Review of the Year Review of Parliament

2015 / 2016 MANUFACTURING EDITION

A YEAR IN PERSPECTIVE

FOREWORDS Th e Rt Hon Philip Hammond MP Stephen Elliot

CHEMICAL, COSMETIC & PHARMACEUTICAL REPRESENTATIVES

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FEATURES Review of the Year Review of Parliament

Th e Rt Hon Philip Hammond Chancellor of the Exchequer

This Government is clear that a strong economy is arrangements with our European neighbours, we must the essential prerequisite to delivering prosperity and also redouble our efforts to promote trade with the improved life chances for all, building a Britain that truly rest of the world. Since the referendum we have seen a works for everyone, not a few. number of countries indicating their wish to agree trade deals with the UK, and I’m certain the list will continue Since 2010, we have made significant progress. to grow. Britain has been one of the fastest growing advanced economies in the world over the last few years; our People can be assured that we are prepared to take the employment rate has reached record highs as living necessary steps to safeguard the economy in the short standards rose to the highest level ever last year. At the term and to take advantage of the opportunities that same time, the deficit as a share of GDP has been cut by arise in the longer term as we forge a new relationship almost two-thirds from its post-war peak in 2009–10. with the European Union.

While the decision to leave the European Union marks The message we take to the world is this: we are the the beginning of a new chapter for our country and our same outward-looking, globally-minded, big-thinking economy, we start from a position of strength and our country we have always been – and we remain very economy is well-placed to confront the challenges ahead. firmly open for business.

Britain will, in due course, begin negotiations to leave the European Union. We recognise there may be some uncertainty as we negotiate and then a period of adjustment as the economy transitions to the post-EU reality. As we go forward, we are determined As we go forward, we are to build on our strengths as an open, dynamic, trading nation to forge a new global role for Britain. determined to build on our We are determined to make a success of Brexit and have“ strengths as an“ open, seen some positive developments with large companies such as Siemens and Lockheed Martin confirming that dynamic, trading nation the UK remains an attractive place for them to invest. to forge a new global role This is all good to see but we cannot be complacent. for Britain At the same time as we seek the best possible trade

FOREWORD | 1 Foreword

Th e Rt Hon Philip Hammond Chancellor of the Exchequer

FOREWORD | 1 Review of the Year

Job losses mount in stricken Steve Elliott oil and gas sector Chief Executive of the Chemical Group, a provider of maintenance and construction services to Shell, staging Industries Association a 24-hour strike in July in a dispute over pay. The Unite and RMT unions claimed the action was a response to the Aberdeen-based company’s The UK economy has continued to grow, primed by a industries, welcomed new Prime Minister Theresa May’s plans for ‘swingeing’ pay cuts. The surge in manufacturing production which recently saw restructure of Government, especially the creation of industrial action followed Wood its biggest quarterly gain in six years. the new Department for Business, Energy and Industrial Group announcing a cut in pay rates Strategy under Secretary of State, Greg Clark. Inclusion for around a third of its contactors in As Leader of the Chemical Industries Association (CIA), of industrial strategy is a much welcomed signal to February, citing the ‘continuing cost the body representing the UK’s biggest manufacturing businesses planning for the future and the merger of and efficiency challenges affecting exporter which contributes £15bn of value to the business with energy should ensure competitiveness is the UK North Sea oil and gas sector’. country every year, economic performance like this more at the heart of all policy developments. Despite fears over a long-term decline fills me with great pride and solidifies the importance The outlook for the in investment from companies, French of manufacturing to the ongoing success of the Additionally, the new Department for International North Sea Oil & Gas industry giant, Total, reaffirmed its UK economy. Trade is likely to prove vital to developing new trade sector as a job creator The fortunes of the UK’s oil and gas commitment to the North Sea region agreements across the globe. It is, I believe, now the looked shaky industry continued to dwindle in 2016, Following the United Kingdom’s vote to exit the in May, with Chief Executive, Patrick responsibility of UK manufacturers to carefully look out with job losses predicted to increase European Union, we have entered into a period of Pouyanne, telling the BBC ‘There is and seize opportunities arising from Brexit to secure by the end of the year due to the uncertainty and what could be significant economic a future for the North Sea, no doubt a globally-competitive UK industry through a new ongoing downturn in global oil and gas adjustment. Positive recent economic results can no about it’. relationship with the EU and the rest of the world. prices. The North Sea – the epicentre longer be automatically considered indicative of future of the industry in the UK – looks set Looking to remedy the oil and gas growth and signs of weaker demand and flagging I hope the industry will, in true British fashion, be to bear the brunt of the fall. A survey sector’s precarious position of the past confidence must be recognised. innovative in its approach to the possibilities available. by Aberdeen and Grampian Chamber few years, the Government stepped At the same time we also need to be positive about the of Commerce published in May made forward with financial commitments potential prospects and performance that the UK could for gloomy reading by revealing sector and numerous incentives over the

now achieve. The fall in the value of the pound has operators expected to see a 17% cut in course of 2016. On a visit to Aberdeen been a welcome bonus for manufacturing exporters. their UK headcounts over the coming at the beginning of the year, the

It is important that attention now turns to going the Attention now turns to year. Since global oil prices began to Prime Minister, David Cameron, extra mile to ensure the concerns of the industry are fall in 2014, it is estimated that 65,000 said £20m would be earmarked for clearly presented to government and then get acted on. going the extra mile to “ jobs have been lost in the North Sea oil exploration activity, the encouragement These include the desire to remain in the single market, “ensure the concerns of the and gas industry. Compounding the of innovation and the sourcing of along with the need to maintain access to skilled problems, industry trade body, Oil and skills. The Government would also employees and competitively-priced energy. industry are clearly Gas UK, predicted 120,000 jobs in the appoint a designated oil and gas ambassador to promote the North The chemical and pharmaceutical industries, in sector would be lost by the end of the presented to government Sea industry around the world in consensus with most other UK manufacturing year compared to its 2014 peak before the downturn began. order to encourage investment. Mr Cameron’s announcement coincided The industry’s first strike action in with a £250m commitment into North more than 30 years took place with East Scotland’s economy as part around 300 employees of Wood of the UK City Deal, an investment

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Job losses mount in stricken oil and gas sector

Group, a provider of maintenance and construction services to Shell, staging a 24-hour strike in July in a dispute over pay. The Unite and RMT unions claimed the action was a response to the Aberdeen-based company’s plans for ‘swingeing’ pay cuts. The industrial action followed Wood Group announcing a cut in pay rates for around a third of its contactors in February, citing the ‘continuing cost and efficiency challenges affecting the UK North Sea oil and gas sector’. Despite fears over a long-term decline The outlook for the in investment from companies, French North Sea Oil & Gas industry giant, Total, reaffirmed its sector as a job creator The fortunes of the UK’s oil and gas commitment to the North Sea region looked shaky industry continued to dwindle in 2016, in May, with Chief Executive, Patrick with job losses predicted to increase Pouyanne, telling the BBC ‘There is by the end of the year due to the a future for the North Sea, no doubt ongoing downturn in global oil and gas about it’. prices. The North Sea – the epicentre of the industry in the UK – looks set Looking to remedy the oil and gas to bear the brunt of the fall. A survey sector’s precarious position of the past by Aberdeen and Grampian Chamber few years, the Government stepped of Commerce published in May made forward with financial commitments for gloomy reading by revealing sector and numerous incentives over the operators expected to see a 17% cut in course of 2016. On a visit to Aberdeen their UK headcounts over the coming at the beginning of the year, the year. Since global oil prices began to Prime Minister, David Cameron, fall in 2014, it is estimated that 65,000 said £20m would be earmarked for jobs have been lost in the North Sea oil exploration activity, the encouragement and gas industry. Compounding the of innovation and the sourcing of problems, industry trade body, Oil and skills. The Government would also Gas UK, predicted 120,000 jobs in the appoint a designated oil and gas sector would be lost by the end of the ambassador to promote the North year compared to its 2014 peak before Sea industry around the world in the downturn began. order to encourage investment. Mr Cameron’s announcement coincided The industry’s first strike action in with a £250m commitment into North more than 30 years took place with East Scotland’s economy as part around 300 employees of Wood of the UK City Deal, an investment

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jointly funded by the UK and Scottish UK workforce and the country’s governments. This was followed up leading position in life sciences that by March’s Budget, when Chancellor, we are making these investments in George Osborne, announced a cutting advanced manufacturing here. From of the supplementary charge on oil their manufacture in the UK, many of and gas from 20% to 10% while also these medicines will be sent to patients abolishing the unpopular petroleum around the world’. revenue tax in an effort to ensure the The commitment was welcomed by sector’s long-term viability. newly-appointed Secretary for Business, A new ministerial group for the sector, Energy and Industrial Strategy, Greg chaired by Energy and Climate Change Clark, who described the investment Secretary, Amber Rudd, now home as a ‘clear vote of confidence in Britain’ underlining its position as a global Secretary, was also set up at the turn of business leader. ‘GSK’s recognition of the year to aid the oil and gas industry. our skilled workforce, world-leading The group’s remit will be to coordinate The site in Ware, hertfordshire will be scientific capabilities and competitive the UK’s response to fluctuating oil Former energy and bolstered to support the respiratory active ingredients. The tax environment is further proof that prices while also focusing on areas climate change introduction of its Ellipta third, at the Ware plant which employs there really is no place better in Europe such as exports, skills and investment. gas workers to transfer their skills to secretary Amber Rudd respiratory inhaler chaired a group aimed 1,200 workers to make respiratory to grow a business,’ Clark added. At its first meeting in late January, the other engineering disciplines and help at aiding the oil & gas products, sees GSK committed to committee pinpointed the need to bridge the skills gap. ‘There is already With regard to tax, GSK cited the sector in January financing a £74m investment to add produce a formal oil and gas workforce considerable demand for these skills advantages of the patent box, first further manufacturing capacity to the plan, which it later unveiled in July. whether it’s for nuclear newbuild, introduced by the Government in 2013 site in order to support the introduction Factoring in the industry’s cyclical the fast-growing renewable energy to give tax incentives to companies of its Ellipta respiratory inhaler. Just nature, the plan aimed to counter job sector or the nascent decommissioning exploring intellectual property rights months earlier in April, GSK doubled losses by setting up an online portal industry,’ said Business Minister, Anna to encourage investment, research production at the Ware facility for the and development. While well received which would allow redundant oil and Soubry speaking as Business Minister. inhaler, investing £56m on the project by its beneficiaries, the tax relief was and creating 150 new jobs. It plans to criticised by Labour, with Shadow produce 37 million inhalers annually at Chancellor, John McDonnell, stating the facility by 2017. GSK makes £275m UK investment pledge he would look to reform or scrap the The investment in the facilities would incentive as he felt it most benefited GlaxoSmithKline (GSK), one of the UK’s production. The second investment in also help boost production and exports large corporations. ‘It’s time we largest pharmaceutical companies, Montrose, home to 450 employees, with the majority of drugs and devices redirected those resources to focus made a post-Brexit pledge to invest amounting to £110m would be on the urgent priorities our society GSK’s manufacturing made at the sites being shipped £275m into its domestic manufacturing earmarked for a new, state-of-the- site in Montrose is one overseas. It would also lead to more faces, including much-needed research operations to aid production of art facility for the manufacture of of three in the UK to jobs being created in the next few into dementia,’ McDonnell was respiratory and large molecule be the recipient of a years, according to GSK, adding to quoted in The Guardian. The way combined investment biological medicines. Allaying concerns the pharmaceutical giant’s 15,000 UK pharmaceuticals research and develop that it would join other prominent employees, with around 6,000 of those new drugs was criticised by Opposition UK pharmaceutical giants, such as jobs in manufacturing roles. Leader, Jeremy Corbyn, who said, AstraZeneca, in relocating operations during a speech at University College abroad following the EU referendum In a further endorsement of the UK London in July, that they should vote, GSK outlined in July its plan as a place to do business, GSK cited be financed through the publicly- to invest in three production sites at the country as an attractive place for funded Medical Research Council Barnard Castle in County Durham, investment because of access to a and not large private pharmaceutical Montrose in Scotland, and Ware in skilled workforce, technological and organisations. This was met by a hertfordshire. scientific capabilities and infrastructure riposte from The Association of the along with a competitive corporate tax British Pharmaceutical Industry which At Barnard Castle, where GSK employs system. Andrew Witty, CEO of GSK, said the taxpayer could not replace 1,100 staff, £92m of funding will who backed the Remain campaign, the worldwide investment made by lead to the building of an aseptic said ‘It is testament to our skilled industry in researching new medicines. sterile facility to support new drugs

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UK workforce and the country’s leading position in life sciences that we are making these investments in advanced manufacturing here. From their manufacture in the UK, many of these medicines will be sent to patients around the world’.

The commitment was welcomed by newly-appointed Secretary for Business, Energy and Industrial Strategy, Greg Clark, who described the investment as a ‘clear vote of confidence in Britain’ underlining its position as a global business leader. ‘GSK’s recognition of The site in Ware, our skilled workforce, world-leading hertfordshire will be scientific capabilities and competitive bolstered to support the respiratory active ingredients. The tax environment is further proof that introduction of its Ellipta respiratory inhaler third, at the Ware plant which employs there really is no place better in Europe 1,200 workers to make respiratory to grow a business,’ Clark added. products, sees GSK committed to With regard to tax, GSK cited the financing a £74m investment to add advantages of the patent box, first further manufacturing capacity to the introduced by the Government in 2013 site in order to support the introduction to give tax incentives to companies of its Ellipta respiratory inhaler. Just exploring intellectual property rights months earlier in April, GSK doubled to encourage investment, research production at the Ware facility for the and development. While well received inhaler, investing £56m on the project by its beneficiaries, the tax relief was and creating 150 new jobs. It plans to criticised by Labour, with Shadow produce 37 million inhalers annually at Chancellor, John McDonnell, stating the facility by 2017. he would look to reform or scrap the The investment in the facilities would incentive as he felt it most benefited also help boost production and exports large corporations. ‘It’s time we with the majority of drugs and devices redirected those resources to focus made at the sites being shipped on the urgent priorities our society overseas. It would also lead to more faces, including much-needed research jobs being created in the next few into dementia,’ McDonnell was years, according to GSK, adding to quoted in The Guardian. The way the pharmaceutical giant’s 15,000 UK pharmaceuticals research and develop employees, with around 6,000 of those new drugs was criticised by Opposition jobs in manufacturing roles. Leader, Jeremy Corbyn, who said, during a speech at University College In a further endorsement of the UK London in July, that they should as a place to do business, GSK cited be financed through the publicly- the country as an attractive place for funded Medical Research Council investment because of access to a and not large private pharmaceutical skilled workforce, technological and organisations. This was met by a scientific capabilities and infrastructure riposte from The Association of the along with a competitive corporate tax British Pharmaceutical Industry which system. Andrew Witty, CEO of GSK, said the taxpayer could not replace who backed the Remain campaign, the worldwide investment made by said ‘It is testament to our skilled industry in researching new medicines.

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Ultimately, some high profile figures in the industry feel that averting further A stop-start year for the construction crisis – which could potentially evolve industry into a deeper recession – will need government intervention. Brian Berry, After a prolonged slump, emanating Chief Executive of the Federation from the 2008 financial crisis, the of Master Builders, said ‘A firm slowdown in the construction industry commitment to invest public funds in continued at the turn of the year. In the capital projects such as house building first Markit Construction Purchasing and infrastructure would go a long Managers’ Index (PMI) of 2016, the way to assuaging fears that demand will industry’s score dropped to a rating dive in the wake of Brexit’. Berry, whose of 55 from the previous month’s 57.8 trade organisation represents small to – falling short of the 57.5 forecast by mid-size construction companies, added economists. While a lack of orders was ‘The country’s housing crisis and the cited as a primary cause, the report’s enormous skills shortage our sector faces co-issuer The Chartered Institute of Delayed completion of the Pinnacle building, owe much to how the construction Procurement and Supply attributed London be potentially catastrophic, with the industry suffered during the last a shortage of bricks as another Centre for Economics and Business economic downturn – it’s pivotal that contributor. After a sluggish February Research forecasting a construction we learn from those mistakes and find and March, the sector bounced back in slowdown after the referendum. a way to keep Britain building’. April with its highest growth in more The year has seen the construction sector than two years. The Office for National further growth of 4.1% is expected for vary in economic Statistics said output increased by 2.5% next year. This work will create in excess performance in April – the biggest month-on-month of £10.4bn for the building industry. increase since January 2014. however, The potential for job creation also Automotive industry while buoyed by a rise in maintenance remains strong, with the Construction and repair work, infrastructure work was 1972. Since the closure of MG Rover’s Industry Training Board forecasting this at its lowest level in nearly 18 months. mass production plant at Longbridge year that the sector will create 230,000 in 2005, the sector’s low point, the new jobs by 2020. Attempts to attract Despite infrastructure work being in automotive industry has seen a reversal more people into construction careers gradual decline, some remain optimistic in fortunes largely owing to the £10bn also progressed in 2016 with the launch with a number of high profile and invested over the past 10 years. This is of the ‘Kick-starting your Career in potentially lucrative projects greenlit this largely due to overseas investment in Construction’ infographic. The guide year. Noble Francis, Economics Director foreign-owned domestic car makers of the Construction Products Association features relevant information for those such as Jaguar Land Rover (JLR) (CPA) told the Financial Times in considering a career in the industry, along with high levels of overseas February that projects such as high advice from the National Careers Service automakers such as Nissan and honda Speed 2 and the electrification of and website links. increasing their UK presence. Annual tracks by rail operators in some regions production is on course to grow further One stumbling block that showed could give the industry a much-needed in 2016, according to the Society of no signs of abating however was the boost. Other high profile infrastructure Motor Manufacturers and Traders’ continued slowdown in housebuilding Nissan’s Sunderland announcements include the proposed plant exports cars to (SMMT), with figures for the first three which, as expected, stunted the 23 countries expansion of the M62, high Speed 3 The UK’s automotive manufacturing months of the year revealing 443,581 growth of the UK construction sector. and the £344m expansion to London sector confirmed a record turnover of cars were built in the UK, a 10.3% Discussion turned to what the UK could City Airport; just some of the projects $71.6bn for the financial year ending year-on-year rise and the highest figure do to build more houses, especially after that could give firms and their suppliers 31 March, a figure further illustrating since 2004. The trade body said this is the EU referendum and the sector’s the sector’s resurgence in the past a lift in the coming years. an average of one car rolling off a UK PMI for June showing productivity 10 years. In another milestone, it was production line every 16 seconds. There was more cause for optimism fell to its lowest level in seven years. also confirmed that 1.5 million cars when the CPA estimated new projects Should a solution to the housing crisis were produced in 2015, closing in on Some of these firms posted financial and will help work rise 3.6% in 2016, while not be found then the outcome could the 1.9 million industry record set in production milestones demonstrating

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Ultimately, some high profile figures in the industry feel that averting further crisis – which could potentially evolve into a deeper recession – will need government intervention. Brian Berry, Chief Executive of the Federation of Master Builders, said ‘A firm commitment to invest public funds in capital projects such as house building and infrastructure would go a long way to assuaging fears that demand will dive in the wake of Brexit’. Berry, whose trade organisation represents small to mid-size construction companies, added ‘The country’s housing crisis and the enormous skills shortage our sector faces Delayed completion of the Pinnacle building, owe much to how the construction London be potentially catastrophic, with the industry suffered during the last Centre for Economics and Business economic downturn – it’s pivotal that Research forecasting a construction we learn from those mistakes and find slowdown after the referendum. a way to keep Britain building’.

Automotive industry

1972. Since the closure of MG Rover’s mass production plant at Longbridge in 2005, the sector’s low point, the automotive industry has seen a reversal in fortunes largely owing to the £10bn invested over the past 10 years. This is largely due to overseas investment in foreign-owned domestic car makers such as Jaguar Land Rover (JLR) along with high levels of overseas automakers such as Nissan and honda increasing their UK presence. Annual production is on course to grow further in 2016, according to the Society of Nissan’s Sunderland Motor Manufacturers and Traders’ plant exports cars to (SMMT), with figures for the first three 23 countries The UK’s automotive manufacturing months of the year revealing 443,581 sector confirmed a record turnover of cars were built in the UK, a 10.3% $71.6bn for the financial year ending year-on-year rise and the highest figure 31 March, a figure further illustrating since 2004. The trade body said this is the sector’s resurgence in the past an average of one car rolling off a UK 10 years. In another milestone, it was production line every 16 seconds. also confirmed that 1.5 million cars were produced in 2015, closing in on Some of these firms posted financial and the 1.9 million industry record set in production milestones demonstrating

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their contributions to the UK automotive Matching Service (AAMS) in April which of the automotive sector’s long-term sector. In May, Nissan produced its will commence in 2017 and will see strategy in a post-Brexit UK with 50,000th all-electric Leap vehicle at automotive manufacturers share rejected concerns ranging from the imposing of its Sunderland facility, from where applicant details with one another. The tariffs to accessing skills. In the short it exports the car to 23 countries AAMS programme will allow 10,000 term, depreciated sterling could bolster worldwide. Transport Minister, apprentices to be accepted on schemes UK production into 2017, according Andrew Jones, said that, along with after failing to qualify for an individual to John Leech, head of Automotive at the automotive industry, the milestone company initiative for which they had services firm KPMG. also showcased Britain as a producer applied. Other firms also launched high- however, long-term threats to the of electric cars. ‘This major milestone is profile recruitment drives, with Aston industry are feared. Overtures were great news for Nissan and yet another Martin providing a boost to the Welsh made by Lithuania to lure the UK’s example of Britain leading the way in economy in announcing that it planned car-making factories away. In a letter developing cleaner vehicle technology, Technical centre in by 2020 to recruit 1,000 new staff to automotive bosses, Lithuanian MEP which is good for the environment and Warwickshire is home to its North Wales site along with its Range Rover Sport SVR, Range Rover to its Special Vehicle Antanas Guoga invited automotive supports jobs and growth,’ said Jones. Operations division facility in Gaydon. SVAutobiography and Jaguar F-TYPE firms to relocate their operations to Others companies weren’t so profitable. SVR cars. JLR, one of the big success Concerns over foreign-owned domestic the Eastern European state, a call McLaren, a maker of supercars, revealed stories in the UK automotive industry, firms such as JLR, along with the UK backed by the city of Kaunas which profits had declined for the past year also continued its innovation drive in future of Japanese manufacturers said it could combine a free economic by 64%, dropping from the previous 2016. It revealed it would develop up to honda and Nissan, had garnered the zone with tax incentives, skills and year’s £14.9m to £5.4m. The Woking- 100 new connected and autonomous lion’s share of coverage in the run-up to well-connected logistics networks. based manufacturer cited increased research vehicles before 2020, with the the EU referendum. Given the industry’s Other offers from nations looking to spend in research and development first vehicles tested on a 41-mile test overwhelmingly pro-EU stance, next capitalise on the uncertainty among projects had accounted for around a route on motorways and urban roads year and the planned invoking of the UK’s prized automotive industry third of its revenues at £124m. This was around Coventry and Solihull. The smart Article 50 will provide a telling indicator could also be forthcoming. despite a healthy future outlook with vehicle-to-vehicle technologies would them expected to treble car sales over allow the cars to communicate with one the next six years. Luxury car maker, another through the transfer of data. Aston Martin, posted another post-tax Engineering skills shortage continues The UK’s vast automotive supply chain is loss of £107m in 2015, increasing from estimated to have accounted for £9.5bn the £64.8m deficit it posted in 2014. It to hurt UK industry worth of sales in 2015, employing more said investments in technology and car than 80,000 people; it also remained an Despite domestic engineering expertise development contributed to the loss. area of increased growth amid further being recognised as an area of strength Given the boom in UK car making, investment plans. According to an SMMT for the UK, the country is simply not further investments in long-term survey of 100 of its members, 94% producing enough skilled engineers. research and development projects said they intended to invest a combined This was highlighted in February by an were announced during the year. £225m up to 2019. There were also EngineeringUK report which revealed Aston Martin announced a new plant plans to increase workforces, with the scale of the UK’s engineering skills in St Athan Glamorgan to build its SUV seven out of ten companies questioned shortage while also emphasising its car, which will lead to the creation of revealing they were looking to expand. strength in driving productivity. The 750 jobs. Meanwhile, independent State of Engineering report said that In order to support growth, sourcing the sports car manufacturer TVR confirmed Britain would need to produce around right skills remained a top priority for a new production facility in Ebbw Vale, 69,000 a year more engineers than it companies. The issue of skills remains Glamorgan, leading to the creation of The country faces a is currently creating, merely to keep up a pressing one, with an Automotive 150 jobs. shortage of skilled with industry demand. Council report estimating in February engineers The shortage of skilled engineers JLR also opened its long-anticipated that as many as 5,000 jobs could be readily available to UK companies isn’t Paul Jackson, Chief Executive of £20m technical centre in Warwickshire vacant in the sector due to the talent a new predicament but the issue was EngineeringUK, said that as a growth as home to its Special Vehicle Operations shortage. A new scheme launched in further highlighted in 2016 by a series industry, engineering has the potential division, where around 200 staff will April by industry big hitters including of grave warnings over the detrimental to further drive productivity in the UK. carry out manufacturing, paint and Bentley, BMW and Ford teamed up to effect it may have on the country’s ‘This is a great opportunity, tempered technical services for the newly-launched form The Automotive Apprenticeship economy in the long term. only by concern about the need to train

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Matching Service (AAMS) in April which of the automotive sector’s long-term will commence in 2017 and will see strategy in a post-Brexit UK with automotive manufacturers share rejected concerns ranging from the imposing of applicant details with one another. The tariffs to accessing skills. In the short AAMS programme will allow 10,000 term, depreciated sterling could bolster apprentices to be accepted on schemes UK production into 2017, according after failing to qualify for an individual to John Leech, head of Automotive at company initiative for which they had services firm KPMG. applied. Other firms also launched high- however, long-term threats to the profile recruitment drives, with Aston industry are feared. Overtures were Martin providing a boost to the Welsh made by Lithuania to lure the UK’s economy in announcing that it planned car-making factories away. In a letter by 2020 to recruit 1,000 new staff to automotive bosses, Lithuanian MEP to its North Wales site along with its Antanas Guoga invited automotive facility in Gaydon. firms to relocate their operations to Concerns over foreign-owned domestic the Eastern European state, a call firms such as JLR, along with the UK backed by the city of Kaunas which future of Japanese manufacturers said it could combine a free economic honda and Nissan, had garnered the zone with tax incentives, skills and lion’s share of coverage in the run-up to well-connected logistics networks. the EU referendum. Given the industry’s Other offers from nations looking to overwhelmingly pro-EU stance, next capitalise on the uncertainty among year and the planned invoking of the UK’s prized automotive industry Article 50 will provide a telling indicator could also be forthcoming.

Engineering skills shortage continues to hurt UK industry

Despite domestic engineering expertise being recognised as an area of strength for the UK, the country is simply not producing enough skilled engineers. This was highlighted in February by an EngineeringUK report which revealed the scale of the UK’s engineering skills shortage while also emphasising its strength in driving productivity. The State of Engineering report said that Britain would need to produce around 69,000 a year more engineers than it The country faces a is currently creating, merely to keep up shortage of skilled with industry demand. engineers The shortage of skilled engineers readily available to UK companies isn’t Paul Jackson, Chief Executive of a new predicament but the issue was EngineeringUK, said that as a growth further highlighted in 2016 by a series industry, engineering has the potential of grave warnings over the detrimental to further drive productivity in the UK. effect it may have on the country’s ‘This is a great opportunity, tempered economy in the long term. only by concern about the need to train

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many more engineers if we are not to be left behind by countries like South Korea and Germany.’ Aerospace industry The Government has moved to simplify the complicated process of choosing Defence (MoD) ordered 14 of the F-35Bs engineering education courses. In July in February 2014 in a deal amounting measures were announced to overhaul to £2.5bn, with BAE System’s input technical education for students aged amounting to around 15% of each over 16. The reforms in the Post-16 aircraft produced from its facility in Skills Plan acted on recommendations Samlesbury, Lancashire. Coinciding by Lord Sainsbury who, in a review of with the launch of the fighter jet, BAE technical and professional education, was awarded a £118m contract for an found that young people seeking an engineering and training facility based engineering career are faced with a at RAF Marham in Norfolk scheduled to Attracting engineers open in 2018 in readiness for the first choice of 501 different courses while is of paramount those chasing a technical education 72% of respondents stated they were importance for UK F-35’s arrival. Speaking at Farnborough, industry Defence Procurement Minister, Philip have the choice of 20,000 courses, worried about meeting the expected Farnborough Airshow Dunne, said that the F-35 programme provided by 160 different organisations. demand in increase for skills in the aerial view spells good news for the UK economy. next three years, with a further 73% At the bi-annual Farnborough ‘It will sustain jobs and skills across The review called for this to be categorising the recruitment of skilled International Airshow in July, which the nation and, as well as having an narrowed down to 15 courses with engineers as difficult. alternates with its Paris counterpart, standards set by industry professionals. fears that the post-Brexit cloud would industrial component, give the UK a The first of the new technical education While industry apprenticeships have dampen proceedings were unfounded. clear military advantage,’ he said. routes will be introduced from become more popular in recent years Despite being very much a global The hive of activity at Farnborough was September 2019 with all options being due to rising tuition fees, they are event, Farnborough still highlighted a reflection of the position in which the made available by September 2022. still viewed unfavourably by some the strength of the British aerospace industry found itself. According to data The reforms were welcomed by many young people. The Independent industry as a supplier to some of the from sector trade body, ADS Group, across UK manufacturing, including reported that, according to a poll world’s major aircraft manufacturing released in the run-up to the show, the EEF’s Director of Employment and on website The Student Room projects. The week saw a host of industry turnover climbed by £1.9bn Skills Policy, Tim Thomas, who said quizzing 10,000 students on aircraft deals involving manufacturers for 2015 to £31.1bn while the defence ‘The current system is overcrowded apprenticeships, nearly half of them BAE Systems, Rolls-Royce and GKN manufacturing sector saw a £200m with qualifications, many of which thought schemes were mostly taken Aerospace, all leaders in the UK industry boost to £23.8bn annual turnover. remain unused… This needs up by men, with just 1% thinking which is the second largest aerospace Other feathers in the cap included the immediate de-cluttering with any new training was designed for women. industry in the world employing around industry’s superior efficiency against qualifications or standards designed or Continuing to change the perception 340,000 people domestically. the wider economy – rising 30% developed with industry.’ of apprenticeships is pressing, as is since 2011 compared to the national attracting young people to work for The lion’s share of headlines were The manufacturers’ organisation EEF, average of just 2%. Small and Medium-sized Enterprises claimed by the debut of the F-35 which has worked with the Government in the face of competition from larger Lightning II fighter jet, and the While talk of Brexit was downplayed at to decipher how industry can best tackle manufacturing rivals who are able aircraft order battle between aircraft Farnborough in the form of a business- the skills gap, bolstered its team this to financially outmuscle their smaller manufacturing giants, the United as-usual approach, as with all sectors, year by appointing former government counterparts. States’ Boeing and Europe’s Airbus the UK leaving the European Union Chief Scientific Adviser, Professor John which produces plane wings in the (EU) casts a shadow over the aerospace Perkins, as an Engineering and Skills Tackling these issues will fall into new UK. Canadian jet maker Bombardier, industry. ADS Group, the aerospace Advisor. This was a direct response hands following the resignation of Nick which also makes its wings in the UK and defence trade body, said prior to a report the manufacturing trade Boles as Skills Minister in July. Mr Boles, at its Belfast facility, debuted its first to the referendum that 70% of its body had published weeks before who had championed a number of CSeries aircraft. member base backed the UK remaining which warned that everything, from key apprenticeship reforms during his as part of the EU. Paul Everitt, Chief productivity to the sector’s growing two-year tenure, stepped down from The F-35, built by Lockheed Martin, Executive Officer (CEO) of ADS Group, digitalisation movement, could be his post shortly after David Cameron took to the hampshire skies during the said in a statement following the threatened through a lack of skills. stepped down as Prime Minister. week to showcase the next generation 23 June vote ‘The aerospace, defence, of military aircraft. The UK Ministry of security and space industries will work

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Aerospace industry

Defence (MoD) ordered 14 of the F-35Bs in February 2014 in a deal amounting to £2.5bn, with BAE System’s input amounting to around 15% of each aircraft produced from its facility in Samlesbury, Lancashire. Coinciding with the launch of the fighter jet, BAE was awarded a £118m contract for an engineering and training facility based at RAF Marham in Norfolk scheduled to open in 2018 in readiness for the first F-35’s arrival. Speaking at Farnborough, Defence Procurement Minister, Philip Farnborough Airshow aerial view Dunne, said that the F-35 programme At the bi-annual Farnborough spells good news for the UK economy. International Airshow in July, which ‘It will sustain jobs and skills across alternates with its Paris counterpart, the nation and, as well as having an fears that the post-Brexit cloud would industrial component, give the UK a dampen proceedings were unfounded. clear military advantage,’ he said. Despite being very much a global The hive of activity at Farnborough was event, Farnborough still highlighted a reflection of the position in which the the strength of the British aerospace industry found itself. According to data industry as a supplier to some of the from sector trade body, ADS Group, world’s major aircraft manufacturing released in the run-up to the show, projects. The week saw a host of industry turnover climbed by £1.9bn aircraft deals involving manufacturers for 2015 to £31.1bn while the defence BAE Systems, Rolls-Royce and GKN manufacturing sector saw a £200m Aerospace, all leaders in the UK industry boost to £23.8bn annual turnover. which is the second largest aerospace Other feathers in the cap included the industry in the world employing around industry’s superior efficiency against 340,000 people domestically. the wider economy – rising 30% since 2011 compared to the national The lion’s share of headlines were average of just 2%. claimed by the debut of the F-35 Lightning II fighter jet, and the While talk of Brexit was downplayed at aircraft order battle between aircraft Farnborough in the form of a business- manufacturing giants, the United as-usual approach, as with all sectors, States’ Boeing and Europe’s Airbus the UK leaving the European Union which produces plane wings in the (EU) casts a shadow over the aerospace UK. Canadian jet maker Bombardier, industry. ADS Group, the aerospace which also makes its wings in the UK and defence trade body, said prior at its Belfast facility, debuted its first to the referendum that 70% of its CSeries aircraft. member base backed the UK remaining as part of the EU. Paul Everitt, Chief The F-35, built by Lockheed Martin, Executive Officer (CEO) of ADS Group, took to the hampshire skies during the said in a statement following the week to showcase the next generation 23 June vote ‘The aerospace, defence, of military aircraft. The UK Ministry of security and space industries will work

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500 roles were cut in 2016 with an beset by overrunning on the CSeries additional 580 jobs to go next year, in commercial aircraft programme along a move described by the Unite union with a downturn in its business jet as ‘the latest, cruel blow to Northern operation. It resorted to taking $1bn Ireland’s manufacturing sector’. The (£700m) in state aid from Quebec’s Montreal-headquartered firm had been federal government in May.

Red Arrows at the Farnborough Air Show Manufacturing welcomes BEIS formation with government to minimise the Despite its healthy position, some of negative impacts of the decision to the industry’s biggest names have the Universities and Science Minister leave the EU, creating an environment faced notable challenges in recent brief, a joint post extending to the in which these strategically important years. Rolls-Royce, considered as one Department for Education (DfE). sectors can continue to prosper’. of the crown jewels in UK aerospace The formation of BEIS and the inclusion With Britain having an estimated 16% manufacturing, had issued a series of a formal industrial strategy were share of the global defence market, of profit warnings in 2015. After US mostly welcomed by the industry. there were also predictions that Brexit activist shareholder ValueAct increased Terry Scuoler, CEO of manufacturing could lead to the MoD slashing the its stake in Rolls-Royce last year to trade body EEF, said ‘Now that energy budget. Analysts IhS Janes forecast 10.8%, the engine maker appointed, and business are merged, we have there would be a £2.3bn reduction in Bradley Singer, Chief Operating the makings of an industrial strategy yearly spending by the British armed Officer, to its board in February. that will focus on UK competiveness.’ forces in 2020, while speculating Despite the move, Rolls-Royce quashed Mr Scuoler continued ‘In light of the that investment in UK-made defence talk of a large-scale breakup of the challenges ahead, this move is all to products by overseas customers could company. Weeks later, it moved to Greg Clark (Left), soften concerns over previous profit Secretary of State for the good and should prove to be a also reduce. Business warnings and future UK manufacturing One of the first acts of Theresa powerful tool in driving growth and Looking to capitalise on its growth commitment by creating 350 new May’s premiership was to announce delivering a more balanced economy’. status, and perhaps safeguard it against jobs in Derby to ramp up numbers the merger of the Department for Rain Newton-Smith, Chief Economist any potential Brexit downturn, the for the entry into service of the Trent Business, Innovation and Skills (BIS) of the Confederation of British Industry Government gave further funding XWB aircraft engine. Plans were also and the Department of Energy and (CBI), said ‘Our manufacturers will to aerospace initiatives this year. announced at the start of the year for a Climate Change (DECC) to form the welcome the new Government’s Department for Business, Energy and Coinciding with Farnborough, it £30m investment in its Washington site emphasis on delivering a true Industrial Strategy (BEIS). The five allocated £365m for the research and to create a facility making aerospace partnership with businesses across core objectives outlines related to development of new technologies in the discs for in-service engines. hoping all sectors’. the worst of its recent challenges manufacturing included the delivery sector targeting aircraft manufacturing Meanwhile, Paul Davies, head of were subsiding, Rolls Royce CEO, of a comprehensive industrial strategy, performance and more fuel-efficient Policy at the Institution of Engineering Warren East, revealed in the summer while the sector may also be influenced jets. The finance is in addition to the and Technology (IET), said ‘Effective that the firm was on course with its to some degree by proposals for BEIS £1.2bn it has invested so far into the policies are the key to solving the transformation plan which aims to to lead the Government’s relationship Aerospace Technology Institute (ATI), challenges of the energy trilemma – eradicate between £150m to £200m in with the business community which pioneers new projects for UK- decarbonisation, security of supply, costs from the company by 2017. along with expansion of the UK’s based aerospace businesses of all sizes. scientific activities. and affordability – and to ensuring The Government also announced a Another company facing challenging the manufacturing sector goes from link-up with Boeing to buy nine P-8A times was Bombardier which employs The new department will be headed up strength to strength’. however, Poseidon maritime patrol planes, which around 5,000 people in its aerospace by Secretary of State for Business, Greg Mr Davies said he hoped that the will see the US jet maker commit to division in Northern Ireland. It Clark, appointed by Mrs May in her decision to move the skills portfolio, building a new maintenance facility confirmed the axing of more than Cabinet shortly after her appointment. including apprenticeships, over for the aircraft at RAF Lossiemouth in 1,000 jobs across its facilities in he will be assisted by Under-Secretary, to the Department of Education Moray in a move which would see the February, as part of wider plans to Margot James, and BEIS ministers, doesn’t widen the gap between creation of 2,000 new jobs. cut 7,000 across its global workforce. Nick hurd, Jesse Norman and Baroness industry and education – already Neville-Rolfe. Jo Johnson was given perceived as one that needs bridging.

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Manufacturing welcomes BEIS formation

the Universities and Science Minister brief, a joint post extending to the Department for Education (DfE).

The formation of BEIS and the inclusion of a formal industrial strategy were mostly welcomed by the industry. Terry Scuoler, CEO of manufacturing trade body EEF, said ‘Now that energy and business are merged, we have the makings of an industrial strategy that will focus on UK competiveness.’ Mr Scuoler continued ‘In light of the

Greg Clark (Left), challenges ahead, this move is all to Secretary of State for the good and should prove to be a Business One of the first acts of Theresa powerful tool in driving growth and May’s premiership was to announce delivering a more balanced economy’. the merger of the Department for Rain Newton-Smith, Chief Economist Business, Innovation and Skills (BIS) of the Confederation of British Industry and the Department of Energy and (CBI), said ‘Our manufacturers will Climate Change (DECC) to form the welcome the new Government’s Department for Business, Energy and emphasis on delivering a true Industrial Strategy (BEIS). The five partnership with businesses across core objectives outlines related to all sectors’. manufacturing included the delivery of a comprehensive industrial strategy, Meanwhile, Paul Davies, head of while the sector may also be influenced Policy at the Institution of Engineering to some degree by proposals for BEIS and Technology (IET), said ‘Effective to lead the Government’s relationship policies are the key to solving the with the business community challenges of the energy trilemma – along with expansion of the UK’s decarbonisation, security of supply, scientific activities. and affordability – and to ensuring the manufacturing sector goes from The new department will be headed up strength to strength’. however, by Secretary of State for Business, Greg Mr Davies said he hoped that the Clark, appointed by Mrs May in her decision to move the skills portfolio, Cabinet shortly after her appointment. including apprenticeships, over he will be assisted by Under-Secretary, to the Department of Education Margot James, and BEIS ministers, doesn’t widen the gap between Nick hurd, Jesse Norman and Baroness industry and education – already Neville-Rolfe. Jo Johnson was given perceived as one that needs bridging.

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The British Chambers of Commerce stability in the department. ‘Businesses deals in place quickly in order to trading relationships with customers (BCC), meanwhile, called for the BEIS like continuity and they will hope that the maintain investment in the country. At and suppliers in Europe.’ This pro- to work closely with newly-appointed people being appointed now will be in the Farnborough Airshow, Rolls-Royce Brexit view was also echoed by Sir International Trade Secretary, Liam Fox, place for some period of time,’ said BCC’s Chief Executive, Warren East, told James Dyson, founder and chairman and said it wanted to see a period of Acting Director General, Adam Marshall. reporters ‘we will simply get on with it’. of the vacuum manufacturer and by food manufacturer Tate and Lyle, two however, some large overseas firms exceptions in their specific industries. were more enthusiastic in their Leave vote gets mixed response from reassurances to keep doing business in Concerns also persist over the Leave the UK long-term. Greg hayes, CEO of vote’s effect on the national skills manufacturers aerospace giant United Technologies, shortage, with many industry figures said the UK would remain a good making calls for the Government The vote for the UK to leave the place to do business for the company to clarify a long-term engineering European Union in June was met with Sir James Dyson despite Brexit. This view was echoed by and manufacturing skills strategy. a mixed response from manufacturers campaigned Jeff Immelt, CEO of US conglomerate This was reinforced by an Industry both large and small. Following the pro-Brexit GE, who told Fortune ‘Despite the Apprentice Council (IAC) report, vote, which saw a 52%–48% decision Brexit referendum, the UK remains which issued a five-point plan in favour of the UK relinquishing its an important market for GE – we to enhance apprenticeships in a EU membership, firms operating in have 22,000 highly-skilled employees post-Brexit Britain. sectors ranging from food and drink leading our businesses there. There is to the country’s resurgent automotive a sense that a more dynamic country While Brexit produced a mixed response industry saw positives and negatives could emerge from this event and from manufacturers, the scenario had in the decision, but all were bound by we will want to be a part of this an adverse impact on market confidence market uncertainty. turnaround’. US aerospace giants in the weeks following the vote. Tampa Cargo N331QT Manufacturing trade body the EEF, in Many industry big hitters operating Boeing and Raytheon also committed airbus takes off a one-off version of its quarterly survey in the UK were quick to state that, lead up to the referendum. Jaguar Land their long-term futures to the UK. published at the end of July, pointed while current interests wouldn’t be Rover (JLR), whose TATA Motors parent More vocal was the food and drink to the sector being in recession until affected, they would address long-term company had invested around £2bn in sector, with confectionary giants at least the end of 2017. Companies investments. Aerospace manufacturing the UK since it acquired the automaker Nestlé, Mondel�z and Mars all vowing foresaw this scenario, with 29% of firms giant Airbus, which employs around from US car giant Ford in 2008, had to remain operating in the UK after the questioned saying that they expected 15,000 people across sites in England warned of a potential £1bn annual Brexit vote despite analyst Euromonitor orders to decline in the six months and Wales and was a vocal supporter of profit nosedive in the event of Brexit. predicting that the confectionary following the EU referendum. This the UK remaining in the EU, expressed its ‘For Jaguar Land Rover, today is just sector would take the biggest hit in a coincided with the PMI for June hitting disappointment with the result and said it business as usual,’ said a spokesperson post-Brexit Britain. Like the automotive a 41-month low with a 49.1 reading would analyse the long-term competitive for JLR, which has manufacturing sites in sector, the industry had been staunchly and some staunch Leave campaigners interest of Brexit. ‘This is a lose–lose the West Midlands and the North West. in the Remain camp with the Food and conceded that the short-term effects on result for both, Britain and Europe,’ ‘We are a British business with a strong Drink Federation stating in March that manufacturing could be volatile. said Tom Enders, Chief Executive of the manufacturing base in this country, 70% of its members were in favour of aircraft manufacturer. ‘however, the we call Britain home and we remain the UK staying in the EU. Terry Scuoler, CEO of the EEF, called world will not stand still, nor will Europe. committed to all our manufacturing sites on the Government to do all it I hope the divorce will proceed with a and investment decisions. Japan’s Nissan, Lord Bamford, Chairman of could to provide a stable business view on minimising economic damage to which operates Europe’s largest vehicle construction equipment manufacturing environment, including scrapping all impacted by the Brexit.’ production plant in Sunderland where it giant JCB and an outspoken Brexit ‘burdensome’ policies and cost-adding employs more than 6,000 people, raised supporter, said the UK had little to fear levies while reinstating a long-term Similar views were echoed by US concerns about its future intentions by from leaving the EU. ‘European markets national industrial strategy. Mr Scuoler automaker Ford and Japanese car declining to comment on the Leave vote. are important to many UK businesses, said ‘The Government cannot wipe producers Toyota and honda, who all including JCB, and this will not change,’ away the risks that Brexit will cause vowed to maintain current operations Others were more outwardly bullish in he said in an interview with the BBC. but it can provide manufacturers but said they would review future their response. Engine maker Rolls- ‘We should look ahead to opportunities with the reassurance and confidence UK investments. The reaction of the Royce, which makes commercial to trade more freely with the rest of the to invest and seek growth from automotive sector was especially aircraft engines in Derby, was one world, as well as building on existing Brexit’s opportunities.’ interesting given it was among the of many companies to urge the most prominent Remain voices in the Government to get beneficial trade

14 | REVIEW OF THE YEAR MANUFACTURING EDITION

deals in place quickly in order to trading relationships with customers maintain investment in the country. At and suppliers in Europe.’ This pro- the Farnborough Airshow, Rolls-Royce Brexit view was also echoed by Sir Chief Executive, Warren East, told James Dyson, founder and chairman reporters ‘we will simply get on with it’. of the vacuum manufacturer and by food manufacturer Tate and Lyle, two however, some large overseas firms exceptions in their specific industries. were more enthusiastic in their reassurances to keep doing business in Concerns also persist over the Leave the UK long-term. Greg hayes, CEO of vote’s effect on the national skills aerospace giant United Technologies, shortage, with many industry figures said the UK would remain a good making calls for the Government place to do business for the company to clarify a long-term engineering Sir James Dyson despite Brexit. This view was echoed by and manufacturing skills strategy. campaigned Jeff Immelt, CEO of US conglomerate This was reinforced by an Industry pro-Brexit GE, who told Fortune ‘Despite the Apprentice Council (IAC) report, Brexit referendum, the UK remains which issued a five-point plan an important market for GE – we to enhance apprenticeships in a have 22,000 highly-skilled employees post-Brexit Britain. leading our businesses there. There is a sense that a more dynamic country While Brexit produced a mixed response could emerge from this event and from manufacturers, the scenario had we will want to be a part of this an adverse impact on market confidence turnaround’. US aerospace giants in the weeks following the vote. Boeing and Raytheon also committed Manufacturing trade body the EEF, in their long-term futures to the UK. a one-off version of its quarterly survey published at the end of July, pointed More vocal was the food and drink to the sector being in recession until sector, with confectionary giants at least the end of 2017. Companies Nestlé, Mondel�z and Mars all vowing foresaw this scenario, with 29% of firms to remain operating in the UK after the questioned saying that they expected Brexit vote despite analyst Euromonitor orders to decline in the six months predicting that the confectionary following the EU referendum. This sector would take the biggest hit in a coincided with the PMI for June hitting post-Brexit Britain. Like the automotive a 41-month low with a 49.1 reading sector, the industry had been staunchly and some staunch Leave campaigners in the Remain camp with the Food and conceded that the short-term effects on Drink Federation stating in March that manufacturing could be volatile. 70% of its members were in favour of the UK staying in the EU. Terry Scuoler, CEO of the EEF, called on the Government to do all it Lord Bamford, Chairman of could to provide a stable business construction equipment manufacturing environment, including scrapping giant JCB and an outspoken Brexit ‘burdensome’ policies and cost-adding supporter, said the UK had little to fear levies while reinstating a long-term from leaving the EU. ‘European markets national industrial strategy. Mr Scuoler are important to many UK businesses, said ‘The Government cannot wipe including JCB, and this will not change,’ away the risks that Brexit will cause he said in an interview with the BBC. but it can provide manufacturers ‘We should look ahead to opportunities with the reassurance and confidence to trade more freely with the rest of the to invest and seek growth from world, as well as building on existing Brexit’s opportunities.’

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deficit. This led Mr Javid, to reiterate that the Government wouldn’t take Future of UK steel uncertain after TATA more than a 25% stake in TATA Steel’s UK assets, controversially bombshell exploring new laws to restructure the TATA Steel’s March announcement very risky and its likelihood of delivery liabilities of the British Steel pension that it intended to sell off all of its is highly uncertain.’ Among those at scheme. however, other options were UK steel assets signalled for many risk included the country’s largest steel on the table, with the Government the death knell of the domestic steel factory in Port Talbot, Wales, home believed to have offered a raft of incentives to TATA in order to keep manufacturing industry, a sector to around 4,000 workers with the Port Talbot as a going concern, one that had been in gradual decline in capacity to produce 5,000 tonnes of of which was believed to be a £900m the past two decades due to soaring steel annually. energy costs, inefficient output and state loan. With the local community left reeling a customer penchant for cheaper, This was shortly after the sale of Chinese-made steel. Indian firm due to its reliance on the steelworks as Former business secretary Sajid Javid another TATA site in Scunthorpe to a vital local employer, the Government TATA said it was left with little choice came under fire for his Talbot plant, called on Mr Javid to private equity firm Greybull Capital, a was left in a predicament about other than to sell its loss-making steel handling of the TATA resign over his handling of the crisis. distressed debt investor, for just £1. how to save the failing industry. The Steel affair division. The decision put 15,000 TATA The move, which secured around 4,400 Business Secretary at the time, Sajid One option that was initially ruled out Steel jobs at risk while threatening jobs, put forward a £400m investment was the prospect of renationalising an additional 25,000 in the steel Javid, cut short a visit to Australia in package. Reverting its name to British the steel industry, with Prime Minister, supply chain. Reportedly running at order to return to address the crisis Steel was also on the cards with a plan David Cameron, stating at the end of losses of £1m a day, TATA said in a amid criticism that he had only met to make the site profitable in one year. statement ‘The Tata Steel Board came with industry leaders once since the March ‘We were concerned that there to a unanimous conclusion that the General Election in May 2015. Stephen was the chance that there could have Port Talbot workers and union [turnaround] plan is unaffordable... the Kinnock, Labour MP for the Aberavon been an outright closure of Port Talbot representatives met with new Business assumptions behind it are inherently constituency which includes the Port and that is why we work very hard with Secretary, Greg Clark, following his the company to make sure there is a appointment by Theresa May to replace Port Talbot steelworks proper sales process’. ‘We’ll be doing Mr Javid who took up the Communities’ everything we can to encourage people Secretary portfolio. The meeting was to come forward but this is a difficult encouraging to the Community union situation, there are no guarantees of representing steel workers, whose success.’ Philip hammond, Foreign representative Roy Rickhuss said Secretary at the time of the crisis, said ‘The new Secretary of State clearly ‘To be sustainable it [the steel industry] understands the scale of the challenge has to be a solution that recognises still facing the industry but his words to the context and the reality of a world steelworkers today must be followed which is drowning in an over-supply of by firm actions to help save their jobs’. steel. We can’t simply ignore that. Just Rickhuss continued, ‘By visiting Port continuing to produce steel for which Talbot, he will have seen first-hand there is not adequate demand isn’t that the highly skilled workforce is the the answer’. foundation on which any success for this industry will be built’. Following the announcement, TATA spent the next three months looking Government support for the struggling for a buyer. It was revealed it had industry was backed by the Prime drawn up a list of seven potential Minister, with Mrs May stating on a visit suitors that it planned to narrow down to Cardiff to meet Welsh First Minister, to three. Any sale reached a sticking Carwyn Jones, ‘We want to continue point with potential buyers unwilling to see steel making here [Britain]. to take on pension liabilities, which That is in the Welsh interest but also the had 130,000 members and a £485m UK national interest’.

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deficit. This led Mr Javid, to reiterate that the Government wouldn’t take more than a 25% stake in TATA Steel’s UK assets, controversially exploring new laws to restructure the liabilities of the British Steel pension scheme. however, other options were on the table, with the Government believed to have offered a raft of incentives to TATA in order to keep Port Talbot as a going concern, one of which was believed to be a £900m state loan.

This was shortly after the sale of Former business secretary Sajid Javid another TATA site in Scunthorpe to came under fire for his Talbot plant, called on Mr Javid to private equity firm Greybull Capital, a handling of the TATA resign over his handling of the crisis. distressed debt investor, for just £1. Steel affair The move, which secured around 4,400 One option that was initially ruled out jobs, put forward a £400m investment was the prospect of renationalising package. Reverting its name to British the steel industry, with Prime Minister, Steel was also on the cards with a plan David Cameron, stating at the end of to make the site profitable in one year. March ‘We were concerned that there was the chance that there could have Port Talbot workers and union been an outright closure of Port Talbot representatives met with new Business and that is why we work very hard with Secretary, Greg Clark, following his the company to make sure there is a appointment by Theresa May to replace proper sales process’. ‘We’ll be doing Mr Javid who took up the Communities’ everything we can to encourage people Secretary portfolio. The meeting was to come forward but this is a difficult encouraging to the Community union situation, there are no guarantees of representing steel workers, whose success.’ Philip hammond, Foreign representative Roy Rickhuss said Secretary at the time of the crisis, said ‘The new Secretary of State clearly ‘To be sustainable it [the steel industry] understands the scale of the challenge has to be a solution that recognises still facing the industry but his words to the context and the reality of a world steelworkers today must be followed which is drowning in an over-supply of by firm actions to help save their jobs’. steel. We can’t simply ignore that. Just Rickhuss continued, ‘By visiting Port continuing to produce steel for which Talbot, he will have seen first-hand there is not adequate demand isn’t that the highly skilled workforce is the the answer’. foundation on which any success for this industry will be built’. Following the announcement, TATA spent the next three months looking Government support for the struggling for a buyer. It was revealed it had industry was backed by the Prime drawn up a list of seven potential Minister, with Mrs May stating on a visit suitors that it planned to narrow down to Cardiff to meet Welsh First Minister, to three. Any sale reached a sticking Carwyn Jones, ‘We want to continue point with potential buyers unwilling to see steel making here [Britain]. to take on pension liabilities, which That is in the Welsh interest but also the had 130,000 members and a £485m UK national interest’.

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A reprieve was granted in July, with however, when pressed on the issue by For some SME firms, Brexit brought Business Secretary, Sajid Javid, revealed TATA confirming it had temporarily reporters, Koushik Chatterjee, Executive a mixed outlook. Tony hague, to the Society of Motor Manufacturers paused the sales of its UK assets. Director of Tata Steel Europe, refused to Managing Director of Walsall-based PP and Traders (SMMT) International According to Bloomberg, this was guarantee the future of the Port Talbot Automation and Control, told Reuters Automotive Summit shortly after because the shortlisted bidders were site even if the ThyssenKrupp joint that he had received a wave of new the vote, that the issue was at ‘the put off due to uncertainty following venture was formed. enquiries from businesses tempted by top of my list’. With Javid moving to the Brexit vote, with a reported four of the firm’s reduced product prices while Communities and Local Government While the future of TATA Steel the seven on the shortlist pulling out long-standing customers couldn’t be and being replaced as Business in the UK remained up in the air, after the 23 June vote. The Government given assurances about the long-term Secretary by Greg Clark in Theresa other casualties of the steel crisis also confirmed that its offer of financial implications of Brexit. May’s first Cabinet, navigating ways to emerged. Port Talbot-based Fairwood assistance to TATA and potential buyers protect the UK’s automotive sector are was still on the table. Fabrications, a supplier to TATA Steel, One of the issues of concern commonly David Davis, Brexit sure to remain high on the agenda. closed its doors for the final time raised by manufacturers is the Minister The firm began exploring a possible after more than 35 years resulting possible introduction of tariffs on With a wider industry overview, Terry merger of its European steel operations in the loss of 250 jobs. Chairman, Britain which they fear could make Scuoler, Chief Executive Officer of with Germany’s ThyssenKrupp, which Gherold Davies, attributed blame to their companies less competitive or manufacturing trade association told the Wall Street Journal ‘We have wider industry troubles along with the have an adverse effect on purchasing the EEF, cited continued tariff-free repeatedly emphasised that in this delayed £1bn Tidal Lagoon Swansea from EU customers. however, hope access to the EU market for goods situation we believe a consolidation of Bay project for which the firm was persists that some industries reliant and services as being a priority in his the European steel industry is necessary’. a supplier. on exporting into the UK, such as the post-Brexit manufacturers’ manifesto German car industry, for which the published in July. As with most UK is the second largest consumer, scenarios surrounding Brexit, whether may lobby against unattractive rates. the UK will be allowed to export UK manufacturers look beyond Europe Tobias Nickel, head of Corporate tariff-free with the EU – its largest Communications at German firm trading partner – is unclear. Some UK In the immediate aftermath of the UK Dräxlmaier, told The Guardian ‘Let’s manufacturers saw future tariffs as voting to leave the European Union, say we would do our best to draw positive for domestic makers. John great emphasis has been placed on attention to the consequences that Elliott, Chairman of North East-based the country negotiating attractive tariffs would have’. white goods producer Ebac, told global trade deals in order to maintain The Manufacturer ‘Tariffs are a double- exporting’s sizeable GDP contribution. The UK’s resurgent automotive sector edged sword and because we import Yet with Article 50 not being invoked was immediately feared to be in the more from the EU than we export to until 2017 at the earliest, how exports firing line post-referendum due to it the effect of tariffs will favour UK will be affected by the Brexit scenario around 57% of all cars exported manufacturers over those in the EU’. in the long-run remains unclear. from British shores going to the EU. This hasn’t stopped many speculating Simon Jones, head of Automotive at What is apparent however is that on possible outcomes. While some legal firm Eversheds, predicted a future in order for exports to thrive, the analysts hoped a drop in sterling would Brexit will dent the UK automotive UK may look to strengthen existing spell good news for trade – in June the industry despite goods becoming relationships with the rest of the pound hit its lowest level since 1985 cheaper to send abroad. ‘If volatility world outside of the EU. In a boost – others were more downbeat on the Export cargo ship continues in exchange rate markets, to Britain’s future, Australia, Canada future prospects for manufacturers lender Rabobank released in July, significant financial implications will and the USA – three key consumers exporting goods overseas due to the weakened sterling could signal growing arise,’ he said. ‘Whilst it’s true that of British-made goods – all expressed immediate uncertainty which followed demand from overseas for British beers the UK’s exports will become cheaper, a desire to begin negotiations for 23 June. and wines due to a drop in price. The vehicle components are imported new trade agreements with the UK report also said that demand for English and will therefore become more following Brexit but with negotiations, Despite the mixed feelings, some wine in the UK could be boosted by expensive. All of this will affect the along with the activation of Article 50, manufacturing sectors geared up for a foreign imports increasing in price. The profitability margins for both OEMs at their earliest stages, the long-term post-Brexit boom. One of these was the post-Brexit export bounce was soon and component suppliers.’ Pushing outlook for exports remains unclear domestic beer and wine sectors, which confirmed – to an extent. Data released for tariff-free vehicle sales to the EU at this stage. Brian Burke, Director sought a boost in trade. According in July by Markit showed factory export market once Brexit is formalised is of UK-based consultancy Quantuma, to research by agribusiness specialist growth had reached a two-year high. also on the Government’s agenda. said ‘The increased uncertainty

18 | REVIEW OF THE YEAR MANUFACTURING EDITION

For some SME firms, Brexit brought Business Secretary, Sajid Javid, revealed a mixed outlook. Tony hague, to the Society of Motor Manufacturers Managing Director of Walsall-based PP and Traders (SMMT) International Automation and Control, told Reuters Automotive Summit shortly after that he had received a wave of new the vote, that the issue was at ‘the enquiries from businesses tempted by top of my list’. With Javid moving to the firm’s reduced product prices while Communities and Local Government long-standing customers couldn’t be and being replaced as Business given assurances about the long-term Secretary by Greg Clark in Theresa implications of Brexit. May’s first Cabinet, navigating ways to protect the UK’s automotive sector are One of the issues of concern commonly David Davis, Brexit sure to remain high on the agenda. raised by manufacturers is the Minister possible introduction of tariffs on With a wider industry overview, Terry Britain which they fear could make Scuoler, Chief Executive Officer of their companies less competitive or manufacturing trade association have an adverse effect on purchasing the EEF, cited continued tariff-free from EU customers. however, hope access to the EU market for goods persists that some industries reliant and services as being a priority in his on exporting into the UK, such as the post-Brexit manufacturers’ manifesto German car industry, for which the published in July. As with most UK is the second largest consumer, scenarios surrounding Brexit, whether may lobby against unattractive rates. the UK will be allowed to export Tobias Nickel, head of Corporate tariff-free with the EU – its largest Communications at German firm trading partner – is unclear. Some UK Dräxlmaier, told The Guardian ‘Let’s manufacturers saw future tariffs as say we would do our best to draw positive for domestic makers. John attention to the consequences that Elliott, Chairman of North East-based tariffs would have’. white goods producer Ebac, told The Manufacturer ‘Tariffs are a double- The UK’s resurgent automotive sector edged sword and because we import was immediately feared to be in the more from the EU than we export to firing line post-referendum due to it the effect of tariffs will favour UK around 57% of all cars exported manufacturers over those in the EU’. from British shores going to the EU. Simon Jones, head of Automotive at What is apparent however is that legal firm Eversheds, predicted a future in order for exports to thrive, the Brexit will dent the UK automotive UK may look to strengthen existing industry despite goods becoming relationships with the rest of the cheaper to send abroad. ‘If volatility world outside of the EU. In a boost continues in exchange rate markets, to Britain’s future, Australia, Canada significant financial implications will and the USA – three key consumers arise,’ he said. ‘Whilst it’s true that of British-made goods – all expressed the UK’s exports will become cheaper, a desire to begin negotiations for vehicle components are imported new trade agreements with the UK and will therefore become more following Brexit but with negotiations, expensive. All of this will affect the along with the activation of Article 50, profitability margins for both OEMs at their earliest stages, the long-term and component suppliers.’ Pushing outlook for exports remains unclear for tariff-free vehicle sales to the EU at this stage. Brian Burke, Director market once Brexit is formalised is of UK-based consultancy Quantuma, also on the Government’s agenda. said ‘The increased uncertainty

REVIEW OF THE YEAR | 19 THE PARLIAMENTARY REVIEW Review of the Year

has undermined the stability that insight into his view on a Brexit manufacturing businesses rely upon Britain in a post for Conservative and only in the longer term will we home where he stated a preference know whether the sector benefits from to strike free-trade deals for exports being part of an independent state and cheaper imports quickly, cut red with the ability to negotiate its own tape to encourage exports and ensure trading relationships with countries greater government assistance for beyond the EU trading bloc’. export success. Before entering EU Post-Brexit and coinciding with negotiations, former Cabinet Office the arrival of a new Prime Minister Minister, Oliver Letwin, revealed to Number 10, great onus from the UK would need to ramp up all business sectors, including its trade negotiators; the majority manufacturing, was placed on David of which, he said, were employed Davis, who was given the newly- by the EU. The task will go to created role of Brexit Minister. Days International Trade Minister, Liam Fox, before his appointment, the former another new member of the Prime Shadow home Secretary gave some Minister’s Cabinet.

UK plays catch up in Industry 4.0 race

Representing the digitisation of Industry 4.0 is a German manufacturing, the concept of expression which Industry 4.0 – a term invented by describes the next that they had no plans to invest in technologies such as automation can industrial revolution Germany – has long been hailed as the Industry 4.0 concepts during the add value to their businesses’. next industrial revolution, encompassing next two years because of this. Those Companies investing in the platform critical industry areas including who said they planned to invest cited remained optimistic about the automation, data exchange, technology production as the main area where Industry 4.0’s role in UK manufacturing and supply chain communications. they would increase automation, and the opportunities it may bring. While German industry has moved followed by research and development Juergen Maier, Chief Executive to maximise Industry 4.0, with their and logistics. of Siemens in the UK, which has Government investing nearly 500m Tom Lawton, head of Manufacturing championed Industry 4.0 with a number (£357m) in related technologies and at advisory firm BDO, said ‘The lack of multi-million pound investments the likes of the United States and South of a clear strategy on what could be across its divisions said, shortly after Korea implementing similar smart the most important development in the report, that Britain can still be a factory strategies over the past five manufacturing for some years is of leader in encouraging Industry 4.0 years, the UK’s readiness to embrace huge concern’. he added ‘We would adoption among manufacturers but the advantages of smart technologies A robotic production line like to see the Government doing building a future workforce with the remained doubtful in 2016. manufacturing respondents said they more to match manufacturers’ long- sufficient digital skills and know-how term outlook by developing a 15–20 is crucial in achieving this. ‘This is an A report jointly issued by UK possess a ‘significant understanding’ of years industrial policy that avoids the exciting moment in time for the world consultancy BDO and the Institution its processes despite 59% recognising disruptions of the political cycle’. This of engineering and manufacturing,’ of Mechanical Engineers (IMechE) that the concept will impact greatly view was also echoed in the report said Maier. ‘The UK’s industrial sector about Industry 4.0 showed that a large on manufacturing, potentially leading by IMechE’s head of Manufacturing, must ensure we are at the forefront of portion of the UK’s manufacturers still to improvements including better Philippa Oldham, who stated the digitisation of industry, that we all don’t have a sufficient understanding productivity, improved data analysis, ‘The survey findings show that much promote its benefits and we up-skill of the concept and its advantages. a greater competitive edge and reduced production costs. The lack of more is needed to be done to help our workforce to make the most of a Published in June, the Industry 4.0 understanding could have an adverse our manufacturers understand how unique opportunity.’ survey stated that just 8% of UK effect on future plans, as 44% stated

20 | REVIEW OF THE YEAR MANUFACTURING EDITION

Industry 4.0 is a German expression which describes the next that they had no plans to invest in technologies such as automation can industrial revolution Industry 4.0 concepts during the add value to their businesses’. next two years because of this. Those who said they planned to invest cited Companies investing in the platform production as the main area where remained optimistic about the they would increase automation, Industry 4.0’s role in UK manufacturing followed by research and development and the opportunities it may bring. and logistics. Juergen Maier, Chief Executive of Siemens in the UK, which has Tom Lawton, head of Manufacturing championed Industry 4.0 with a number at advisory firm BDO, said ‘The lack of multi-million pound investments of a clear strategy on what could be across its divisions said, shortly after the most important development in the report, that Britain can still be a manufacturing for some years is of leader in encouraging Industry 4.0 huge concern’. he added ‘We would adoption among manufacturers but like to see the Government doing building a future workforce with the more to match manufacturers’ long- sufficient digital skills and know-how term outlook by developing a 15–20 is crucial in achieving this. ‘This is an years industrial policy that avoids the exciting moment in time for the world disruptions of the political cycle’. This of engineering and manufacturing,’ view was also echoed in the report said Maier. ‘The UK’s industrial sector by IMechE’s head of Manufacturing, must ensure we are at the forefront of Philippa Oldham, who stated the digitisation of industry, that we all ‘The survey findings show that much promote its benefits and we up-skill more is needed to be done to help our workforce to make the most of a our manufacturers understand how unique opportunity.’

REVIEW OF THE YEAR | 21 THE PARLIAMENTARY REVIEW Highlighting best practice

CalaChem

A small area of the CalaChem plant in Grangemouth working through the night Neil Partlett Managing Director alaChem was feeling very much the orphan with five different owners in a generation when in 2010 another Cparent turned up in the guise of German turnaround ABOUT CalaChem specialist Aurelius. However, the new owner gave the company

»»One of the UK’s most a sense of purpose. Up until the takeover, the company’s site innovative fine chemicals at Grangemouth in Scotland had simply been a manufacturing companies base for a much larger parent company – now it is an »»CalaChem produces a independent company that has to stand on its own two feet. broad range of high quality agrochemical actives, intermediates and speciality CalaChem has grown its revenues from £28 million to £45 million and has gone chemicals, on behalf of its customers, that serve the from being loss-making to profitable, generating cash that can be used for further agrochemical and speciality investment in the business and allowing CalaChem to improve its processes to chemical markets benefit its customers. »»Strong company heritage, When I was appointed Managing Director of CalaChem following its acquisition by with more than 90 years’ experience Aurelius, I was faced with a number of challenges. »»Provides services to companies My first challenge was to inject some entrepreneurial spirit into the company. We on the Grangemouth needed to build a Commercial Department and instil the thinking processes that manufacturing site and the were needed to run an entrepreneurial stand-alone business. Earls Gate Business Park »»Revenues of £45 million I had to make sure we had the right people in the right roles. I moved people »»Employs 180 staff around to make sure we had the right fit and I brought in new people with the skills »»Owned by Munich-based that we needed, like sales and marketing. turnaround specialist Aurelius I also introduced the “Six Sigma” set of tools and techniques for improving the SE & Co. KGaA processes carried out by CalaChem, making its chemical production processes

22 | CALACHEM MANUFACTURING EDITION more efficient and cost-effective. Six Sigma seeks to improve the quality of products or services produced by the business through the removal of defects and errors. We have recruited an expert operational excellence practitioner, who is now helping us implement a culture of continuous improvement throughout the organisation.

One of the most important tasks was to improve communication within the company to get buy-in from everyone and allow the staff to know how they were performing. I required all of the The CalaChem workers to understand the need to Apprentices ready to go on the plant improve the productivity and quality I think it is important to encourage of the chemicals we were making a diverse workforce. We encourage and how this would then lead to the both male and female applicants; we company improving its profitability and are an equal opportunities employer strengthening its balance sheet. and we believe that it is important to select the right person for the Apprenticeship scheme programme completely irrespective of their gender. Like many chemical manufacturers, CalaChem was routinely faced with a Having apprentices in the business has “brain drain”, with junior staff joining really invigorated our workforce. Many the company and being trained to a very of our workers have been here a long high standard before being poached to time, some giving more than 30 years work for larger industrial companies in of service, although their average age the area. CalaChem tackled this issue is just 47, showing that many of them head-on by teaming up with Forth Valley have been here as ‘man and boy’. College, the local further education institution, to create an apprenticeship Our workers have enjoyed having scheme that would provide a pipeline younger people around to whom they of skilled recruits. The apprenticeship can pass on their skills. It shows them programme runs for four years, that we’re investing in the future of offering participants the opportunity the company. to be trained by highly-skilled staff in »CALACHEM’S HISTORY extremely-technical areas of the chemical industry, as well as learning the theory »»1919 – Textiles entrepreneur opens Scottish Dyes in Grangemouth behind the practical work. »»1928 – The Grangemouth site is taken over by Imperial Chemical The apprenticeship programme is Industries (ICI) now entering its fifth year and recruits three trainees per annum; the first »»1993 – The site becomes part of Zeneca three graduates from the scheme have »»1999 – Zeneca’s speciality chemicals business is bought by a now joined the company full-time. venture capital consortium to form Avecia The project is also aimed at improving the recruitment of women and »»2005 – Finnish firm KemFine buys Avecia Fine Chemicals younger people into an industry that is »»2010 – Aurelius buys KemFine UK and renames it CalaChem traditionally dominated by older men.

CALACHEM | 23 THE PARLIAMENTARY REVIEW Highlighting best practice

CalaChem has consulted widely with the local community over its plans and has listened to concerns voiced by residents in the surrounding area. The company is a responsible neighbour and so has reacted to those concerns by making sure vehicles delivering the RDF will follow set routes that avoid restricted roads and minimise passing homes.

Wider benefits

In addition to improving its own business, CalaChem also helps its customers to become more competitive. CalaChem Engineering Like all British chemicals companies, working on the plant at the company faces stiff competition Grangemouth Combining heat and power from China.

As well as investing in its skilled CalaChem is able to thrive in this workforce, CalaChem has also unveiled competitive global marketplace by plans to replace its 20-year-old energy helping its clients to improve their centre with a more efficient combined processes and yields, allowing the heat and power (CHP) plant. The company to add value for its clients current energy centre burns gas to and become a trusted advisor and produce heat for CalaChem and consultant rather than simply a supplier. surrounding companies, but the new £150 million CHP plant will be powered CalaChem’s Research and Development by refuse-derived fuel (RDF), producing Department is also heavily involved in heat and power for CalaChem and its developing and optimising processes, neighbouring businesses while helping supplying its clients with fresh ideas Scotland to meet its renewable energy to make them more competitive and and zero waste targets. therefore improving the operation of the whole supply chain. RDF is made from household and commercial waste that cannot be The company’s services are already recycled. Instead of sending the popular. Dow Agro-Sciences (DAS), leftovers to landfill, the remainder can one of its clients, said: “CalaChem’s be used to power CHP plants, and is partnership is key for DAS’s success already a popular fuel in Denmark, and CalaChem’s excellence in safety, Germany and Sweden. productivity and quality will enable business growth and long-term success Using a material that would otherwise for both companies.” end up in landfill is helping to

Another one of the company’s My challenge contribute to the circular economy, a customers, Veolia, added: “CalaChem

key tenet of both the UK and Scottish was to inject is a key supplier and strategic governments’ industrial policies. partner for Veolia within our waste “some “ Subject to the granting of planning management service portfolio. We entrepreneurial permission, by Falkirk Council, the have worked together to provide CHP plant could be up-and-running our client base with a complaint, spirit into the in 2018, creating 20 permanent competitive and secure waste company jobs and up to 200 posts during the treatment capability.” construction phase.

24 | CALACHEM MANUFACTURING EDITION

Gallows Green Services

Stainless steel powder blender

Les Brown, Managing Director of Gallows Green Services stablished almost 30 years ago, Gallows Green Services is renowned for providing a wide range of contract Emanufacturing services across a diverse number of sectors. Working with a blue chip client base within the pharmaceutical, agricultural, agrochemical, horticultural and fine chemical industries, the company has become a trusted partner, providing an integrated service for ‘own label’ products. ABOUT GALLOWS GREEN SERVICES »»Established in 1988 Les Brown, managing director of Gallows Green Services, explains the company’s success. ‘Many businesses find that they need additional manufacturing capacity. »»Purpose-built eight acre site Indeed, some of our customers may be purely R&D operations with no production in North Yorkshire, eight facility of their own. In both cases, these companies want a partner to fulfil their dedicated units manufacturing needs. »»Toll and contract manufacturing for blue ‘Working within a potentially high risk sector, it is vital that customers have complete chip clients within the peace of mind in the safe stewardship of their products. We have achieved accreditations pharmaceutical, agricultural, and licences from all of the leading industry and regulatory bodies meaning that our agrochemical, horticultural customers can be assured of receiving contract manufacturing excellence. and fine chemical industries ‘As well as offering a high level of operational skills and sound technical expertise, »»Services include blending, rigorous procedures ensure an effective quality system. We pride ourselves on our packing and specialised commitment to providing a customer-focussed approach, co-operating on joint chemical drying of powders innovation projects and adapting our services to meet specific requirements – our and liquids as well as having business ethos is based on a commitment to providing manufacturing solutions. extensive warehousing With a clear understanding that our continued success is entirely dependent on capacity. the success of our customers, effectively serving their needs is at the core of our »»100-strong workforce operation - the more we do for them, the more we achieve for ourselves.’

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This approach has proved a winning »OUR PROCESSES formula for Gallows Green Services. The company has seen significant At any one time, the company organic growth – the workforce has may be undertaking 27 different increased from just three people when processes in separate units. It offers it was founded 28 years ago to a team a flexible approach by being able to of more than 100 today. put together a range of machines to fulfil a customer’s specific needs. Brown adds: ‘We are seeing turnover continuing to increase, rising by over Solids 4% in 2015, bringing it close to £17m. »»Blending The spread of the business over five »»Drying main industrial sectors has proved a »»Granulation sound strategy, adding to the strength »»Grinding and stability of the company. Animal feed additives and industrial products »»Micronising (reducing partical have been two of our key areas of size to below 30 micron) growth, together with food ingredients’ »»Milling turnover which has doubled in recent »»Packing years. The fertilisers and veterinary »»Sieving pharmaceuticals side of the business have remained strong. Export has also Liquids & pastes: been a primary focus with 60% of »»Blending production now being sent overseas »»Dispersions (stable liquid & solid and further export expansion expected.‘ mixtures) Why customers need contract »»Emulsification manufacturing services »»Packing

There are many reasons why companies turn to a reputable contract periods of peak demand. Working manufacturer. They may want to scale with a trusted third party manufacturer up new products and need process such as Gallows Green Services offers a validation; or to outsource non-core number of benefits including access to processing activities or simply need modern plant with complete regulatory access to additional capacity during approval while also removing the need for capital investment. In addition, BRC approved food customers benefit from improved ingredients plant economy through shared loading of seasonal or mature products.

Sector specialisms Gallows Green Services comprises two divisions, Cod Beck Blenders and CB Contract Chemicals, which offer similar processes, but specialise in serving different industry sectors, working across a broad customer base.

Cod Beck Blenders primarily serves the pharmaceutical, agriculture and horticulture sectors, manufacturing a wide range of products from

26 | GALLOWS GREEN SERVICES MANUFACTURING EDITION animal feed additives and veterinary the sectors it serves including Quality medicines to food ingredients. The Management System ISO 9001: 2008; Customers are complementary CB Contract Chemicals Certificate of Conformity FEMAS assured that division is dedicated to manufacturing (Feed Materials Assurance Scheme); industrial products and providing BRC Global Standard for Food Safety; “rigorous control processes for the fine chemical industry. Veterinary Medicines Manufacturing

The site is conveniently located only half Licence (licensed by the Veterinary procedures are an hour from industrial Teesside, home Medicines Directorate). in place to “ to one of the largest concentrations of chemical companies in Europe. With both health and safety and demonstrate environmental regulations becoming Both divisions benefit from the site’s increasingly stringent, it is difficult for safe product multi-functional facility offering a wide many businesses to meet these exacting stewardship. range of processes such as blending requirements. Gallows Green Services has powders and liquids, liquid absorption, seen business improve with only a few powder granulation, sieving, size companies in the UK able to offer this separation, chemical drying, powder type of contract manufacturing expertise. and liquid packing. Les Brown concludes: ‘Contract Les Brown comments: ‘We have an manufacturing offers many benefits. ongoing programme of investment in However, alongside this are the equipment to enable our operation to increased risks associated with meet customers’ exacting requirements outsourcing production. As a long- and we’re also happy to invest established player in this specialist in additional plant as part of our sector, our success is based on our commitment to fostering long term ability to minimise these risks by partnerships with customers.’ Facilities forming close, long term relationships include a large range of stainless steel with our customers. By trusting us mixing and packing machines, blending to protect their valuable intellectual vessels and storage tanks and bins. property and, indeed, their reputation, Gallows Green Services also offers customers place us in a privileged modern warehousing with over 3,000 position - it is only by continuing to pallets of storage space. deliver the high quality products and service they demand that we can All manufacturing operations are continue to flourish.’ carried out under controlled conditions with work instructions and process Four head inline liquid records ensuring that the company filler can demonstrate its compliance with customer requirements.

Safe product stewardship

Working as a trusted partner, Gallows Green Services acts as an extension of customers’ own operations. In a potentially high risk sector, it is vital that customers are assured that rigorous control procedures are in place to demonstrate safe product stewardship. The company has achieved all of the industry accreditations required within

GALLOWS GREEN SERVICES | 27 THE PARLIAMENTARY REVIEW Highlighting best practice

Lipcote

Lipcote’s management team in the Cotswold manufacturing centre

Lipcote and Browcote are the company’s two category leading brands atthews & Wilson, maker of Lipcote, the Original Lipstick Sealer and Browcote, Waterproof Brow Sealer Mhas its origins in the apothecaries and chemists of 18th Century London. It has grown both organically, and through mergers and acquisitions of small health related firms. The earliest, Castle Huskisson, started trading in 1767. In those days most health companies were family businesses in pharmacies and apothecaries, and many became famous for their one special remedy.

FACTS ABOUT LIPCOTE George Woodward, a visionary Manufacturing Chemist and the grandfather of »»A 250 year heritage in health the current managing director built his own international tablet making business in and beauty Clapham after the Second World War. In 1963, with his son Charles, George made »»Independent, family owned a strategic move out from the smog and grime of London to the green Cotswold business market town of Charlbury and set about building a modern pharmaceutical »»Niche range of cosmetics business. Modern management methods and processes were carefully brought to brands in a “fix-it” family the sometimes outdated ways of the companies they acquired. Just as important to the Woodwards was their core family philosophy of nurturing all parts of the »»Innovation to create desirable business, from staff to brands, for long-term success. and unique solutions »»Growth strategy has One of the clearest early signs that this approach was right came with the delivered sales increases of introduction of the Medicines Act in 1968. The change in regulation caused a 50% overall and 400% in huge shake out in the pharmaceutical industry with the closure of many smaller Europe over the last 3 years firms. The company, however, was well placed having already modernised its »»www.lipcote.com own operations. But it could not stand still and the decision was taken to enter the nascent health food and beauty markets – a classic example of vision and

28 | LIPCOTE MANUFACTURING“ EDITION an entrepreneurial opportunity. to a new improved bottle which has Vitamins could be made in the firm’s become a well-known shape still Best of pharmaceutical plant and the company used today nearly 50 years later. Beauty started to make a new product: »»Marketing – The expense of bringing Vogue magazine Lipcote, in the Cotswolds. the product’s benefits to a wide “ audience. During the 1980’s a TV Lipcote had been invented by Wilfred Owen, an entrepreneurial English advertising campaign was very chemist and New Zealand émigré, in successful and made Lipcote a the 1930’s and the trademark was must have for legions of teenage registered in England in 1949. Over girls. However, this big increase in time the product had developed a small demand created its own problems but loyal following and M&W became and production for a time could not involved as the contract manufacturer keep up. This temporary scarcity in the 1960’s. Owen had problems was turned into a positive further with unreliable UK agents and was increasing desirability. trying to develop the product from »»Distribution – A complex and the other side of the globe in the days lengthy chain to market. Over time a before fax machines, let alone the network of wholesalers, distributors, internet. Eventually an opportunity and international agents had created arose for M&W to acquire the UK a confusing market for Lipcote. In agency which it did in 1971. 1999 M&W’s remaining vitamin business was divested allowing The success of this unique product cosmetics to become the focus. It did not come without challenges, but was soon clear that action could its long-term nurturing philosophy be taken to simplify distribution enabled M&W to address these one channels and increase earnings. The by one so Lipcote could achieve resulting step change in profitability its potential: enabled M&W to acquire the global »»Production – Logistics with overseas rights to the Lipcote trademark and materials suppliers and problems formula from the Owen family. The with the bottle due to a mix up purchase, again taken with the long- The Lipcote bottle has been a constant term in mind, set the stage for more between metric and imperial for 50 years while the measurements encouraged the move recent developments. new brand packaging identity has been a hit with consumers

LIPCOTE | 29 THE PARLIAMENTARY REVIEW Highlighting best practice

The Lipstick Finder is a revolutionary tool, an index of Lipsticks, making it M&W’s new launch Browcote has won Best New Waterproof Product, possible to select preferred colours or in Notebook, the Sunday Mirror other criteria from a comprehensive Magazine, and a Beauty Bible Loves curated selection of Lipstick brands all award in its first three months on the market reviewed by the Lipcote team.

“There’s a Search Engine for Lipstick and it’s Awesome…the game changing search engine for Lipstick” enthused the Huffington Post.

These advances combined with a push for Make-Up Artist and Celebrity endorsements have resulted in an almost 50% growth in sales, highlighted by a 400% increase in sales to continental Europe. It hardly needs saying that the company is very concerned about the recent “Brexit” vote.

Following the successful refresh of Lipcote the company resolved to invest in research and development, in part As the global downturn after the 2007 encouraged by the R&D tax credit, financial crisis reached a crescendo and in 2013 moved into new purpose the company foresaw that lipstick built premises in Charlbury with much popularity would surge following a improved laboratories. decade when lipgloss had been the must use lip product and decided to The first product to result from position itself for the opportunity that the development push is Browcote this would present. Waterproof Brow Sealer. Again

M&W has set Long term investment in colleague foresight played a part as 2016 has relationships enabled the company been proclaimed as the “Year of the

its sights on to reach out to alumni and the Sales Eyebrow” throughout the fashion & Marketing Director, Teresa Havvas, industry. Browcote has already gained “developing a“ joined the management team with a “Beauty Bible Loves” from the complete ‘fix a brief to position the brand for two BritishBeautyBible, plaudits from many opportunities: bloggers and sold out online at its first it family’ of retailer within a week. »»expected resurgence of lipstick; and Now M&W has set its sights on products »»anticipated growth in mobile internet. developing a complete ‘fix it family’ of A new look for Lipcote’s packaging products, and is sure its ethos of clear was launched in 2011, helping thinking for the long-term in all that to win the brand a Vogue “Best it does coupled with the accumulated of Beauty” that year. In 2013 the know-how of its valuable team will introduction of Lipcote’s Lipstick make this happen. It’s looking like the Finder moved marketing decisively company will have little spare time online and established Lipcote’s voice to celebrate its quarter-millenium as the independent Lipstick Expert. in 2017!

30 | LIPCOTE MANUFACTURING EDITION

Chemique

Chemique has a structured programme of product development keeping it at the forefront of adhesive technology

Mick McMullen, CEO and Founder of Chemique Adhesives anufacturing companies in a continually advancing and changing environment of production processes and Mtechniques must have the ability to be flexible and embrace change to move forward. This is even more so for SME businesses such as Chemique Adhesives and Sealants Ltd., which has stringent budgets to work within and are competing against multi-national companies.

FACTS ABOUT Chemique Chemique are manufacturers of industrial adhesives, supplied to markets such as furniture manufacturing, transportation and construction. Formed in 1985, the »»Independently owned for over company has a production facility in Aldridge, West Midlands and a warehouse 30 years and Headquartered in and sales office facility in Kennesaw, Georgia, USA. The combined turnover is in the West Midlands excess of £15M. »»Operational facilities in the UK and US; The challenges for a SME company come from both within your own organisation »»Focus on quality, service and and from factors outside. This demands strong leadership and direction from performance the very top. As Chemique has grown, the company has developed from an entrepreneurial, single owner run culture, to one of a senior management structure, »»Products used across a wide encouraging empowerment and responsibility for decision making. The new range of industries which company structure is enabling Chemique to look forward positively and meet include furniture production, challenges as a focused team. construction and transportation »»Offering a full ‘turnkey solution’ External Challenges using our own adhesives and application equipment Modern manufacturing companies are constantly looking at new materials, quicker and more efficient production methods. Above all, they seek changes and processes that are going to be more cost efficient and add money to the bottom line.

CHEMIQUE | 31 THE PARLIAMENTARY REVIEW Highlighting best practice

These requirements have led many to move forward and are able to Chemique is companies to look at the use of add new innovative products to the today adhesives as an alternative to portfolio and look at new market traditional fixing methods that are opportunities overseas. “positioned to more costly and not suitable with modern materials. Chemique has a structured programme compete on the of product development, focused on

global market, Even though being in an evolving developing new products that help market sector is very positive, this keep it at the forefront of adhesive

through niche can throw up numerous challenges. technology and manufacturing These include: requirements, whilst at the same market focus, “ time ensuring these products to be »»Constant demand for new and competitive in a market with more offering superior evolving adhesive technology; resource rich rivals. adhesive product »»Numerous competitors fighting for technology the same business; Growth in export markets has to »»Pressure from multi-national be managed realistically, with both competitors, with seemingly, infinite financial and manpower resources resources; used effectively. The company strategy for this is to focus on key brand »»Sector and market requirements for lines that can add value to overseas approvals and standards; markets, offering new adhesive »»Looking for growth away from some technologies, differentiating Chemique core saturated markets, in new from the competition. A programme overseas developing territories. of market research is undertaken to Meeting these challenges with limited identify these key markets and map budgets requires a process of research, out the best route to market available. review and planning to ensure that Chemique has been successful in setting up a satellite company in Increased production Chemique as a business can continue output has been critical the USA to cover USA, Canada and to continued growth Mexico, as well as seeing success in markets such as UAE, Oman, Russia and Turkey through a specially selected distribution network.

Internal Challenges

Along with having to adapt to external challenges, Chemique must also address internal challenges. The main ones are:

»»Manufacturing operations required to meet growth demand; »»Change in company structure and culture to encourage greater empowerment; »»Closer management of all cost budgets to meet multiple growth strategies; »»Development and training of new and existing staff.

32 | CHEMIQUE MANUFACTURING EDITION

Regular management meetings and sub team groups means that all projects are tackled with an inclusive and team working approach. This has encouraged individuals to promote new ideas and follow these through, taking responsibility for the successful implementation of processes and procedures.

Production output has increased through implementing new processes based around lean manufacturing techniques and methodology. These techniques are also being utilised as Chemique moves into a second production facility, doubling the The Chemique Senior square foot floor space available and Management Team allowing for an even greater increase in production output.

In meeting this output growth and customer demand, Chemique has invested in the development of its staff, encouraging individuals to personally develop their skill set and to progress in their careers as the company evolves. This programme of inclusiveness and empowerment has allowed every department in the company to flourish and meant staff turnover is pretty much at zero levels.

A Bright Future

As Chemique recognised a fast paced Second production changing environment in external facility housing new markets and the demands these equipment to support would have on the business internally, increased production requirements and the the decision of Mick McMullen, the The culture of openness at all levels manufacture of new owner, to devolve to an empowered of the business has led to significant products management structure that would increases in output, a more efficient allow better positioning to meet these working ideology and a feeling of challenges, allowing for growth, teamwork and togetherness amongst was visionary. the workforce.

Through this foresight, Chemique is With many new business strategies today positioned to compete on the being followed, this has proven global market, through niche market that with the correct focus and focus, offering superior adhesive management, any SME business can be product technology and backed up with successful and ensure a bright future ever efficient customer service levels. for all those involved.

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Fujichem Sonneborn

Fujichem Sonneborn’s research & development laboratory – Hainault, Essex

Hiroya Dejima, Chief Executive of Fujichem Sonneborn Ltd ujichem Sonneborn Ltd began life as a producer of French polish for the Piano Industry. They were established F in 1899 in North London with a small workforce who understood the need to create a modest portfolio of surface coating products to meet the demands of a growing market place which went on to include coatings for wooden ABOUT FUJICHEM television cabinets. SONNEBORN

»»Research & Development It is today firmly established as a market leader in surface coating technologies Centre based in Hainault, predominantly for plastics and other surfaces, but is perhaps best known for its Essex coating technologies which are widely used within the global automotive market. »»Manufacturing facilities in Chesterfield Derbyshire In 2010 it was acquired by the Tokyo based company Fujikura Kasei as part of »»Customer Service / an investment plan that would see the company benefit from some significant Distribution Operations in modernisation of its manufacturing and research & development facilities. This France & Germany brought with it some efficiency and improvement initiatives that have allowed the company to excel in its chosen field. »»Employs 145 people across UK & Europe What does it manufacture? »»Turnover £26 million »»Exports to more than An exporter of over half of its production to over 30 countries, it remains proud of 30 countries its association with other large established UK manufactures within the automotive market. This is a UK industry that was once thriving, went through a crisis, but is »»Operates in partnership with once again making a name for itself. Jaguar LandRover have made a significant Japanese and US partners contribution to its recovery and Fujichem Sonneborn’s relationship with them has to support a global business led to the development of coating technologies and special effect finishes that are network both functional and eye catching.

34 | FUJICHEM SONNEBORN MANUFACTURING EDITION

Its core specialities in chemistry and and efficiency. The application the science of coating technologies of the Japanese 5S philosophy to Investment in has naturally led it into diverse markets the manufacturing operation was Fujichem where there is a need for specialist developed over recent years. This leaves coatings to meet very specific needs, a lasting impression on those who care “Sonneborn’s some of which can be seen below: to visit the facility. Its manufacturing youth policy technicians offer a blend of »»Automotive Interior coatings

experienced staff members employed ensures that the »»Automotive exterior coatings by the company for over 30 years, and

»»Laser Etch Coatings a younger generation; the result of the fabric of company’s investment in youth policy »»Special Effect Coatings manufacturing“ designed to ensure that the fabric of its »»UV Curable scratch resistance lens manufacturing principles continues to principles will coatings (used on vehicle headlamps) be nurtured in the years that follow. »»Anti-fog coatings continue to be »»Cosmetic packaging coatings Leading Edge Technology nurtured »»Coatings for wood Its head office and research & »»Coatings for metal development centre is based in »»Coatings for glass Hainault, Essex where the focus is »»Water based coatings very much on the development of »»Dual Cure technologies (utilises both tomorrow’s technology today, and UV and thermal drying methods) where a dedicated team of research chemists is committed to the creation »»PVD Coating Technologies of leading edge technology and the future growth of the company. Manufacturing Excellence The research & development laboratory The modest portfolio of products is considered to be the most modern developed in North London over a facility providing inspiration for those century ago has now grown to more who are fortunate to be able to work than 1500 manufactured at Fujichem there. They were invited to offer Sonneborn’s manufacturing facility in their suggestions and ideas at the Chesterfield, Derbyshire. time when the laboratory was being Fujichem Sonneborn’s The diverse range of technologies manufacturing facility – manufactured demands that raw Chesterfield, Derbyshire materials are procured from as far afield as Europe, Asia and North America. This requires very precise planning of supply chain operations ensuring that raw materials with limited shelf life are carefully managed as part of a raw material management process.

For what might be stereotypically considered an archetypal manufacturing operation where cleanliness may be a desire rather than a reality, its manufacturing halls maintain an extremely high standard of presentation, organisation

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PVD components offering design versatility and an designed which are reflected in the The PVD metal layer, a fraction in environmentally friendly alternative to chrome end result. As a consequence, there thickness of that of a chrome plated plating processes. is a natural feeling of pride amongst surface, is sandwiched between two the research chemists who made such layers of surface coatings designed valuable contributions. to interact chemically with the metal layer. The result is a finished plastic The development of technologies component that looks identical in that offer automotive manufactures appearance when compared with design creativity and functionality, but a chrome plated component, but also offer a solution to environmental is a fraction of its weight, offers concerns, remains a challenge for the numerous colour and effect design research & development team. Last opportunities to meet the same year its commitment to this challenge engineering standards, can be recycled, was rewarded as Fujichem Sonneborn and eliminates the need to use received an award from the British hexavalent chrome. The development Coatings Federation in the category of of this breakthrough technology is Sustainable Innovation in recognition sufficiently advanced that it has already of the development of a chrome effect been selected for release within the coating technology as a cost effective European Automotive market. environmentally friendly alternative to chrome plating. A Modern Approach to a Bright Future Environmental Responsibility With well over a century of With the growing need to protect manufacturing excellence behind it Fujichem Sonneborn team winning the British our environment, and the planned Fujichem Sonneborn will continue Coatings Federation EU directive to reduce the use of to succeed in a UK industry that award which features hexavalent chrome, widely used in some suggest has lost its appeal in the section “Leading Edge Technology” chrome plating processes in Europe, to university graduates and school there is now a need for alternative leavers. Those who share that opinion environmentally friendly coating could do well to take a closer look technologies. Physical Vapour at a company with a long history of Deposition (PVD) offers one such manufacturing experience but with a alternative. A technology collaboration refreshing modern day insight in to between Fujichem Sonneborn Ltd, and what today’s manufacturing industry the Swiss company Oerlikon Balzers has to offer. has led to an exciting innovation.

36 | FUJICHEM SONNEBORN MANUFACTURING EDITION

Neatcrown

With over 35 years of service, Geraint Griffiths doing a final quality check Ben Griffiths, Group Managing Director ugs on your roses, weeds on a driveway or tomatoes wilting in the greenhouse are a gardener’s worst nightmare. They Bcan ruin months of careful planning and for over 40 years our factory has produced some of the leading brands to take care of these problems. In fact we produce the worldwide majority under licence for Bayer Garden of household names such as Baby Bio Houseplant food, Phostrogen plant food and the Provado bug killer range. FACTS ABOUT NEATCROWN »»Produced leading garden care My father Vaughan Griffiths purchased the business 13 years ago due to a Mergers brands for over 40 years and Monopolies requirement for the previous owners to sell, preventing the loss of »»Mentored by Toyota in Lean 45 jobs and we have since grown it into an International operation. We now sell Manufacturing into 35 countries from the Caribbean to Australasia, and during our busiest times »»Delivers into 35 countries of year provide employment for over 100 people in the small North Wales town »»Track record in reducing of Corwen. With unemployment in the area significantly higher than the national product cost even in pre- average, it has been important that we have provided stable jobs for local people - production stage and in some cases for three generations of families in the area. »»Employs over 100 people Lean Manufacturing »»40% exports »»Staff paid one day per year However this could have been a very different story. When in 2007 the recession volunteering for local charity hit hard and commodity prices rose drastically this had a consequence of making or community project of their the business potentially unviable in the long term. With the assistance of the choice Welsh Assembly we were partnered with Toyota who spent 12 months on site,

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sharing their understanding of lean represent. You do not go into a Gold manufacturing and directly mentoring Mine looking for dirt, and it is the same our team members. with teams. They all have the ability to contribute, but it is up to your culture Change is never simple, and it is and structure to ensure that they do. a testament to our teams that our greatest savings came in the years after In any business it is important to our collaboration with Toyota. Over understand how and who makes the past five years we have taken 30% you money. In our business it is the of fixed and variable costs from the operators on the production lines business whilst improving the Gross and no other team member including Profit by 25%. This has allowed us to myself, directly ‘adds value’. Of course stay competitive through a difficult indirectly we do, but one of the biggest recession with many currency swings transformations was for everyone to both in Europe and further afield. accept that if they weren’t working directly on the production line, then Keeping it simple their role was to make the production Baby Bio has been an operatives’ lives easier. iconic gardening brand Our success is due entirely to the for over 40 years people we have in the business, and I If I could choose a single document believe that it has been easier for every to run the business, it would be our team member to contribute due to a production schedule. It can show simple set of beliefs. whether the lines are running as efficiently as they should, whether »»Provide a service for our customers suppliers are delivering on time and of a that no one else can; good quality, and whether our support »»Help our team members achieve departments are doing what they more than they thought possible; should be. Without a stable production »»Remind the local community how schedule, we cannot properly thankful we are for their support understand where our problems and inefficiencies are. For different I believe it has been this mantra that businesses there will be a different has kept us profitable for over eight key document. From our experiences years. Too many directors see their of owning businesses across a variety wage bill in terms of an expense on the of sectors, there is always one key Profit and Loss, rather than rewarding document that can be used to gauge the asset their team members the health of a company.

Our daily operations meeting ensures everyone is aligned on daily targets, and has also reduced misunderstandings between departments

38 | NEATCROWN MANUFACTURING EDITION

A changing market place

The garden industry is very well established in the UK and gardeners have a large range of products to choose from. As European regulations change, the range of products and chemicals on the market has decreased and our job is to ensure that when gardeners are deciding what to buy, they choose ours. This is a challenge in any market, but especially in a highly seasonal market where brand recognition is lower and consumers may be new to the hobby. As a factory we work very closely with the relevant Provado, the UK’s best Government agencies across the selling Bug Killer world to ensure we meet the different for growth. One of our key strategic product and safety regulations. targets is to expand our range of products outside gardening, with soap In an industry with many competitors based products and hobby supplies with similar products, I believe it showing our greatest area of growth. is telling that the majority of our customers have been with us for Where next? more than 13 years. Our ability to react quickly and efficiently to the The ongoing success of a company seasonality of the garden market cannot be left to chance – a successful has been the backbone of our long past by no means guarantees a term relationships. successful future. Our strategy of continued investment in our staff Working closely with coupled with machinery investment customers has been key to our success, and we believe it will allow us to provide a One of our most successful projects service that no one else can provide. has been the redesign of a larger bottle with an inbuilt sprayer. When our customers first brought the concept to us, we could see that in order to reduce the cost, we would need to suggest redesigns of the shape and dimensions of the bottle. This was a great example of the collaborative approach we have with our customers, where there is a clear benefit for both parties. In this case we reduced the cost by around 20% whilst improving the quality of the product.

So what does the future hold for Final bottle design after R&D project with customer Neatcrown? We have not just survived the recession, but remained profitable and built a very robust infrastructure

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Tristel

Paul Swinney, CEO of Tristel ristel is at the cutting edge of providing disinfectants to hospitals, reducing hospital acquired infections and keeping T medical staff safe. The company is the only provider of chlorine dioxide as a disinfectant for medical devices and surfaces worldwide. It is Tristel’s proprietary formulation of chlorine dioxide alongside its innovative range of application methods that has built the company’s reputation. Since 2005 the company has been listed on AIM, opened offices in Germany, Italy, Russia, China, Hong Kong, New Zealand and Australia, built an on-site

FACTS ABOUT TRISTEL cleanroom manufacturing facility and introduced its expertise into infection control for animal healthcare. Today, Newmarket- »»Global leader in chlorine based Tristel with turnover of £17m is poised to go global. dioxide disinfectant solutions for infection prevention and contamination control »»Listed on AIM since 2005 Raising infection control standards »»Serves 53 countries, eight News stories about Norovirus, Methicillin-Resistant Staphylococcus aureus (MRSA) through direct operations and Clostridium difficile outbreaks in hospitals have helped to make the case for and 45 via a network of chlorine dioxide. The number of hospitals around the world that recognise Tristel as distributors their ally in the fight against bugs is on the rise. »»Turnover of £17m in 2015-2016 In 2012, University Hospitals Coventry and Warwickshire (UHCW) NHS Trust was facing significant infection control challenges. By closely interrogating data, »»107 staff drawn from working with Tristel and devising creative campaigns, the infection control team 13 nationalities speaking achieved striking success. In 2013 every ward achieved 100 days free of Clostridium 13 languages difficile infections, 95% achieved 200 days and 14 wards achieved a year clear.

40 | TRISTEL MANUFACTURING EDITION

By May 2015, the milestone of in the financial year ending 30 June 1,000 days was achieved. Other 2017; to maintain a pre-tax margin of Tristel’s Trusts subsequently started to mirror at least 15% whilst investing in new unquestionable UHCW’s award-winning campaigns, markets and new products and to empowering infection control teams create a global brand for its proprietary “ambition is to across the country. chlorine dioxide chemistry. This be a global Australia-based diagnostic imaging campaign presents the attributes that force in the“ provider Capital Radiology set out truly reflect Tristel products: Better. to standardise ultrasound probe Safer. Faster. Smarter. infection disinfection practice across all of Stories and campaigns such as these its clinics. Long disinfection cycle prevention motivate and inspire Tristel’s mission to times had started to inhibit clinics industry from increasing patient throughput. elevate infection control practice from Capital’s search for a compliant, quick good to best. and reliable disinfectant ended with Tristel in 2012. Venturing into the home

Increasing patient throughput and Chlorine dioxide is Tristel’s key reducing capital spend were key asset. Introducing hospital-standard reasons for both Xuanwu Hospital in disinfection into the home is high Beijing and the Pulmonary Hospital on the company’s agenda. A new in Shanghai to replace existing spraying mechanism and a capsule reprocessing methods with Tristel’s technology, underpinned by the automated disinfection system for pedigree of Tristel in critical healthcare cystoscopes and bronchoscopes. form the building blocks of a new concept hygiene system. It offers Better. Safer. Faster. Smarter. three main characteristics that are In January 2016, Tristel launched the revolutionary within the consumer Why disinfect when you can Tristel? market of spray disinfectants: Superior campaign in support of the company’s chemistry, innovative function and targets: to achieve revenue of £20m unique design.

Stella systems installed in Xuan Wu Hospital in »ACCREDITATIONS Beijing AND STANDARDS

Tristel maintains a single Quality Management System conforming to BS EN ISO 13485:2003 as the minimum standard for medical devices, to ensure the maintenance of regulatory requirements and BS EN ISO 9001:2008 for non-medical products, to ensure continual improvement to achieve customer satisfaction. The principles and guidelines of Good Manufacturing Practice are implemented in the facility with reference to Rules and Guidance for Pharmaceutical Manufacturers and Distributors (‘The Orange Guide’).

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A selection of high-performance disinfectants based on Tristel’s proprietary For this particular venture, Tristel has to be a global force in the infection chlorine dioxide chemistry teamed up with a New Zealand-based prevention industry. product designer and an award- An aspiration as bold as this not only winning UK-based creative agency. requires an energetic, considerate and The challenge at hand is to, once no-nonsense approach. It also requires again, build a new brand from the Tristel’s experts in regulatory affairs to ground up. play a pivotal role in the development of new business. Over 100 product Pursuing globalisation registrations are currently underway. Tristel serves 53 countries, eight The company has put in place the tools through direct operations and 45 via a needed to meet ever growing demand. network of distributors. The company One of them is SAP Business One, has its sights on the United States, a world leading Enterprise Resource Canada, Japan and India, and there Planning system designed to collect, is an enormous opportunity in Africa. store, manage and interpret data. Tristel’s unquestionable ambition is Tristel Fuse for Surfaces Another is automated production lines dual-compartment which increase output by as much burstable sachet as ten times.

There is tremendous diversity within Tristel. The team numbers 107 people and is drawn from 13 nationalities, speaking 13 languages. The majority of managerial roles are filled by women. The youngest member of staff is 23 years old – she is project coordinator for Tristel’s entry into the consumer market – and the oldest is 93 years old. He manages the company’s credit control function. This diversity enriches the company, and creates a lively, energetic environment that allows the business to continuously develop; a key requirement in its pursuit of globalisation.

42 | TRISTEL MANUFACTURING EDITION

Federici Brands

CEO Gail Federici consults with celebrity stylist Sally Hershberger on trending styles

Color Wow ederici Brands is a privately-held company, established in 2012 by American entrepreneur Gail Federici and business ABOUT Federici Brands partner John Frieda. Gail had already made her mark in the F »»Headquarters: UK-London industry with John, having built the highly successful John Frieda US-Connecticut Professional Haircare business. This targets products towards »»Employees: UK 8, US 38 specific haircare needs, such as taming frizz and brightening »»Distinctions: blondes. The John Frieda Professional Haircare company was – 25 year heritage of creating successfully sold for 450 million dollars to Kao Corporation, category-shattering Japan in 2002. consumer goods – Specialises in “problem- solving” beauty innovations Today, the same “problem-solving” ethos is driving ‘Federici Brands’. Their watch for skin and hair word is “Necessity is the mother of invention.” The company’s key cultural policy – Unprecedented awards from is to create and fill legitimate gaps, and NOT to leverage “hot” trending beauty most prestigious beauty ingredients or to match competitive product offerings. organisations »»Products: ‘Color Wow’ haircare Cult-cultivating beauty brands and ‘Time Bomb’ skincare ranges »»Distribution: Sold in over ‘Federici Brands’ makes two ranges, each created to change consumers’ lives with 60 countries (Retail, e-tail, TV uber-efficacious products formulated to minimise stress and optimise beauty. home shopping, salons) ‘Time Bomb’ embraces a 21-product range of high-performance skin care technologies, »»‘Federici Brands’ is known for created to transform the look of skin and visibly “stop the clock”. ‘Time Bomb’ has innovative technologies that amassed a dedicated and growing customer base of active age-defiers. solve major beauty problems, while delivering an exceptional ‘Color Wow’, a professional range for colour-treated hair, includes nine new user experience, often called technologies formulated to keep hair healthier, and to optimise colour vibrancy and “the Apple of haircare.” longevity in this new era of hair colour use… and abuse. Sold in salons, department

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The downside is most evident in manufacturing and logistics. Beauty companies that are divisions of multi-national corporations wield tremendous influence and have powerful financial backing that is advantageous when negotiating distribution channels, aggregating media buys, contracting with raw goods suppliers and manufacturers.

As an innovator bringing products with no manufacturing precedents to market, ‘Federici Brands’ frequently selects more unusual packaging and Time Bomb ingredients not currently employed within the industry. As such, in the stores, major online websites and on “phase one” manufacturing process QVC (TV Shopping Channel), ‘Color there is rarely an economy of scale. Wow’ has earned an unprecedented 36 major beauty awards, including Start-up expenses are ultimately offset the title of “Best New Indie Brand, when consumer interest blooms, 2016”, conferred in Cosmetic Executive through targeted PR efforts and Women’s prestigious annual “Beauty support from beauty press, resulting in Insiders” round-up. “phase two” manufacturing challenge – meeting consumer demands. Triumphs and tribulations Consequently, flexibility and scalability In the beauty arena, like every are key factors in ‘Federici Brands’ other industry sector, the role of manufacturing relationships. Rising Despite its first-to-market “innovator” comes labour costs in the UK plus shortages of with significant rewards, as well as skilled labour have forced the decision small size, significant challenges. When the to seek better value overseas. innovator is a small, up-and-coming “‘Federici Brands’ ‘Federici Brands’ works with contract ‘David’ in a sea of well-established, manufacturers in the UK, US and is a prolific idea deep-pocketed ‘Goliaths’, the challenges are greatly multiplied. China, which presents innumerable factory. logistical challenges, e.g. unforeseeable Sometimes, size really does delays in transport due to stringent All product anti-terrorism measures. formulas, matter. Despite its small size, ‘Federici Brands’ Owning innovation – the need packaging, is a prolific idea factory. All product for tougher IP protection formulas, packaging, communications

communications and promotional materials are created ‘Federici Brands’ is continually

in-house. threatened by “look-a-like” brands. and The UK market is especially vulnerable Secrecy is of paramount importance to “brand mimicry”, with intellectual promotional“ in the beauty sector! The tight-knit, property remedies insufficient materials are non-bureaucratic infrastructure (a conclusion of the Gowers Review) ensures a high degree of new product and poorly enforced consumer created development security and enables protection regulations. When sales and in-house nimbleness when responding to shifts reputations are so easily hijacked, there in the market or digital landscape. is a disincentive to innovate, because

44 | FEDERICI BRANDS MANUFACTURING EDITION it is far cheaper and less risky to copy. Disappointingly, BIS (The Department for Business Innovation & Skills) declined to strengthen enforcement in 2015 and has yet to propose an effective solution.

The internet: instant global exposure and business in real time

Today, the minute a beauty brand is launched, it becomes instantaneously part of the global marketplace by virtue of internet access. All of the issues related to international brand expansion (compliance, language, Gail Federici on the set of the new Color costs and cultural disparities) happen Like every company, ‘Federici Brands’ is Wow commercial immediately with no time for a with Grammy-award competing in the ‘techno-savvy’ labour new brand to build a solid base. By winning songwriter, pool for top candidates. Tricky Stewart who default or by design, today every new wrote the WOW song product entry is an international entity, competing on a global scale. The future for ‘Federici Brands’ The UK cosmetic and personal care What is in store for beauty market remained flat from 2014 at brands? £9,102 million in 2015. It has remained resilient even though shoppers have Online sales of beauty products are become adept at searching for bargains. skyrocketing. In response, bricks-and- Price has become the key driver. mortar retailers are vying to attract

The industry imported more than it customers with promotions and special exported, due to the strength of the events, and pushing the cost of these pound. The UK is seen as a vibrant ’Federici Brands’ initiatives back on the manufacturers, exporter but 2015 saw a slump of 5.2% who are desperate to attract customers. is rapidly “ in exports to the EU and a 10.4% drop Smaller manufacturers are struggling to in exports outside of the EU. Overall, meet retailers’ escalating demands. “expanding sales the EU remains the UK’s largest trading In the digital world, and in consumers’ partner with 66% of the worldwide in the Near and minds, all distribution channels converge, market in exports and 64.8% of Far East overlap and compete. Formerly free, now imports. (CTPA Annual Report 2016) increasingly monetized, social networks provide intimate, instant access to Despite tariffs, restrictions, and consumers – but only for nano-seconds. complicated logistics, ‘Federici Brands’ is Advertising in all communication rapidly expanding sales in the Near and channels is based on “pay to play”, Far East where both the ‘Color Wow’ and “creating distraction” is the new and ‘Time Bomb’ brands have been model of “capturing attention.” welcomed by retailers and customers.

Traditional methods of building and The company will continue to maintaining brand loyalty in the shoulder the risks and costs of product beauty sector have all but disappeared. innovation, with the goal of successfully New, interactive customer relations solving unmet beauty problems with strategies require non-stop, digital “game-changing” solutions. vigilance, data-culling and analysis.

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Heyland & Whittle

The Iconic Range

Ursula & Paddy Heyland n 2003 Husband & Wife team Paddy and Ursula Heyland purchased the recipes for 10 soaps. From having no experience Iin the sector, they are now one of the largest manufacturers of the finest handmade soaps in England using the traditional cold-processed method. Their teamwork is the foundation of the company’s success. Combining their two surnames and the Heyland family crest that dates back to The Battle of Waterloo, the couple started the company in a barn on a farm – a small cottage industry that now distributes the product range to more than 20 countries throughout the world. Their mission is to create what they believe are outstanding natural products with tradition, style and authenticity for a discerning market.

ABOUT The Heyland & Whittle brand grew as they attended UK Trade Fairs – eventually HEYLAND & WHITTLE selling to over 400 shops around the country. Using the very best natural »»Quality Products ingredients – including olive, castor and certified organic palm oils – the product line »»Traditional Methods increased and is now seen within the industry as a quality range of home fragrance, lotions and soaps sold in superior packaging for the gift market. The company »»Outstanding Fragrances moved to a business park in Crawley, Surrey, has a 25 strong workforce and an »»Quintessentially British annual turnover of over £2m. Paddy remains focussed on business development, whilst Ursula continues to use her creative flair for product development.

The original vision – to create fragrance products as naturally as is commercially viable – has not changed. Neither has the focus on maintaining the ‘family feel’ at the factory. Despite its growth, the company has managed to develop and maintain a culture of strong pastoral care over the years including school friendly working hours.

46 | HEYLAND & WHITTLE MANUFACTURING EDITION

British and European regulations and One strong message that came out many other technical requirements are of this genuine engagement with the Heyland and a challenge for a small business, but workforce, was that many of them Whittle is “ meeting these requirements has been wanted increased responsibility within an asset in helping us access other the company! This was a significant “essentially a markets. Our efforts have also been turning point for us, because it fragrance rewarded within the industry through indicated there was more productivity winning Gift of the Year twice, and to be gained from within our existing company multiple RHS Chelsea Flower Show top staff team. stand awards. Moving in step with the digital A significant factor to the company’s age has not only been one of our success came when John Lewis chose greatest challenges but also our to stock our fragrance range in their biggest investment for the past three 48 stores, giving prominent national years. Customers’ buying habits exposure to the brand, together with are continually changing. Another instant credibility. significant learning curve has been moving from the more traditional We engaged in a period of focused methods of face-to-face selling to development that involved the entire new marketing techniques that have workforce. It resulted in revitalised evolved with the growth of technology. energy within the company, a We see continued annual growth from renewed mission statement and an online customer sales. Keeping up with organisational structure where all the fast pace of change has resulted in members of staff were able to focus on an increased reliance on technological their specific role and responsibilities hardware and software, engaging and how they contributed to the with consultants with specialist skill company’s overall aims. Personal sets, and further staff training. Internal coaching with key individuals bore fruit communications are no longer just and helped to create a real excitement email based, but now includes the use for the company’s future. of project management software.

Hug the Boss Day

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Heyland & Whittle is essentially a Trade Fairs abroad has also been a fragrance company. Successfully taking challenge. Moving into foreign markets fragrance products to market has requires a strategic plan involving required taking account of a range of ongoing long-term investment with age groups and their specific tastes. In little if any immediate return. The risks order to gain a competitive edge, we are high, and if government’s intention also need to identify and respond to is for exports to flourish, it must ongoing market trends and be aware continue to offer support that covers of what other companies are doing. more than just air fares to the Far East.

One well known mantra that we use H&W has now moved from an organic at H&W is: Sales is Vanity ~ Profit growth pattern with all the successes, is Sanity! As we developed our UK failures and risks that accompany a market share, we discovered that burgeoning business, to having clear selling to big businesses came with direction and a strategy for the future. hidden costs such as rebate systems Customer care – keeping dedicated and markdown. This highlighted the customers and developing brand need to have absolute clarity around loyalty – has become a fundamental profit margins. principle of the company. We now Our Skilled Staff have a full understanding of who Having secured a significant foothold our target market is. Social media in the home markets, the company’s has become an essential part of our decision to expand into foreign marketing strategy responding to markets brought with it a range of customers on a minute-by-minute new challenges. Some of our products basis, seven days a week. change consistency in different climates – this is a particular problem in the Building the Brand of H&W meant that Far East. Finding suitable distributors, we had the credibility to expand into maintaining margins with increased the ‘white label’ market. This market transportation costs, coupled with sector saw our biggest growth in 2015, the need to understand and comply developing products for companies with a diverse range of international and organisations such as Fortnum legislation and industry standards & Mason, The Houses of Parliament, requirements has been another Rigby & Peller, Seasalt and Liberty. significant learning curve. Our aims for the future include The perennial problem of seasonal increasing our UK market share with retail trading habits (we make the a continued focus on custom branded largest part of our profits during products, targeting key foreign the last four months of the year) markets, and increasing our online has always impacted greatly on the presence thorough social media. company’s monthly cashflow. We now have to cope with even less support In the last fourteen days we have won from the banking sector. Maintaining a new contract with M&S. We will control of the company has tended also be producing a large range of to mean ‘going it alone’ rather than products for John Lewis on behalf of relying on outside investment. That Designers Guild, and we are about to in turn, has meant less investment start supplying soaps to MCC at Lords cash for development and, therefore, Cricket Ground including both teams’ slower growth. changing rooms. Win or lose, bat or bowl on sticky wickets, they will smell After receiving a number of grants, clean and fresh all over! the withdrawal of government aid for

48 | HEYLAND & WHITTLE MANUFACTURING EDITION

KRSS Ltd

Dr Jim Speakman, Technical Director (left) with John Dutton, our Clinical RSS Ltd is the fastest growing independent mass Applications lead with an spectrometry and chromatography sales and service HPLC-MS system on one of our MS Workstations Kcompany in the UK/Europe and Asia, offering training, service, instruments and consumables to the pharmaceutical, environmental, forensic, life sciences, food, biotechnology, clinical and academic markets. We serve the UK/Europe and Asia from our UK office and the USA/Canada through agents who are based in the US.

FACTS ABOUT KRSS Ltd The privately owned company was incorporated in 2007 as a joint venture between »»Incorporated in 2007 ex-Waters/Micromass senior engineers and industry experts from other leading chromatography and service companies. The company was originally known as »»Based in Runcorn, Cheshire Kinesis-RSS. »»Average growth rate 30% per year since incorporation In April 2011 Kinesis divested its share in the company and it became part of a »»Business Revenue Target group of companies offering a global solution to mass spectrometry sales and >£5M by 2018 service. As part of the agreement the company name was changed to KRSS Ltd. »»Over 1200 instruments on This enabled KRSS to work more closely with our agents to offer a global market cover approach. »»Global customer base As part of our ongoing expansion we started looking for accessories that we could sell alongside our range of refurbished instruments. The first thing we looked at was a way to quieten the pumps which are used to create a vacuum inside these instruments, which is necessary for them to function. Health and safety regulation concerning the level of noise allowed in the working environment had recently been introduced, and users of these instruments had to find a way of reducing the noise

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Gary Rawlinson, our Academy Manager giving on-site training at a customer’s lab which, in many cases, exceeded the So we came up with an idea where the safety level. We approached an existing enclosure could be constructed from manufacturer to fulfil this but we soon panels that could be screwed together realised that their product did not meet with thumb screws in a matter of our customers’ needs, and the decision minutes, without disturbing the pumps was taken to design something that at all. It also enabled us to ship the would, based on the experience of our enclosures flat packed, very essential Technical Director, Dr Jim Speakman. for distributing them globally. The material of construction was chosen There were various design criteria as PVC sheeting, easy to fabricate and to consider. The first was that it with excellent fire retarding properties. should reduce the noise level by 15 Again, we approached a leading decibels, and to do that, we sought plastics fabricator to help us with the the advice of a local international best way of manufacturing the panels. supplier of sound absorbent materials. They advised us on a suitable fire Many of our customers were interested proof material (another customer in dedicated mobile benching suitable

Our success is requirement) with excellent acoustic for heavy instruments such as mass properties. They were very helpful to us spectrometers and chromatography

founded on and we have had a very good ongoing equipment so we set about designing relationship with them. Our customers such, incorporating suggestion we “listening to our“ told us that we would have to install had been given by them. They asked customers and these sound proofing enclosures for strength, mobility, chemically round the pumps without stopping resistant surfaces, and incorporating delivering what the instruments as to re-establish suitable sound proofing enclosures. they want vacuum could lose them up to a day’s We came up with some designs and work, which would be very costly. had a couple of prototypes constructed

50 | KRSS LTD MANUFACTURING EDITION for us by a local engineering firm. We »WHAT IS A MASS SPECTROMETER? used a box steel construction, powder coated, with Trespa tops and industrial It’s a machine for analyzing chemical substances in a wide variety of castors, capable of a 400kg load. applications. A cupboard for the vacuum pumps A Mass Spectrometer works by ionizing chemical substances and was fitted with forced ventilation and then measuring the mass to charge ratio of the ions formed inside lined with the same sound absorbent a vacuum chamber. material and mounted under the bench, with a slide out shelf on top They are used widely in hospitals and the pharmaceutical industry for a keyboard and mouse. A monitor to detect substances in body fluids and to quality control the arm was mounted on the bench top so manufacture of drugs. the whole system could be incorporated They are the most sensitive analytical instrument available and can in the bench. Customers were asked to detect down to 10E-18 moles in many cases (that has been likened to make comments and suggestions and detecting a glass of whisky in a swimming pool!) these were incorporated into the design. One of these was a means of monitoring They were invented in the UK by Frances Aston, a student of JJ the temperature inside the cupboards Thomson, around 1913. Aston was awarded the Nobel Prize in 1922 containing the pumps, in case of fan for his work on the discovery of isotopes. failure, and we came up with a design that can email the customer in the event The first commercial Mass Spectrometer in the UK was built in of an alarm situation. This has now Manchester by Metropolitan Vickers in 1946, and they are still in become a product in its own right, being production by spin-offs from that company today. Manchester is still used to monitor mainly the temperature a major centre for research and development of new instruments, in fridges and freezers which contain although sadly most organisations are now owned by US and Japanese customers’ standards and samples. companies. However, Manchester is still regarded by the world as the place where many of the advances in these instruments comes from. These products were so successful that we decided to split this activity Further information on the development of Mass Spectrometers off into another division, and in can be found in “A History of European Mass Spectrometry” November 2011, KRSS Engineering Ltd Ed. KR Jennings. IMP Publications. ISBN: 978-1-906715-04-5. was incorporated as a new company, a wholly owned subsidiary of KRSS. in Runcorn, Cheshire. These premises KRSS Engineering is staffed by a team are shared with KRSS Engineering. of skilled craftsmen who manufacture Our success is founded on listening these items in house, giving us a great to our customers and delivering what deal of flexibility to construct bespoke they want in goods and services at a benches and pump enclosures to competitive price, and with a timely customers’ individual specifications. response. We are continually adding to We also have standard sizes which can our range of manufactured products, be supplied from stock. We recently listening to our customers’ needs supplied 60 benches to a customer and supplying just what they want. in the USA and supply many of the In addition to a range of laboratory laboratories in Europe and beyond. accessories, we offer very flexible We continue to add more products to service contracts, training courses, and our range offering the perfect solution refurbished instruments to laboratories to laboratories with a wide range of with budgets constrained by the analytical instrumentation. economical circumstances that we have KRSS has averaged 30% annual all had to face since 2008. This may growth per year since it was founded now continue for years to come, with in 2007. The company’s head office is the UK decision to leave the EU. now located in a 16,000 sq foot facility

KRSS LTD | 51 THE PARLIAMENTARY REVIEW Highlighting best practice Potters Crouch Candles

St Albans was at the very start of the development of the Magna Carta. Managing Director David Brown discusses a special candle to commemorate the 800th anniversary with the Mayor of St Albans Potters Crouch products are hand crafted in a 300 year old barn on the edge of St Albans City t started in 1986 with a simple birthday gift – a scented candle in a decorative tin. Nothing like it had been seen in the UK before, so Iwhen Potters Crouch decided to launch the concept of fragranced candles in tins, people thought we were mad. 30 years later, having shipped close to two million products all over the world and having ABOUT POTTERS CROUCH CANDLES been the product of choice for many creative artists, celebrities and major corporations – people don’t say we are mad anymore. »»400% sales growth between 2011 and 2015 heading rapidly towards £2 million Potters Crouch Candles was established in Potters Crouch Farm near St Albans, annual sales target Hertfordshire in 1986 when founder Louise Gow received a handmade gift of a »»The UK’s “original scented scented candle in a decorative tin from America. Being a serial entrepreneur, Louise candle in a tin” set about trying to import them. However, there was a snag. Neither Louise nor »»Passionate about fragrance the friend who had given the gift was able to find out who had made the candle. since 1986, working in Retiring defeated to the bath it is then that Louise had her eureka moment – if she partnership with one of the couldn’t import them then she would make them. UK’s most respected artisan Ever a perfectionist, Louise didn’t want to settle for average candles. She wanted perfumers to produce world-class products. To do this, she realised the key ingredient to set »»Handcrafted in the beautiful Potters Crouch Candles apart from any other candle manufacturer was the use English countryside of high quality fragrances. Off the shelf perfume was never going to be Louise’s »»Exported and loved all over choice, she quickly realised the way forward for PCC was bespoke fragrance. She the world went to work learning all about fragrance, essential oils, herbs, spices, plants, »»Stringent safety testing and aromatic compounds and fragrance compositions. fragrance evaluation to Having decided that the perfume was the most important ingredient in any ensure unrivalled product fragranced product, and having learned a little, Louise realised that she needed quality expert technical advice if she was to deliver products of the very finest quality.

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Louise sought out a respected artisan perfumer and independent fragrance consultant who had years earlier established his own niche perfumery. Drawing on his lifetime professional career in the aroma trades industry they worked exclusively on creative briefs for high quality hand made candles, which uniquely and importantly smelled beautifully and burned wonderfully and this friendship is still going strong.

Just a few products Early days from the extensive range available from Fragrance evaluation is an important Innovation, process Potters Crouch and lengthy process which involves and standards expert and consumer panel testing and Whilst Louise remains on board in an candle burning trials in order to obtain advisory capacity, the company is now the ultimate perfume composition to led by David Brown and Joanne Martin blend with our finest quality waxes. who continue to ensure Potters Crouch Eventually, after months of testing and Candles lives and breathes the original evaluation, the first candle in a tin was values set out from day one. due for launch. With a fragrance of Gardenia and Tuberose, this scent has This includes producing and designing all continued to remain in our top three products on-site using traditional hand bestsellers for 30 years. pouring and labelling methods. The result is a fragranced product which far Beginning in a kitchen, then garden exceeds public expectations and which shed, then a room over a nearby has an incredibly loyal customer base. stable block, we quickly outgrew More importantly PCC’s unique and our premises. That’s when we came exclusive fragrances have given the across Prae Wood Farm, an old dairy company a lead in the UK’s somewhat Today the farm with buildings dating back some ‘samey’ market. And by creating our 400 years. The farm was derelict but Potters Crouch own perfume compositions, we can this was just a minor stumbling block keep up with fashion trends and create “brand is for Louise. In keeping with our values bespoke fragrances for both private of sustainability and authenticity, we set and commercial customers. recognised about renovating it and preserving the location’s history for future generations. For example, just last year we were worldwide for asked to create a new fragrance which producing the Today the Potters Crouch brand is smelt of toffee. Our approach was recognised worldwide for producing not just to settle on an ‘acceptable’ highest quality the highest quality fragranced candles, toffee smell, we needed a fragrance reed diffusers, room sprays and other so perfect that customers would think fragranced gifting items. Set in the Hertfordshire it was real toffee. After much research candles, reed countryside on the Gorhambury Estate using actual toffee, we decided on owned by Lord and Lady Verulam, it the brand which had the best toffee diffusers,“ room remains a stones throw away from smell. The perfumer was briefed and its birth place of Potters Crouch. in partnership with our Provence sprays and Employing eight permanent staff and based French supply house, a unique other gifting numerous seasonal staff it produces perfume named Vanilla Toffee Fudge thousands of candles every week. All was created and launched, which has items hand made from start to finish. quickly proved highly successful.

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Small scale customised products for a retailer in Sydney, Australia At the heart of PCC we seek constantly We were proud in April 2016 to be to improve our production methods asked to create bespoke candles and products. For example, we are the to commemorate Her Majesty the first company in the UK to create a Queens 90th birthday celebrations reed diffuser which doesn’t use water and so crafted two new candles for or unpleasant smelling alcohol as the occasion. The first was a soft solvents but instead teamed up with floral and citrus blend incorporating an innovative new company working plants and flowers from all across the on an odourless and harmless carrier Commonwealth and the second was solution, which has amazing longevity. a sweet gourmand fragrance which As a company we continue to focus on drew upon on Her Majesty’s favourite new product innovation and will never afternoon tea foods. do ‘just what everyone else does’. We have always been a leader and The future looks bright ahead of the game which we intend to With order books consistently filled continue for the next 30 years. quickly, we are excited about the By focussing on quality, PCC has seen future and what it holds for PCC. sales grow by over 400% from 2011 to Behind the scenes we have been 2015 and are on target to deliver £2m working on some ground breaking annual sales in the near future. and innovative sensory projects and corporate offerings, with early trials Expanding audiences proving a resounding success. During the past 30 years, there has been In a congested market place and an increase in demand for bespoke with the consumer always looking for products not only for private individuals something ‘that little bit different’, we but large retailers and major corporations. continue to work on a strong portfolio Because PCC produce product offerings – filled with existing best-sellers and on site in the UK we have become new products. a beacon in the boom of bespoke manufacturing. We have become the As we have always done, PCC strives to first port of call for companies such as ensure that the feel of luxury, quality of ITV when sourcing gifts for celebrities research and the testing of new ideas and VIP’s, Universal Music UK for making is core to the enduring success of the items for new single launches for artists company. And by doing so, we intend such as Will Young, the Disney Store, to continue leading the market from Anthony Worrell Thompson, Blenheim the front. Palace and many others.

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Safapac

Safapac’s new segregated suspension concentrate herbicide production facility afapac, established in 1997 and employing 50 staff, is a in Peterborough contract chemical formulation and packing service provider, Soperating from a purpose-built manufacturing plant in Peterborough. This independent SME specialises in formulations for use in the agricultural, medical device, veterinary and consumer goods sectors, with experience manufacturing insecticides, fungicides and herbicides (‘weed killers’), as well as patio / garden furniture cleaners, endoscope cleaning solutions and external veterinary medicines.

FACTS ABOUT Safapac Over the past three years, Safapac has increased its manufacturing output to more than 10 million litres; a rise of over 50%. These finished goods are shipped to »»Provides a contract chemical upwards of 40 countries, spread across six continents. formulation and packing service »»Part of an independent, Being located in one of the UK’s fastest growing cities, Safapac has not only privately owned group formed provided job opportunities for local residents, but has cemented a reputation as one after an MBO from Ciba-Geigy of Europe’s foremost specialty contract chemical formulators. in 1997 New Plant »»Employs 50 full time staff »»Products used in agricultural, One of the core reasons for Safapac’s on-going success is its increased production medical device, consumer and capability – made feasible by a new herbicide suspension plant installation. This veterinary sectors opened in the summer of 2015 at an investment of over £500,000.

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The plant upgrade was possible staff to transition between roles and Safapac fosters following a successful application reach their career goals. an inclusive, to the ‘Greater Cambridgeshire and The agrochemical market (one of Peterborough Enterprise Partnership’ Safapac’s leading sectors) operates on “informative (part of the Agri-Tech Growth

a largely seasonal and / or weather Initiative), which was then backed by company dependant basis. Customers from

Clydesdale Bank Plc. culture and these international supply chains The decision to support the upgrade can therefore require vast quantities rewards“ was in part due to the Annual of production at short notice. Shift excellence by Investment Allowance (AIA) grant patterns have to constantly evolve to for plants and machinery, which match the needs of this industry, often fast tracking at the time was £500,000, but the meaning unsociable working hours for Government have since reduced this employees – a dedicated team is thus staff sum to £200,000. essential to the company’s success and one of its biggest unique selling points. Schemes such as the AIA are of great importance to the growth and This business also fosters an inclusive, development of SMEs – which often informative company culture and lack the financial resources available rewards excellence by fast tracking to larger businesses. The upgraded staff members for promotion manufacturing facility is a success wherever possible. story of these immensely beneficial Safapac’s loyal and engaged workforce investments, grants that Safapac is encouraged to continually participate strongly believe should be protected. in the company’s self-improvement. Staff Through active meetings and the monthly staff newsletter, it’s made a Safapac would not be able to operate priority that everyone has their say. a manufacturing plant 24 hours a Safapac is now working towards day, 365 days a year without a highly a future Investors in People (IiP) qualified, multi-skilled and enormously accreditation to maintain its high flexible workforce. Excellent training standards and continue working to the packages are available, enabling these best possible practices.

Tablet control of the new Laboratory analysis at Safapac – facility; made possible by dedicated shift analytical chemists the AIA scheme are key to the company’s success

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Practical Challenges

Safapac’s resilience and ability to overcome challenges, both practical and financial, is another attribute to its success.

Due to the nature and volumes of chemicals processed at the facility, Safapac is registered as a COMAH (Control Of Major Accident Hazards) designated site, being regularly monitored by the Health and Safety Executive (HSE). Ensuring compliance is one such practical challenge, but this is not handled as a check-the-box Safapac is looking exercise - significant resources are to optimise its plant invested to ensure that the facility is Institute for Manufacturing, each year capabilities by expanding to the retail market safe, secure and fit for purpose. it engages graduates to assist in the The company’s Technical and development of process to reduce its Compliance Director manages environmental impact. over 400 standard operating procedures and risk assessments. The Future These cover everything from The Safapac goal for the future is product realisation to equipment to continue meeting the needs of maintenance, health and safety and existing customers whilst attracting environmental management. new ones by investing in the facility, Additionally, over £200,000 has staff, new technologies and operating been invested in an ERP (Enterprise processes. It hopes this will increase its Resource Planning) system to both global reach and maintain Safapac’s increase operational efficiency position as a European centre of and aid the management of manufacturing excellence in the regulatory requirements. specialty chemicals industry for non- European organisations.

Financial Challenges Safapac is also looking to target new One of the main financial challenges in markets within the retail industry and the seasonal contract manufacturing diversify its product range to maximise its industry is the constant capital business footprint and continue greatly investment required to comply with increasing its manufacturing output. segregation policies and duplicate work centres – both needed to keep »ACCREDITATIONS up with demand from an international »»BS EN ISO 9001:2008 Quality Management Systems. Contract customer base. formulation development and production of micronutrients Safapac allocates considerable »»Veterinary medicines manufacturing licence resources in both personnel and capital »»BS EN ISO 9001:2008 Quality Management Systems. Contract into the research and development of manufacture and packing of speciality chemicals products and processes, and hopes that »»BS EN ISO 13485:2003 Quality Management Systems. Contract its current tax incentives continue. As a production and packing of cleaning and disinfecting products for member of the Cambridge Universities the medical sector

SAFAPAC | 57 THE PARLIAMENTARY REVIEW ReviewReview of the Parliament of Westminster Leader, Angus Robertson, said the Scottish Government would Parliament seek to protect Scotland’s place. ‘We are a European nation and it really matters to us that we live in an outward-looking country, not a Graceful in defeat – David Cameron diminished little Britain.’ The Liberal Democrat Leader, responds to the verdict of the Tim Farron, said he still passionately EU Referendum believed British interests were best served by being at the heart of Europe. Eleven months after delivering the first A few moments later his predecessor, outright Conservative General Election the former Deputy Prime Minister, victory since 1992, David Cameron Nick Clegg, said it could not be right came to the Commons Dispatch Box as that the Conservative Party members a lame duck Prime Minister, a caretaker who would elect Mr Cameron’s With the upheaval replacement would, in effect, choose a who would remain in office only until caused by the UK’s his successor could be named. The European referendum, forward a positive case for Remain new Government. Surely, he said, there Referendum vote to leave the EU had many questions are still and had convinced two thirds of its should now be a General Election? to be answered ended his career with brutal finality. supporters. he said people in many A series of Conservative Leave communities felt disenfranchised and campaigners, the veteran Sir Bill Cash, he was cheered by his MPs as he powerless because they had been failed, the former Cabinet Minister, Owen arrived in a packed Commons Chamber not by the EU, but by Tory governments. and he seemed remarkably good Paterson, and others praised the Prime humoured. Moments before he rose, he complained that the campaign had Minister for holding the referendum, the newest MP, Rosena Allin-Khan, been marked by untruths and half- a line also taken by UKIP’s sole MP, who had been elected to replace truths and added, in a pointed rebuke, Douglas Carswell, who was heavily Labour’s Sadiq Khan, the new Mayor that ‘the country will thank neither the heckled as he warned that the task of implementing Brexit could not be left of London, had been introduced. Government benches in front of me to ‘Europhile mandarins’ and called for With mass resignations from Labour’s nor the Opposition benches behind prominent Leave campaigners to be Shadow Cabinet as the leadership crisis for indulging in internal factional involved – a comment which provoked in the Opposition unfolded, he advised manoeuvring…’ – an observation that provoked a blast of scorn from a backbench shout of ‘Yeah Farage.’ her to keep her phone on because Tory and SNP MPs, and silence from she might be promoted by the end of David Cameron’s This was the first of what will doubtless resignation speech the Labour benches. the day. be scores of Commons statements on relationship Britain would seek with the outside 10 Downing With Scotland having voted to remain the Brexit process – they will become a Then he gave his response to the EU were matters for his successor. he Street in the European Union, the SNP’s fixture in Parliament for years to come. Referendum decision. ‘It was not the said he would take that message to the result that I wanted, or the outcome emergency European Council meeting I believe is best for the country I love that had been convened for the next but there can be no doubt about the day, to respond to the Brexit vote. result. Of course I do not take back what is said about the risks; it is going ‘Tomorrow will also provide an Trident Submarine Renewal to be difficult…’ he also promised opportunity to make the point The first Commons outing for a new She was moving a motion to confirm that an upsurge in hate crime against that although Britain is leaving the Prime Minister is normally a great plans for a multi-billion pound migrants would be stamped out. European Union we must not turn our back on Europe or the rest of the occasion in its own right, but Theresa programme to replace the submarines One of his key announcements was world,’ he added. May’s debut, following the withdrawal which carry the UK’s Trident Missile that he would not trigger the formal of her final opponent in the Conservative nuclear deterrent – a move which EU exit process – Article 50 of the For Labour, Jeremy Corbyn – accused leadership race the week before, was underlined her personal commitment Lisbon Treaty – and the timing of that of fighting a lacklustre referendum overshadowed by a spectacular outbreak to Trident renewal which, she said, decision and the nature of the future campaign – said his party had put of Labour infighting. was essential to national security.

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Westminster Leader, Angus Robertson, said the Scottish Government would seek to protect Scotland’s place. ‘We are a European nation and it really matters to us that we live in an outward-looking country, not a diminished little Britain.’

The Liberal Democrat Leader, Tim Farron, said he still passionately believed British interests were best served by being at the heart of Europe. A few moments later his predecessor, the former Deputy Prime Minister, Nick Clegg, said it could not be right that the Conservative Party members who would elect Mr Cameron’s With the upheaval replacement would, in effect, choose a caused by the UK’s European referendum, forward a positive case for Remain new Government. Surely, he said, there many questions are still and had convinced two thirds of its should now be a General Election? to be answered supporters. he said people in many A series of Conservative Leave communities felt disenfranchised and campaigners, the veteran Sir Bill Cash, powerless because they had been failed, the former Cabinet Minister, Owen not by the EU, but by Tory governments. Paterson, and others praised the Prime he complained that the campaign had Minister for holding the referendum, been marked by untruths and half- a line also taken by UKIP’s sole MP, truths and added, in a pointed rebuke, Douglas Carswell, who was heavily that ‘the country will thank neither the heckled as he warned that the task of Government benches in front of me implementing Brexit could not be left nor the Opposition benches behind to ‘Europhile mandarins’ and called for for indulging in internal factional prominent Leave campaigners to be manoeuvring…’ – an observation involved – a comment which provoked that provoked a blast of scorn from a backbench shout of ‘Yeah Farage.’ Tory and SNP MPs, and silence from This was the first of what will doubtless the Labour benches. be scores of Commons statements on With Scotland having voted to remain the Brexit process – they will become a in the European Union, the SNP’s fixture in Parliament for years to come.

Trident Submarine Renewal

The first Commons outing for a new She was moving a motion to confirm Prime Minister is normally a great plans for a multi-billion pound occasion in its own right, but Theresa programme to replace the submarines May’s debut, following the withdrawal which carry the UK’s Trident Missile of her final opponent in the Conservative nuclear deterrent – a move which leadership race the week before, was underlined her personal commitment overshadowed by a spectacular outbreak to Trident renewal which, she said, of Labour infighting. was essential to national security.

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She was challenged by the SNP’s Unlike the Prime Minister he was not George Kerevan who asked if she, prepared to press the nuclear button. personally, would order a nuclear strike ‘I would not take a decision that killed which would kill 100,000 innocent millions of innocent people. I do not men, women and children. her believe that the threat of mass murder response was a blunt, unadorned ‘Yes’. is a legitimate way to go about dealing A nuclear deterrent was pointless if a with international relations.’ government was not willing to use it, Mr Corbyn faced repeated challenges she added. from his own MPs. Angela Smith noted She had open support from he was ‘Fond of telling us all that the Party Conference is sovereign when Labour backbenchers including The UK’s Trident John Woodcock, MP for the it comes to Party policy. Last year the Missile nuclear submarine-building seat of Barrow Party Conference voted overwhelmingly deterrent was one in favour of maintaining the nuclear of the first issues and Furness… ‘Whatever she is about Theresa May faced deterrent, so why are we not hearing a to hear from our Front Benchers, as the UK’s new defence of the Government’s motion?’ it remains steadfastly Labour Party Prime Minister Mr Corbyn retorted that Labour’s policy policy to renew the deterrent while was under review, provoking more other countries have the capacity to shouts from Labour MPs. threaten the United Kingdom and hMS Vanguard many of my colleagues will do the The bombardment continued. The returning to Faslane, right thing for the long-term security former Defence Minister, Kevan Jones, Scotland of Scotland had repeatedly shown It will be for the Scottish people to of our nation and vote to complete the compared Labour’s defence review to their opposition to Trident renewal determine whether we are properly programme that we ourselves started the mythical unicorn; people believed – and he added ‘The Government protected in Europe and better in Government.’ it existed but no-one had ever seen it. have a democratic deficit in Scotland represented by a government that we Former Shadow Armed Forces Minister, and, with today’s vote on Trident, actually elect. At this rate, that day is The Prime Minister answered with Toby Perkins, said the case for not it is going to get worse, not better. fast approaching.’ an approving quote from Labour’s replacing Trident had fallen apart. manifesto, which said Britain must Former Shadow Defence Secretary, remain ‘committed to a minimum, Vernon Coaker, said Britain could not credible, independent nuclear abandon its responsibilities as a senior capability, delivered through a member of NATO. Continuous At-Sea Deterrent’. The vote to bomb ISIL in Syria The SNP’s Westminster Leader, The Government The Green MP, Dr Caroline Lucas, Angus Robertson, said the people voted in favour The Commons surprise vote in August people since 7/7 on the beaches of said the UK’s nuclear weapons drove of the renewal of 2013 rejecting armed intervention in Tunisia and they have plotted atrocities Trident nuclear proliferation. Theresa May did the civil war in Syria was undoubtedly on the streets here at home. Since not accept that at all – and she took David Cameron’s worst-ever November last year our security services a direct swipe at Dr Lucas. ‘Sadly, she parliamentary defeat. That moment have foiled no fewer than seven and some Labour Members seem to reverberated when, two years later different plots against our people, so be the first to defend the country’s in the wake of the Paris attacks, he this threat is very real. The question enemies and the last to accept these returned to the Commons with a is this: do we work with our allies capabilities when we need them.’ motion to allow British forces to strike to degrade and destroy this threat at ISIL, or Daesh, in Syria. and do we go after these terrorists The Labour Leader, Jeremy Corbyn, in their heartlands from where they questioned the ‘ever-ballooning ‘ he warned MPs that ISIL was plotting are plotting to kill British people, cost of Trident renewal – but for him Paris-style attacks against Britain and or do we sit back and wait for them to the central issue was this ‘Do these had already targeted this county. attack us?” weapons of mass destruction – for that ‘We face a fundamental threat to our is what they are – act as a deterrent security. ISIL has brutally murdered he was attempting to rally all-party to the threats we face and is that British hostages. They have inspired support for the use of British forces deterrent credible?’ the worst terrorist attack against British in Syria – they were already launching

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hMS Vanguard returning to Faslane, Scotland of Scotland had repeatedly shown It will be for the Scottish people to their opposition to Trident renewal determine whether we are properly – and he added ‘The Government protected in Europe and better have a democratic deficit in Scotland represented by a government that we and, with today’s vote on Trident, actually elect. At this rate, that day is it is going to get worse, not better. fast approaching.’

The vote to bomb ISIL in Syria

The Commons surprise vote in August people since 7/7 on the beaches of 2013 rejecting armed intervention in Tunisia and they have plotted atrocities the civil war in Syria was undoubtedly on the streets here at home. Since David Cameron’s worst-ever November last year our security services parliamentary defeat. That moment have foiled no fewer than seven reverberated when, two years later different plots against our people, so in the wake of the Paris attacks, he this threat is very real. The question returned to the Commons with a is this: do we work with our allies motion to allow British forces to strike to degrade and destroy this threat at ISIL, or Daesh, in Syria. and do we go after these terrorists in their heartlands from where they he warned MPs that ISIL was plotting are plotting to kill British people, Paris-style attacks against Britain and or do we sit back and wait for them to had already targeted this county. attack us?” ‘We face a fundamental threat to our security. ISIL has brutally murdered he was attempting to rally all-party British hostages. They have inspired support for the use of British forces the worst terrorist attack against British in Syria – they were already launching

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airstrikes against ISIL in neighbouring Winding up the debate for Labour was in prostitution and vice. If it had Iraq – but many Labour MPs were hilary Benn who took the opposite happened here they could have been fuming about remarks he had made view to Jeremy Corbyn. ‘The carnage our children. the previous evening to a meeting of in Paris brought home to us the clear Conservative MPs, when he suggested and present danger that we face from ‘We are faced by fascists – not just people who voted against airstrikes Daesh. It could just as easily have their calculated brutality but their belief were ‘terrorist sympathisers’. he faced been London, Glasgow, Leeds or that they are superior to every single repeated challenges to withdraw and Birmingham and it could still be.’ he one of us in this Chamber tonight and apologise – but stuck to a formula that said the UK could not leave its defence all the people we represent. They hold unity was needed and that it was time to others and asked what message us in contempt. They hold our values to move on. inaction would send to Britain’s allies – in contempt. They hold our belief in France, in particular. tolerance and decency in contempt. One focus for questions was the They hold our democracy – the means Prime Minister’s claim that there are he listed some of their atrocities: the hilary Benn took the by which we will make our decision 70,000 moderate Syrian opposition opposite view to Labour gay men thrown off the fifth storey tonight – in contempt… My view is fighters who could act as a ground about any intervention which the leader Jeremy Corbyn of a building in Syria, the mass graves that we must now confront this evil. over intervention in Syria force against ISIL while the UK gave Prime Minister was careful to answer in Sinjar said to contain the bodies It is now time for us to do our bit in air support. Under questioning in detail. Its Chair, the Conservative of older Yazidi women murdered Syria. That is why I ask my colleagues from the SNP’s Westminster Leader, Crispin Blunt MP, said Britain’s military by Daesh because they were judged to vote for the motion tonight.’ Angus Robertson, he said he was not effort in Iraq had helped stabilise too old to be sold for sex, the killing arguing that all of those 70,000 were the country in the face of a rapidly of 30 British tourists in Tunisia, While Jeremy Corbyn folded his arms ideal partners but if action was not advancing threat from ISIL and he now 224 Russian holidaymakers on a and looked away, Mr Benn sat down taken now, those forces would soon supported extending that effort to plane, 178 people in suicide bombings to rapturous cheers and even applause from both sides of the house. A few be reduced. across the border into Syria. in Beirut, Ankara and Suruç and of 130 people in Paris ‘including those minutes later the Government motion Another issue was the position of The ensuing debate produced a young people in the Bataclan, whom was carried with 66 supporters from Labour MPs. In 2013, the Opposition series of passionate speeches – the Daesh, in trying to justify its bloody the Labour benches outweighing the Leader at the time, Ed Miliband, Liberal Democrat Leader, Tim Farron, slaughter, called apostates engaged seven Conservative opponents. had not been prepared to back the gave an emotional description of his Government. By 2015, a combination experiences visiting refugees who had of horror at the brutality of ISIL and made the risky journey to Greece. at the Paris attacks meant there were ‘A seven-year-old lad was lifted from many who supported the use of armed MPs pay tribute to their murdered a dinghy on the beach at Lesbos. My force and would defy any attempt to Arabic interpreter said to me, ‘That lad colleague, Jo Cox make them vote against it. Crucially, has just said to his Dad, “Daddy are ISIL their number included the Shadow here? Daddy are ISIL here?”’ Tributes to Jo Cox MP On Thursday 20 June, a week before Foreign Secretary, hilary Benn. Tim Farron, Liberal the EU Referendum, campaigning was Democrat Leader Jeremy Corbyn was opposed to in full swing – the usual cycle of attack, extending the bombing but, under rebuttal and counter attack was being huge pressure, had allowed his MPs played out. Suddenly the political world a free vote. ‘It is impossible to avoid shuddered to a halt as news emerged the conclusion that the Prime Minister of the brutal murder of the Labour MP, understands that public opinion is Jo Cox, outside a constituency surgery moving increasingly against what I in her Yorkshire seat. believe to be an ill thought out rush to The house of Commons had been in war. he wants to hold this vote before recess for the Referendum, and was opinion against it grows even further.’ recalled to pay tribute the following Another key force in the debate was Monday. The chamber was packed but the Commons Foreign Affairs Select the seat normally occupied by Jo Cox Committee which had earlier published was left empty, except for two roses – a report raising a series of questions Labour’s red rose and the white rose

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Winding up the debate for Labour was in prostitution and vice. If it had hilary Benn who took the opposite happened here they could have been view to Jeremy Corbyn. ‘The carnage our children. in Paris brought home to us the clear and present danger that we face from ‘We are faced by fascists – not just Daesh. It could just as easily have their calculated brutality but their belief been London, Glasgow, Leeds or that they are superior to every single Birmingham and it could still be.’ he one of us in this Chamber tonight and said the UK could not leave its defence all the people we represent. They hold to others and asked what message us in contempt. They hold our values inaction would send to Britain’s allies – in contempt. They hold our belief in France, in particular. tolerance and decency in contempt. They hold our democracy – the means he listed some of their atrocities: the by which we will make our decision gay men thrown off the fifth storey tonight – in contempt… My view is of a building in Syria, the mass graves that we must now confront this evil. in Sinjar said to contain the bodies It is now time for us to do our bit in of older Yazidi women murdered Syria. That is why I ask my colleagues by Daesh because they were judged to vote for the motion tonight.’ too old to be sold for sex, the killing of 30 British tourists in Tunisia, While Jeremy Corbyn folded his arms 224 Russian holidaymakers on a and looked away, Mr Benn sat down plane, 178 people in suicide bombings to rapturous cheers and even applause in Beirut, Ankara and Suruç and of from both sides of the house. A few 130 people in Paris ‘including those minutes later the Government motion young people in the Bataclan, whom was carried with 66 supporters from Daesh, in trying to justify its bloody the Labour benches outweighing the slaughter, called apostates engaged seven Conservative opponents.

MPs pay tribute to their murdered colleague, Jo Cox

Tributes to Jo Cox MP On Thursday 20 June, a week before the EU Referendum, campaigning was in full swing – the usual cycle of attack, rebuttal and counter attack was being played out. Suddenly the political world shuddered to a halt as news emerged of the brutal murder of the Labour MP, Jo Cox, outside a constituency surgery in her Yorkshire seat.

The house of Commons had been in recess for the Referendum, and was recalled to pay tribute the following Monday. The chamber was packed but the seat normally occupied by Jo Cox was left empty, except for two roses – Labour’s red rose and the white rose

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of Yorkshire. In the gallery, Mrs Cox’s husband Brendan sat with their two young children and members of The Lords reject the Government’s their family. Tax Credit changes MPs wore white roses and several women Labour members were dressed The Government lost more than to throw the Chancellor’s financial in the suffragette colours of purple 50 votes in the house of Lords in the strategy into chaos, because it removed and green. Some MPs wept quietly first year of the 2015 Parliament – but £4.4bn of savings. as the Speaker, John Bercow, opened by far the most significant, both in George Osborne immediately warned proceedings ‘We meet today in heart- terms of the money involved and of that the vote raised constitutional breaking sadness but also in heartfelt the constitutional aftershocks, was issues and shortly afterwards the solidarity… all of us who came to the Peers’ rejection of controversial Government commissioned Lord know Jo during her all too short service plans to cut tax credits – the benefits Strathclyde, a former Leader of the in this house [she had been elected used to top-up the incomes of low- house of Lords, to review the powers in 2015] became swiftly aware of her paid workers. outstanding qualities, she was caring, of the Upper house. eloquent, principled and wise. Peers are not supposed to meddle in The debate began with the Leader of financial matters but this measure was the house, Lady Stowell, defending ‘Jo was murdered in the course of her not part of a finance bill. Instead it was duties, serving constituents in need… the plans. She said spending on tax put forward in an order, or statutory An attack such as this strikes not only credits had risen from £4bn to £30bn Jo Cox’s maiden speech instrument, issued under existing at an individual but at our freedom.’ and the bill was no longer sustainable, to Parliament: ‘We are legislation, which meant it was both Jo Cox had been a leading figure far more united than warning that interference in a key un-amendable and subject to a one- budget measure would overstep the The Labour leader, Jeremy Corbyn, in several all-party groups – the the things that divide us’ off vote. conventions which prevent the Lords agreed the murder was an attack on Conservative former International democracy and he quoted from Jo from overriding the tax and spending Development Secretary, Andrew Faced with claims that the order would Cox’s maiden speech when she told decisions of the elected Commons. Mitchell, served with her, as co-chair of cost the poorest families thousands the Commons ‘We are far more united the Friends of Syria, making common of pounds a year, the Lords passed a ‘In our manifesto, my Party made it and have far more in common with cause, as he put it, ‘with a crusty Labour motion calling on ministers to clear that reducing the deficit would each other than things that divide us’. old Tory’. postpone the cuts and provide extra involve difficult decisions, including David Cameron said the house could support for those affected, for a three- finding savings of £12bn from the The Labour MP, Stephen Kinnock, best honour her memory ‘by proving year transitional period. The result was welfare budget. The regulations that had shared an office with Jo Cox. that the democracy and freedoms that he spoke first of the unspeakable The interior of the Jo stood for are indeed unbreakable, house of Lords personal suffering her murder had by continuing to stand up for our brought on her family. he said Jo constituents and by uniting against Cox would have been outraged by the hatred that killed her, today and a poster unveiled on the morning of forever more’. her death by the UKIP leader, Nigel Tributes were paid from all sides, in a Farage, showing a queue of migrants short sitting, which was followed by ‘A poster on the streets of Britain that a memorial service at St Margaret’s, demonised hundreds of desperate the parish church of Parliament. The refugees… She would have responded Labour MP, Rachel Reeves urged with outrage and with a robust colleagues ‘to carry on Jo’s work and rejection of the calculated narrative guard against hatred, intolerance of cynicism, division and despair – and injustice and to serve others with because Jo understood that rhetoric dignity and love…. Batley and Spen will has its consequences. When insecurity, go on to elect a new MP, but no-one fear and anger are used to light a can replace a mother’. fuse, an explosion is inevitable’.

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The Lords reject the Government’s Tax Credit changes

The Government lost more than to throw the Chancellor’s financial 50 votes in the house of Lords in the strategy into chaos, because it removed first year of the 2015 Parliament – but £4.4bn of savings. by far the most significant, both in George Osborne immediately warned terms of the money involved and of that the vote raised constitutional the constitutional aftershocks, was issues and shortly afterwards the the Peers’ rejection of controversial Government commissioned Lord plans to cut tax credits – the benefits Strathclyde, a former Leader of the used to top-up the incomes of low- house of Lords, to review the powers paid workers. of the Upper house. Peers are not supposed to meddle in The debate began with the Leader of financial matters but this measure was the house, Lady Stowell, defending not part of a finance bill. Instead it was the plans. She said spending on tax put forward in an order, or statutory credits had risen from £4bn to £30bn instrument, issued under existing and the bill was no longer sustainable, legislation, which meant it was both warning that interference in a key un-amendable and subject to a one- budget measure would overstep the off vote. conventions which prevent the Lords from overriding the tax and spending Faced with claims that the order would decisions of the elected Commons. cost the poorest families thousands of pounds a year, the Lords passed a ‘In our manifesto, my Party made it Labour motion calling on ministers to clear that reducing the deficit would postpone the cuts and provide extra involve difficult decisions, including support for those affected, for a three- finding savings of £12bn from the year transitional period. The result was welfare budget. The regulations that The interior of the house of Lords

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we debate today deliver no less than £4.4bn of those savings next year alone,’ she explained. The hillsborough inquest verdict

That argument was challenged by Lord liability to anyone while the ongoing Campbell-Savours, a Labour peer and investigations are still pending’. former MP. ‘When the Prime Minister said at the last general election that She praised the families and survivors, an incoming Conservative government who had never accepted official would not cut tax credits – child tax accounts which laid the blame on credits – was he telling the truth or Liverpool fans. ‘They have faced was he deliberately misleading the hostility, opposition and obfuscation British people?’ Lady Stowell retorted and the authorities, which should have that the Conservatives had been very been trusted, have laid blame and tried clear in their manifesto that they would Baroness Stowell to protect themselves instead of acting aim to make welfare savings of £12bn argued that tax credits in the public interest.’ As some MPs and that working-age benefits would wanted to delay the changes. ‘The ‘will remain an important wiped away tears, she added ‘No-one be targeted. lowest income families, stand to lose part of the welfare system’ should have to suffer the loss of their more than £20 a week. For one of us loved ones through such appalling There were four amendments in The 96 remembered at this can mean a meal in a restaurant. circumstances and no-one should have front of Peers: the Liberal Democrat hillsborough For a poor working family it can mean When an inquest jury ruled that the to fight year after year, decade after Lady Manzoor had put down a a pair of shoes for a child who comes 96 Liverpool football fans who died decade, in search of the truth’. ‘fatal motion’ which would stop home from school crying because their at hillsborough on April 15th 1989 the changes; the second and third toes are hurting in shoes that are too had been unlawfully killed and that Labour’s Shadow home Secretary, introduced delays. The fourth – from small, or money to feed the meter to mistakes by the police and ambulance Andy Burnham, said the inquest jury the Bishop of Portsmouth – simply keep the family warm.’ services had caused or contributed had delivered a ‘simple, clear, powerful expressed regret at the policy. All but to their deaths, the home Secretary, and emphatic’ verdict. ‘But it begged the last, Lady Stowell warned, would The Labour former Work and Pensions Theresa May, came to the Commons to the question: how could something so challenge the primacy of the Commons Minister, Lady hollis, proposed the third announce the Government’s response obvious have taken so long? There are on financial matters. amendment which would postpone the in an emotionally-charged statement to three reasons: first, a police force that cuts for three years while transitional has consistently put protecting itself Lady Manzoor said 4.9 million children the house. protection was brought in. She dismissed over and above protecting people would be affected by the cuts to tax talk of constitutional crisis. ‘We can The new inquest had been ordered harmed by hillsborough; secondly, credits. ‘We have a duty in this house be supportive of the Government following the devastating findings of collusion between that force and a to consider our constitutional role but and give them what they did not ask the hillsborough Independent Panel, complicit print media; and thirdly, a we also have a duty to consider those for – financial privilege – or we can be chaired by Bishop James Jones, which flawed judicial system that gives the affected by the decisions we make and supportive instead of those three million had re-examined the evidence. Its upper hand to those in authority, over the votes we cast.’ families facing letters at Christmas telling revelations that witness statements and above ordinary people.’ She went on to say that it was wrong them that on average they will lose up by police officers had been altered he said a similar inquiry was now to enact such a major change via to around £1,300 a year.’ were so significant that it led to ‘a statutory instrument, a tool designed the new inquest and to two major needed to clear up what had happened The Conservative former Chancellor, for minor changes to processes criminal investigations. With 296 days at Orgreave during the 1980s Miners’ Lord Lawson, supported the changes and administration, being used to of hearings it had been the longest Strike and his final words, about the and insisted peers had no right to reject implement a substantial change inquest in British legal history. families of the 96, produced applause them but he wanted reform of the in policy that will affect millions of from MPs. ‘They have kept their whole tax credits system because too Lord Lawson, former people’s livelihoods. That is not my Theresa May said that the findings dignity in the face of terrible adversity. much money went to well-off families. Chancellor of the ‘Overturns in the starkest way possible They could not have shown a more decision but I hope that we will do Exchequer ‘It is perfectly possible to tweak it to everything we can to stop it’. the verdict of accidental death returned profound love for those they lost on take more from the upper end of the at the original inquests. however, that day. They truly represent the best The second amendment was from tax credit scale and less from the lower the jury’s findings do not, of course, of what our country is all about. Now the crossbencher, Lady Meacher, who end,’ he said. amount to a finding of criminal liability it must reflect on how it came to let and no one should impute criminal them down for so long.’

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The hillsborough inquest verdict

liability to anyone while the ongoing investigations are still pending’.

She praised the families and survivors, who had never accepted official accounts which laid the blame on Liverpool fans. ‘They have faced hostility, opposition and obfuscation and the authorities, which should have been trusted, have laid blame and tried to protect themselves instead of acting in the public interest.’ As some MPs wiped away tears, she added ‘No-one should have to suffer the loss of their loved ones through such appalling The 96 remembered at hillsborough circumstances and no-one should have When an inquest jury ruled that the to fight year after year, decade after 96 Liverpool football fans who died decade, in search of the truth’. at hillsborough on April 15th 1989 had been unlawfully killed and that Labour’s Shadow home Secretary, mistakes by the police and ambulance Andy Burnham, said the inquest jury services had caused or contributed had delivered a ‘simple, clear, powerful to their deaths, the home Secretary, and emphatic’ verdict. ‘But it begged Theresa May, came to the Commons to the question: how could something so announce the Government’s response obvious have taken so long? There are in an emotionally-charged statement to three reasons: first, a police force that the house. has consistently put protecting itself over and above protecting people The new inquest had been ordered harmed by hillsborough; secondly, following the devastating findings of collusion between that force and a the hillsborough Independent Panel, complicit print media; and thirdly, a chaired by Bishop James Jones, which flawed judicial system that gives the had re-examined the evidence. Its upper hand to those in authority, over revelations that witness statements and above ordinary people.’ by police officers had been altered were so significant that it led to he said a similar inquiry was now the new inquest and to two major needed to clear up what had happened criminal investigations. With 296 days at Orgreave during the 1980s Miners’ of hearings it had been the longest Strike and his final words, about the inquest in British legal history. families of the 96, produced applause from MPs. ‘They have kept their Theresa May said that the findings dignity in the face of terrible adversity. ‘Overturns in the starkest way possible They could not have shown a more the verdict of accidental death returned profound love for those they lost on at the original inquests. however, that day. They truly represent the best the jury’s findings do not, of course, of what our country is all about. Now amount to a finding of criminal liability it must reflect on how it came to let and no one should impute criminal them down for so long.’

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The Conservative, Bob Neill, who Those first exchanges were courteous chaired the Commons Justice Select and careful as the two circled one Committee asked the home Secretary another. It was left to the leaders of two to look at creating a mechanism to of the smaller parties in the Commons ensure ‘proper equality of arms,’ to insert a couple of barbs. The first between the families of disaster victims came from the SNP’s Westminster and the authorities in dealing with Leader, Angus Robertson, who said he inquests and legal proceedings. was looking forward to working with the new Labour Leader to oppose Tory The former Lord Mayor of Liverpool, austerity and fight against renewal of Steve Rotherham, – one of several MPs the Trident nuclear missile submarines at hillsborough that day – said the – a highly divisive issue among Labour Liverpool fans had always known they MPs, most of whom do not share their were not to blame. ‘It took political leader’s unilateralist views. intervention to force the judicial Jeremy Corbyn took a different approach process of this country to take 27 years at his first PMQs, but above all they wanted their voice to Then, the Leader of the DUP at to recognise what we knew from day tackling former PM be heard in Parliament.’ Westminster, Nigel Dodds, raised one – that hillsborough was not an David Cameron Mr Corbyn’s key appointment to accident… that drunken and ticketless with crowdsourced The result was something quite different, questions Labour’s front bench team, his veteran dominated by bread-and-butter issues fans did not turn up late, hell-bent on Theresa May, left-wing ally, John McDonnell, as getting in and that it was not caused speaking as home but with little of the familiar professional Shadow Chancellor. Mr Dodds pointed by a drunken “tanked-up mob”.’ Secretary political fencing – at least at first. The to the plaques by the entrance to the their loved ones in body bags because opening question was from a woman Chamber in memory of Airey Neave, The Liberal Democrat, Greg they were the property of the coroner. called Marie who wanted to know what Robert Bradford, Ian Gow and Sir Mulholland, said the families of victims Worst of all, the initial coroner forced the Government intend to do about the Anthony Berry – MPs murdered by had been treated appallingly in the alcohol testing on all these victims – ‘chronic lack of affordable housing and terrorists. he added ‘The Opposition aftermath of the disaster. ‘We saw including children such as 10-year-old the extortionate rents charged by some Leader has appointed a Shadow police officers sitting eating chicken Jon-Paul Gilhooley – of this unlawful private sector landlords’. Chancellor who believes that terrorists and chips in the gymnasium as the disaster. That was a disgrace, and we should be honoured for their bravery. bodies were lying there, while families want to know that it will never happen David Cameron observed parliamentary Will the Prime Minister join all of were told that they could not hug to a single victim again.’ protocol and congratulated Mr Corbyn on his resounding leadership election us, from all parts of this house, in victory and he welcomed the idea denouncing that sentiment and standing of a new style at PMQs. he agreed with us on behalf of the innocent victims An unexpected Leader of the Opposition more affordable housing was needed and for the bravery of our armed forces but added that the record of the who stood against the terrorists? When the Speaker called on Jeremy how to handle it for years before that. Governments he had led was better than That produced loud “hear, hears’ Corbyn, as Leader of the Opposition, Things were about to change, Labour’s that of the previous Labour Government. and the Prime Minister replied that at Prime Minister’s Question Time new leader wanted a different kind of Mr Corbyn followed up with questions (PMQ), it was the first time in 30 years PMQs, led by the concerns of the public Mr Dodds had spoken for the vast from Steven, on social rents and from in the Commons that the veteran – and he received 40,000 replies when majority of people in Britain. ‘My view Paul and Claire, on cuts to tax credits left-winger had spoken at the Dispatch he asked people to email him with their is simple, the terrorism we faced was – a subject raised in a thousand of his Box. Unlike the three rival candidates questions for David Cameron. wrong… The death and the killing emails – that he warned would cost he had defeated so conclusively in was wrong. It was never justified and families up to £1,300 per year and Labour’s leadership election, he had ‘I have taken part in many events around people who seek to justify it should be was ‘absolutely shameful,’ he said. never been a minister or shadow the country and had conversations with ashamed of themselves.’ The strategy was to continue; by his minister still less sat in Cabinet or many people about what they thought hundredth question, in March 2016, That flash of steel was a harbinger of the Shadow Cabinet. of this place, our Parliament, our he had asked about health issues in Prime Minister’s increasingly dismissive democracy and our conduct within this Nigel Dodds, Deputy he was facing a Conservative Leader place,’ he explained. ‘Many told me Leader of the 25 of them, welfare in 24, housing in treatment of the Labour Leader in later who had been one of the main players that they thought Prime Minister’s Democratic Unionist 16 and education in five; it was a far PMQs – culminating in his advice to Party (DUP) in PMQs for a decade and who had QuestionTime was too theatrical… and less Westminster-centric approach. Mr Corbyn to ‘put on a decent suit’. coached previous Tory Leaders on that they wanted things done differently

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Those first exchanges were courteous and careful as the two circled one another. It was left to the leaders of two of the smaller parties in the Commons to insert a couple of barbs. The first came from the SNP’s Westminster Leader, Angus Robertson, who said he was looking forward to working with the new Labour Leader to oppose Tory austerity and fight against renewal of the Trident nuclear missile submarines – a highly divisive issue among Labour MPs, most of whom do not share their leader’s unilateralist views. Jeremy Corbyn took a different approach at his first PMQs, but above all they wanted their voice to Then, the Leader of the DUP at tackling former PM be heard in Parliament.’ Westminster, Nigel Dodds, raised David Cameron Mr Corbyn’s key appointment to with crowdsourced The result was something quite different, questions Labour’s front bench team, his veteran dominated by bread-and-butter issues left-wing ally, John McDonnell, as but with little of the familiar professional Shadow Chancellor. Mr Dodds pointed political fencing – at least at first. The to the plaques by the entrance to the opening question was from a woman Chamber in memory of Airey Neave, called Marie who wanted to know what Robert Bradford, Ian Gow and Sir the Government intend to do about the Anthony Berry – MPs murdered by ‘chronic lack of affordable housing and terrorists. he added ‘The Opposition the extortionate rents charged by some Leader has appointed a Shadow private sector landlords’. Chancellor who believes that terrorists David Cameron observed parliamentary should be honoured for their bravery. protocol and congratulated Mr Corbyn Will the Prime Minister join all of on his resounding leadership election us, from all parts of this house, in victory and he welcomed the idea denouncing that sentiment and standing of a new style at PMQs. he agreed with us on behalf of the innocent victims more affordable housing was needed and for the bravery of our armed forces but added that the record of the who stood against the terrorists? Governments he had led was better than That produced loud “hear, hears’ that of the previous Labour Government. and the Prime Minister replied that Mr Corbyn followed up with questions Mr Dodds had spoken for the vast from Steven, on social rents and from majority of people in Britain. ‘My view Paul and Claire, on cuts to tax credits is simple, the terrorism we faced was – a subject raised in a thousand of his wrong… The death and the killing emails – that he warned would cost was wrong. It was never justified and families up to £1,300 per year and people who seek to justify it should be was ‘absolutely shameful,’ he said. ashamed of themselves.’ The strategy was to continue; by his hundredth question, in March 2016, That flash of steel was a harbinger of the he had asked about health issues in Prime Minister’s increasingly dismissive Nigel Dodds, Deputy Leader of the 25 of them, welfare in 24, housing in treatment of the Labour Leader in later Democratic Unionist 16 and education in five; it was a far PMQs – culminating in his advice to Party (DUP) less Westminster-centric approach. Mr Corbyn to ‘put on a decent suit’.

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his point about the real reason for the invasion was picked up by the senior Responding to the Chilcot Report Conservative, David Davis. ‘The aim was regime change, not WMDs. That on the Iraq War fact, and the fact that, as Sir John Chilcot says, Blair’s commitment made It had been a long time coming, and the country to war should always be it very difficult for the UK to withdraw the Parliamentarians in both Lords a last resort and should only be done support for military action, amount to and Commons had complained about if all credible alternatives have been a deception and a misleading of this the time taken by Sir John Chilcot to exhausted’. he then added that the house of Commons. It is not the only produce his report on the decision British people should not, in future, one. Sir John has been very careful to go to war in Iraq. When it did recoil from any military intervention. about avoiding accusing the former arrive, seven years after he started ‘There are unquestionably times when Prime Minister of lying to the house work, his two million word verdict it is right to intervene, as this country but a lot of the evidence suggests that provoked cross-party soul-searching did successfully in Sierra Leone and he did. What action can this house and recrimination. Kosovo… there have been times in UK troops in action in take to deal with that?’ the recent past when we should have Iraq Sir John concluded that the UK went intervened but did not, such as in to war before the peace process failing to prevent the genocides in Tony Blair, Prime was exhausted, that the intelligence Rwanda and Srebrenica.’ Minister during the on which the decision was based invasion of Iraq was flawed and that the planning The Labour Leader, Jeremy Corbyn, David Cameron and the Panama Papers for the aftermath was inadequate. who voted against military action The Prime Minister, David Cameron, in 2003, was heckled by some of The publication of the Panama out of his home and the interest on responded with a Commons statement his MPs when he condemned the Papers, a massive cache of documents his savings. The Chancellor, George – he began by addressing the families invasion. ‘Frankly, it was an act of detailing the tax-avoidance activities of Osborne, followed suit and the Labour of the 179 British servicemen and military aggression launched on a false thousands of people across the world, Leader, Jeremy Corbyn, published his women and 23 British civilians who pretext, as the inquiry accepts, and has became a personal crisis for the Prime tax return. The Prime Minister made died in the conflict. ‘In their grief long been regarded as illegal by the Minister, David Cameron, when his late a statement to the Commons, as and anger, I hope they can draw at overwhelming weight of international father’s name cropped up. soon as the house returned from its least some solace from the depth and legal opinion. It led to the deaths of Easter break. The leak was from the world’s fourth rigour of this report and, above all, hundreds of thousands of people biggest offshore law firm, Mossack he was not suggesting all MPs would some comfort from knowing that we and the displacement of millions Fonseca, and documented the activities have to publish the same information, will never forget the incredible service of refugees… By any measure, the of more than 200,000 companies arguing that since the Prime Minister, and sacrifice of their sons, daughters, invasion and occupation of Iraq have holding property and bank accounts the Chancellor and their Labour husbands and wives.’ been, for many, a catastrophe.’ in offshore tax havens like the British opposite numbers were, or wanted he turned to the keystone of the In what many took to be a veiled Virgin Islands. No-one suggested that to be, responsible for the nation’s argument for war in 2003. ‘Central to reference to Tony Blair he added. the Prime Minister’s father had done finances, they were a special case. the Government’s case was the issue of ‘We now know that the house was anything illegal; Ian Cameron had run he accepted criticism of the way he’d weapons of mass destruction. Sir John misled in the run-up to the war and the an offshore fund through Mossack handled questions about his finances finds that there was an “ingrained house must now decide how to deal Fonseca that avoided British taxes for but told MPs he’d been angry about belief” genuinely held in both the UK with it 13 years later.’ thirty years. and US Governments that Saddam the way his father’s memory was hussein possessed chemical and The Chilcot inquiry published more Faced with rising anger about the being traduced ‘I want to put the biological capabilities.’ The evidence than 200 memos from Tony Blair to extent to which rich people could record straight. This investment fund for that belief, he found, was not President George Bush. The Leader avoid taxes, David Cameron released was set up overseas in the first place properly examined. of the SNP at Westminster, Angus a summary of his tax returns for the because it was going to be trading Robertson, pointed to one which he previous six years, plus details about predominantly in dollar securities Mr Cameron voted for military action thought was particularly telling. ‘On money inherited and given to him so, like very many other commercial as a Conservative backbencher, in 28 July 2002, Tony Blair wrote to by his family, his salary, the support investment funds, it made sense to be 2003. he said lessons needed to be President Bush saying I will be with received as Leader of the Conservative set up inside one of the main centres learned – and the first was that ‘taking you, whatever.’ Party, the income from the renting of dollar trading.’

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his point about the real reason for the invasion was picked up by the senior Conservative, David Davis. ‘The aim was regime change, not WMDs. That fact, and the fact that, as Sir John Chilcot says, Blair’s commitment made it very difficult for the UK to withdraw support for military action, amount to a deception and a misleading of this house of Commons. It is not the only one. Sir John has been very careful about avoiding accusing the former Prime Minister of lying to the house but a lot of the evidence suggests that he did. What action can this house UK troops in action in take to deal with that?’ Iraq

David Cameron and the Panama Papers

The publication of the Panama out of his home and the interest on Papers, a massive cache of documents his savings. The Chancellor, George detailing the tax-avoidance activities of Osborne, followed suit and the Labour thousands of people across the world, Leader, Jeremy Corbyn, published his became a personal crisis for the Prime tax return. The Prime Minister made Minister, David Cameron, when his late a statement to the Commons, as father’s name cropped up. soon as the house returned from its Easter break. The leak was from the world’s fourth biggest offshore law firm, Mossack he was not suggesting all MPs would Fonseca, and documented the activities have to publish the same information, of more than 200,000 companies arguing that since the Prime Minister, holding property and bank accounts the Chancellor and their Labour in offshore tax havens like the British opposite numbers were, or wanted Virgin Islands. No-one suggested that to be, responsible for the nation’s the Prime Minister’s father had done finances, they were a special case. anything illegal; Ian Cameron had run an offshore fund through Mossack he accepted criticism of the way he’d Fonseca that avoided British taxes for handled questions about his finances thirty years. but told MPs he’d been angry about the way his father’s memory was Faced with rising anger about the being traduced ‘I want to put the extent to which rich people could record straight. This investment fund avoid taxes, David Cameron released was set up overseas in the first place a summary of his tax returns for the because it was going to be trading previous six years, plus details about predominantly in dollar securities money inherited and given to him so, like very many other commercial by his family, his salary, the support investment funds, it made sense to be received as Leader of the Conservative set up inside one of the main centres Party, the income from the renting of dollar trading.’

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he added that pension funds, along with other institutions, invested in offshore funds and that, from now on, most British overseas territories which are tax havens will share information with the UK authorities.

Jeremy Corbyn said the Panama Papers had ‘driven home what many people have increasingly felt: that there is now one rule for the super-rich and another for the rest. I am honestly not sure that the Prime Minister fully appreciates the anger that is out there over this injustice... with families lining Labour MP Dennis up at food banks to feed their children, Skinner was thrown disabled people losing their benefits, She wanted assurance that hMRC out of Parliament for elderly care cut and slashed and living would have access to the register labelling the Prime standards going down. Much of that Minister over his of companies operating in British personal finances. could have been avoided if our country Crown dependencies. had not been ripped off by the super- rich refusing to pay their taxes’. A Conservative former minister, Sir Alan Duncan, accused the Prime Minister’s The leader of the SNP at Westminster, critics of hating ‘anyone who has even Angus Robertson, also complained that a hint of wealth in their life… we risk the rules for normal taxpayers were seeing a house of Commons that is different from those ‘for a small ultra- stuffed full of low achievers who hate rich elite’ but he focused on the UK’s enterprise and hate people who look ‘particular responsibility’ for dealing after their own family and who know with tax avoidance in its overseas absolutely nothing about the outside territories and dependencies. world’. The Prime Minister may not have Andrew Tyrie, the influential found that entirely helpful, saying ‘I do Conservative Chair of the Treasury not want us to discourage people who Select Committee said there was ‘no have had a successful career in business point in moralising’ about legal tax or anything else from coming into this avoidance – what was needed was house and making a contribution’. action to close loopholes in the law Labour veteran, Dennis Skinner, said and tax simplification to ensure there the Prime Minister had failed to answer were are fewer of them. questions about a taxpayer-subsidised Meg hillier, the Labour ex-minister who mortgage and to Conservative fury he chairs the powerful Public Accounts added ‘Maybe Dodgy Dave will answer Committee (PAC), said the publication it now’. The Speaker immediately of the Panama Papers ‘shone sunlight stepped in to ask him to withdraw on areas where some people did not the word ‘Dodgy’ but Mr Skinner was want it to go and she called for more unrepentant ‘This man has done more corporate tax transparency. That theme to divide this nation than anybody was picked up by her predecessor else and he has looked after his own at the PAC, Margaret hodge, who pocket. I still refer to him as Dodgy had led a high profile inquiry into Dave’. Moments later he was ordered tax avoidance by multi-nationals. from the Chamber.

Westminster Publications is grateful to James Pozzi and Mark D’Arcy for their contributions to this publication.

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