationalist areas of the Province, at the continued expense of areas such as Strangford. I wish to make it clear that I have no difficulty with nationalist areas attracting new investment, but I do object to an uneven playing field and the needs of my constituency being ignored continually. One wonders what must happen in the area before the DETI sits up, takes notice and acts to deal with the crisis. The inherent danger associated with the continuing decline of our traditional industries is that we are not only losing jobs but witnessing the removal of opportunities for future employment and skills development and retention.
In conclusion, taking into account the extra financial burdens placed on Northern Ireland's manufacturing industry in comparison with the rest of the UK in areas such as insurance and energy costs, it is crucial that the Government adopt a long-term strategic view on these matters. I therefore take this opportunity to call for the development and implementation of a specialised Department-led initiative to tackle the crisis in the sector. If we fail to take action now, there is a real danger that the areas skills base will decline to the point where the local manufacturing industry could implode.
§ The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Ian Pearson)I congratulate the hon. Member for Strangford (Mrs Robinson) on securing this Adjournment debate. At the outset, I join her in condemning the arson attack in her constituency and the killing that took place in Newtownards yesterday.
I am grateful to the hon. Lady for her comments and for raising her concerns about the current economic situation in her constituency, and it is important that I respond to a number of those points. Although I accept that there have been a number of regrettable job losses in her constituency over the past few years—she mentioned some of them—I would not want her or anyone else in Northern Ireland to think for a moment that the Government do not care about them, and I reject entirely her view that the playing field is uneven. Invest Northern Ireland is active in her constituency, and, in the time available, I should like to explain some of the positive things that the Government are doing to help her constituents.
The hon. Lady mentions last month's announcement that TK-ECC is to close its Dundonald operation with the loss of 550 jobs. That is regrettable, and I share the hon. Lady's concerns about the effects on those who are losing their jobs and the impact on their families and the wider community. The difficulties facing the company had been evident for some time, and Invest Northern Ireland had worked closely with management to try to find a way to resolve those issues. However, despite that approach and the hard work done by the local management team and the work force to make TK-ECC more competitive, all those considerable efforts were not enough to prevent the German parent company deciding to close its Dundonald subsidiary and transfer production to Romania.
The Government's priority has been to provide immediate help and support to those being made redundant, and that facility is already providing a 1151 comprehensive range of advice and guidance to all those affected, including information on job vacancies, help in completing job applications and details of social security benefits. Comprehensive as that support structure is, however, it cannot substitute for actual jobs, and I assure the hon. Lady that everything possible is being done to assist TK-ECC's work force to find alternative employment.
The hon. Lady mentioned a number of specific issues, and she will know that a meeting has taken place. Officials in my Department are well aware of the pensions situation, and are in discussions with the trustees and the company, so it would be inappropriate for me to comment further.
On the disposal of the land, the hon. Lady knows that a decision was taken back in 1995 to sell the land. It was Government policy at that time to sell fully developed sites, which—I have checked the records—was done at fair market value. I have various criticisms of the previous Conservative Government, but they cannot be criticised for selling that property on the cheap.
Although that closure announcement and other closure announcements are a major blow, much positive progress has been made in the hon. Lady's constituency in recent years. In February 2004, unemployment in her constituency stood at 2.6 per cent. That is lower than the 3.2 per cent. average for Northern Ireland, and it ranks Strangford as the constituency with the joint-6th lowest claimant count rate out of Northern Ireland's 18 parliamentary constituencies.
Invest Northern Ireland is building on the growth that has taken place in the hon. Lady's constituency. The agency is very active, with around 110 client companies employing more than 5,000 people. Since it was set up in 2002, it has offered more than £3 million of assistance to companies in Strangford, which have brought forward projects with a total investment of more than £12 million. To date, it has assisted around 270 business start-ups in the area—an encouraging indication of the scope for supporting and developing a more entrepreneurial culture.
We have limited time in this debate, and it is not possible to refer to all the successful companies in Strangford, but let me single out one example to help to demonstrate the innovative and entrepreneurial culture that exists in the constituency. That company is Bridgedale Outdoor, which employs around 70 people in Newtownards. Bridgedale's innovative high-added-value technical socks for extreme sports have made the company a leading player in the outdoor clothing sector. Its products are sold across the world through a distribution network taking in more than 44 countries, from Australia to the Americas. The company is an excellent example of how a forward-thinking company can survive and thrive in the challenging textiles and clothing sector. Invest Northern Ireland has helped Bridgedale to become a key player in its field. The support that it offers to many companies in Strangford covers a broad range of measures aimed at helping businesses to increase their capability and to develop their international competitiveness.
Invest Northern Ireland's business improvement team helps companies in Strangford to enhance their competitiveness in the marketplace. The Compete programme provides support for innovative market-led 1152 products and manufacturing processes. Invest Northern Ireland actively works with councils in the constituency to help to achieve the most appropriate solutions for local needs. Its client companies in Strangford have recorded overall sales of £965 million over the past two years, of which £817 million represents external sales—goods sold outside Northern Ireland—and £512 million represents export goods sold outside the UK.
As a Government, we are directly enabling the provision of land for industrial development. Invest Northern Ireland's main holding is 4.6 acres at Newtownards, and around a further 24 acres are zoned for development at Comber. I assure the hon. Lady that the Government continue to be committed to the continuing economic development of the Strangford constituency, just as we are committed to the economic development and future prosperity of Northern Ireland as a region.
The hon. Lady raised several planning issues and mentioned roads in Comber. The Under-Secretary of State for Northern Ireland, my hon. Friend the Member for Basildon (Angela Smith), will have heard her comments on planning matters, for which she has direct ministerial responsibility.
The hon. Lady mentioned high electricity prices in Northern Ireland. I have been extremely concerned about that issue during my time as a Northern Ireland Minister. Last year, I announced a proposal whereby electricity prices for non-domestic users will fall by 10 per cent. I am optimistic that we will be able to make progress on implementing that proposal. Northern Ireland Electricity recently announced a freeze in non-domestic prices. That is the first instalment of the Government's action.
The hon. Lady mentioned the fishing industry. I am aware of the problems that the industry has faced in Portavogie, Kilkeel and Ardglass in her constituency. Those areas have come under significant pressure, which involves not just the fishing community but the wider community at the southern end of the Ards peninsula. As she will recall, I established a taskforce in January 2003 to address the socio-economic effects of some of the changes taking place in the fishing industry. The hon. Lady mentioned the integrated development fund and she might, perhaps, have forgotten that that fund also applies to the fishing villages taskforce. I have already indicated that money from the fund—up to £5 million—will be made available for a package of measures to support the fishing communities of County Down, including Portavogie.
The hon. Lady also mentioned the proposed tie-up scheme, which I am confident will be launched shortly. Our proposals are with the European Commission, from which we are awaiting final approval. The scheme is designed to provide some compensation to fishermen denied the opportunity to catch cod and other white fish in the Irish sea during the closure period, and it will inject up to £1.5 million into the Northern Ireland fishing industry. I know that several of the hon. Lady's constituents will be among those able to take advantage of the scheme, and we will implement it as quickly as possible once we have approval. That scheme is in addition to the most recent fishing vessels 1153 decommissioning scheme, for which I was able to provide £5 million last year and which has enabled a significant number of fishermen to leave the industry with dignity.
The hon. Lady will also be aware of the Cabinet Office strategy unit report on the fishing industry published today, which I welcome. I want to discuss its findings with the industry, and I need some time to study it, but it is a positive development, which shows the Government's commitment to a sustainable fishing industry for the long term. 1154 The Government are committed to working in close partnership with local councils and other key stakeholders to promote the sustained economic development of the Strangford constituency. I welcome the hon. Lady's close interest in what the Government are doing to support jobs in her constituency, and I want to close by reassuring her that we will continue to work to promote economic prosperity in Strangford and—
The motion having been made after Six o'clock, and the debate having continued for half an hour, MR. DEPUTY SPEAKERadjourned the House without Question put, pursuant to the Standing Order.
§ Adjourned at twenty-eight minutes to Seven o'clock.