Summer Adjournment — House of Commons, 2020-07-22
Topic: Technology
Giacomo Lopresti (Conservative, Centre-right): I have the great privilege of representing Filton, which for more than a century has pioneered and led the world in aerospace. It is where the British Concorde was designed and built. The south-west hosts one of the largest and most significant aerospace clusters in the UK, with the top 14 global aerospace companies having a significant presence in our region. Some 17,500 jobs are due to the work of that sector specifically, which generates £1 billion annually for the greater south-west. That includes the wider supply chain and research work in local universities, such as the University of the West of England in my constituency The UK aerospace sector represents more than 110,000 jobs. The whole aviation sector is worth £52 billion a year, which equates to roughly 3.4% of our country’s GDP. In my constituency, well over 20,000 jobs are directly dependant on the aerospace and defence sectors, with many more involved in the supply chain. In 2019, the aerospace sector contributed £32 billion in exports to the UK economy My constituency has always been at the forefront of research and development and innovation in the aerospace sector, so it is good to see the measures that have been put in place to protect and enhance the industry. It relies on highly skilled personnel in research and development, manufacturing and production, as well as a supply chain of small and medium-sized enterprises. It represents a skills base and a body of knowledge that our country cannot afford to lose Companies that I have spoken to recognise and appreciate the level of commitment and help that the Government have shown, including the furlough scheme, support from the Bank of England’s corporate finance facility, funding for the Aerospace Technology Institute, which supports R&D, and support from UK Export Finance. The sum of that approaches about £9 billion If the Prime Minister wants to make the UK a science superpower, however, which I wholeheartedly support, I ask the Chancellor to consider increasing the proportion of Government R&D funding from the present level of 50:50 match funding to equal that of our European competitors, some of whom are ignoring EU state aid rules and supporting their industry’s R&D to a ratio of 80:20. I echo the words of Matt Allen, the regional officer of Unite, with whom I have spoken often in the last few weeks, and say that if the Government invest in R&D here, the industry is much more likely to end up producing the products that are designed here, which will obviously help the economy and help to protect the industry The industry is grateful for the furlough scheme, but as the scheme winds down, we should consider a strategic sector-by-sector version for specific industries such as aerospace. I am reassured and encouraged after many meetings with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), the latest of which was yesterday evening, that nothing is off the table when it comes to considering support for that vital sector Nearly 70 aircraft flown by UK-registered airlines are more than 15 years old and could be replaced by new aircraft that have better environmental standards and use 25% less energy. All new aircraft in service will be certified to fly with up to 50% of sustainable fuel on board and will be much quieter. The Prime Minister announced the ambition for this country to be the first to build an all-electric commercial aircraft, which will encourage the development of jet zero technology, a net zero carbon emissions aircraft, by 2050. The Government should support the scrapping of the 70 aircraft, allowing airlines to design and build newer aircraft to protect jobs and keep skills here I add my support to calls for a dedicated, long-term supply chain investment fund to support SMEs in the aerospace supply chain, many of which are world leaders in precision engineering and some of which have only one customer. The investment will give those companies the confidence to invest in the sort of world-beating technology that will power the industry well into the future In January 2018, it was reported that nearly a quarter of currently employed engineers will have retired by 2026. That is very troubling, but I remind the Government that one way to ensure that the aerospace sector has new talent for the future lies in the highly prized apprenticeships that the industry offers We must also bear in mind the vital strategic value to the country of a sovereign defence manufacturing capability, which gives our country the freedom to design and develop the equipment that our armed forces will need in an increasingly competitive and contested world. Our ability as a nation to be a reliable partner and ally depends on us being able to respond on day one to any threats to our national security or that could threaten our allies and friends around the world. We must continue therefore to invest in the Tempest programme, the next generation of combat aircraft, and provide increased funding for the defence budget In conclusion, Filton has been at the forefront of the UK aviation industry for well over a century and continues to underpin both our civil and military aerospace industries. As we look to the future, we must be able to maintain our edge in an increasingly competitive and contested world. The Government must reset the economy, and the aerospace industry will respond with the vigour that typified the spirit that motivated the early aeronautical pioneers.