Last night in Parliament, Island MP Andrew Turner brought up Vestas and the workers who are carrying out the sit-in.
The full text of what he said is at the bottom of the page, but here’s a summary.
- Vestas received £3.5 million Government subsidy when moving to the Island.
- He wrote to Lord Mandelson about it three months ago, but hasn’t received a reply yet.
- The Government has announced plans to build around 7,000 wind turbines across Britain in the coming years. These will have to be imported, if they aren’t made in the UK.
- He understands frustration of Vestas workers and sympathetic to their concerns
- Those who have worked at the site for two years or more are entitled to only twice the statutory pay.
- He thinks that “Vestas [is] leaving the workers high and dry, it is doing so with very poor redundancy packages.”
- He finds that “totally unacceptable”, and it “reflects very poorly on a company as profitable as Vestas.”
Further support for Vestas sit-in
Later in the debate Labour MP John McDonnell (Hayes & Harlington) took the opportunity to propose support for the sit-in.
Vestas workers are occupying their factory, and it behoves this House to send our support to them. They are not only fighting for their jobs but are at the forefront of the campaign against climate change, and they deserve our support.
Andrew Turner’s text in full
Mr. Andrew Turner (Isle of Wight) (Con): The Isle of Wight shares many problems with the mainland, and has a few of its own. My time as the island’s MP is often taken up addressing those matters and explaining their importance to the House and to Ministers. With that in mind, I should like to extend my thanks to certain Ministers for their help this year with issues that have affected my constituents.
Three months ago the right hon. and learned Member for North Warwickshire (Mr. O’Brien), then a Minister in the Department of Energy and Climate change, contacted me with news that Vestas was planning to close its operation on the Isle of Wight. Later I wrote to the First Secretary of State, Lord Mandelson, to ask for his support and advice. Vestas is a hugely profitable Danish company and has operations across the world. Until recently, it operated England’s only wind turbine manufacturing facility, in my constituency. It was one of only two in Britain””the other was a small Scottish Government-funded operation.
Following announcements that Vestas was to shut its Newport operation, several meetings were held. The Minister for the South East, the hon. Member for Chatham and Aylesford (Jonathan Shaw), visited my constituency when he was looking into the matter and ensured that help was given to people seeking new employment. I thank him for his time.
I attended a private meeting with a delegation from the Isle of Wight TUC and others from the island, including the Labour prospective parliamentary candidate, Mark Chiverton. A public meeting was held and it attracted a wide audience from across the island and several people from the mainland. Needless to say, Vestas employees and my constituents generally were dismayed at the company’s decision. Vestas announced record profits on the same day that it broke the news that it was closing its facility with the loss of 600 jobs. Vestas is not cutting jobs because of the recession or because of a need to downsize; it has decided that it will be more profitable to manufacture wind turbines in the United States and China, without a thought for the highly skilled workers that it leaves behind.
When it originally came to the island nine years ago it received a £3.5 million Government subsidy, which contributed to the costs it incurred moving from the mainland. Less than a decade later it is leaving, despite that sizable taxpayer-funded financial support. That is why, when public money supports private companies, it is important for it to be directed to companies and businesses that are firmly rooted in the local economy.
Since writing to Lord Mandelson on the matter, I have received no reply. I find it disappointing that he could not find time to speak to me about this important issue, especially when I see him on television daily. However, I believe in giving credit where it is due. I thank the Ministers whom I mentioned for their efforts to convince Vestas to remain open on the island. I understand that all avenues were investigated””even subsidies were offered””but with no success. Subsidies, it seems, were not what Vestas was after.
Only last week Lord Mandelson was congratulating himself on the launch of the new low carbon industrial strategy. I hope that he considers Vestas to be a serious loss to the future of our low-carbon economy. Government plans state that around 7,000 wind turbines are to be installed across Britain in the coming years. It seems unfortunate that such green technology will have to be manufactured overseas and shipped here.
The loss of those 600 jobs has been a body blow to the island’s economy, especially during the recession. Since Monday evening, protesters against the closure of Vestas have been occupying the site. I understand their frustration and I am sympathetic to their concerns. Not only is Vestas leaving the workers high and dry, it is doing so with very poor redundancy packages. Those who have worked at the site for two years or more are entitled to only twice the statutory pay. Those who have worked for less time will receive less still. As I understand it, there were no negotiations with workers on the redundancy packages. I find that totally unacceptable, and it reflects very poorly on a company as profitable as Vestas.
The South East England Development Agency has arranged a series of open days for Vestas staff to help them to find suitable jobs. They are a highly skilled and capable work force and I am confident that they will find work in the near future.
On another matter, I must ask why the Minister for Higher Education and Intellectual Property has failed to produce a full response to a letter from a constituent of mine concerning the Student Loans Company dated 22 April. In late June, via a parliamentary question, I asked when the Department for Business, Innovation and Skills planned to provide a substantive reply to my constituent’s letters. Here we are in late July, and I still await a proper response to my letter. I received a brief reply on 5 July but it was in no way satisfactory. The matter is particularly pressing for the constituents concerned, and they cannot afford to wait any longer. I hope for a full response from the Minister as quickly as possible. The delay is unacceptable.
Finally””although I had planned to speak for much longer””I can tell the House that we are getting on with the Department for Environment, Food and Rural Affairs and its Ministers, and we hope that we will be able to deal with the problem of fallen stock on the island fairly shortly.
I wish you, Madam Deputy Speaker, and all right hon. and hon. Members a happy and productive holiday””although in my opinion it is too long.
