Draft Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021
Draft Ecodesign for Energy-Related Products and Energy Information (Amendment) Regulations 2021
Amanda Solloway Excerpts(2 years, 7 months ago)
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The Chair
Colleagues, before we begin, anyone who wishes to remove their jacket may follow my lead and do so. I encourage Members to observe social distancing where possible, given the situation we still find ourselves in. Mr Speaker encourages Members to wear masks in Committee where possible when they are not speaking. I thank officials for sitting in the Gallery, which is very helpful to keep things as a safe as we can. Hansard colleagues will be grateful to speakers for sending their speaking notes to them.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I beg to move,
That the Committee has considered the draft Ecodesign for Energy-related Products and Energy Information (Lighting Products) Regulations 2021.
The Chair
With this it will be convenient to consider the draft Ecodesign for Energy-related Products and Energy Information (Amendment) Regulations 2021.
Amanda Solloway
It is a great pleasure to serve with you in the Chair, Mrs Miller. The draft Ecodesign for Energy-related Products and Energy Information (Lighting Products) Regulations 2021—the lighting products regulations—were laid before the House on 1 July 2021, and the draft Ecodesign for Energy-related Products and Energy Information (Amendment) Regulations 2021—the amending regulations—were laid before the House on 5 July 2021.
I will first provide an overview of ecodesign and energy labelling and what the policies try to achieve. Ecodesign policies regulate products that consume energy when in use, such as light bulbs and televisions, by setting minimum energy performance standards to increase energy efficiency. More recently, ecodesign policies have included resource efficiency measures that seek to make products more repairable and recyclable, thereby reducing the use of material resources. In effect, ecodesign policies make the products we use in our homes and businesses more environmentally friendly and support long-term product innovation.
Energy labelling policies are intended to make clear and consistent information about a product’s energy usage readily available to consumers at the point of sale, to help them to make more informed purchase decisions. In effect, energy labelling encourages the uptake of more energy efficient products.
Taken together, the policies make an important contribution to energy use, improving environmental outcomes and cutting energy bills. It is expected that the full suite of ecodesign and energy labelling policies in force in Great Britain will save consumers £75 on their energy bills and 8 megatonnes of carbon dioxide in 2021.
The lighting products regulations will raise the minimum energy efficiency of lighting products on the market in Great Britain. That will phase out the least energy efficient lighting products—in other words, the costliest and more environmentally damaging products to run. The lighting products regulations will replace the existing energy label for light sources and rescale labels, moving from the A++ to E scale to a simpler A to G scale, making it easier for consumers to identify the most energy efficient lighting products. New innovations in lighting technology have led to lighting products becoming more energy efficient than they were a few years ago, making it necessary to rescale energy labels to show the difference in efficiency more clearly for two products on the market today.
By setting ambitious boundaries for the A to G classes on the energy label, the policy will spur the innovation and design of lighting products, as manufacturers compete to achieve the highest energy efficient ratings. In addition to rescaling the energy label for lighting products, the Union flag, rather than the European Union flag, must now be displayed on the label for products on the GB market.
The lighting products regulations reflect the requirements of the two EU regulations that the UK supported as a member state, which began to apply in Northern Ireland in accordance with the Northern Ireland protocol. By introducing these more ambitious, environmentally friendly ecodesign and energy labelling requirements, we will ensure we maintain high product standards in Great Britain and push the market to achieve even greater carbon savings.
The measures introduced by the lighting products regulations will continue carbon savings of approximately 1.8 megatonnes in the UK by 2030, which increases to 2.6 megatonnes of carbon dioxide by 2050. On top of that, the resultant reduction in energy use will cut pounds from household and business energy bills.
Lastly, introducing these requirements in Great Britain will ensure a broadly common set of product standards with Northern Ireland, thus avoiding technical barriers to trade across the Irish sea between GB and the EU. A public consultation was conducted between November 2020 and January 2021, and feedback on the consultation proposals showed strong support for implementing these new requirements in Great Britain.
The amending regulations make amendments to retained EU ecodesign and energy labelling law that is in force in Great Britain. The EU has recently made the same amendments to its equivalent legislation, which must be complied with in Northern Ireland under the terms of the Northern Ireland protocol. Therefore, this statutory instrument ensures that we avoid technical discrepancies with the equivalent legislation in force in the EU and Northern Ireland.
The amendments this instrument makes are to servers and data storage products with respect to ecodesign, and electronic displays, household refrigeration, dishwashers, washing machines and washer-dryers with respect to energy labels. The amendments correct technical errors and improve accuracy, with the aim of facilitating the understanding of and compliance with the requirements of product manufacturers.
Further, as with the lighting regulations, implementing these regulations in Great Britain avoids technical barriers to trade between GB and Northern Ireland and GB and the EU, as they will be a broadly common set of standards. A consultation was conducted between March and April 2021 with product manufacturers who will be impacted by the legislation. Respondents were supportive of implementing the new requirements in Great Britain.
Introducing the lighting products regulations and the amending regulations is aligned with the Government’s ambitions to achieve our carbon budget and net zero target. The measures will reduce the energy use and environmental impact of the products we buy. Further, both SIs avoid technical barriers to trade and ensure an effective regulatory environment for business, while providing greener choices to consumers and businesses. I commend these two statutory instruments to the Committee.
Amanda Solloway
I thank both hon. Members for their valuable contributions. As I have said before, the Government are committed to delivering their carbon budget and net zero target. The lighting products regulations will help us to achieve those by setting higher product standards, leading to 1.8 megatonnes of carbon savings in the UK by 2030, which will increase to 2.6 megatonnes of carbon dioxide by 2050. The amending regulations will help to achieve that by safeguarding the carbon savings that will be secured from our retained EU law.
In response to specific questions about mirroring the EU, I can confirm that we are doing that, and the Government intend to uphold common high product standards where possible and appropriate. The framework is part of the 10-point plan that we are doing. The EU rescaled their labels for lighting products.
In conclusion, I will underline the main purposes of the lighting products regulations and the amending regulations. The lighting products regulations will raise the minimum energy efficiency of the range of lighting products sold in Great Britain and reform energy labels for lighting products by rescaling the energy classes and introducing a scale from A to G. As the hon. Member for Southampton, Test said, that will be a lot simpler. The measures will result in carbon and energy bill savings for consumers and businesses.
The amending regulations will facilitate compliance with and understanding of the ecodesign and energy labelling requirements for a range of products by improving accuracy and correcting technical errors. That will ensure that the expected carbon savings from the regulations are realised. Both SIs will help to avoid technical barriers to trade while also bringing significant benefits to consumers, in the form of reduced energy bills, and to the environment via lower emissions.
I commend the regulations to the Committee.
Question put and agreed to.
DRAFT ECODESIGN FOR ENERGY-RELATED PRODUCTS AND ENERGY INFORMATION (AMENDMENT) REGULATIONS 2021
Resolved,
That the Committee has considered the draft Ecodesign for Energy-related Products and Energy Information (Amendment) Regulations 2021.—(Scott Mann.)
Nuclear Fuel Manufacturing
Amanda Solloway Excerpts(2 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
It is a great pleasure to serve under your chairmanship, Mr Betts. I thank my hon. Friend the Member for Fylde (Mark Menzies) for securing today’s really important debate and my parliamentary colleagues for expressing their support for the UK’s nuclear sector and future.
I will start by reaffirming the strategic importance of maintaining our sovereign fuel manufacturing capability, as set out in the 2018 nuclear sector deal. As many hon. Members have said, the UK is a world leader in the nuclear fuel cycle, which is a testament to the highly skilled workforce currently employed at the Springfields and Capenhurst sites and in the wider UK supply chain. Maintaining and developing that skilled workforce will be critical to delivering our net zero ambitions. I welcome the Westinghouse launch of the clean energy technology park last year. Such commercial ventures support collaboration and low-carbon research. Development and business are central to the UK’s transition to net zero. I am aware of the short-term challenges facing the Springfields site as the UK’s advanced gas-cooled reactor fleet retires. However, as we look forward to the 2030s, I agree with my hon. Friend that the site could and should have a bright future. That leads me to the Government’s commitment to nuclear power.
The 2020 energy White Paper sets out our vision for the transformation of our energy system, continuing to break the dependency on fossil fuels and moving homes and businesses to clean energy solutions. We have not yet made the full transition away from coal, let alone decarbonised our energy system, but “The Ten Point Plan for a Green Industrial Revolution” highlighted the key role of nuclear power in delivering the deep decarbonisation of our electricity system alongside renewables and other technologies.
This is an exciting time for the nuclear industry. This Government are clear that nuclear has an important role to play in decarbonising the electricity system, and in meeting carbon budget 6 and net zero targets. In the energy White Paper and “The Ten Point Plan for a Green Industrial Revolution”, this Government committed to advancing large, small and advanced nuclear projects as part of our future low-carbon energy mix, heralding what my hon. Friend the Member for Fylde called a golden age of new nuclear across the regions and nations of the UK, thereby contributing to the levelling-up agenda.
That includes at least one large-scale nuclear project, and in December 2020 we announced that negotiations with EDF on Sizewell C had begun. Those negotiations are already well under way. Moreover, as the Secretary of State has said in the House, we will bring forward legislation in this Parliament that will further commit us to creating more nuclear power in this country.
Alan Brown
What does the Minister think is a realistic timescale for our Government agreeing a deal with EDF on Sizewell C?
Amanda Solloway
I thank the hon. Gentleman for his question, and I will come on to that issue later.
As my hon. Friend the Member for Gloucester (Richard Graham) noted, nuclear could have a role in beyond grid applications such as low-carbon hydrogen production. Last month, we published the UK’s first ever hydrogen strategy, confirming our support for low-carbon hydrogen production across the United Kingdom. In addition, we have announced up to £385 million in the advanced nuclear fund to invest in the next generation of nuclear technologies, with an ambition to employ small modular reactors and to develop an advanced modular reactor demonstrator as early as the 2030s.
I also recognise the importance of developing our fuel-manufacturing capabilities to support these ambitions. My Department, in co-operation with the National Nuclear Laboratory, has delivered a £46 million advanced fuel cycle programme, aiming to develop world-leading skills and capabilities in advanced fuels and recycling. Recently, we announced a short extension to the programme, which will focus on advanced nuclear fuels for use in small and advanced modular reactors. The programme has been delivered at the National Nuclear Laboratory facility located on the Springfields site in the constituency of my hon. Friend the Member for Fylde.
I will also touch on the Government’s levelling-up agenda. We remain committed to addressing the economic disparities across the whole of the United Kingdom. The civil nuclear supply chain is playing an important role, currently supporting over 59,000 jobs across the United Kingdom in the areas where high-skilled, high-value jobs are needed most, including, for example, in the north of England and north Wales. As we develop the next generation of nuclear technologies, with the emphasis on high-quality manufacturing, I agree with the hon. Member for Strangford (Jim Shannon) that it would be excellent if the skilled workforce in Northern Ireland could play a part in that process.
I was delighted to hear that nearly 2,000 apprenticeships have been delivered on the Springfields site over the last 70 years. These kinds of training opportunities benefit not just the site and its workforce but the surrounding communities. Westinghouse and Springfields Fuels Ltd should be proud of their impressive achievement.
We keenly anticipate the outputs of the trial of the advanced nuclear skills and innovation campus at the Springfields site, which the hon. Member for Preston (Sir Mark Hendrick) drew attention to. We hope to see the successful collaboration between industry, academia and the National Nuclear Laboratory to support skills development. As my hon. Friend the Member for Bolton West (Chris Green) rightly pointed out, the objective should be to create careers, not just jobs.
As previously mentioned, the Government recognise the importance of maintaining and developing a strong nuclear skills base in the United Kingdom. I am aware of the plans for redundancies on the Springfields site this year. My Department has been working with Westinghouse, the National Nuclear Laboratory and the Nuclear Decommissioning Authority to explore opportunities to support the workforce on the Springfields site. We will also continue to encourage vendors and developers to maximise their UK supply chain content, including fuel, wherever that is possible, in order to support the economic growth of the UK nuclear sector’s supply chain.
Finally, I will reflect once more on the strategic importance of our sovereign fuel manufacturing capability and on the ability of the United Kingdom, as my hon. Friend the Member for Bolton West reminded us, to provide cost-effective support to reduce our reliance on imports, which may have a bigger carbon footprint. This Government would like to see the UK continuing to pioneer nuclear technologies in the lead-up to net zero. Our success will be underpinned by the capacity of our civil nuclear supply chain, including fuel manufacture. We are already considering, along with operators, fuel producers and the research and development community, how best to meet the needs of future nuclear power stations, including the opportunities provided by small and advanced modular reactors.
We also continue to work closely with our nuclear fuel industry and trade unions via the nuclear fuel working group, as noted by my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), to explore ways to secure the industry’s future. Those discussions are wide ranging, and I understand that EDF and Framatome are actively involved. Further Government support is under review as a part of the spending review. Further communications on the subject can be expected following the settlement.
In the meantime, the nuclear fuel working group that we have set up will meet again this month and, as my hon. Friend the Member for Blackpool North and Cleveleys said, it is important that we continue the dialogue and make sure that opportunities and ideas are given proper consideration. My right hon. Friend the Minister for Business, Energy and Clean Growth is taking a very active interest in this important issue.
The Government have made a clear commitment to nuclear as part of our future low-carbon energy mix. The UK’s success in achieving our net zero ambitions will be underpinned by the critical work carried out in the civil nuclear supply chain. We will continue to work with the nuclear industry to maintain our sovereign capability and the benefits that it brings for the local workforce and surrounding communities.
Government Chemist Review 2020
Amanda Solloway Excerpts(2 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The 24th annual review of the Government Chemist has been received. The review will be placed in the Libraries of both Houses plus those of the devolved Administrations in Wales and Northern Ireland. The review will also be laid before the Scottish Parliament.
The Government Chemist is the referee analyst named in Acts of Parliament. The Government Chemist’s team carry out analysis in high profile or legally disputed cases. A range of referee analysis work was carried out during 2020, which included the evaluation of genetically modified organisms in rice products, honey authenticity and the labelling of a novel food supplement. The Government Chemist continues to work closely with Government Departments, their governance group, devolved Administrations, non-governmental organisations and industry, to address strategic cross-Department issues such as cannabidiol (CBD) and SARS-CoV-2 viral detection.
[HCWS182]
Newport Wafer Fab Sale
Amanda Solloway Excerpts(2 years, 9 months ago)
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Mr Speaker
We have gone slightly out of order. The hon. Member was meant to just ask the urgent question, and then come back. If the Minister can roll the two together, I will then go to the shadow Minister.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
Of course, Mr Speaker. The Government recognise Newport Wafer Fab’s value as a company, and its contribution to consortia based at the south Wales compound semiconductor cluster. The Government are committed to the semiconductor cluster and the vital role that it plays in the UK’s economy. The Welsh Government have previously provided financial support to the company, as economic development is devolved and the responsibility of the Welsh Government.
Under the Enterprise Act 2002, the Government have powers to intervene in mergers and takeovers that raise national security concerns. We have recently strengthened those powers in the National Security and Investment Act 2021, which is expected to come into force at the end of this year, but it is right that commercial transactions are primarily a matter for the parties involved. The Government have been in close contact with Newport Wafer Fab, but do not consider it appropriate to intervene in this case at the current time.
We will continue to monitor the situation closely, and, as part of that, the Prime Minister has asked the national security adviser to review this case. Separately, work is under way to review the wider semiconductor landscape in the United Kingdom. As I am sure the House will appreciate, I am unable to comment on the detail of commercial transactions, or of any national security assessment of a particular case.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I congratulate the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) on securing the urgent question.
Newport Wafer Fab is a symbol of British innovation and world-class employment—not just its 450 employees but the wider regional semiconductor cluster. It is also a testament to the long-term role of public investment in strategic economic planning by the Welsh Government, so the priority must be to secure a viable long-term future for what is the UK’s largest semiconductor manufacturer. With European automotives protesting over chips shortages and promising to ramp up domestic production, it is clear that Newport Wafer Fab is a strategic economic asset.
Labour welcomes investment in the business, as we welcome almost all inward investment in thriving British industries, but, given the importance of semiconductors to our country’s critical infrastructure, there is a clear case for examining this on national security grounds, and it is a pity that the Minister did not make it. Global competition to secure microchip development is accelerating. Our national security interests require a strong position in this contested market, so how will the Minister now ensure that this vital national economic and technology asset is protected? Will she use the powers in the National Security and Investment Act 2021 to urgently scrutinise this takeover? If the sale is blocked on national security grounds, will the Government work creatively and urgently to secure the financing that the business needs? All options must be kept on the table, including a role for potential public equity investment.
As Labour argued during the passage of the NSI Act, the Government have consistently outsourced British national security and economic interests, because Ministers have prioritised market zeal over British security, as in 2012 when they let the Centre for Integrated Photonics, a prize British research and development centre, be taken over by Huawei. That is why Labour is calling for the national security and public interest test regime to be strengthened. This is a critical test of whether the Government are willing to use these new powers or not, which goes to the heart of what kind of industrial strategy we have and what kind of country we want to be.
Amanda Solloway
As laid out in the integrated review, China is a systemic competitor. The scale and reach of China’s economy, the size of its population, its technological advancement and increasing ambition to project its influence on the global stage, for example through the belt and road initiative, will have profound implications worldwide. Open, trading economies such as the UK will need to engage with China and remain open to Chinese trade and investment, but they must protect themselves against practices that have an adverse effect on prosperity and security. Co-operation with China is vital in tackling transnational-type challenges, particularly climate change and biodiversity loss.
The UK wants a mature, positive relationship with China, based on mutual respect and trust. There is considerable scope for constructive engagement and co-operation, but as we strive for that positive relationship, we will not sacrifice either our values or our security. It has always been the case that where we have concerns, we will raise them, and where we need to intervene, we will. The Government have a range of legislative and regulatory powers to protect infrastructure and critical services, including the new National Security and Investment Act 2021. The NSI Act is nation-agnostic: acquisitions should be considered on a case-by-case basis, which will help to ensure that the Act is not discriminatory and that we uphold our World Trade Organisation obligations.
Tom Tugendhat (Tonbridge and Malling) (Con)
I pay tribute to my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) for the timing of his urgent question—which is clearly rather better than my timing. May I ask the Minister—who is very kindly in her place—about the National Security and Investment Act 2021? The Act set forth various conditions for securing various elements of British industry, but as set out, that was all to be done by central Government, not by devolved Administrations. Clearly this is one of those moments, because there is a global semiconductor chip shortage, delaying the production of white goods, cars and, indeed, military equipment.
I am told that Newport Wafer Fab is a key partner for the development of—I am afraid I will have to use the technical terms, because I am not qualified to translate them—RF MMIC high-frequency GaN designs for defence 5G radar systems. This is a £5.4 million project led by the Compound Semiconductor Applications Catapult and Cardiff University, with Newport Wafer Fab providing process development expertise and a route to scale up within a proposed expansion of Newport Wafer Fab 10.
If that does not put Newport Wafer Fab into the national security bracket, I do not know what does. The idea that this is a matter for the Assembly or the Government in Wales is, I am afraid, simply not the case. The Prime Minister seems to have pre-empted that, as he has asked the National Security Adviser, as he told the Liaison Committee the other day, to have a look into this. Will the Minister now commit, on behalf of her Department, to present the National Security Adviser’s report to Parliament, to allow us to hear the evaluation of Her Majesty’s Government and to debate it?
Amanda Solloway
I acknowledge the work that my hon. Friend does, which is greatly appreciated. As he will know, the Act focuses on acquisitions of control over qualifying and entitled assets. That means that once the Act is commenced we will be able to scrutinise and, if necessary, intervene in takeover companies and in the purchase of individual assets, such as intellectual property. The Government are absolutely clear that where concerns are raised we will intervene. However, my hon. Friend and the House will appreciate that I cannot go into any detail or comment on commercial transactions or national security assessments.
Stephen Flynn (Aberdeen South) (SNP)
Seventy-seven days have passed since the National Security and Investment Act received Royal Assent. In the previous months, I and colleagues across the Chamber sought to work constructively with the Government to ensure that that legislation was as robust as it possibly could be. Notwithstanding the fact that the Government rejected most of our suggestions, we all backed the Act because it was in our collective interest to do so, yet it appears to have been rendered almost useless at its first hurdle. I respectfully suggest that had it not been for the intervention of the Chair of the Select Committee on Foreign Affairs, it is doubtful that the Prime Minister would have sought national security advice on this matter. Why did it take an intervention from a senior Government Back Bencher for the Government to take this matter seriously? Is the National Security and Investment Act as it stands simply not up to the task? Is it not worth the paper it is written on?
Amanda Solloway
The Government have looked closely at the transaction and do not consider it appropriate to intervene at the current time. However, as the Prime Minister made clear at the Liaison Committee last week, he has asked the National Security Adviser to review this.
Angela Richardson (Guildford) (Con) [V]
The pandemic has shown us the importance of supply chains and of the ability to produce the materials we need here in the UK. We also know that semiconductors are a vital component of many of the day-to-day items that we use and take for granted. A disruption to the supply chain of semiconductors will have far-reaching consequences. Will my hon. Friend set out what steps the Government are taking to strengthen their powers in relation to the threat of hostile investment?
Amanda Solloway
In 2020, the Government amended the Enterprise Act 2002 so that we could intervene in mergers and takeovers that threaten our ability to combat a public health emergency such as coronavirus. As the House will know, we have recently overhauled our investment screening system through the new National Security and Investment Act so that we can intervene in takeovers of companies or purchases of assets that pose a risk to national security. The NSI Act will allow the Government to scrutinise and intervene in acquisitions that may pose national security risks. It also provides businesses and investors with predictable, legally defined timelines and processes for decisions on acquisitions. The Act requires particularly sensitive acquisitions to be approved by Government before they are completed, but the vast majority of acquisitions will be unaffected by these powers.
Ruth Jones (Newport West) (Lab)
I am grateful to the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) for this morning’s urgent question and for speaking to me about it last night. Newport Wafer Fab is in my constituency and I have in recent days had a number of meetings about the issue, and have spoken to many people across Newport West who are watching events very closely. Newport Wafer Fab is part of the unique semiconductor cluster in Newport West—the only one in the world, and I am so proud. It employs more than 450 people who are highly skilled, well paid and need job security. I fully understand the need for scrutiny of any deal involving potentially hostile foreign takeovers and national security is of course paramount, but my constituents and I want to see an open, transparent and fair deal. Will the Minister meet me at the earliest possible opportunity so that we can ensure that whatever happens next, those jobs, the impact on the people of Newport West and the strategic nature of this plant will be kept in mind every step of the way?
Amanda Solloway
The hon. Lady makes an important point. The Government have looked closely at the transaction and do not consider it inappropriate, but as the Prime Minister has made clear, the National Security Adviser will review it. I am happy to meet the hon. Lady or at least facilitate a meeting with the appropriate Minister.
Kevin Hollinrake (Thirsk and Malton) (Con)
My hon. Friend talks about mutual respect between ourselves and the Chinese people, which I believe is correct, but the Chinese Government do not respect rules-based order, particularly in enterprise and commerce. This semiconductor plant is critical to our UK economy, particularly at a time of rising demand for semiconductors, and the 450 jobs at Duffryn are also very important. Does she agree that the protection of those jobs, that plant and the UK-owned intellectual property is critically important to her and to this Government?
Amanda Solloway
Like my hon. Friend, I am of course totally committed to skills, as are the Government. In fact, the Government have invested £800 million in compound semiconductor research. In 2018, through UK Research and Innovation, we established a compound semiconductor applications catapult with £50 million of funding to collaborate with large companies and start-ups to develop and commercialise new applications utilising this technology. To date, the catapult has initiated projects worth more than £100 million. The UK has over 100 companies actively working with compound semiconductors. About 5,000 UK companies, 90% of which are small and medium-sized enterprises, are designing and making electronic components, devices, systems and products. The catapult is a national body dedicated to compound development across the United Kingdom. The UK Government, via UKRI and the Welsh Government, have additionally provided significant funds to help to establish south Wales university structures such as the Institute for Compound Semiconductors.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op) [V]
This is a very important question. A few years ago, I fought the takeover of Syngenta in my constituency—one of the top world leaders in plant protection, fertiliser and all that complicated research stuff. It was taken over quickly by the Chinese—not by the Chinese, but by the Chinese Communist Government. There is nothing on the stock exchange; it is owned by the Chinese Government. Most people in this country do not realise just how widespread this insidious Chinese takeover of so many strategic assets in our country is. Will the Minister ask her bosses to have an audit of how far this takeover of British companies has now gone? As most people know, the whole of the electricity transmission in London and the south, with 10 million customers, is owned by the Chinese—or, again, the Chinese Government. How far can this go before we wake up to what is really going on? It is insidious, it is dangerous, and it is a real threat to our national security.
Amanda Solloway
The Government do have a wide range of legislative and regulatory powers to protect infrastructure and critical services, including the National Security and Investment Act 2021, which will allow the Government to scrutinise and intervene in acquisitions that may pose national security risks. It also provides businesses and investors with predictable, legally defined timelines and processes for decisions on acquisitions. The NSI Act requires particularly sensitive acquisitions to be approved by the Government before they are completed. However, the vast majority of acquisitions will be unaffected by these powers.
Bob Blackman (Harrow East) (Con) [V]
When it comes to issues of national security, there can be no compromise. I am one of those who believes in the free market and believes in companies being bought and sold where appropriate, but national security must trump that. In these circumstances, this is such a vital aspect of both our industry and our national security that the Government must intervene. I understand that my hon. Friend cannot comment on issues of national security to the House today, but will she undertake to return to the House when a final decision is made and inform the House so that we can scrutinise it both for value for money and on national security grounds?
Amanda Solloway
As laid out in the integrated review, China is a systematic competitor. The scale and reach of China’s economy, the size of its population, its technological advancement and its increasing ambition to project its influence on the global stage through programmes such as the belt and road initiative will have profound implications worldwide. Open trade economies such as the United Kingdom will need to engage with China and remain open to Chinese trade and investments, but they must protect themselves against practices that have an adverse effect on prosperity and security. Co-operation with China will also be vital in tackling transnational challenges such as climate change and biodiversity loss, as I have mentioned.
The UK wants a mature, positive relationship with China based on mutual respect and trust. There is considerable scope for constructive engagement and co-operation, but, as we strive for that positive relationship, we will not sacrifice either our values or our security. It has always been the case that we raise concerns where we have them, and where we need to intervene, we will. The Government have a range of legislative and regulatory powers to protect infrastructure and critical services including the New National Security and Investment Act 2021, which is nationally agnostic. Finally, acquisitions should be considered on a case-by-case basis, and that helps to ensure that the Act is not discriminatory. We will uphold our World Trade Organisation obligations.
Janet Daby (Lewisham East) (Lab) [V]
At a time when the Chinese regime is stepping up its human rights abuses against the Uyghurs in Xinjiang, Britain should be increasing its sanctions. Instead, we are giving the CCP a bigger stake in our economy. What plans does the Minister have to ensure that state pension funds are not investing in companies linked to abuse of the Uyghurs? What actions will she take to further censure the CCP?
Amanda Solloway
I thank the hon. Lady for her question. The evidence of the scale and severity of human rights violations perpetrated in Xinjiang against Uyghur Muslims is far reaching and paints a truly harrowing picture. China must be held to account for its human rights violations. As the Foreign Secretary set out in his statement to the House on 22 March,
“the evidence points to a highly disturbing programme of repression”
in Xinjiang, and the world
“cannot simply look the other way.”—[Official Report, 22 March 2021; Vol. 691, c. 621.]
He announced the imposition of global human rights sanctions alongside the EU, US and Canada on the perpetrators of the gross human rights violations taking place against the Uyghurs and other minorities in China. He also, on 12 January, announced a series of measures to help ensure that UK businesses and the public sector are not complicit in human rights violations.
John Howell (Henley) (Con)
Is my hon. Friend aware of what the Chinese have promised as part of the deal? I recognise the need to make semiconductor producers more efficient and, if she looks at Taiwan, she will see a company that has had billions poured into it to make it more efficient. Have the Chinese promised that for Wales?
Amanda Solloway
The Government have looked closely at the transaction and do not consider it appropriate to intervene at the current time. However, to reiterate, the Prime Minister made it clear at the Liaison Committee last week that he has asked the National Security Adviser to review that. Of course, the Government are reviewing their policy in the industrial sectors following the publication of “Build Back Better” and the introduction of the National Security and Investment Act. Significant support has been available through research and development funding. The Department for Business, Energy and Industrial Strategy is keen to support developments in supply chains and specific markets for UK growth.
Mr Peter Bone (Wellingborough) (Con)
I had the great pleasure of living in Newport for more than a decade. I listened carefully to the hon. Member for Newport West (Ruth Jones) and would not want to say anything that would deter investment in that great city, but I am also concerned about national security. The excellent Minister said that the Government have looked carefully at the sale. Have they done an impact assessment? If so, have they published it?
Amanda Solloway
As I have said, the Government have looked closely at the transaction and do not consider it appropriate to intervene at the current time. The Prime Minister made it clear at the Liaison Committee that he would ask the National Security Adviser to do a review. I am afraid that I will have to get back to my hon. Friend on an impact assessment as I do not know that.
Mr Speaker
I think that was a hint that the Government should provide them when they are promised.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I congratulate my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) on his question.
May I say to the Minister that I think the Government are in an unholy mess over this? It is no good their telling us that there is a very clear definition of what is strategic and what is not strategic. In the course of this failure to make a decision, did they look at what China thinks of semiconductors? China is the biggest exporter in the world and is busy buying up semiconductor technology everywhere it can find it. It has identified semiconductor technology as one of the key areas that it needs to dominate globally, and it is busy stealing technology, getting other people’s intellectual property rights and buying up companies. The idea that a semiconductor is not strategic! The technology will be used in almost everything we do—in everything we produce that is electronic.
My simple question is: are we now in a kind of Project Kowtow, where we just have to do business with the Chinese no matter what? That is outrageous. The Minister must take back to her Cabinet colleagues that it is not going to pass. We should have used the Act and blocked the deal.
Amanda Solloway
I reiterate that the Government have looked closely at the transaction and do not consider it appropriate to intervene at the present time. The Prime Minister made it clear at the Liaison Committee last week that he has asked the National Security Adviser to review this. The Government are committed to the semiconductor sector and work is under way to review the wider semiconductor landscape in the United Kingdom.
Jim Shannon (Strangford) (DUP)
I concur with the comments of the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith). I ask a question along the same lines: in relation to national security and jobs, is this beneficial for the UK?
The Chinese Government have been, and are, responsible for human rights abuses—including of Christians, Falun Gong and Uyghur Muslims—on a level that is unknown in the rest of the world, despite world opinion and despite our representations on the matter. However, they do listen to economic arguments. How can we use this opportunity to challenge them to ensure that they act? We do not want the hollow words that we always get from them; we want action. Before any deal goes through and before any sale happens, let us make sure that human rights abuses are reduced and that they are totally committed to that.
Amanda Solloway
As I mentioned, the Government are completely committed to human rights and are mindful of everything we need to do on that. We have looked very closely at this transaction. I can give the hon. Gentleman my reassurance that the National Security and Investment Act will allow the Government to scrutinise and intervene on any acquisitions that may pose a national security risk. I reiterate that the Government want a mature, positive relationship with China based on mutual respect and trust. There is considerable scope for constructive engagement, but as we strive for a positive relationship, we must not sacrifice either our values or our security.
Mr Speaker
I now suspend the House for a few minutes to enable the necessary arrangements to be made for the next business.
Space Debris
Amanda Solloway Excerpts(2 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
It is a great pleasure to serve under your chairmanship, Mr Dowd. I congratulate my right hon. Friend the Member for Kingswood (Chris Skidmore) on securing this incredibly important debate and on continuing to champion our space sector throughout his time as a Minister and in this House. I know that he recognises how important to the UK the risk of space debris is, as he noted in his excellent piece in The Times this morning. It is always a great pleasure to hear from the hon. Member for Newcastle upon Tyne Central (Chi Onwurah). I share her passion for the amazing space sector.
Over the past decade, the space industry has become one of the UK’s fastest growing sectors. It currently employs more than 45,000 people and generates £16 billion annually. The UK has grasped the opportunity by encouraging space sector growth, facilitating the development of space ports to launch satellites from the UK and investing in the OneWeb satellite broadband constellation. But it is important to recognise that space is getting crowded. Although space may seem vast, the orbits around Earth are a limited natural resource, and we must use them responsibly and protect them for future generations, including my granddaughter. It was interesting to hear my right hon. Friend talk about staring at the stars with his daughter.
The growing issue of orbital congestion and space debris could limit the benefits that we get from space and, in the extreme worst case, prevent our use of it altogether, so where does that leave the United Kingdom? Space debris is a global challenge that requires an international effort to remedy, as has been said. Nearly 3,000 working satellites share those orbits, and it is estimated that there are 130 million pieces of debris, about 30,000 of which pose a significant threat.
In the next decade, we expect to see growth to more than 10,000 active satellites in orbit, and we do not want a similar growth rate of debris. The UK has active partnerships in multilateral, intergovernmental forums, including the United Nations Committee on the Peaceful Uses of Outer Space and its sub-committees, and the Inter-Agency Space Debris Coordination Committee. We continue to lead in those forums, working with international partners to agree best practice, develop guidelines and support initiatives that enable and promote sustainability and limit the potential for accidents in space. To ensure that UK space operators meet international guidelines, approaches to space debris mitigation are a key part of UK spaceflight regulation that are considered during the licensing of their actives.
At the G7 in Cornwall last month, the UK facilitated an agreement between nations to strengthen our collective efforts to ensure the sustainability of space for all. That includes how we limit the generation of new orbital debris. We are not only talking; we are investing in technology to address this issue. Currently, our main mitigation against collisions between satellites and debris lies in our ability to detect, identify and track objects in space and take evasive action.
The UK Space Agency is working in partnership with the Ministry of Defence to improve our capability to monitor and warn of hazardous space events. In January, working closely with the UK Space Operations Centre, the UK Space Agency began piloting national collision warning services to enhance our national space surveillance and tracking capabilities. Also, joint civil and military space domain awareness helps to protect UK satellites in orbit and our critical national infrastructure, which is reliant on space services. However, as the amount of debris and the number of active satellites increases, accurately predicting potential collisions becomes harder.
The risk of collision and the number of false alarms can be minimised with better tracking and through the use of emerging and innovative new technologies, such as artificial intelligence, to sort through the mountains of data. However, if the volume of debris and the number of satellites in space continues to increase, as we expect, this action alone cannot fully mitigate the risk. Protecting longer-term UK interests in space will mean reducing the debris population and preventing the creation of new debris. We must look to tackle the cause of the problem, rather than just addressing the symptoms.
Space debris removal is not yet a common capability. However, space agencies, including NASA and the European Space Agency, have launched innovative programmes to combat debris, and the UK has played a real leading role in this activity. In 2019, we invested £80 million, through the European Space Agency, in debris and clean space activities, including research into detecting and tracking debris, lessening the burden of collision avoidance, limiting the production of more debris and cleaning up existing debris.
Working with Switzerland and through the European Space Agency, we are contributing to a satellite mission that will be able to capture and deorbit large pieces of debris. And recently, I had the great pleasure of meeting Astroscale to discuss its privately funded ELSA-d satellite, which right now is demonstrating technology that removes different satellites from orbit. In fact, it was absolutely fantastic to see. Both these missions are looking to utilise the operation centre that we built in Harlow precisely to manage and operate such innovative missions.
There is a commercial opportunity emerging in orbit servicing and in managing the safe disposal of satellites once they are no longer useful. Just last week, Edinburgh-based Skyrora announced a challenge to find and remove Prospero, the first British satellite to have been launched successfully by a British rocket.
Businesses across the world, but particularly in the UK, are developing the innovative technology to address this market, which is estimated to be worth over £2 billion over the next 15 years. We want UK industry to lead when it comes to the sustainable use of space. Last year, we awarded £1 million in grant funding to support projects led by United Kingdom companies, focused on mitigating the effects of harmful debris. This year, we will award a further £1.2 million to continue to develop the enabling technology and £800,000 to study the feasibility of a national mission to remove debris from orbit.
However, we recognise that UK leadership in this area can only trigger change if it is supported by international regulatory standards that require companies or nations to remove debris, in order to create a commercial market. Therefore, we should lead global discussions on the right safety and security norms, and ensure compliance with international obligations in space debris mitigation, while we invest in the research and development to best capture that commercial market of the future.
With significant strategic opportunities ahead, the UK needs to be the shaper of this evolving landscape. By taking leadership in space sustainability, the United Kingdom can drive national and international capability development, and regulatory advances. We can lead international action to establish rules governing the sustainable use of space through close working with allies and multilateral engagement. We must also continue to protect our industry and critical national infrastructure, and better understand the orbital environment through joint civil and military space domain awareness.
I can assure the hon. Member for Newcastle upon Tyne Central about our imminent space strategy, which we will launch in due course. Timely and sensible Government support will allow us to grow our industrial and academic capability, in order to support UK industry in taking opportunities in the emerging orbital market. This activity could quite literally provide a rocket boost to the economy.
We have an excellent opportunity to secure a leadership role in space sustainability, and with it a bright, sustainable future for the space and satellite application industry, which will deliver benefits for generations to come.
Business, Energy and Industrial Strategy
Amanda Solloway Excerpts(2 years, 9 months ago)
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Amanda Solloway
We need only look at the recent state of the sector report by Community Energy England, which identified 424 active community energy organisations across the United Kingdom run by 396 volunteers, to note that community energy projects can contribute to achieving net zero, not only by stimulating clean growth, but by acting as catalysts for raising awareness. As the hon. Member for Bath and my hon. Friend for Barrow and Furness pointed out, the promotion of behaviour change and the ability to build communities is a key outcome for us to achieve our 2050 goals.
[Official Report, 1 July 2021, Vol. 698, c. 144WH.]
Letter of correction from the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Derby North (Amanda Solloway):
An error has been identified in my response to the debate secured by the hon. Member for Bath (Wera Hobhouse).
The correct response should have been:
Amanda Solloway
We need only look at the recent state of the sector report by Community Energy England, which identified 424 active community energy organisations across the United Kingdom run by 3,096 volunteers, to note that community energy projects can contribute to achieving net zero, not only by stimulating clean growth, but by acting as catalysts for raising awareness.
Oral Answers to Questions
Amanda Solloway Excerpts(2 years, 9 months ago)
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Sarah Olney (Richmond Park) (LD)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
Having worked in the retail sector for a number of years, I sympathise with consumers who have been targeted by these dreadful scams. Guidance for businesses on how to spot and avoid getting caught out by scams is available on Business Companion and the Businesses Against Scams website; consumer advice is available on the Citizens Advice website. All of these are funded by Government.
Sarah Olney
The reported rise in remote banking fraud poses considerable concern to small and medium-sized enterprises, which are increasingly accessing online business banking services owing to the closure of high street banks in many of our communities. What steps is the Minister taking to ensure that SMEs are well equipped to navigate online banking and, by extension, recognise fraudulent activity?
Amanda Solloway
Businesses and consumers all fall victim to these scams, so it is important that they have an awareness of all online scams. They can report matters to Action Fraud; consumers can also go to the Citizens Advice scams action helpline.
Christian Matheson (City of Chester) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
My noble Friend the Minister for Investment met representatives of GKN Automotive on 21 May. GKN committed to considering all the viable alternatives to closure, including repurposing the Birmingham plant to produce parts for electrical vehicles, but it concluded that that was not commercially viable. The Government stand ready to assist the workers at this difficult time. I add that Nissan’s recent announcement shows that we are actively supporting UK electric vehicle production and supply chain growth.
Christian Matheson
In April, in a Westminster Hall debate, the Minister said:
“The Government are committed to doing what we can to save those…jobs”
of the 519 GKN workers, including through
“investments in capital equipment or in the skills needed to secure future vehicle technology.”—[Official Report, 28 April 2021; Vol. 693, c. 128-129WH.]
Those commitments were warmly welcomed. Does she understand that if the site on Chester Road closes with 519 job losses, it will be a hammer blow to the families of those workers, but also to the UK automotive sector at a time when we need to be powering ahead with electric vehicle technology?
Amanda Solloway
The hon. Member makes a really important point. He will know that I have every sympathy with GKN; he will also know that we have been having ongoing conversations recently. However, it is really a difficult situation. The Department for Work and Pensions and Jobcentre Plus work coaches will provide bespoke advice and guidance. In addition, the West Midlands Combined Authority and the Greater Birmingham and Solihull local enterprise partnership have several programmes that can support GKN employees to reskill for a new job or help them to start their own business.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Mark Eastwood (Dewsbury) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
We have made a commitment to level up all areas of the country. The plan for growth is a critical part of this and we will go further with the publication of a levelling-up White Paper later this year.
Mark Logan [V]
I wrote to the Minister outlining Bolton’s bid to be the home of the Advanced Research and Invention Agency, featuring the full support of the vice- chancellors of the University of Bolton and the University of Manchester, along with Innovation GM and a wider coalition. I am sure that even my neighbour but one, the Speaker, would find it difficult to resist Bolton’s attraction. We have kindly received a response from the Minister, and now that the advert for the ARIA chair has gone live, will she tell us when she would like to visit Bolton to support us in our ambition to reinvent Britain’s biggest town in line with the Government’s levelling-up agenda?
Amanda Solloway
My hon. Friend paints a fantastic picture of Bolton North East. He really is a wonderful advocate for his constituency, and he has a keen interest in ARIA, which I am delighted by. No decision has yet been taken on ARIA’s location, and I do not expect one to be reached until the chief executive officer and the chair are in post, but my hon. Friend will be delighted to hear that the open recruitment process for a visionary chair began yesterday, and I would encourage him and other hon. Members to share this exciting opportunity widely to reach as diverse a pool of candidates as we possibly can.
Peter Gibson
Whether it involves investing £105 million in Bank Top station, investing £23.3 million through the towns fund or establishing a new Department for Business, Energy and Industrial Strategy presence in Darlington, this Conservative Government are delivering on their manifesto commitment to level up. Does my hon. Friend agree that it is therefore short-sighted of LNER to propose to cut services to Darlington?
Amanda Solloway
I am glad that my hon. Friend recognises the work that the Government have done to support investment in the town, and I know that the Department for Transport and LNER appreciate his desire to ensure that his community continues to be well served by rail services across the north. His comments and those of his colleagues are exactly the level of detail that the consultation is looking to elicit, and it is important that the industry understands the strength of the business case, so I would urge him to continue to engage with the consultation process.
Mr Speaker
We now go to Alexander Stafford. Not here. Let’s go to Mark Eastwood, who is here.
Mark Eastwood
I am pleased that my hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) and I have put forward a £48 million joint levelling-up fund bid to support improvements to the Penistone line, which runs through our constituencies. Will the Minister agree to work with the Department for Transport and the Treasury in supporting this bid, which, if successful, would help to boost local businesses and bring much-needed jobs to my constituency, especially in Kirkburton and Denby Dale?
Amanda Solloway
My hon. Friend has been a tireless advocate for his constituency, most notably in his advocacy of the Dewsbury town deal. As he will know, the support of MPs is important for bids to the levelling-up fund, but he will understand that I cannot go further than that while the bids are being evaluated.
Stephen Flynn (Aberdeen South) (SNP)
Today marks 33 years since the Piper Alpha disaster, when 167 lives were lost and many more oil workers were injured. The trauma reverberates right across Aberdeen to this day, and I would like to pass on my thoughts to the friends and families of all those involved in that awful, awful tragedy.
We have heard three questions from Conservative Members and had three answers from the Minister, but we have not had a single mention of the fact that rather than being a Government who are levelling up, they are cutting back. Just last week we have seen furlough support sliced away from businesses, many of which have been unable to open or operate since the start of this pandemic. Many of them will also now be paying back covid loans, despite of course never being able to bounce back. So may I ask the Minister: how does pulling funding away from businesses help communities to level up?
Amanda Solloway
I would like to add my thoughts to those expressed by the hon. Gentleman about the Piper Alpha disaster. Across government, we are investing in Scotland through a number of routes, including the United Kingdom community renewal fund, the levelling-up fund and the future UK shared prosperity fund, to name but a few. For example, at the Budget we confirmed £27 million for the Aberdeen energy transition zone, in the hon. Gentleman’s constituency, which is helping to support north-east Scotland to play a leading role in meeting our net zero ambitions.
Stephen Flynn
I do not think the Minister actually answered my question, but let us look at another aspect of the levelling-up prospectus: freeports. The Scottish Government have been clear that they want freeports to have a green agenda and to have fair work and net zero at their core, but just last week the UK Government told us that they will ignore that green port prospectus and will instead seek to enforce their will on the Scottish Parliament and the Scottish people. So may I ask the Minister: when did levelling up become less about empowerment and more about dragging powers from Scotland back to London?
Amanda Solloway
I thank the hon. Gentleman for the question. This Government are committed to the levelling-up process, and we have made it incredibly clear that that is what we are going to do. We will have a levelling-up White Paper, which is to be issued in the autumn. We are ensuring that we are levelling up throughout the whole of the United Kingdom.
Beth Winter (Cynon Valley) (Lab) [V]
The UK Government talk about levelling up former coalfield communities such as those in my constituency, yet at the same time they have profited by billions of pounds from the mineworkers’ pension scheme since its privatisation in 1994. That money could be going to miners and their families, many of whom are experiencing hardship and are struggling to make ends meet. The Government’s announcement yesterday not to implement the recommendations of the cross-party Select Committee on Business, Energy and Industrial Strategy to redress this injustice was met with dismay and was described as a “slap in the face”. Will the Minister agree to review that decision and implement the BEIS Committee recommendations in full?
Stephen Morgan (Portsmouth South) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The Secretary of State for Business, Energy and Industrial Strategy has until 8 September 2021 to take his decision on whether or not to grant development consent for the proposal.
Stephen Morgan
I have long represented Portsmouth’s opposition to AQUIND, which would cause untold disruption to our communities and no clear benefits to my city. There are serious concerns about the company, its murky financing and the influence that its leaders have over Ministers who are responsible for giving the project the go-ahead. Last weekend, I launched a petition to give a real voice to local people who are opposed to the development. With no Secretary of State present today, will the Minister listen to the weight of concerns from my constituents and reject the damaging and suspicious proposals?
Amanda Solloway
Local communities have had the opportunity to raise concerns during the examination undertaken by the Planning Inspectorate. The Secretary of State will consider all relevant matters—I will ensure that I pass on the hon. Gentleman’s message—when he takes a decision, but as it is a live planning application I cannot comment further.
Dr Alan Whitehead (Southampton, Test) (Lab)
Is the Minister aware that we are talking about a company that, as its sole activity, is proposing to build an interconnector with France, that has attempted to get itself exempted from all the rules governing interconnectors, and that is now extraordinarily seeking Government backing to trash parts of Portsmouth to land its cable? Throughout all of this, it has never traded and is completely reliant for its existence on loans from unnamed overseas companies. But it has been active as a company in one other area: giving huge donations to the Conservative party and a number of its MPs to the tune of £1.1 million, either from the company itself or through the good offices of its part-owner. Now, perhaps in return, it wants the Government to support its rackety scheme through the Secretary of State’s personally approving its planning application. This whole thing stinks. I ask Ministers to call a halt to this seedy enterprise and certainly not endorse its wild and inappropriate planning proposals.
Amanda Solloway
As previously stated, the Secretary of State for BEIS will have until 8 September 2021 to take his decision on whether to grant development consent on this proposal.
Stephen Kinnock (Aberavon) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I thank the hon. Member for raising this important topic again after engaging in a recent Westminster Hall debate, and I know how passionately he cares about this subject. I know, too, that he will have welcomed the Government’s action on trade safeguards to protect our steel sector and jobs. We are also working closely with the Steel Council, reformed by the Secretary of State, on important matters such as decarbonisation, a sustainable future and procurement.
Stephen Kinnock
For as long as anyone can remember, steel MPs, trade unions and employers have been urging the Government to do something about industrial energy costs, and yet our steelworkers still face prices that are 86% higher than their French competitors, and that is after the Government’s compensation scheme has been factored in. With Ofgem planning to hike network charges even higher, what action is the Minister taking to block this potential hammer blow and to enable our steelworkers to compete on a level playing field?
Amanda Solloway
Since 2013, we have provided more than £500 million in relief to the steel sector. On 14 June, we published a consultation on the future of the compensation schemes, which will close on 9 August. Network charging, however, is a matter for Ofgem as the independent regulator, and decisions on its targeted charging review are for it to make. Government continue to engage with Ofgem to inform our understanding of the reform’s policy implications.
Bell Ribeiro-Addy (Streatham) (Lab)
Paul Howell (Sedgefield) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The Prime Minister has reasserted our commitment to restoring the UK as a science superpower and to increasing Government investment in R&D to £22 billion. We continue to make progress on the R&D road map and are planning to publish the R&D people and culture strategy alongside the innovation strategy in the coming weeks.
Chris Green
The life sciences ecosystem is incredibly interdependent and clinical trials are a key part of it. Will my hon. Friend join me in meeting key stakeholders to discuss how we can maintain our position as a world leader?
Amanda Solloway
Our ambition for clinical research is for a world-leading clinical research environment that capitalises on innovation, is resilient in the face of future healthcare challenges and improves the life of patients UK-wide. I would be happy to meet my hon. Friend to discuss that ambition.
Paul Howell
At North East Technology Park in Sedgefield, we have a hub of innovation-led businesses from space to defence, including companies such as Filtronic and Kromek, which are already established; many smaller ones such as Evince and PragmatIC, which are redefining the semiconductor space; and the North East Satellite Applications Centre of Excellence, which is operated by Business Durham. Does the Minister agree that places such as NETPark, with embryonic ecosystems already in place, can be the foundation stones of building back better and levelling up, and will she come and see for herself this amazing asset of the north-east?
Amanda Solloway
NETPark is an excellent example of how science parks bring together talented communities to turn ideas into global successes. As home to the two of the UK’s Catapult centres, NETPark is playing a vital role in helping us to build back better across the United Kingdom. I would be delighted to visit not just NETPark but the wider north-east, to see how the region is capitalising on its innovation and technology strengths in order to support its local economy and communities. I know that my hon. Friend enjoyed his visit there so much that he went back week after week.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
On Friday I visited Newcastle University’s dementia research centre and spoke to the wonderful scientists striving to cure this terrible affliction. But I also heard of the desperate conditions that early career researchers face, with Government funding commitments abandoned; grants ending as covid devastates medical research charities excluded from Government support; institutes closed as the Government’s international development funding is slashed; and post-docs eking out funding from project to project with no job security, working two jobs at once or working for free, and unable to apply for funding in their own name—and the most disadvantaged are hardest hit. How can the Minister say that she is supporting science when she is throwing the next generation of scientists to the wolves?
Amanda Solloway
I always appreciate the hon. Member’s candid questions. She will know that we have been working on the people and culture strategy, which very much takes into account early career research, career progression and all the important things that we need to consider to ensure that our R&D system is really allowed to thrive and flourish. In May we announced funding of £15 million from BEIS, together with a £5 million fund from the Department of Health and Social Care, to support early career researchers, supported by charities, helping to protect the pipeline of research superstars who will have a fantastic impact in improving patients’ lives in future.
Caroline Lucas (Brighton, Pavilion) (Green)
Dr Julian Lewis (New Forest East) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The National Security and Investment Act 2021 delivers important reforms of UK investment-screening powers, helping to keep this country safe. The Government look forward to working with the BEIS Committee to enable it to provide the same effective scrutiny of the Investment Security Unit as it does of the rest of the Department’s work. We are in the process of developing a memorandum of understanding to allow it to do just that.
Dr Lewis
Will my hon. Friend the Minister kindly explain the practical arrangements that will be made to ensure that the BEIS Committee can scrutinise the top secret documents involved in the work of the Investment Security Unit? Specifically, will the Committee’s members and staff be cleared to see and handle such documents, and will they be given access to secure premises in which to read and discuss such highly classified papers? And I think the answer is “fat chance”.
Amanda Solloway
No, we will make sure that the BEIS Committee has the information it needs to fulfil its remit and scrutinise the work of the Investment Security Unit. As my right hon. Friend will be aware, the Osmotherly rules set out how secret and top secret material should be handled with respect to Committees other than the Intelligence and Security Committee. I can assure the House that we will have regard to those principles as we develop the memorandum of understanding with the BEIS Committee.
Paul Holmes (Eastleigh) (Con)
Enabling Community Energy
Amanda Solloway Excerpts(2 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway) [V]
It is, as always, a great pleasure to serve under your chairmanship, Sir David. I thank the hon. Member for Bath (Wera Hobhouse) for securing this important debate. I am representing the Department in place of the Minister for Business, Energy and Clean Growth, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan). As I am taking part virtually, I am unable to take any interventions, but I will happily write to people if they have specific questions that are not covered in my remarks.
I reassure the House that this Government absolutely recognise the valuable role that community and local renewable energy projects can and do play in supporting the UK’s national net zero targets. I know that all Members will agree that excellent work is already under way in the community energy sector. We have heard about a number of such projects from several hon. Members, including my right hon. and learned Friend the Member for Kenilworth and Southam (Jeremy Wright), my hon. Friends the Members for Clwyd South (Simon Baynes) and for Barrow and Furness (Simon Fell), and the hon. Members for Bristol North West (Darren Jones) and for North East Fife (Wendy Chamberlain).
We need only look at the recent state of the sector report by Community Energy England, which identified 424 active community energy organisations across the United Kingdom run by 396 volunteers, to note that community energy projects can contribute to achieving net zero, not only by stimulating clean growth, but by acting as catalysts for raising awareness. As the hon. Member for Bath and my hon. Friend for Barrow and Furness pointed out, the promotion of behaviour change and the ability to build communities is a key outcome for us to achieve our 2050 goals.[Official Report, 12 July 2021, Vol. 699, c. 1MC.]
To support community energy projects, the Government currently fund the rural community energy fund. The £10 million scheme supports rural communities in England to develop renewable energy projects, which provide economic and social benefits to the community. Since the fund’s launch in 2019, it has received 1,214 inquiries and 188 applications, and it has awarded more than £4.5 million in grants to projects focusing on a variety of technologies, including solar, wind, low-carbon heating and electric vehicle charging.
Many Members spoke about the recent Environmental Audit Committee inquiry into community energy and its several recommendations. As many Members will be aware, the Secretary of State published a response last month—it can be viewed on the EAC website—and stated that we are considering future plans for community energy in the net zero strategy, which will be published later this year. As my right hon. and learned Friend the Member for Kenilworth and Southam mentioned, we will draw on evidence from this country and around the world when assessing the most effective way of meeting our net zero goals.
Many Members also spoke about the Local Electricity Bill and the need to establish a right to local supply, which would allow electricity generators to sell their power directly to local consumers. That Bill sought to establish that right through the creation of a local supply licence and to ensure that the costs and complexities of being a local energy supplier are proportionate to the scale of its operation.
As my hon. Friend the Member for Waveney (Peter Aldous) stated, the Local Electricity Bill was unsuccessful in receiving a Second Reading in the previous Session. While the Government agreed with its broad intentions, we did not support the Bill as a means to enable local energy supply. There is already flexibility in how Ofgem regulates energy supply to allow for local suppliers. Ofgem has powers to award supply licences that are restricted to specified geographies and/or types of premises. However, many Members have observed that, while the right to local supply exists, the costs of becoming a supplier currently act as a barrier to entering the market.
Making more substantial changes to the licensing framework to suit specific business models may create even wider distortion elsewhere in the energy system. Artificially reducing network costs for local energy suppliers, as the Bill appeared to suggest, would be distortive. It would mean higher costs falling on to consumers, with costs increasing as more local suppliers entered the market. It is important that we take a broad view of all consumers when making changes to the energy market, including consumer protection measures, which form an important part of the supply licence.
The Government support the development of new business models to supply energy consumers and to help achieve our net zero ambition. The 2020 energy White Paper committed the Government to review the overall energy retail market regulatory framework. That review will assess the changes that may be needed to ensure that the framework is fit for purpose and allows new business models to come forward. We will engage closely with community energy stakeholders as part of the review, and I welcome the various offers from Members today.
To support the establishment of more local energy schemes, we will also continue to look at a full range of other options to support local involvement in tackling climate change in the net zero strategy, which will set out how we will meet our net zero goals overall. My hon. Friend the Member for Waveney raised several additional points, and I look forward to receiving and responding to his letter.
As my hon. Friend the Member for Clwyd South suggested, I am happy to recognise the role that Wales, Scotland and Northern Ireland play in taking forward community energy projects. I was interested to learn from the hon. Member for North East Fife about the community-owned project on Orkney. I note that community energy is a devolved policy, and each nation has different policies and financial support. Indeed, they may use different definitions of community energy. The hon. Member for Bristol North West asked for information on the role of the shared prosperity fund and, again, I will be pleased to write to him in response.
This debate is testament to the fact that there is clear cross-party support and a growing appetite for community energy. I close by reiterating that this Government are supportive of community energy. We absolutely understand that communities are key to the Department’s wider efforts to decarbonise the country and create a cleaner, greener future for us all. I thank the hon. Member for Bath once again for securing this important debate.
Sir David Amess (in the Chair)
I call Wera Hobhouse to sum up. You have until 3 o’clock.
Draft Climate Change Act 2008 (Credit Limit) Order 2021
Amanda Solloway Excerpts(2 years, 10 months ago)
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The Chair
Before we begin, I would like to remind Members about the social distancing regulations. Seats available to Members are clearly marked. I also remind Members that Mr Speaker has stated that masks should be worn in Committee when not speaking. Hansard colleagues will be grateful if you send any speaking notes to hansardnotes@parliament.uk.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I beg to move,
That the Committee has considered the draft Climate Change Act 2008 (Credit Limit) Order 2021.
It is a pleasure to be here today, Mr Mundell. The draft order was laid before the House on 13 May. This Government are committed to being a world leader in climate action and to decarbonising the UK economy while driving economic growth, meeting our ambitious targets for net zero emissions by 2050.
While the current pandemic is rightly at the forefront of our work as we rebuild, we must build back better, greener and faster. That means supporting green jobs, levelling up, accelerating our path to meeting net zero, and creating a long-term advantage for the UK in low-carbon sectors. We have shown that rapid progress on decarbonisation is possible alongside a thriving economy. Our emissions have gone down almost 44% over the last 30 years, and our economy has grown by 78% in the same period. We are also in the process of reaching a significant milestone in approving legislation to enshrine in law the UK’s sixth carbon budget, proposing a target that will reduce greenhouse gas emissions by 78% by 2035, compared with 1990 levels. That is a huge commitment and the Government are working flat out to achieve it.
As part of the Climate Change Act 2008, the Government must set a limit on the number of international carbon credits that can be credited to the UK carbon account for each budgetary period. These carbon credits represent the reduction or removal of greenhouse gas emissions overseas. The draft order sets a limit on the net number of international carbon credits that may be used to meet the fourth carbon budget, which runs from 2023 to 2027.
The Climate Change Act, which was passed with near unanimous support, allows for the flexibility of using carbon credits to meet a carbon budget if necessary. Our intention is to meet our nationally determined contribution and net zero commitment through domestic action, but having that flexibility helps to ensure that even if unforeseen circumstances affect how we might most effectively deliver against our carbon budgets for the taxpayer, the UK is better able to meet our legally binding emissions target under the Act.
The draft order will set the credit limit of the fourth carbon budget at 55 million tonnes of CO2 equivalent, which is only 2.8% of the total carbon budget. That 55 million tonnes of CO2 equivalent is the same amount of flexibility as the House agreed for the credit limit orders for the second and third carbon budgets. I must also highlight that this draft order does not commit the UK Government to buying international credits. As we have witnessed with previous carbon budgets, this Government have an impressive track record of delivering clean growth and have not used any allowances set for the previous carbon budgets. This Government will continue to put forward ambitious plans to meet carbon budgets through domestic action and are committed to meeting our world-leading target.
It is at this point that I should reassure colleagues that the limit set by the draft order excludes any net use of credits that result from the operation of the European Union emissions trading system. The exclusion is required because, while the UK emissions trading scheme replaced UK participation in the EU ETS on 1 January 2021, Northern Ireland electricity generators continue participate in the EU ETS, and so will receive EU ETS allowances within the fourth budgetary period.
In determining the appropriate fourth carbon budget credit limit, subject to the present discussion, the Government have considered the advice of the Climate Change Committee and the views of the devolved Administrations, as well as the range of factors required by the Act, including the economic, fiscal, social, scientific and international circumstances. All the parties agree that the purchase of international credits should not replace domestic action on emissions when delivering our net zero target. Although the Climate Change Committee and the devolved Administrations recommended a zero credit limit, the Government have concluded that it is best to maintain a small amount of flexibility during the fourth carbon budget period. That builds resilience into our projections and allows us flexibility to respond to future uncertainties—a consideration that any responsible Government should factor in.
We are extremely grateful to the Climate Change Committee for its expert analysis and advice, and look forward to working closely with it on the fundamental decisions we will need to take over the coming years to drive forward our progress. As hon. Members know, we accepted its advice and aligned our positions on the sixth carbon budget targets and nationally determined contribution. However, we have not always agreed on points of detail—for example, the balance of emissions reductions between sectors, or exact policy interventions—and we undertake our own robust analysis alongside it.
This ambitious Government are taking decisive action to ensure that we deliver the fourth carbon budget domestically, but it is prudent to allow ourselves flexibility in the future to manage the uncertainty of emissions projections. We are dedicated to tackling climate change throughout our commitments and action. On 21 May, through our G7 presidency, we reaffirmed our strong and steadfast commitment to strengthening implementation of the Paris agreement and to unleashing its full potential. Building on that, we fully intend to use our vital role hosting the COP26 negotiations in November to catalyse ambitious global action to cut emissions. Ahead of COP26, we will set out our ambitious plans across key sectors of the economy to meet our climate commitments. That will include a comprehensive net zero strategy, which will set out a vision for transitioning to a net zero economy and raise ambition as we outline our path to meet net zero by 2050.
Amanda Solloway
I thank the hon. Member for Greenwich and Woolwich (Matthew Pennycook) for his contribution to the debate.
It is because of the Government’s ambitious proposal and actions that the UK finds itself at the forefront of climate action and a world leader in reducing emissions, as highlighted through our presidency of this year’s COP26 summit. As I said, the UK has seen the sharpest reduction in emissions of any G7 country since 1990. We also have the highest emissions reduction target for 2030 of any G7 country. As the hon. Gentleman mentioned, we have been in consultation with the devolved Administrations and did recommend a zero credit limit. However, the Government have concluded that it is best to maintain a small amount of flexibility over the fourth carbon budget period, as it builds resilience into our projections and allows us the flexibility to respond to future uncertainties, which are a consideration that any Government should factor in.
The Government intend to continue with our ambitious proposals and our position remains that we intend to meet all our targets through domestic abatement, as we have in the past. Nonetheless, international credits could offer a contingency for delivering our legally binding targets, and so the elimination of their potential use, as allowed under the Climate Change Act 2008, would not be prudent in our view. It is also important to reiterate that this legislation does not commit the UK to buying international credits and, as we have witnessed from previous carbon budgets, the Government have not used any international credits to date, even with a 55 million tonnes of carbon dioxide equivalent limit. I can confirm that the current legislation is only concerned with the fourth carbon budget. We will consider the limit for the fifth and sixth carbon budgets at the appropriate time.
As I mentioned in my opening speech, despite the considerable challenges we are facing on the other side of the pandemic, we can leverage our strength to deliver a better and greener economy and go further and faster to accelerate the transition to net zero carbon emissions by 2050. I commend the draft regulation to the Committee.
Question put.
UK Steel Sector: Supply Chains
Amanda Solloway Excerpts(2 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
It is a great pleasure to serve under your chairmanship, Sir Graham. I thank the hon. Member for Aberavon (Stephen Kinnock) for securing the debate and giving us the opportunity to discuss this incredibly important topic. It is encouraging to see so many hon. Friends and hon. Members participating. I am delighted to see the passion demonstrated by everyone this morning. That is a true reflection of the role that the steel sector plays in communities, and its importance as a foundation industry in the national economy.
Although ministerial colleagues and I are consistent and passionate advocates for the steel industry—hon. Members will know that I have a background in manufacturing—the topic of the debate is not within my policy portfolio. Should I fail to answer specific questions, I will ensure that they are responded to in writing by relevant Ministers or officials.
I thank the hon. Member for Aberavon for high- lighting safeguard measures. Hon. Members might be aware that the Trade Remedies Authority will make a recommendation on whether to extend or revoke the UK’s steel safeguard measures that are due to expire on 30 June 2021. The TRA is an independent body and the recommendation will be based on evidence, following consultation with interested parties from the steel sector.
As mentioned, the Secretary of State for International Trade can accept or reject the recommendation but not modify or partially accept it. She cannot extend the measures if the TRA does not recommend that. If the Secretary of State rejects the recommendation, then all the measures will expire. As my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) highlighted, my Department is working closely with the Department for International Trade on the issue.
The hon. Member for Sefton Central (Bill Esterson) spoke of the regulations governing the TRA. The Secretary of State for International Trade has spoken about her plans to review whether the UK’s trade remedies framework should be strengthened. I fully recognise that the global economic conditions continue to be challenging for the steel industry. Global overcapacity in the sector is a significant issue, and was estimated at 625 million tonnes in 2020 by the Organisation for Economic Co-operation and Development. The excess in capacity produced globally depresses prices and harms UK steel producers’ profitability.
The hon. Member for Newport East (Jessica Morden) raised the topic of bonded warehouses. The Secretary of State has agreed to meet the management teams at Liberty Newport and Tredegar. As referred to by the hon. Member for Aberavon, the covid-19 pandemic has clearly had a disruptive impact on the steel sector. Recent supply shortages of steel have temporarily increased its price. However, that is unlikely to be sustained as the markets readjust.
Although the economic context is challenging, hon. Members should be in no doubt that the Government are committed to the UK steel industry, as the Secretary of State has reaffirmed on numerous occasions, and to a sustainable future, supporting local economic growth and our levelling-up agenda. To that end, our unprecedented package of covid-19 support is still available to the sector, to protect jobs and ensure that producers have the right support during this challenging time.
Beyond covid, the hon. Member for Aberavon mentioned the Industrial Strategy Council. The Secretary of State for Business, Energy and Industrial Strategy and the Chancellor have outlined how we are taking forward its best elements in the plan for growth. I can reassure the hon. Gentleman and other hon. Members that the Government are working closely with industry and trade unions to understand how together we can create a sustainable steel sector in the UK. On 19 May, the Secretary of State co-chaired the second meeting of the UK Steel Council, which he reconvened in March this year. The council provides a forum for Government, industry and the unions to work in partnership, to develop a plan to support the sector’s transition to a competitive, sustainable and low-carbon future.
The second meeting of the joint industry and BEIS steel procurement taskforce was held yesterday afternoon. That was first launched in March and is chaired by Lord Grimstone. It explores what Government and industry can do to address the challenges the sector has reported when competing for and securing public contracts. I would like to reassure the hon. Member for Rotherham (Sarah Champion) that work is continuing to develop on the subsidy control regime.
Hon. Members, including the hon. Member for Birkenhead (Mick Whitley), have rightly focused on climate change, with welcome passion. In addition to our continuing close engagement with the sector, I can reassure the hon. Member for Newport West (Ruth Jones) that we are taking action across a broad range of policy areas, including decarbonisation, energy prices, international trade and procurement. These actions aim to boost the sector’s competitiveness in the short term and to support long-term investment and transformational change that will increase efficiency while aligning with our goal of a net zero economy by 2050.
To reach our ambitious net zero target, we will need the UK steel sector to decarbonise. Our new industrial decarbonisation strategy sets out for the first time the Government’s comprehensive assessment of how industry, including the steel sector, can decarbonise in line with net zero in a way that supports both competitiveness and clean growth. The strategy includes a commitment to work with the UK Steel Council to examine the implications of the Climate Change Committee’s recommendation to set targets for ore-based steelmaking to reach near zero emissions by 2035.
In 2019, we announced a £250 million clean steel fund to support the sector to transition to low-carbon iron and steel production through the new technologies and processes, which could potentially include supporting hydrogen-based steelmaking. Other recent and ongoing work to support the sector includes the £350 million industrial energy transformation fund, which aims to support businesses with high energy use to cut their bills and reduce carbon emissions. As part of the industrial strategy challenge fund, we are also providing up to £66 million to help the key foundation industries, such as steel, develop innovative technology to reduce energy and resource use.
The hon. Member for Birkenhead made an important point about technology. Science and innovation have been made a priority by the UK Government, in recognition of the strong economic benefits of public investment in science and innovation and the capacity to leverage private investment. That is why we will increase R&D investment to £22 billion per year by 2024-25. We plan to establish a net zero hydrogen fund, with £240 million of capital co-investment until 2024-25. That will support at-scale hydrogen production projects, allowing steel producers the potential to access suppliers of low-cost hydrogen.
As we support the UK steel industry’s decarbonisation, we must do so in a way that enables us to compete globally and across Europe. Several hon. Members have raised the issue of industrial energy prices. We of course recognise that they are currently higher in the United Kingdom than in other competitive economies.
The hon. Member for Newport East mentioned the Ofgem targeted charging review. As she will know, network charging is a matter for Ofgem as the independent regulator, and decisions on its targeted charging review are for it to make. However, the Government continue to engage with Ofgem in order to inform our understanding of the reforms’ policy implications. We have provided more than £500 million in relief to the steel sector since 2013, in order to make electricity costs more competitive.
Finally, I turn to procurement and supply chains. I welcome the point made by my hon. Friend the Member for Scunthorpe. We are working hard to ensure that UK steel producers have the best possible chance of competing for, and winning, contracts across Government projects. I previously mentioned the steel procurement taskforce, but I can also assure the hon. Member for Rotherham that the Government have recently consulted on an ambitious package of major procurement reforms, with the aim of creating a simpler and more flexible regime that works much better for British businesses, including our steel businesses.
The Government are also working the with industry to ensure that Departments and other sector organisations follow guidance to account for social and environmental benefits when buying steel. That includes publishing details of upcoming national public infrastructure projects every year, so that steel businesses can plan for future demand.
The steel pipeline shows how the Government plan to procure 7.6 million tonnes of steel over the next decade for infrastructure projects such as the expansion of the offshore wind infrastructure, the construction of Hinkley Point C, as has been mentioned, and the maintenance and upgrading of the UK’s motorway network.
Jim Shannon
It is important that we have steel for offshore wind power and so on, but it is also important that we have steel available at competitive prices for the construction sector. What can the Minister do to assure me on that?
Amanda Solloway
I will, of course, pass on the hon. Gentleman’s question.
I will move on to Liberty Steel. The hon. Member for Newport East rightly highlighted its importance to many Members and their constituents, and its recent financial difficulties, which were also raised by the hon. Member for Rotherham. As the Secretary of State reaffirmed to the Business, Energy and Industrial Strategy Committee in an oral evidence session, we continue to monitor the situation closely and engage with the company, trade unions, local MPs and the wider steel industry. Liberty is important.
Seema Malhotra
Does the Minister appreciate that there is a need to work to support plants that are viable—such as Stocksbridge and Brinsworth, which purchase their supplies from Rotherham—and provide the working capital that is needed for orders that are there and products that are there to be made?
Amanda Solloway
I thank the hon. Member for her contribution. Again, I will pass that on, with the passion that she has shown, to the relevant places.
I return to Liberty Steel. We continue to monitor the situation closely and to engage with the company, trade unions, local MPs and the wider steel industry. Liberty is an important supplier of steel and provides highly skilled jobs. The Government believe that Liberty sites can be viable and we remain hopeful that the commercial issues can be resolved to ensure future success.
It is, however, first and foremost the company’s responsibility to manage commercial decisions for the future of the organisation, and we welcome the dedicated efforts being made by Liberty to find solutions. I hope that I have reassured hon. Members, who have displayed sincere empathy for our steel sector today, that the Government are working tirelessly with the industry to secure its future through difficult times.
Focusing specifically on Tata Steel—I know that that is of great interest to the hon. Member for Aberavon, and I have saved discussion of it for my summing up—I can assure Members that the Government will continue to work closely with the company and the unions as they shape the business strategy to support the future of high-quality steelmaking in Port Talbot.
I have set out a wide range of actions that demonstrate that the Government fully understand the vital role that steel plays for communities, for our economy and as a foundation supplier for our manufacturing base. UK industry will continue to need high-quality steel, and British steel is among the best steel in the world. As we level up our country, we are actively considering where there is scope to go further to support our steel industry.
We are committed to sustainable decarbonisation, decarbonising a globally competitive future steel industry in the United Kingdom, and I look forward to working with Members towards achieving that goal.