(Manchester Central) (Lab/Co-op)
(Urgent Question): To ask the Secretary of State for Business,
Energy and Industrial Strategy, if he will make a statement on
the future of UK steel production following Greensill Capital’s
recent insolvency.
The Secretary of State for Business, Energy and Industrial
Strategy ()
As many right hon. and hon. Members will be aware, it would not
necessarily be appropriate for me to comment on commercially
sensitive matters at this stage. However, I do appreciate that
many Members of this House have expressed concerns to me,
individually and in groups, about their constituents working in
the steel industry and the families and workers that the industry
supports.
Following Greensill Capital entering into administration on 8
March, I and the Department continue to follow developments very
closely. As many hon. Members know, I have directly spoken to
local management on a number of occasions, and I have also spoken
to representatives of the trade unions—as recently, in fact, as
yesterday evening. On all those occasions, I have seen a strong
and united commitment across management, across the unions and
certainly among officials in my Department. I have seen a united
commitment to the workforce and our steel industry.
The Secretary of State has been dragged here to finally say
something, because earlier in the week he had nothing to say. I
do not expect him to disclose commercial information, but it is
in the commercial interests of UK plc and the customers,
suppliers and workers in Rotherham, Stocksbridge, Hartlepool,
Scunthorpe, Newport and elsewhere to know whether the Government
will step in if Liberty fails to refinance.
We have called for a plan B. It is in our national interests for
all options to be on the table. Those options should not be
blinkered by ideology, because domestic steelmaking is a
cornerstone of our national security and economic prosperity.
What is more, Liberty Steel businesses are viable and have made
the switch to electric arc furnaces, at great cost. Can the
Business Secretary confirm that he is considering all options,
from immediate support—if due diligence is met—to public
ownership, should the business fall into administration? Does he
agree that nationalisation could be the best value-for-money
option, especially when we look at British Steel, which the
Government spent £500 million on and then sold off on the cheap
to the Chinese?
Let us be honest: UK steel and steel communities have been
betrayed by this Government, because they have no vision nor any
plan. There was not a single mention of steel in the Secretary of
State’s plan for growth. There has been very little sector
support during covid. The clean steel fund keeps being kicked up
the road. There has been no action, despite promises, on the
crippling issues of high energy prices and business rates. There
is no buy-British guarantee in Government contracts. He just
scrapped the industrial strategy. It is no wonder that the
investment climate in UK steel is so uncertain. Will he finally
take this opportunity to set out his vision and plan the future
of UK steel?
I appreciate that questions are getting very long in this House.
Mr Speaker
Order. I think I am the judge of that. The Secretary of State may
be new to the Dispatch Box in his new position, but the
Opposition are entitled to two minutes, and the hon. Member for
Manchester Central () was within that time. Please, let me make those
judgments.
I am very happy to defer to you, Mr Speaker; I have huge regard
for your position, as I have mentioned many times. With respect
to the remarks of the hon. Member for Manchester Central
() about my being dragged back to the Dispatch Box, that
is not the case at all. As she knows, I was the Secretary of
State who reconstituted the Steel Council on 5 March. That was a
top priority for me, because I feel that we have a future for UK
steel: the Government’s infrastructure plans will need around 5
million tonnes of steel over the next decade. It is absolutely a
commitment of mine, as Secretary of State, to ensure that we have
a viable steel industry in this country.
(Bridgend) (Con) [V]
In 1998, 234 jobs were lost at a steel mill in Darlington. In
2001, the Llanwern steelworks closed, with 1,300 jobs gone. In
2003, 95 jobs were lost at the Shotton site in Deeside, and 116
at the Avesta site in Panteg. In 2004, we lost 156 jobs in
Scunthorpe and a further 80 in Lincolnshire. In 2006, two
closures led to losses of 250 jobs and 40 jobs. Of course, in
February 2010, Teesside Cast Products was mothballed, putting
2,400 jobs at risk. Does my right hon. Friend agree that, with
the Opposition’s abysmal record on steel, the Government are
right to discard their failed vision and continue with our
proactive approach to helping the sector?
My hon. Friend is absolutely right. What devastated the steel
industry was, as we know, 13 years of Labour Government. We have
made it very clear, with our industrial decarbonisation strategy,
published only last week, that we remain committed to a UK steel
industry and a decarbonised future, and also to green jobs,
particularly in in our levelling-up agenda.
Mr Speaker
I call the SNP spokesperson, who has one minute.
(Aberdeen South) (SNP)
I commend the shadow Minister for securing this urgent question
on what is an incredibly important topic, not least for the
workforce, who I assume are listening very closely to the
Secretary of State. Of course, this issue is important not only
to England and Wales but to the people of Scotland. The Dalzell
and Clydebridge steelworks are very much at the forefront of my
thoughts, and so too are GFG’s wider holdings, such as the
Lochaber smelter. I am very conscious of the fact that the
Cabinet Secretary for Rural Economy and Tourism made a proactive
and informed statement to the Scottish Parliament yesterday. I
would welcome assurance from the Secretary of State that he will
engage in open and transparent dialogue with my colleagues north
of the border moving forward. Finally, I would welcome a little
bit of clarity from the Secretary of State on quite how far his
Government are willing to go in respect of supporting what are,
as I understand it, perfectly viable businesses.
The hon. Gentleman makes a very fair point, and he will be
pleased to learn that I have spoken to representatives of the
Scottish Government. We have mutual and very strong interests in
the ongoing future of the businesses under the GFG umbrella, and
he will know that my door is always open to conversations with
him and his counterparts in the Scottish Government to see a way
through. As far as specifics of Government intervention, I have
said repeatedly that it is not appropriate now, given where we
are, for me to disclose anything of that kind, but of course this
is an ongoing situation that we are monitoring extremely closely.
(Redcar) (Con)
I thank the Secretary of State for his statement, for his recent
visit to Teesside and for all he is doing to support the industry
at this difficult time. Under the last Labour Government, steel
production in this country fell by almost 50%, so we should take
no lectures from Labour on this. In Redcar, we lost our blast
furnace in 2015 with the closure of SSI, but the only reason we
have any steel manufacturing left at all is that the Government
stepped in and saved British Steel at Lackenby and Skinningrove.
Will the Secretary of State confirm that he will address key
industry concerns such as energy pricing, that he will champion
the UK steel charter and that it is our policy to increase
domestic steel production, and will he work with me and on a new electric arc furnace for Redcar?
I commend my hon. Friend, who, only in his brief time as a Member
of Parliament, has made a real impact on these discussions and in
representing Redcar. I remember a Redcar that was represented by
a Liberal Democrat precisely because of the closure of the SSI
plant, and I am delighted to see that it is now represented by an
excellent Conservative MP.
(Richmond Park) (LD) [V]
The circumstances surrounding the collapse of Greensill Capital
throw up a lot of questions about how decisions are being made
regarding the use of public money to guarantee loans to
struggling companies during the pandemic. It is important that
Parliament has sight of those decisions to properly scrutinise
them. On 12 November 2020, in response to a parliamentary
question tabled by the shadow Minister for the Cabinet Office,
the hon. Member for Leeds West (), a Department for Business, Energy and Industrial
Strategy Minister said that the list of companies offered
coronavirus business interruption loans would be published “in
due course”. Does the Secretary of State agree that transparency
is essential for effective scrutiny, and will he commit to
publishing the list of companies that have received
Government-backed loan support without delay?
I will certainly look into the hon. Lady’s request. This is
something that has been brought to my attention and I will try to
see if we can publish something soon.
(North Norfolk) (Con) [V]
It is absolutely right to support the steel industry, given the
jobs and the simple fact that steel is a fundamental material in
our construction industry, and the Government do. I am sure the
Secretary of State will note my Environmental Audit Committee
inquiry looking at sustainable building materials for the future,
such as engineered wood, which is stronger than steel and
embodies carbon. Does he agree that we must explore these avenues
alongside supporting existing industries as we transition to a
greener economy?
I welcome my hon. Friend’s report and his contribution to the
debate around the green industrial revolution. He is absolutely
right that, alongside steel, we should consider all forms of
innovative and novel materials—advanced materials—that can help
us build back greener and more sustainably.
(Warley)
(Lab)
The three fleet solid support ships, at 40,000 tonnes, are
equivalent in size to the two aircraft carriers. That is a lot of
steel. Only this week, the Ministry of Defence finally conceded
that they will be designated as naval vessels, meaning that they
will be built in British yards. When the Secretary of State goes
back to his office, will he get on to the Defence Secretary and
tell him they must also be built with British steel?
I admire and am always impressed by the right hon. Gentleman’s
passion for these issues, and I think he is absolutely right. We
do have a need for huge amounts of steel in infrastructure in
this country. That is why I have said repeatedly that there is a
future for the steel industry in the UK.
(West Bromwich West) (Con) [V]
Obviously, steel is also a crucial part of this Government’s
decarbonisation strategy. Can my right hon. Friend reassure my
constituents in Oldbury, where a Liberty Steel site is currently
based, that he will ensure that Black Country steel is placed at
the heart of that decarbonisation strategy and that they will get
the support they need from the Government as we go through this
difficult time for Liberty Steel Group?
I assure my hon. Friend that we are committed to the steel
industry in the UK. That is why, last week, we published the
industrial decarbonisation strategy, which I was very pleased to
commission as energy Minister. I look forward to speaking to him
about the next steps forward for this industry.
(Aberavon) (Lab) [V]
British steelworkers make the best steel that money can buy, but
they are having to compete with one hand tied behind their back
because electricity costs our steel companies 86% more than in
Germany and 62% more than in France, an issue I raised with the
Secretary of State when he met steel MPs on 3 February. On 22
February, the Prime Minister told me from the Dispatch Box that
“we must indeed address the discriminatory costs of
energy.”—[Official Report, 22 February 2021; Vol. 689, c. 647.]
What progress has the Secretary of State made in addressing this
critical issue since our 3 February discussion, and does he think
that the Chancellor understands that there can be no
post-pandemic recovery without a strong and healthy steel
industry?
My right hon. Friend the Chancellor is fully aware of the
importance of the sector. The hon. Gentleman will know—I think he
attended the Steel Council where this issue was raised—that we
have commissioned work to see what can be done to redress the
balance he alludes to.
(Scunthorpe) (Con) [V]
I was really pleased to hear the Prime Minister speak yesterday
about the opportunities he sees for British steelmakers in major
projects such as HS2. Can my right hon. Friend provide more
information on that and can he—I know it is difficult—reassure
the Liberty Steel workers in Scunthorpe that the Government will
do all they can to support them?
I would like to reassure my hon. Friend. My right hon. Friend the
Prime Minister was absolutely right to say that we need a huge
amount of steel—about 5 million tonnes—over the next decade and
that this Government are committed to an ongoing steel industry.
As she knows, I have spoken to local management and workforce
representatives, and we are doing all we can to look at all
options to make sure that this vital piece of infrastructure
continues and remains a going concern.
(Swansea West) (Lab/Co-op) [V]
We know that was an adviser to Greensill Capital, with
shareholdings of potentially tens of millions of pounds, and that
he made private texts and calls on a number of occasions to the
Chancellor to help secure funds for Liberty before Greensill, a
high-risk company, went bust, putting thousands of jobs at
Liberty Steel at risk. What investigation will BEIS carry out?
Will the Secretary of State ensure that in future taxpayers’
money is no longer interfered with by and former Conservative Ministers, but is instead
invested directly to protect our jobs in British steel and other
vital industries?
The hon. Gentleman will know that officials often meet with a
range of businesses affected by policy changes—that is part of
policy development—but it is always done with proper and due
consideration.
(Guildford) (Con)
A key part of our efforts to drive long-term green growth is to
support workers in high-carbon sectors such as steel to retrain
in new green technologies. Does my right hon. Friend agree that
upskilling and retraining workers will be integral to our efforts
to level up opportunity right across the country?
I am delighted to relate to my hon. Friend that she is absolutely
right. We need to retrain people in new green technologies, which
is precisely why I, as energy Minister, with my hon. Friend the
Member for Chichester (), set up the green jobs taskforce to look at exactly
the requirements and skills we need to drive the green industrial
revolution.
(Glenrothes) (SNP) [V]
We know that Greensill was a major financer of the Gupta Family
Group and, understandably, the questions today have focused on
the employment concerns that its workers might have, but we do
not know what other businesses may have relied on financing from
Greensill and been affected. When does the Secretary of State
expect to have that information fully pulled together, and can he
undertake, as far as is allowed by commercial confidentiality, to
keep Members of Parliament informed of any other businesses that
might be at risk as a result of the collapse at Greensill?
The hon. Gentleman makes a legitimate point. The collapse of a
company like Greensill has ramifying effects, and I, Ministers
and officials in the Department are looking closely at the
potential impact.
(West Bromwich East) (Con) [V]
I thank my right hon. Friend for his personal engagement with me
on this issue and for acting so quickly. Liberty Steel is a big
employer in the Black Country and we have been hit particularly
hard by the worst effects of the pandemic. I know that he needs
no convincing about the importance of the steel industry in our
part of the west midlands, so will he continue to prioritise this
issue and work with me to help protect jobs in West Bromwich
East?
I would be very happy to work with my hon. Friend to protect
jobs. She is doing a great job of representing her constituents.
All I would say on this is that we published last week the
industrial decarbonisation strategy, which is the first of its
kind in the world, and we are absolutely committed to a
continuing future for British steel.
(Blaenau Gwent) (Lab)
Liberty Steel has a diverse portfolio with a long supply chain.
These jobs are often trade-unionised, so they have better pay.
Losing them will have a big impact across our country. How will
the Secretary of State protect the different elements of this
complex company, such as the tubing plant in Tredegar in my
Blaenau Gwent constituency, with its loyal and skilled workforce
who have kept it going through tough times?
The hon. Gentleman is quite right. The company has a range of
assets spread across England and Wales, in particular, and we are
looking very closely at what specific assets and jobs are
necessary. We hope to support the company in its entirety.
(Penistone and
Stocksbridge) (Con) [V]
The funding challenges faced by Liberty are serious, but I have
been reassured by meetings with my right hon. Friend, and by the
Prime Minister’s response to my question yesterday, that the
Government are committed to doing whatever is possible to
safeguard jobs and livelihoods in the UK steel industry. However,
in the longer term, for steelmaking to thrive in the UK, we must
make sure that UK infrastructure projects use environmentally
friendly UK steel, providing well-paid jobs and helping to level
up. Will my right hon. Friend assure me that future procurement
processes will favour British steelmakers such as Speciality
Steels in Stocksbridge?
I reassure my hon. Friend, whom I have met on several occasions
on precisely this issue, that we remain committed to decarbonised
steel and a decarbonised industrial strategy, which I have
referred to. That is the basis on which we can have a strong
future for the industry.
(Rotherham) (Lab) [V]
The Secretary of State is well aware that Liberty in Rotherham
employs 900 people, along with five times that number in the
local supply chain. Our steel goes into defence, energy,
aviation—all key strategic industries. In this post-Brexit world,
will the Secretary of State please make a commitment that all
Government procurement projects using steel will commit to buying
British steel for them, because a full order book is the best way
to see a future for steel in this country?
On procurement, I want to relay to the hon. Lady that we have
constructed in government a UK Steel and BEIS Procurement
Taskforce, which met for the first time only a couple of weeks
ago, on 12 March, chaired by my noble Friend Lord Grimstone. We
are absolutely committed to seeing what we can do to make sure
that we have a strong steel industry in this country that will
support the huge infrastructure needs that our country has in the
next decade.
(Wokingham) (Con) [V]
I strongly support all the measures that the Government will be
taking to ensure that public orders concentrate on UK-made steel,
where that is possible, but what further measures can the
Secretary of State take to ensure that energy prices are
realistic and competitive? If we have very dear energy in this
country, it will be a major problem for our steel industry.
My right hon. Friend is absolutely right to point to electricity
and energy costs. I am in regular contact with my right hon.
Friend the Chancellor to see what can be done, as my right hon.
Friend the Member for Wokingham () said, to address that problem.
(Ealing
Central and Acton) (Lab)
The Greensill affair raises the issue not just of Liberty Steel’s
refinancing but of ex-Prime Minister bending the ear of the now Chancellor, although he
was not on the lobbying register. With ex-Minister overseeing the body regulating current Ministers’
interests, how can the Government ensure transparency on
conflicts of interest when they seem to operate a culture of
friends with benefits and mates’ rates, with British steel jobs
being mere collateral?
Obviously, I completely reject the hon. Lady’s characterisation
of what goes on. She will know that officials often meet huge
numbers of business people who are affected by policy. That is
part of policy development, but it is always done in a
transparent, open and proper way.
(Hertford and Stortford) (Con) [V]
The Labour party talks about vision. Does my right hon. Friend
agree that this Government’s commitment to net zero and their
clear vision of being a technology-led innovation superpower, as
demonstrated by initiatives such as the Clean Steel Fund, the
Advanced Research and Invention Agency, and the Future Fund:
Breakthrough, mean that the future of UK steel is positive and in
very good hands?
Obviously, I entirely agree with everything that my hon. Friend
has said. Reflecting on two years as a Minister within the
Department, I can tell her that we have had the 10-point plan for
the green industrial revolution, the Energy White Paper, the
decarbonisation industrial strategy, and, as she says, we have
committed hundreds of millions of pounds to making sure that we
drive the green industrial revolution. It is a very exciting time
to be in Government and I look forward to speaking with her
precisely about how we can move forward.
(Motherwell and Wishaw) (SNP) [V]
With booming metal prices, GFG’s business in Scotland, including
Liberty Steel in my Motherwell and Wishaw constituency, remains
profitable. Notwithstanding his previous answers, I must press
the Secretary of State to echo the promise given by the Scottish
Government and do all in his power to protect this profitable
industry. Will he do so?
That is a fair question, but the hon. Lady will appreciate that
the assets in Scotland relate particularly to aluminium smelting,
whereas in England and Wales their job is really focused on the
steel industry. None the less, we are looking at all options to
see what we can do to sustain these crucial jobs.
(North East
Bedfordshire) (Con)
An acquisition strategy based on supply chain financing
arrangements, plus a future receivables derivative scheme, plus
an additional month’s cash-flow, and a liberal mix of state
guarantees has the characteristics of a potential Ponzi scheme.
Has my right hon. Friend been able to ascertain the facts here,
or is this an issue for investigation by the Serious Fraud
Office?
My hon. Friend raises very serious questions about the business
model, which I am not prepared to go into now. What I will say is
that, in the first two months of my tenure as Secretary of State,
I have pushed forward audit reform as a big issue. A consultation
on it is under way. It is issues relating to things such as
Greensill capital that show how necessary it is for us to
reconsider what we are doing on audit reform and to have the best
standards in the world.
(Orkney
and Shetland) (LD)
I think we all understand the importance of commercial
confidentiality, but, where significant sums of taxpayers’ money
are concerned, that cannot not be a barrier to full
accountability. The Secretary of State will be aware that the
Scottish Government are out for guarantees north of £500 million
as a consequence of Greensill’s difficulties. Is that not
something for which there really ought to be full explanations?
The right hon. Gentleman is absolutely right. My understanding is
that the Scottish Government are very exposed to Greensill’s
financial engineering—let me put it that way—and there should be
far greater transparency in this regard.
(Burnley) (Con)
A strong domestic steel industry is vital to so much of what the
Government do, from frigates and submarines to schemes such as
HS2. With that in mind, may I ask the Secretary of State whether
he will work with colleagues across all of Government—not just
with the Treasury, but with the Ministry of Defence and the
Transport Department—to ensure that we protect this strategic
sovereign capability?
My hon. Friend is absolutely right. It is crucial that we work
across Government to look at procurement and the strategic
interests of this country in having a strong steel industry, as
he describes, and in order to work out how best to progress with
this key sector.
(Nottingham South) (Lab) [V]
Investing in transport infrastructure such as the full HS2 route
and a rolling programme of rail electrification is an excellent
way to boost economic recovery and put the UK on the path to net
zero, but the Government will be wasting a huge opportunity to
safeguard and grow jobs in our steel industry if they do not use
public procurement to support it. Will the Secretary of State
commit to setting targets for UK steel content in contracts for
major public works, and if not, why not?
The hon. Lady will know, as I have said at the Dispatch Box
today, that we have a taskforce in BEIS chaired by my noble
Friend Lord Grimstone. This is absolutely something that we are
looking into, given the huge need we have and the huge demand for
steel products in our infrastructure plans.
(Chipping
Barnet) (Con) [V]
For all the many reasons set out by Members today, retention of a
domestic steel industry is vital for our economy and our
security. Will the Secretary of State set out what he is doing to
ensure that we have the right regulatory climate for steel to
thrive? Will he commit that, if other countries dump steel on
world markets that has been inappropriately subsidised, he will
take action via our trade policy to introduce anti-dumping
measures to protect and support our steel industry?
My right hon. Friend will know that the steel industry in
particular is subject to fairly stringent World Trade
Organisation rules. She will also know, given the publication of
our industrial decarbonisation strategy, that we are rigorously
focused on trying to source clean, green steel in order to drive
a green industrial revolution and to create the infrastructure
projects without which we cannot have any real economic growth.
(Warrington North) (Lab) [V]
Last year, the Government spent £4.8 billion on subsidies for
wind power, yet almost no wind farms use UK steel. Those orders
would be a boon to the struggling steel industry, but the
Department does not even include renewable energy products in its
annual list of orders that went to domestic suppliers. In
January, the Under-Secretary of State for Business, Energy and
Industrial Strategy, the hon. Member for Stratford-on-Avon
(), said that the Government would consider reporting
the share of UK steel used in offshore wind projects
“if it is in the public interest.”
Will the Secretary of State accept that it clearly would be in
the public interest to name and shame the developers that do not
use UK steel, and will he commit to making that change?
The hon. Lady will appreciate that, as part of the offshore wind
sector deal, we have explicitly said that 60% of the supply chain
should be UK-sourced, and clearly steel is a big part of that
supply chain. She will also appreciate that, as Energy Minister,
I made it a priority to ensure that in the fourth auction round
at the end of this year, these targets will be met. Steel is part
of that, and we are absolutely committed to having more UK
content in the supply chain for offshore wind.
(North West Durham) (Con)
Being in the European Union prevented us from prioritising
British steel, despite steel and its component parts being
strategic resources. Now that we have left, will the Secretary of
State prioritise British steel, at least in Government
procurement? Will he ensure that steel and its component parts
are, where possible, protected and bought from UK producers to
prevent us being strategically vulnerable in the future?
I pay tribute to my hon. Friend—another Conservative who won a
so-called red wall seat. He has done a fantastic job in
representing his constituency, particularly on this critical
issue. From my answers, he will know that we are committed to
making sure that UK steel has a big part to play in the
construction and infrastructure plans that we ambitiously set
out.
(Carmarthen East and Dinefwr) (Ind) [V]
Tata Steel has reportedly said that it is in active discussions
with the British Government about creating a “decarbonised
footprint” for the future, especially in Port Talbot. While I
welcome that, will the Secretary of State confirm that at the
heart of those strategies, the British Government will prioritise
maintaining volume of production and jobs in the Welsh steel
industry?
The hon. Gentleman will know, but I say in the interests of
transparency, that one of my first meetings when I was appointed
Secretary of State was with the head of Tata Steel. He will also
know that having visited Hinkley Point as Energy Minister I am
fully aware of the impact and the contribution that the Tata
plant makes to infrastructure. I am sure he will be pleased to
hear that this is a top priority of mine. I have made the point
many times this morning that our infrastructure plans are
absolutely intertwined with a strong domestic steel industry.
(Beckenham)
(Con)
I am very sorry I was late for the start, Mr Speaker, but I was
having a rather shouted conversation with the Chief of the
General Staff about the massive cut of 12% in our Army, and
particularly the loss of my battalion—
Mr Speaker
Order. I do not think this has anything to do with the question;
I think I would stick to the business question. You do not want
to lose your place—come on, Captain Bob.
I knew I was going into the Valley of Death. The question, Sir,
is this: what percentage of our national steel production, which
is a sovereign capability, is affected by the Greensill Capital
financial crisis? I am very sorry—I knew I was going to get into
trouble.
Mr Speaker
No, I think it will be with the Chief Whip later.
I am very pleased to see my right hon. Friend in his place. The
key point is that Liberty Steel produces via electric arc
furnaces, so it is clean steel. A lot of the steel that we
produce relies on older methods. That is why, for me, in terms of
our decarbonisation strategy, the future of Liberty Steel is of
great importance.
(Slough) (Lab)
For national security reasons, to tackle the climate crisis, and
to build our rail infrastructure, electric vehicles and the like
with well-paid unionised jobs, domestic steel production must be
a strategic national priority. However, time and again the
Government have let down Britain’s steel industry. On their
watch, we have seen British Steel collapse, minimal action taken
to tackle the huge handicap of high energy prices for our
steelmakers, and an over-reliance on imported steel for
Government projects. Prior to Brexit, the excuse for the lack of
Government intervention was EU state aid rules. What is the
excuse now?
There is no “excuse now”. I am afraid that the hon. Gentleman
lost me rather when he said that the Government have done
nothing. We have heard from all around the House the devastating
impact of the last Labour Government on the steel industry. I
even took a question from an extremely able Conservative Member,
my hon. Friend the Member for Redcar (), whose seat was represented by a Liberal Democrat,
because of the debacle around the closure of SSSI.
(Birmingham, Northfield) (Con)
I welcome my right hon. Friend’s decision to re-establish the
Steel Council. Does he agree that this is a perfect opportunity
for the Government to work in partnership with the industry so
that we can create a long-term, sustainable plan to ensure the
sector’s transition to a low-carbon future?
I am delighted that my hon. Friend has mentioned the Steel
Council. I remind right hon. and hon. Members that the Steel
Council last met in February 2020. It was a first priority of
mine, on becoming Secretary of State, to have another meeting, so
we had a meeting on 5 March that went extremely well and is a
solid basis for our ongoing dialogue with the sector not only
among employers but among union representatives. It is an
excellent body and I look forward to working very closely with it
in the months and years ahead.
(Sheffield South
East) (Lab) [V]
I am sure the Secretary of State will recognise that Sheffield is
the home of steel. Stainless steel was invented in Sheffield,
steel made in Sheffield is famous not merely in the UK but
throughout the world, and thousands of Sheffielders still work in
the steel industry and in related industries as well. So will he
give an absolute assurance that the term, “Steel made in
Sheffield”, will not be consigned to the history books?
It certainly will not be consigned to the history books. We have
an excellent firm in Sheffield, Forgemasters, among others. We
all know the great history and traditions that Sheffield embodies
and its vital role in the development, and the birth, really, of
the steel industry worldwide.
(Arundel and South Downs) (Con) [V]
On behalf of manufacturers in my constituency relying on
specialist grades of steel, I thank my right hon. Friend for his
Department’s work to support UK steel and ask him to keep working
with the industry so that we can be leaders in green steel
production as we transition to a low-carbon economy.
I commend my hon. Friend’s work in representing COP26 and doing a
great job in engaging with businesses on COP26. I assure him that
green steel is very much at the front of our minds. It is
something that I am very focused on. We have mentioned the Steel
Council, and I have also mentioned a number of times the
industrial decarbonisation strategy. Green steel is absolutely
the way forward, and I look forward to working with him to see
how we can make progress in this vitally important area.
Dame (Wallasey) (Lab) [V]
Can the Secretary of State explain why Greensill—an unregulated
shadow bank with close links to the Conservative party—was given
access to the coronavirus large business interruption loan
scheme, which is backed by 80% taxpayer guarantees? Following its
collapse, which puts the future of Liberty Steel and thousands of
jobs at risk, will the Minister practise the transparency he has
just been talking about and tell the House how many millions of
pounds of losses incurred will end up being dumped on the UK
taxpayer?
The right hon. Lady will know that I cannot possibly comment on
that, because it is part of an ongoing series of discussions. We
do not really know the full extent of the impact of Greensill’s
collapse on the British economy. We are looking into it very
closely and looking at which companies have been affected, but
until that further investigation we cannot possibly comment on
the extent of the liability.
(Kensington)
(Con)
One of the lessons of the pandemic has been that we need a robust
domestic industrial strategy and we cannot be dependent on
imports—either of final products or through the supply chain—from
China or anywhere else. Does my right hon. Friend agree that
steel is an integral component of that industrial strategy—and,
with time, decarbonised steel?
I reassure my hon. Friend that the fact that we published the
industrial decarbonisation strategy only last week suggests to
me, and is a signal to the world of, how seriously we take the
strategic impact and necessity of steel, and the net zero
commitment.
(Angus) (SNP) [V]
We know that used his direct line to contact the Chancellor
regarding Greensill’s difficulties. However, when did current UK
Government Ministers first become aware of the firm’s
difficulties? What actions were taken beyond acting on
unsolicited advice from a former Prime Minister? And how will the
Government categorically ensure the industry’s future and the
thousands of jobs that go with it?
There were a lot of questions there. Briefly, on Greensill, we
are continually looking at the potential impact. I must say to
the hon. Gentleman that we are committed to a future for the
steel industry here in the UK. As hon. and right hon. Members
have suggested, the decarbonised nature of that sector—green
steel—is absolutely the focus and at the front of our minds as we
try to forge a path for the industry in the near future.
(Rother
Valley) (Con) [V]
I thank the Secretary of State for meeting me to discuss the
issues around Liberty Steel and for working with me to save jobs
in that great company. He knows as well as I do that good British
steel—and, hopefully, Sheffield steel—is an essential component
of our ongoing green industrial revolution, from electric cars to
wind turbines. Will he assure my constituents that there is a
place and a need for the steel industry, and for many, many steel
jobs here in South Yorkshire?
I am delighted to see my hon. Friend taking part in these
critically important proceedings. I know how hard he has worked
not only to win his seat and be an excellent, first-rate Member
of Parliament, but also in his passion for green energy,
renewable technologies and hydrogen; in fact, I am surprised that
he did not mention hydrogen in his question. I am delighted to
work with him to ensure that we have a future for the steel
industry here in the UK.
(Luton South) (Lab) [V]
Tackling emissions from steel is critical to the fight against
climate change, and I have heard the Minister refer to green
steel. The clean steel fund was announced in 2019, but
steelmakers will not be allocated any funding from the £250
million scheme until 2023. Why will Ministers not bring forward
this funding to boost the industry and its green future?
As the hon. Lady knows, we are always looking at ways in which we
can promote green steel and industrial decarbonisation. I have
alluded many times to the fact that we published the strategy
last week, and the steel fund is clearly part of that strategy.
(Kettering)
(Con)
British-made steel, British electric car manufacture and
British-backed clean growth: would my right hon. Friend agree
that the prospects for all three are stronger and brighter now
that we have left the European Union?
My hon. Friend will remember that I was a Minister in the
Department for Exiting the European Union, as I think it was
called. I do not want to revisit those debates, but I will say
that the future of our industrial strategy, in terms of our green
commitments, in terms of the steel commitments and in terms of
electric vehicles, is a very bright one indeed.
(Newport East) (Lab)
On behalf of all those working at the successful Liberty plant in
Newport, may I reiterate how difficult this uncertainty is for
the dedicated workforce who make world-class steel, and for their
families? May I urge the Secretary of State to keep talking to
and meeting virtually with groups of hon. Members, with Liberty
plants and with the steel unions over the coming days? As my hon.
Friend the Member for Manchester Central () said, the UK steel industry is the cornerstone of our
national security and our economic prosperity, and it is
absolutely crucial to our building back better.
The hon. Lady will know from our bilateral conversations that I
am very committed, as Secretary of State, to the future of this
sector. I am always happy to meet representatives, experts,
workers, representatives in a trade union capacity and local
management. I am always open to seeing people and trying to work
out pragmatic, positive solutions. This is a really important
issue and I am pleased to have engaged with the hon. Lady in the
past, as I am sure I will in the future.
