Tata Steel: Port Talbot

Debate between Baroness Randerson and Lord Johnson of Lainston

Tuesday 19th September 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I thank the noble Lord for his questions. On the last point particularly, we are very aware of the need to ensure that our carbon border pricing mechanisms are properly implemented. In this House, we are all aware of the situation of competitive imports that we face in this country, which the noble Lord alluded to. We have been particularly forward-footed in ensuring that our World Trade Organization tariff processes are well deployed in order to protect our economy.

On the question asked by the noble Lord on the synchronicity of the Celtic port investments and the transformation of Port Talbot, we are doing everything we can to ensure that that would be the case. Clearly, it is very difficult, but this is a long-term process. The noble Lord was absolutely right to raise it. It is our intention, through this extraordinarily forward- footed and bold investment partnership with Tata, and working with the freeport and the ports companies operating there, to truly transform this area that the noble Lord has such affinity with into the most astonishingly vibrant, advanced manufacturing and industrial hub.

[Baroness Randerson (LD)]

My Lords, the process, as the Minister acknowledges, will involve redundancies. Those redundancies will have huge community impact, as will the change in the nature of the plant at Port Talbot. Many of those community impacts will fall under the powers of the Welsh Government: education, retraining of the staff involved and huge environmental impacts—some of them for the better. But it will be a period of transition.

That will mean that it is absolutely essential that the UK Government work closely with the Welsh Government. I have been struck by the Minister’s unwillingness to refer to the Welsh Government and the vagueness of his answer about the role of the Welsh Government so far. Can we have a commitment from him now that, in future, there will be full co-operation, joint working and confidence between the UK Government and the Welsh Government to help these people as the transition occurs?

UK Car Production Since 2016

Debate between Baroness Randerson and Lord Johnson of Lainston

Tuesday 14th March 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I thank my noble friend for his comments. There has been a large amount of debate around the value of the Inflation Reduction Act, which I believe is the greatest oxymoronic legislative title in history, frankly, as I cannot believe that it will reduce inflation. Some of its measures are also relatively protectionist. The Government are investing heavily, not just in car manufacturing but in the research and development around it. For example, the Faraday Challenge amounts to £500 million, the Automotive Transformation Fund is hundreds of millions of pounds and the Advanced Propulsion Centre is providing huge amounts of much-needed money for new car production facilities and the inventiveness around that. It is not good enough just to try to find a bigger bazooka; we must ensure we focus on regulation and proper support for R&D, because our brains are our best defence.

[Baroness Randerson (LD)]

My Lords, the Minister may call it “transitioning” but most people will call it “declining”. But let us take his word: transitioning. In order to create the industry for electric vehicles, Britain needs a gigafactory. The Government pinned their hopes on the Britishvolt factory. That failed, the company is being taken over and it will now be used for a different purpose. Last week I asked how the Government’s ambitions for a gigafactory would be fulfilled in the very near future. I did not get a detailed answer and I would be very grateful if the Minister could give me a proper answer now that explains how the industry is going to be able to rely on a gigafactory at the centre of government strategic thinking.

[Lord Johnson of Lainston (Con)]

I greatly appreciate the pressing on this point. It is essential that we have strong battery manufacture capability in this country if we are to have an automotive industry. Do not be under any illusion: the Government are concentrating on this night and day. I draw the noble Baroness’s attention to the fact that I think the Britishvolt transition —if I can use that word again—was quite successfully handled. The Government pledged money, which should have worked in the financing. Unfortunately, it had to evolve to a new owner, but that transition has been successfully managed and it will still be making battery materials and technology.

As I highlighted earlier, through government support through the Automotive Transformation Fund, Nissan and Envision have signed a deal to produce batteries. Importantly, this is linked to a critical mineral supply deal we did with Indonesia that I personally helped steer through after the excellent work of my noble friend Lord Grimstone. This does not just give us battery manufacturing capability. As importantly, the focus of this Government is to make sure that we have the materials to supply these batteries, so that we can be ahead of our competitors.

Electric Cars: Export to EU

Debate between Baroness Randerson and Lord Johnson of Lainston

Thursday 2nd March 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

It strikes me that, if you want to have a second-hand car market in EVs in this country, you need to build more new EVs in the first place. That is why we are investing heavily in making sure both that we have the facilities and capacity to procure critical minerals to enable us to make batteries, which are the core component in such cars, and that we have the partners in this country to develop the battery technology. We are not simply looking at manufacturing; we are also investing heavily in the R&D around battery design. Our real strength and core defence against the future are our brains. The investment that we have made in concepts, such as our investment of more than £500 million in the Faraday Institution in Coventry, is a good representation of the work that we are trying to do. This does not happen overnight. It is truly a national endeavour. I hope that the noble Lord is reassured that the Government’s focus is on this incredibly important and topical subject.

[Baroness Randerson (LD)]

My Lords, there was news this week that the failed Britishvolt company has been bought by a newly established company based abroad and that the site will not be used as intended to create a much-needed gigafactory to supply manufacturers of electric vehicles. Can the Minister clarify how the new plans fit into the Government’s priorities for the industry? What funding has already been given to this project? Are there plans to give it any further funding?

[Lord Johnson of Lainston (Con)]

This is an ongoing commercial issue so it would not be appropriate for me to comment on some of the specific points that the noble Baroness makes. However, we did support Britishvolt originally—I am happy to write to her with the specific numbers—as we have supported all battery endeavours in this country. It is the right thing to do. These are new technologies and companies. They are being created by entrepreneurs taking significant risk; we should celebrate that. It is not a straight line, however. We must be prepared for disruption in this market; there will be volatility. The important thing is that the Government stand behind this industry. We want a car industry in this country that builds high-quality electric vehicles with batteries made here, to sell to the rest of the world and take advantage of our post-Brexit vision for Britain.

Subsidy Control (Information-Gathering Powers) (Modification) Regulations 2022

Debate between Baroness Randerson and Lord Johnson of Lainston

Monday 20th February 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

There are a number of useful procedural and technical reasons for doing that. The point is that the Subsidy Advice Unit is exactly that; it is an advisory unit which the devolved Administrations or local authorities will call in themselves in order to review whether their subsidies conform to our international agreements. There are some specific areas where these might be reviewed—I think that if it is above £5 million, that would automatically trigger some of them to review—but these are reserved powers and this relates to an advisory unit, so this is effectively tidying up the process. That allows the Secretary of State to have more control over the framework. I think we agree that setting levels of fines for non-provision of information, which is very important; it would not be helpful if devolved nations or local authorities were not providing the information we need in order to ensure that we are running an effective subsidy regime, and to ensure that each of the other devolved nations were able to view what each of the others were up to. Therefore it is absolutely right that the Secretary of State can set those rates, and it would not be appropriate for that to go to consultation, because it is a reserved matter and specifically relates back to the devolved nations. I hope I have explained myself; I am very happy to have further meetings on this at a later date. I have a few more comments to make, and then I will come to the end.

It is important to note that the Government have engaged regularly with the devolved Administrations on the design of a UK-wide subsidy control regime. Clearly, the whole point is to make this regime a positive factor of the post-Brexit vision of Britain. This is both at official and ministerial level, including through a regular policy forum. It is in all our interests to ensure that the regime works for the whole of the UK and enables the UK’s domestic markets to function properly. I note that as part of its outreach programme for public authorities, the Department for Business and Trade delivered in-person events in Belfast, Cardiff and Glasgow, and dedicated online sessions for public authorities in Wales and Northern Ireland. The series, attended by 1,500 people in total, also helped build awareness and understanding of the new regime among public authorities.

Therefore, while it is right and proper for debates in this House and for legislation to reflect important points of principle, such as the difference between reserved and devolved competencies, I hope noble Lords will be reassured that the actual delivery of specific polices, such as the administration of the UK’s subsidy control regime, is much more practical and pragmatic in nature. The Subsidy Advice Unit and Department for Business and Trade have had a productive and positive working relationship with counterparts in the devolved Administrations throughout the development of the new subsidy control regime. His Majesty’s Government are absolutely committed to maintaining that working relationship and looking for further opportunities to collaborate with devolved Administrations as we look to the future of the regime as well. We are not trying to make enemies of friends. For those reasons, I ask the noble Baroness to withdraw her Motion.

[Baroness Randerson (LD)]

I thank the Minister for his response and thank all noble Lords who have taken part in this short debate. In particular, I thank the noble Lord, Lord Dodds. With the many months that have passed without the Northern Ireland Assembly, we here speak only too infrequently of Northern Ireland in terms of devolution. It is important that we very much keep the situation at the front of our minds, because it is very complex.

I remind the Minister that I was in the Wales Office for three years and that I have spoken here on Northern Ireland as well. I know that consultations and relationships with the devolved Administrations need time, hard work, patience and respect, and I am pleased that he repeated the importance of respect. However, I also know that it helps to have a formal structure for consultation; that makes certain that corners are not cut. The error in the Explanatory Memorandum exemplifies that this is the sort of situation which would not have occurred if there had been proper consultation on the long-term implications, as there should be on this. The important thing here is not whether the SAU is advisory but the fact that the process overall, including the role of the Secretary of State, includes penalties for non-compliance for information gathering. When a penalty is involved, there are bound to be concerns about a lack of consultation. If this had been properly flagged up during the passage of the Bill, there would almost certainly be far weaker grounds for objection by the devolved Administrations. In effect, this is an SI to amend primary legislation, which is why they are concerned.

I repeat the meaning of the final words of my opening speech: how can a system established to cater for local needs seek to do so by centralising decision-making and ruling out consultation? If it is going to be sensitive to local needs, it should increase consultation. I will look very closely at the Minister’s detailed response, for which I thank him. I do not intend to push this to a vote, but I think it will be of interest to the devolved Administrations and to noble Lords across this House who are interested in devolution. I beg leave to withdraw my Motion.