HL Deb 06 February 1989 vol 503 cc1315-7

2.57 p.m.

Baroness Turner of Camden asked Her Majesty's Government:

What effect on employment in Dagenham Ford's decision to build Sierras in Belgium is likely to have, and what steps they are taking to deal with it.

Lord Strathclyde

My Lords, Ford has predicted that over the next five years 500 jobs at Dagenham will be lost by natural wastage as a result of the phasing out of Sierra production there. No special steps are being taken by the Government.

Baroness Turner of Camden

My Lords, I thank the Minister for that Answer. Is he aware that the Sierra is the second best selling car in the Ford range, and that 43 per cent. of Sierras are sold in this country? If the Sierra is built in Belgium, there are bound to be balance of payments problems. Will this not also have an effect on employment? Is he further aware that there will be a spin-off regarding component manufacturers in that the figure of 500 jobs to which he referred may be very much larger?

Lord Strathclyde

My Lords, I understand what the noble Baroness is saying. However, I must point out that the Dagenham plant will now be making the new Fiesta range of cars which Ford believes will be extremely successful and will become a best seller. Generally speaking, I must point out that Ford has to decide how to run the company, and it must not be for the Government to tell it how to do so.

Lord Boyd-Carpenter

My Lords, how far does this regrettable decision of Ford result from the actions of the Transport and General Workers' Union in blocking the building of a Ford factory at Dundee a little time ago?

Lord Strathclyde

My Lords, I have no information on that point; but I am sure that my noble friend is quite right.

Lord Mellish

My Lords, what does Belgium have that Dagenham does not have?

Lord Strathclyde

My Lords, as I said in reply to an earlier question, it must be for Ford to decide where to build its cars. It has been building cars in the European Community for many years, and it has often switched model production from one area to another. Perhaps I may also point out that Ford is about to invest £750 million in a new engine plant at Bridgend in South Wales.

Lord Williams of Elvel

My Lords, if the noble Lord has no information about the point made by his noble friend Lord Boyd-Carpenter, how can he say that he is sure that his noble friend is quite right?

Lord Strathclyde

My Lords, I meant that I was sure that my noble friend thought that he was quite right.

Lord Peyton of Yeovil

My Lords, does my noble friend agree that my noble friend Lord Boyd-Carpenter is right far more often than the noble Lord, Lord Williams of Elvel, and that therefore the law of averages was wholly on his side?

Lord Jenkin of Roding

My Lords, is it not right that one should look at the matter in the broader context? Was not the very good news which was announced last week that the Toyota motor company is now to establish a large factory in this country and all that remains to be done is to decide where, an indication of how attractive Britain has become to the international motor industry?

Lord Strathclyde

My Lords, my noble friend is absolutely correct. Moreover, we seek to continue to manage the British economy in a way so as to encourage more investment.

Lord Cockfield

My Lords, I wonder whether my noble friend can tell the House what the aggregate effect on employment is of all the plans of the Ford Motor Company, including the expansion of the engine plant at Bridgend.

Lord Strathclyde

My Lords, I have details regarding only the Dagenham plant. There, as I said, 500 jobs will be lost by natural wastage over the next five years. At Bridgend a total of 2,500 jobs will be created and preserved when that factory is working at full steam.

Baroness Turner of Camden

My Lords, is the Minister aware that the Fiesta, which Fords claim will replace the lost Sierra, will continue to be sourced from Valencia and Cologne, and therefore the volume of jobs likely to be provided will probably not be so great?

Lord Strathclyde

My Lords, I am sure that if the Dagenham plant is successful in producing Fiestas at the best possible price, then we should be able to look forward to an increased production at that plant rather than at Valencia.

Baroness Seear

My Lords, is the Minister aware that some of us realise that with the coming of 1992, and the single European market, we shall see a great deal of investment from this country into other countries, and also investment from other countries into this country—and that that is how it should be?

Lord Strathclyde

My Lords, yes; the noble Baroness is right. We are attracting an enormous amount of investment from overseas purely because of 1992 and the opening up of the single European market.

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