Steel Industry: Contribution to the UK Economy

Debate between Jessica Morden and Mark Tami

Wednesday 25th January 2023 Westminster Hall

[Jessica Morden]

I thank my hon. Friend, who is a champion for steel in his constituency, where Celsa is based. I wholeheartedly agree that we have been going on about energy prices for so long—it is a theme that I will come to later in my speech—and I thank him for his contribution.

[Mark Tami (Alyn and Deeside) (Lab)]

First, I apologise for being a minute late. My hon. Friend’s last point is crucial. All these pots of money that are available are obviously welcome, but for Shotton and the whole steel industry, we need a long-term plan with long-term investment. There is a lot of talk about companies investing, but they will invest only if they can see a future, and if all we are doing all the time is just buying a bit of time here and there, until steel drops out of the news again, that is not a plan. We really need a long-term plan.

[Jessica Morden]

I thank my right hon. Friend for that intervention. Yet again, I agree wholeheartedly with him. He is a fantastic advocate for Shotton, and he is exactly right: we need a long-term plan for steel.

--- Later in debate ---

[Jessica Morden]

My hon. Friend makes an excellent point—I cannot top it, really. I hope the Minister has heard it.

Procurement policies also need to be updated. For every 1,000 tonnes of steel produced in the UK, 4.2 direct jobs are created, with a further 6.6 jobs created in the supply chain. It is understandable, then, that Make UK found that 68% of the UK public think that public infrastructure projects should prioritise the use of UK-made steel wherever possible, yet the Government have a pretty poor track record in this area. The most recent example was last month’s announcement that a £1.6 billion contract for steel for three fleet solid support vehicles was awarded to a Spanish consortium. That is just one case, but there have been too many missed opportunities for the steel industry. We cannot let that carry on.

As I mentioned earlier, green infrastructure projects will need literally millions of tonnes of steel by the end of the decade. The UK Government’s own steel public procurement pipeline data, released last June, states that offshore wind projects alone will require some 5.3 million tonnes of steel within five years. We need the Government to commit now to maximising the procurement of British steel for all those upcoming projects, a move that Make UK estimates could boost the UK economy by as much as £4 billion and support 11,000 British jobs in steel companies and their supply chains. As the Community union’s general secretary Roy Rickhuss has rightly said,

“The green energy revolution presents a huge opportunity to build a robust British supply chain based on the supply of top-quality domestic steel.”

The events of the past two years tell us that Britain cannot rely on fragile global supply networks for strategic goods, and that if we want to go green, it is nonsensical to transport steel from the other side of the world.

On that point, I welcome that the Government themselves have acknowledged that, in the area of energy supply, the country has

“drifted into dependence on foreign sources”.

We agree, and I echo Roy Rickhuss by calling on Ministers to not make the same mistake when it comes to steel, a sector of such vital strategic importance to our sovereign capability and our national security. Alun Davies, a stalwart of Community in south Wales, puts it succinctly:

“There is a clear choice facing this Government—either they back our workforce and our industries or they choose to offshore thousands of good jobs to other countries.”

[Mark Tami]

The industry really is at a cliff edge. I have said that in meetings. That is not crying wolf; this is not a made-up situation. It really is at the 11th hour. Unless we really step up to the mark and invest, will we lose not only the industry but the confidence of the supply chain and the customers, who will start questioning whether some of these plants will be around this time next year. Something has to change now.

[Jessica Morden]

My right hon. Friend is exactly right: the steel industry is at a particularly precarious point and the purpose of this debate is to highlight to the Minister the need to act quickly.

On procurement, it is high time that the UK Government started setting more ambitious targets for the use of UK steel in public projects and for all initiatives and schemes supported by public funds. Ultimately, they must devise policies to deliver those projects and grow the economy. Other countries have shown that they are not afraid to support their manufacturing sectors in the green transition. For example, in the USA, the Biden Administration’s Inflation Reduction Act uses the tax system to reward American manufacturers that invest in and use American manufacturing supply chains.

If this Government will not take action, the next Labour Government will. I am pleased that my party is committed to asking every public body to give more contracts to British firms, big and small. We will use stretching social, environmental and labour clauses in contract design to raise standards, and we will spend and make more in Britain. We are committing to making, buying and selling more in Britain. We will lead a culture change in Government, putting the growth of local industries and economies first and reviewing the pipeline for all major infrastructure projects to explore how to increase the materials made in Britain. We will also upskill workers to get the jobs for the future. That is the kind of vision that industries such as steel and our country need.

It is worth flagging up the continued risk of melted and poured Russian steel entering the UK via third countries. Although the UK has banned finished-steel imports from Russia and placed a 35% tariff on semi-finished steel from Russia, loopholes in the sanctions means that Russian steel that is re-rolled in the EU or Turkey and exported into the UK is reclassified as EU or Turkish-origin material, circumventing the ban and the tariff. That means UK consumers, including public projects, are unwittingly importing and using Russian steel. It is wrong as a point of principle and it has damaging consequences for the UK market. I echo UK Steel’s call for the Government to tackle that by applying sanctions on all steel that is melted and poured in Russia, regardless of whether it has been re-rolled in a third country.

At the Dispatch Box earlier in the month, the Prime Minister told the hon. Member for Scunthorpe that the Government

“remain committed to a thriving UK steel industry.”—[Official Report, 11 January 2023; Vol. 725, c. 557.]

Steel workers and steel communities throughout the country will understandably have taken that with a heavy pinch of salt. For our steel industry, the past decade has been characterised by neglect and a lack of vision for the future. The loss of skilled jobs at the SSI plant in Redcar and the Orb works in my constituency of Newport East were tragic cases in point. Orb was the last steel plant in the UK producing electrical steel, and it needed investment of about £50 million to be saved. The Government did not listen and did not let it be saved, and the opportunity was lost. That is heartbreaking. The next decade must be different, not just for our steel industry but for our energy security and a greener economy, both of which are utterly dependent on a healthy steel sector.

We need answers today. I hope the Minister will update us on her engagement with Tata, British Steel, Liberty Steel and Celsa Steel. I hope she will acknowledge that the current level of support for UK steelmakers in respect of energy costs and decarbonisation is not enough, and I hope the Government will commit to doing much more. The era of warm words has bitten the dust and the time for meaningful strategic action has come. Just like levelling up, the industrial strategy part of the Department for Business, Energy and Industrial Strategy’s title should not just be a handy buzz phrase; it should be a central, defining mission of the Government.

Instead of sticking plasters, we need a long-term plan. If the Conservative party is not up to the challenge, Labour stands ready to fill the gap and ensure that the steel industry has the bright future it needs and deserves.

Shotton Steelworks: 125th Anniversary

Debate between Jessica Morden and Mark Tami

Wednesday 1st December 2021 Commons Chamber

[Mark Tami (Alyn and Deeside) (Lab)]

When I looked at the Order Paper, I thought I might be making my speech at about 9 o’clock or even later, so I am pleasantly surprised. I am willing to take interventions as we have more time.

This year in Alyn and Deeside, we are delighted to be celebrating the 125th anniversary of the Shotton steelworks, which is now under the ownership of Tata Steel. The plant employs about 800 people and is an integral part of the local community. For generations, Shotton Steel has provided secure jobs and supported the local economy, and has made the Shotton site synonymous with quality, productivity and innovation. Celebrating this significant landmark is an opportunity not only to reflect on the past but to prepare for future challenges to ensure that the Shotton Steel plant continues to flourish and that it remains a stable local employer for another 125 years. I will probably have retired by then, but you never know.

[Jessica Morden (Newport East) (Lab)]

Will my right hon. Friend give way?

[Mark Tami]

I will.

[Mr Deputy Speaker (Mr Nigel Evans)]

Is it on that point?

[Jessica Morden]

On that point, Mr Deputy Speaker, I congratulate my right hon. Friend on securing the debate. On behalf of Llanwern steelworks, I send greetings to Shotton on its 125th birthday; Llanwern is considerably younger. Does he agree that it is important to emphasise how interconnected operations are between south and north Wales, and all parts of Wales, in the steel industry, and how important Shotton is for steel producers in south Wales?

[Mark Tami]

I totally agree with my hon. Friend’s important point. Although Shotton is doing very well at the moment—touch wood—it is reliant on Port Talbot for the steel that it finishes. Without that, the business model does not work.

For decades, Shotton Steel has produced some of the finest steel products in the world. Today, as part of Tata Steel, it takes its place in a network of steelmakers that stretches across five continents with about 81,000 employees. Shotton is well known across the world for its extraordinary quality, efficiency and profitability, and is the company’s base for a unique range of metallic and paint-coated products that are widely used in the domestic appliance, construction and other sectors. Even in this digital age, steel is essential for our public services, manufacturing, military, and everyday essentials.

Shotton’s long history provides the solid foundation on which its current success is built. John Summers, born in the 1820s, ran a small business using one of the country’s first handheld rolling mills to roll puddled iron into crude steel sheets for clog nails. I must say that I was not around then.

UK Steel Industry

Debate between Jessica Morden and Mark Tami

Monday 14th September 2020 Commons Chamber

[Jessica Morden]

It is the UK steel industry. The hon. Member makes an important point, and I hope the Minister will address it later.

Some steelworkers have had to be furloughed as demand dropped in their parts of the business, but others have continued to make the essential steel we have needed in this crisis for the beds in the Nightingale hospitals, the urgent hospital extensions, the food and drink industry and more. As hon. Members here tonight with an interest in steel know—I am pleased to see so many here tonight at this late hour, including on the Front Bench—steel is everywhere and fundamental to our lives. Steel must play a crucial part in the UK’s post-pandemic recovery. Our plants stand ready to play their part in that with the right Government support, and that is what we ask for tonight.

Like almost every other sector of the economy, the UK steel industry has been hard hit by the pandemic, with steel producers reporting that orders have fallen by around 50% since March. At the start of the pandemic, the Chancellor promised the British public that they would not face the crisis alone and that the Government would undertake unprecedented measures for unprecedented times. However, as of today, only one company has received vital emergency funding. There has been much talk of Project Birch, but little news. I know that the Government have been in ongoing talks with steel companies in the last month about liquidity support.

[Mark Tami (Alyn and Deeside) (Lab)]

The issue is that the steel industry was not in a great place before covid, and the danger is that if we get steel being dumped by China or other countries, then we really are on the brink.

[Jessica Morden]

I absolutely agree and will come on to say more about that later. I know that hon. Members would appreciate an update from the Minister about how that is going and the plan to secure jobs and the future of our plants.

The UK steel sector employs about 32,000 people directly and 41,000 more through supply chains. It is estimated that these jobs pay 28% higher than the average salary. In steel strongholds like south Wales and Yorkshire, this increases to about 46% higher than the average wage. These are better-paid jobs in communities that really need them. The impact of the pandemic on our steel industry has consequences not only on a local level but on a national level. UK steel contributes a combined £5.5 billion to the UK economy and £3.2 billion to mitigating the national trade deficit through exports produced. That is because steel is a foundation industry for many other sectors: engineering, construction, transport and renewable energy, to name just a few. Steel forms the backbone of our manufacturing sector, and the industry stands ready to supply the world-class steel that will help us to build back better. This is the key message of the “Britain, we need our steel” campaign, which has been launched by the Community, Unite and GMB trade unions, to which I pay I tribute for the work they do to stand up for our steel industry in this country. I hope that all hon. Members here tonight will be actively supporting this campaign.

We need the Government to ensure that all Government Departments now sign up to the UK steel charter. I am pleased that the Welsh Government were one of the first signatories. This would commit the Government to prioritise UK steel in procurement for infrastructure projects. Back in June, the Prime Minister said that the Government will

“do absolutely everything we can…to ensure that UK steel manufacturers are at the front of the queue for the great projects that we are going to construct.”—[Official Report, 24 June 2020; Vol. 677, c. 1311.]

We will hold the Prime Minister to that.

Getting procurement right is key. There are concerns, which some of my constituents share, that any benefits from HS2 will not be greatly felt in our communities in south Wales or, indeed, those outside striking distance of the proposed route. The APPG’s “Steel 2020” report argued that Government procurement and other incentives should be used to increase domestic steel content in manufacturing and construction, as there is clearly a market opportunity. A study of future demand by the Department for Business, Energy and Industrial Strategy shows that UK consumption will climb from 9.5 million tonnes of steel to 11 million tonnes by 2030—a £4 billion a year opportunity for UK producers if the right measures are in place. Currently, less than 50% of steel used in Government-funded projects is British-made. This simply must change going forward: there is much, much more to do. Phases 1 and 2 of the HS2 project combined will require 2 million tonnes of steel, including for tracks, train components, bridges, tunnels, gantries, wire and more. UK steel producers could and should provide 90% of the steel needed for HS2. This is steel that should be made here and not imported.

The broader steps for the UK Government are set out in the UK Steel paper, “Covid-19—Restart and Recovery”. Will the Minister tell us what steps the Government are taking to ensure that all major infrastructure projects set minimum targets for UK steel content, and that all Government-funded projects establish a clear preference for sourcing steel from domestic producers? Will he outline the actions that he has undertaken to encourage all Government Departments to sign up to the steel charter? The Government must do what they can to create the right environment for UK steelmakers in the long term, including a UK sector deal to sit alongside the existing deals for manufacturing industries such as aerospace, construction and automotive, all of which are inherently linked to steel.

Policing and Crime

Debate between Jessica Morden and Mark Tami

Wednesday 29th January 2020 Commons Chamber

[Jessica Morden]

I thank my hon. Friend for that intervention, and I agree; it is key that we see officers in those places, and I will go on to say a bit more about that.

[Mark Tami (Alyn and Deeside) (Lab)]

My hon. Friend mentioned back-room staff, who provide vital support to the frontline. Does she agree that, when those back-room staff were lost, frontline staff had to go back and do some of those jobs?

[Jessica Morden]

My right hon. Friend is absolutely right. There are many examples of that in Gwent, and it puts an additional strain on existing officers, which is obviously a bad thing.

We still have no clarity on how these officers will be paid for after the initial three years of Government funding comes to an end. Is that because police forces will have to meet these costs from their own budgets and raise more money from local council tax payers, who have already been turned to frequently over recent years to plug the gap left by the central grant? It is time the Government addressed the issue of long-term funding. The question of pension costs is also outstanding and needs to be answered by the Government.

The Government announced funding to increase the uptake of Tasers, but the latest funding announcement only covers Taser equipment. Funding for training and other associated costs will need to be met from police forces’ own budgets. For forces such as Gwent, which has been forced to make £50 million of savings since 2008, that represents another significant financial commitment.

Welsh police forces are still being left in the dark over the apprenticeship levy. Gwent police and the other Welsh police forces have paid in excess of £2 million towards the apprenticeship levy each year since it was introduced in 2017. After pressure from our local police and crime commissioner, Jeff Cuthbert, and his counter- parts, the Home Secretary advised that it would provide Welsh forces directly with their share of the levy from 2019. However, Welsh forces have yet to see any of that money. Can Ministers look into that and tell us what is going on?

I would like to pay huge tribute to Gwent police officers and staff, including Chief Constable Pam Kelly, for all they do, and to our police and crime commissioner, Jeff Cuthbert, who is very active and responsive in our community. I am very aware of the impact that the Government’s cut of over 20,000 police officers has had on the wellbeing, stress levels and workload of all existing police staff—that should not be underestimated—and on our communities.

Despite that, Gwent Police deserves huge credit for its ongoing work in tackling serious violence and organised crime. This includes projects funded by the office of the police and crime commissioner and the Home Office that have delivered training to more than 400 partner organisations on county lines, gangs and violence, and delivered sessions to 5,500 pupils across Newport schools. Thanks also to organisations such as Positive Futures, Barnardo’s and the St Giles Trust for what they are doing in partnership to offer diversionary activities to young people. I have seen that work for myself in my constituency, and it is hugely valuable. We could do with some of the work by the violence prevention unit in south Wales going Wales-wide to help with young people in Newport.

We want greater investment in all areas—from educational and diversionary activities to prevent people from committing crimes in the first place to investment in police control rooms and custody suites, the Crown Prosecution Service, the courts and victims’ services. To give a local example, Gwent Police’s early action together team has transformed the way the force responds to children and vulnerable people. It has trained over 1,000 officers to deal with complex vulnerability issues and offers families help and support at the very earliest opportunity, yet the police transformation fund, which has paid for this work, is to be cut.

Our PCC has shown the benefit of this work in supporting vulnerable people away from potentially turning to a life of crime and antisocial behaviour. Our PCC has agreed to fund this work, but again, the police are in effect picking up the tab for locally based diversionary activities to keep young people out of the criminal justice system. I completely agree with Gwent Police that this focused early intervention should be funded at a national level and form part of the Government’s long-term spending plan.

Finally, 2020 marks two years since the passage of the Assaults on Emergency Workers (Offences) Act 2018. I pay tribute to my hon. Friends the Members for Halifax (Holly Lynch) and for Rhondda (Chris Bryant) for their determined efforts to push through this much-needed legislation on to the statute book. However, I agree with my hon. Friend the Member for Halifax that we need the Government to be serious in enforcing the protecting the protectors law, as the number of assaults on officers is still far too high. Attacks on those who protect and care for us—that includes prison officers, NHS staff and firefighters—remain completely unacceptable and abhorrent, and we need to ensure that the legislation we have in place acts as the most effective deterrent possible.