Articles about ‘Jobs, business & economy’
Oct 5
MG Longbridge – IT DID NOT HAVE TO BE LIKE THIS
Originally published in Bromsgrove Standard – 30 September 2016
Many of you may have already heard the recent news that MG has announced they intend to cease assembling vehicles at their site in Longbridge. With the loss of around 25 local jobs, the overall scale of this is vastly different from when MG Rover stopped production over a decade ago – with the loss of over 6,500 jobs. But it still brought back memories and – whether you are one of 25 or one of 6,500 – losing your jobs is still losing your job. It did not have to be like this.
While I understand the business concerns that MG have surrounding costs of assembly at Longbridge, I am still hugely disappointed by this decision and believe it to be a premature one. Part of the problem here is that existing concerns over cost have undoubtedly been aggravated by problems with the strength of the pound and the cost of imports. As Professor David Bailey, of Aston University, has explained this week: “post-Brexit, the costs of import are much more expensive and there is uncertainty about the future. MG had hoped to use the UK as a launch pad for selling into Europe.”
More discussions should have taken place to explore alternatives and options before any decisions were finalised. In addition to discussing this with MG, I have been speaking with local Councillor and Birmingham Council Cabinet Member for Skills, Brett O’Reilly, as well as the Government. I know that they, like me, are willing to meet MG to discuss and explore options and help that may be available and I am sure the same will be true for the local authority and the Local Enterprise Partnership. That is why I have appealed to MG to delay this decision so that these detailed meetings can take place.
Let us remember though, that we are not talking about the end of the Shanghai Auto/MG operation at Longbridge though. The Shanghai Automotive Technical Centre will remain at Longbridge, with between 300 and 400 skilled engineers and others working there. In addition to this vital Research and Development operation, there will also be MG sales, marketing and after-sales staff working at the plant. We can build on that, but it is another reason why I think this announcement is premature as we haven’t been able to work with MG to explore all the options.
It is vital that MG get around the table with myself, government, LEP and Birmingham City council to try to find a solution. The voice of employees through their trade unions also needs to be heard. We need to do this in the interests of constituents, local business, the community and the broader automotive industry. While we may not be able to achieve the ideal outcome, we may be able to achieve a better one if all those involved work together to find constructive solutions.
Statement on MG’s announcement to cease assembly at Longbridge
Responding to news that MG intend to cease assembling vehicles at the Longbridge site, Richard Burden MP said:
“MG’s decision to close its assembly line at Longbridge is hugely disappointing and I believe it is premature. I understand the business concerns that MG have surrounding costs of assembly at Longbridge, which have undoubtedly been aggravated by problems with the strength of the pound. However, more discussions should have taken place to explore alternatives and options before any decisions were finalised.
“Having spoken to the Government, I know they are willing to meet MG to discuss and explore options and help that may be available and I am sure the same will be true for the local authority and the Local Enterprise Partnership. That is why I have appealed to MG to delay this decision pending such detailed meetings.
“I’m therefore disappointed that this announcement has been made in advance of those further meetings taking place. I’m pleased that MG want to continue their operation in the UK, including the successful Shanghai Automotive Technical Centre at Longbridge which is associated with MG. We can build on that and that is another reason why I think this announcement is premature. It is vital that MG get around the table with myself, government, LEP and Birmingham City council to try to find a solution. The voice of employees through their trade unions also needs to be heard. We need to do this in the interests of my constituents, local business and the broader automotive industry.”
You can find out more about the announcement on the BBC, Birmingham Mail and B31 Voices
Update on local government and ethical procurement rights
Some of you may recall, back in March, along with other MPs, I was pressing the Government to back-off on proposals which threatened to stop local councils and other public bodies from considering ethical factors when making procurement decisions: http://www.independent.co.uk/news/uk/politics/government-accused-of-launching-attack-on-local-democracy-with-new-council-investment-rule-a6786916.html
Understanding the new world we are in
Three weeks ago it all felt so different. Britain had not yet voted to leave the European Union. The Pound had not plummeted. The Bank of England had not yet had to step in to steady the situation. The Prime Minister had not announced his resignation and the UK’s major political parties had yet not appeared to be in turmoil.
None of us have lived through anything quite like this before and nobody can know what lies ahead. As we now try to navigate a new course through the uncharted waters which lie ahead, though, here are some markers that I believe should guide us.
Pressing for Midlands representation
On Wednesday I urged the PM to put mechanisms in place so Birmingham and Midlands voices are heard in preparatory talks and negotiations with the EU over Brexit.
Watch it here:
