Tag: Mick Whitley

The speech made by Mick Whitley, the Labour MP for Birkenhead, in the House of Commons on 9 January 2023.

I commend my hon. Friend the Member for City of Chester (Samantha Dixon). I hope her nerves have settled after an excellent speech. I thank all my hon. Friends for their eloquent contributions to today’s debate. I hope the Minister recognises there is a real appetite on the Labour Benches to work constructively with the Government on this issue.

Colleagues have rightly drawn attention to the ways in which the Bill risks enshrining in law the kind of cronyism we saw run wild during the pandemic. In the short time available to me, however, I want to speak specifically to the issue of social value and how recent developments in my constituency illustrate the urgent need for reform of our broken procurement regime.

When metro Mayor Steve Rotheram announced that the Liverpool city region combined authority would be commissioning the first new Mersey ferry in over 60 years, there was a widespread belief that it could only be built at Cammell Laird shipyards in my constituency of Birkenhead. What could be more fitting than for such an iconic Merseyside institution to be built on the banks of the Mersey itself? And what a difference the multimillion-pound contract would have made to the lives of my constituents, securing high-skilled work for years to come and guaranteeing additional investment in skills and training.

But soon enough those hopes were sunk by the cold reality of today’s procurement landscape. Cammell Laird could not compete on price against the likes of multinational giants like Damen. No matter how much the metro Mayor might have wanted to see the Ferry built in its entirety on Merseyside, he found his hands tied by onerous procurement rules enforced by central Government. As a result, the construction of the ferry is now set to be split between Cammell Laird and a Damen shipyard in the Balkans, with much of the most high-value labour likely to be offshored abroad.

My constituents were badly let down by a failed procurement regime that failed to take wider social, economic and environmental considerations properly into account. The news, only a week later, that the Ministry of Defence had awarded the contract for the new fleet solid support ships to a Spanish-led consortium made the blow even harder to bear.

Ministers have stated time and again that they intend to reaffirm value for money as the foundational principle of their procurement strategy. No one in this House is arguing for anything other than delivering the highest value for taxpayers, but that must also mean recognising the extraordinary potential for public procurement—which accounts for £1 in every £3 that the Government spend—to promote British businesses, boost job creation and drive investment in communities such as Birkenhead. For too long, communities across the country have missed out on the benefits of billions of pounds of public spending: one in six procurement contracts are now awarded to companies with links to tax havens, while the number of SMEs winning Government contracts is falling year on year.

This Bill was an opportunity to put right the mistakes of the past. Ministers had the chance to strengthen the Public Services (Social Value) Act 2012, give contracting authorities the flexibility they need to do their best by the communities they serve, and enshrine social value at the very heart of a new, progressive procurement regime. But there is not a single mention of social value in the Bill. Instead, Ministers are promising to expand on their plans to maximise social value in a national procurement policy statement with no statutory footing. If the Government are as committed as they claim to be to supporting critical industries such as shipbuilding, why does the Bill not contain a social value strategy?

The simple truth is that when it comes to supporting British businesses, the Bill is desperately lacking in ambition. For all the talk from Government Members about seizing post-Brexit opportunities, all the Bill really has to offer is more of the same—more of the giant multinationals treating this country as a cash cow while forcing home-grown British businesses out of the competition, and more public money piling up in tax havens while domestic industry struggles to survive one of the bleakest economic outlooks in recent history.

I recognise the need for a major overhaul of our national procurement regime. In the hope of achieving meaningful improvements to the Bill, I will not vote against it this evening, but if the version that returns on Third Reading does as little for the communities and businesses that I represent, I will be forced to think again.

The speech made by Mick Whitley, the Labour MP for Birkenhead, in the House of Commons on 23 November 2022.

It is a pleasure to serve under your chairmanship, Sir Christopher. I congratulate the hon. Member for Airdrie and Shotts (Ms Qaisar) on securing this important debate.

At this time of year it is natural for people’s minds to turn towards Christmas. I am sure that the Minister, like many of us, is looking forward to a well-earned break, the company of family and friends, and all the comforts and trappings of the season. But I must warn him that, for the more than one in five children in my constituency who live in poverty, the coming festive season holds none of the joy that he surely takes for granted. Indeed, for many of the children that I represent, 25 December threatens to be a day like any other—plagued by cold, hunger and fear.

Our multimillionaire Prime Minister has at least had the sense to look beyond the walls of his country mansion and acknowledge the crisis facing millions of ordinary people this winter. Addressing the Cabinet yesterday, he is reported to have said that we are entering

“a challenging period for the country, caused by the aftershocks of the global pandemic and the ongoing conflict in Ukraine.”

But he is deluding himself if he believes that he can ignore the central role that the Conservative party has played in making this crisis. Even before the pandemic began, nearly 4 million British children were growing up in poverty, 75% of whom live in a household with at least one working parent. While the fallout of Putin’s war is hitting all of Europe’s major economies hard, none is being forced to grapple with the depth of deprivation we now see in the UK. That is a distinctly British ailment.

A quarter of a century ago, a Labour Government set out on a moral crusade to end poverty. They recognised that spending formative years in poverty is the single most important determinant of life chances in everything from educational outcomes to life expectancy. That is why, when Labour was in power, we lifted 1 million children out of poverty, which is an historic achievement. However, today we bear witness to scenes of destitution and misery that we thought were a thing of the past. Former Prime Minister Gordon Brown has recently said that he is now seeing more children going hungry than at any time in his 40 years in public life.

Margaret Ferrier

Many of the support measures announced in last week’s Budget were temporary, but long-term support is required if we are going to provide all children with the best start in life. Does the hon. Member agree that the Government need to review this urgently?

Mick Whitley

The hon. Member makes a good point. We hope that the Government will take cognisance of what we are saying today.

What the former Prime Minister has said is a stark indictment of 12 years of Tory failures. When the Minister launches his inevitable feeble defence of the Government’s record in a few moments’ time, he will undoubtedly point to the measures contained in last week’s Budget. It is true that after weeks of equivocation, the Chancellor has at last bowed to pressure and agreed to an uplift in the benefit cap and benefit payments, but for the thousands of young people in my constituency for whom poverty has become a fact of life, it is nowhere near enough. After 12 years of real-terms cuts to benefits and punitive sanctions, the idea that they should be in any way grateful to the Chancellor for the limited action he has taken is an insult.

The Child Poverty Action Group has estimated that while benefits will be 14% higher in the next fiscal year, prices will be 21% higher for the poorest families in towns such as mine, and although a lifting of the benefit cap is long overdue it fails to even begin to undo the damage that has been wrought as a result of it being frozen in 2016. In fact, in communities such as Birkenhead, it would need to increase by a further £942 a month just to erase what has been lost since 2013, but still the Chancellor has the temerity to patronise hard-working families by saying that the best way out of poverty is through work. I want the Minister to know that most of the struggling families that I meet work harder and longer hours than either of us; the reason they are claiming benefits at all is the scourge of poverty pay.

Last week, the Chancellor spoke of the need to treat the vulnerable with compassion, but a truly compassionate Government would recognise that the benefit cap, the two-child limit and the pernicious sanctions are just not working. They are trapping millions of our most vulnerable citizens—our young people—in poverty. Things cannot go on like this. For 12 long years, this Government have pursued a policy of slashing benefits, squeezing families, and inflicting punitive sanctions that drive people past the point of desperation. The result is that the hard-won progress we made in tackling child poverty between 1997 and 2010 has been almost entirely undone. That is a public policy failure almost without precedent. An entire generation of young people who have known only poverty and misery under a Tory Government is about to come of age; we cannot allow more to follow.

The speech made by Mick Whitley, the Labour MP for Birkenhead, in the House of Commons on 17 May 2022.

In my constituency and in similarly deprived areas around the country, the Government have been remarkably silent about what they intend to do about the cost of living crisis in their legislative programme for the coming year. While some on the Conservative Benches have advised the poorest in our country to take up cookery lessons or scour the shops for the cheapest brands, the Government have offered little more than scraps from their table. A £200 loan here and a £150 rebate there—such measures give little comfort to people whose housing benefit has been frozen since 2020 while rents have skyrocketed. They offer no long-term solution to those whose benefits and pensions have been cut and pegged back, nor do they help those in work who face soaring prices and falling wages.

Family budgets are at breaking point, and two in five people are now buying less food because of the cost of living crisis. In April, 2 million adults skipped a day’s eating to try to save money. The Resolution Foundation predicts that almost 1.5 million people, including half a million children, will fall into absolute poverty next year. This is what food inflation of 9% and rising means for millions, and it is what energy costs heading for a 54% increase are inflicting on the poorest and most vulnerable people in this country. It is a Sophie’s choice of heat or eat.

The cost of living crisis is a war on the poor, and it is the scourge of countless working families. It is scandalous that the chief executive officer of Tesco has just pocketed a pay packet of almost £5 million for one year’s work. A customer assistant at Tesco would have to work for 267 years to earn the same as the CEO got for 12 months’ work. That should be a badge of shame.

A Government who care about their people should be working towards both short-term and long-term solutions in their plans for the year ahead. Sadly, this Government plan for very little beyond their own self-preservation. In the short term, we can help people by introducing a windfall tax on the profits of the fuel giants. Two big oil companies coined in more than £12 billion in the first three months of this year. Let us tax them to help those who cannot afford to heat their home. Even top directors such as the CEO of Asda are calling for it now. Let us restore the £20 universal credit uplift to prevent the poorest from sliding into irreversible food and fuel poverty, let us immediately provide extra funds to hard-hit pensioners through extra warm home and winter fuel payments, and let us set a real living wage at a level on which people can really live.

In the long term, we need to address the economic problems at the heart of our economy that are the legacy of industrial vandalism by the Conservative party over many years. We need to stimulate inward investment by recasting our economy through a green industrial revolution that can provide hundreds of thousands of well-paid jobs and can create industries, including vibrant, publicly owned ones, that meet our energy needs on a clean and green basis, helping to save our planet while overcoming the chronic failings of the current supply chain. We need a progressive wealth tax, and we need to close the loopholes that enable the rich and the corporations to evade the taxes they rightfully owe. Fair taxation can pay for the uplift and reform of the benefits system, which currently punishes the poor. Benefits and pensions must be substantially increased and inflation-proofed.

Finally, where the Government control wages, they must scrap the miserly below-inflation pay limits that are really pay cuts. These cuts took, on average, £845 away from NHS workers last year. We clapped their efforts during lockdown, and then the Government slashed their wages during crackdown.

These are the answers to the cost of living crisis, and they should be in the legislative programme for this year.

The speech made by Mick Whitley, the Labour MP for Birkenhead, in the House of Commons on 3 March 2022.

It is great to speak to a packed House.

It is a great honour to be able to open this important debate about the future of UK shipbuilding. I am very glad to see the Minister in his place. I know from our previous encounters the depth of expertise and passion that he brings to this debate, and I look forward to hearing his contribution later. I also declare an interest. I am a long-standing member and former north-west regional secretary of Unite the union, which organises workers in the shipbuilding sector, including in my own constituency.

With the national shipbuilding strategy refresh expected shortly, the timing of this debate could not be more appropriate. It is a document that is keenly anticipated across the entirety of the sector and has the potential to define the landscape of British shipbuilding for decades to come. I am sure the Minister knows just how important it is that the Government’s plans live up to the lofty rhetoric of the Defence Secretary and the Prime Minister.

Only yesterday, I had the pleasure of taking my hon. Friend the Member for Islwyn (Chris Evans), the shadow Minister for defence procurement, on a tour of the historic Cammell Laird shipyards in my constituency. It was clear to see the immense pride which every member of the team took in their work, from the stagers to the shipwrights and the senior management. They have much to be proud of. After a challenging few decades for the whole of the industry, Cammell Laird enters the 2020s with a reputation for being at the forefront of innovation in British shipbuilding and for having delivered some of the most technologically advanced vessels afloat. From its slipways sailed the RRS Sir David Attenborough —commonly known as Boaty McBoat or whatever—one of the most sophisticated research vessels ever built. As we speak, that ship is battling perilous Antarctic waters, following in the wake of the Erebus and Endurance, and gathering vital data about the impact of climate breakdown on the polar regions. Capable of operating in temperatures as low as minus 40° and equipped with state-of-the-art equipment to study the deepest depths of the ocean, the SDA is a marvel of British engineering in which all of Birkenhead can take pride.

Cammell Laird also continues to play an enormously important role in the local economy. It is easily the largest employer in our town, employing 650 well-paid and unionised workers, with a further 1,500 subcontractors active on the site. Its Marine Engineering College continues to offer high-quality apprenticeships to around 50 people each year across every discipline, with a commitment to doubling that number in years to come. These apprenticeships are so highly valued that last year 880 applications were made for just 25 positions. The shipyard’s success is being felt far beyond the shipyard walls, with £400 million spent in the wider supply chain in the last five years alone, including £130 million in the immediate locality, supporting over 300 local businesses. But for all the passion, enthusiasm, and commitment that I witnessed yesterday, there is still a sense that the glory days are, at least for now, behind us.

Once the shipyards towered over the skyline of our town, as iconic and powerful a symbol of Birkenhead as the Three Graces are still for neighbouring Liverpool. No more. The time when a young person could reasonably expect to walk out of the school gates and into secure, lifelong work at Cammell Laird is long gone. My mother, father and three of my brothers all learned their trades in the yards. Like so many others of my generation, my future and that of my family’s was entwined with the future of British industry. There is probably not a single young person living in our country today who can say the same.

The story of Cammell Laird has been replicated time and again not only in shipbuilders up and down our country but in our foundries, forges and factories. Government Members have told us that the destruction of British industry was inevitable and that we had no choice but to bow to the inexorable tides of history, but, as the UK was cutting its shipyards adrift, Governments in Spain, South Korea and Italy were investing in their shipbuilders, and today they are unrivalled anywhere else in the world.

After many years of decline and industrial neglect, the Government’s recognition that change is needed was warmly welcome. So, too was the decision to expand the scope of the national shipbuilding strategy with the upcoming refresh, but if the Defence Secretary is to earn his title of shipbuilding tsar, it is time for him to prove his commitment to revitalising UK shipyards and building a brighter future for this critical industry. I fear that the cracks in his resolve are already beginning to show.

In December 2020, I held a Westminster Hall debate on defence procurement and was glad to hear the Minister agree that the historic increases in defence spending announced in that year’s spending review should be used to support domestic manufacturers and British jobs and skills. On that day, I also sought a commitment from him that the Royal Fleet Auxiliary’s new fleet solid support ships would be designed and built in their entirety in Britain. That is a fundamental test of the Government’s commitment to British shipbuilding, and the signs so far are not promising.

Leading figures in the defence sector, including Sir John Parker, have repeatedly called for the need to recognise social value when commissioning new defence projects such as the fleet solid support ships, but despite classifying these new vessels as warships, the Secretary of State has failed to provide a cast-iron guarantee that they will be built in their entirety in Britain.

Mr Alistair Carmichael (Orkney and Shetland) (LD)

The hon. Gentleman is making a compelling case. Indeed, we have never constructed sovereign warships outside the United Kingdom and it would be a retrograde step for so many different reasons if we were to do so. We must, however, have a shipbuilding industry that goes beyond the construction of warships, where different procurement rules apply. Does he share my frustration at the way in which the Scottish Government’s mismanagement of Ferguson shipyard in Greenock has so fundamentally undermined confidence in the prospect of a non-warship shipbuilding industry in this country?

Mick Whitley

The right hon. Member makes a good point. As well as building for defence procurement, we should be building commercial vessels.

The terms of the competition dictate that the FSS need only be “integrated” in the UK, which means that the lion’s share of the work could be offshored, with British shipbuilders losing out on vital work at a critical time. That would be a tragic betrayal of British shipyards and the thousands of workers that they support.

The Minister will no doubt be aware of my enthusiasm for the bid put forward by Team UK, a consortium of British firms including Cammell Laird, Rolls-Royce, Babcock and BAE Systems. In fact, in the last two years I have inundated his Department with correspondence demanding that the contract be awarded to the consortium, which would truly represent the very best of British engineering, and I repeat my call today. If the Government are serious about supporting shipbuilding, Team UK must be awarded the bid. The benefits are obvious. Instead of allowing non-domestic firms to benefit from billions of pounds of taxpayers’ money, we could create or secure at least 6,700 jobs in British industry, including 2,000 in the shipyards, while seeing £285 million of the total spend returned to Treasury coffers through income tax, national insurance contributions and lower welfare payments.

It is also imperative that the revised shipbuilding strategy looks at the wider issue of procurement. For years, Ministers have waxed lyrical about the extraordinary economic benefits that Brexit would bring, but, instead of the Government taking advantage of our departure from the European Union to throw their full weight behind British shipbuilders, they continue needlessly to follow procurement rules that force businesses such as Cammell Laird to compete with state-owned giants including Spain’s Navantia. It is a David-versus-Goliath struggle. Even when British shipbuilders are in the running for lucrative defence projects, Ministers too often expect them to shoulder enormous financial risks, including 100% refund guarantees that many British shipyards can ill afford.

Let me be clear. UK shipbuilders are not looking for handouts, nor are they asking for taxpayers’ money to be wasted. They know all too well the importance of delivering value for money; they just want a level playing field. They are absolutely right to say that a more benign contracting environment is badly needed if we are to achieve the shipbuilding renaissance that Ministers have repeatedly promised. I hope that when the NSS refresh is published, it will include a recognition that the Ministry of Defence must begin to accept more responsibility for the financial risks inherent in commissioning the top-end vessels that the Select Committee on Defence has identified as so vital to guaranteeing our national security in the deeply uncertain years ahead.

As I said, the shipbuilding strategy has the potential to define the future of British shipbuilding for decades to come, but if shipyards across the country are to make the investment in recruitment and training that they so desperately want to make, they will need guarantees of work in the short term as well. It is not good enough to tell firms that things will get better in 10 years’ time, when so many yards are confronting enormous challenges here and now. We need action now to stem the exodus of jobs and skills from the sector and lay the solid foundations that will be essential if the shipbuilding strategy is to be delivered in full. I hope that the Minister will speak about that issue today.

The speech made by Mick Whitley, the Labour MP for Birkenhead, in the House of Commons on 18 January 2021.

I support the motion. The Government should hang their head in shame for leaving people on universal credit living under the shadow of a potential cut in their benefits at the end of March. We face the worst recession of any European country, to a large extent due to the Government’s shambolic handling of the covid-19 pandemic. The Prime Minister’s failure to provide a clear strategy, some economic certainty and the adequate financial support that millions of people desperately need is a failure of leadership and of Government policy.

The scale of this crisis is massive and growing. In my constituency of Birkenhead, I represent two of the most deprived council wards in the country. Over 12,000 of my constituents claim universal credit, a 51% increase since the pandemic began. Countless others are in receipt of legacy benefits, and joblessness continues to soar. Every day, more people join the ranks of the unemployed. Even those who have kept their jobs are struggling to make ends meet; furloughed workers are forced to survive without a fifth of their pay packet each month.

My resolve on this issue has been strengthened by the deluge of messages from my constituents. The £20 uplift is a vital lifeline; it is as crucial to people’s financial health as the vaccine is to their physical health. So many constituents have told me of their fear and despair for their very survival if it is taken from them, but still the Government have refused to make the uplift to universal credit and working tax credit permanent or to confirm that it will be extended beyond April. At the same time, I believe that those excluded from the original uplift—those on legacy benefits—should also get a £20 a week rise.

Let me be clear: if, during the worst economic crisis in living memory, the Government go ahead and cut the £20 that has enabled so many people to get by, it will be a scandal. The Resolution Foundation estimates that if this cut goes ahead, the bottom fifth of earners will lose 7% of their income. Similarly, Citizens Advice predicts that 75% of the people it helps with debt issues will not be able to cover basic costs if the uplift is cut. It will mean more children going hungry, more families being unable to heat and light their homes, and more households facing the threat of eviction. It will mean human suffering on an epic scale in Birkenhead and across the country. By doing away with the uplift, the Government would take over £12 million from Birkenhead’s economy, with cash-strapped families spending less in our local supermarkets and independent stores.

“Build back better”? That is a hollow phrase masking economic vandalism. We must not let this Government pave the way to a new pandemic where poverty becomes the next deadly virus.