Bombardier — House of Lords, 2017-10-10
Topic: Foreign Trade
Christopher Fox (Liberal Democrats, Centre to centre-left): My Lords, I draw your Lordships’ attention to my declared interests. I thank the Minister for repeating the comprehensive Statement, which I think has support right across the House. There is a danger that this is a bellwether moment for Bombardier, Northern Ireland’s industry and, perhaps, Britain’s future trading relationships. It is an important example and possibly a glimpse of what life outside the European Union might look like As the Statement rightly says, this unilateral and disproportionate response by the US Department of Commerce is over a variety of plane that Boeing itself does not manufacture. Does the Minister agree that this is perhaps a more symbolic gesture, with an eye on other manufacturers in other places—a warning shot, perhaps—with Bombardier as the innocent victim of a larger global power play in plane manufacturing? It also demonstrates in style how the US is going to administer multilateral organisations. It sets out in stark contrast what life could be like after Brexit as we adopt WTO rules, just as the Trump Administration step up their attack on that institution, not least through the vetoing of appointments to the WTO’s appellate body, denying it the ability to deal with such trade disputes Canada has long demonstrated through its actions that it views Bombardier as a strategic Canadian resource. In Northern Ireland, as the noble Lord, Lord Mendelsohn, stated, it has a very important economic as well as symbolic position within the community. I will not repeat what he has just said, except to reaffirm that its loss would be a savage blow to the drive for economic development that is absolutely essential to support the Good Friday agreement and everything that has gone before. But it is also strategic to the UK aerospace industry. We have to remember that wings are a very important part of what we do in this country, and that is what Bombardier does, so there is a very strong need to defend that technology as well Of course, the US action is at an early stage. In due course, as it progresses through the courts and winds its way towards the WTO, I dare say—largely because it has no merit—that Bombardier may have success in overturning the ruling. But these things take years—years and years. What kind of shape would this business be in after going through this process? No company Bombardier’s size could withstand a process of that length. Can the Minister tell us the status of the Delta sales? Are they on hold or do they go ahead as normal until the appeals process is complete? The Minister set out the co-operation that is coming from Canada but we should remember that the parent company is Canadian and if it starts to seek to preserve the overall concern, where will it cut first—in Canada or in Northern Ireland? It is very important that the Government seek assurances from Bombardier that it will continue to support the Belfast operation Finally on this point, we can expect the Chinese to heat up their bid for Bombardier. What line do Her Majesty’s Government have into that process? What advance warning are they likely to get in the event that a bid from the Chinese or someone else comes along I welcome the seriousness with which the Government are taking this; it is imperative that that seriousness continue. I am sure the Government will take the time to explain to Boeing the caustic effect it is having on what has been a burgeoning relationship in this country. I am sure the Government are reminding it about the Apache and Chinook helicopters and Poseidon aircraft that are currently on order from the MoD. Will the Minister say what contingency plans are being put in place to ring-fence the skills we have in Belfast in the event that they start to leech out? We are glad to hear that the Minister is working tirelessly, but what exactly is he now doing? We have heard that he talked to a wide variety of opposite partners in Canada and the US, but what levers does he have to pull? Can the Minister assure us that while we are cosying up, trying to negotiate a trade deal with the US, we will not ease back or soften our approach to the defence of Bombardier? The Minister has a long list of people he has talked to, so far to no effect. What is the next step?