Steel Industry

Debate between Anna Soubry and Clive Betts

Wednesday 11th May 2016 Westminster Hall

[Anna Soubry]

I will push it now, because I always like a challenge.

[Mr Betts]

Will the Minister give way?

[Anna Soubry]

In a moment. I am happy to allow the hon. Gentleman a quick name check, but I want to make this point first: this Government have taken unprecedented action and given unprecedented support for our steel industry. This Conservative Government have said that we are willing for a potential buyer to look at investing hundreds of millions of pounds of taxpayers’ money by way of debt financing. That includes looking at power plants, notably at Port Talbot, so that we can keep those blast furnaces open. We are also looking to take up to a 25% stake or share in that new company. That comes from a Conservative Government. If anyone had said that 12 months ago, they would have been laughed at. That is how seriously the Government take the importance of the steel industry, and that is what we are prepared to do.

We know that there is a bright future for the UK steel industry. Just look at what has happened in the past few months. Not only has Liberty House bought Tata’s Scottish plate mills at Dalzell and Clydebridge—I was delighted to be there when Tata literally handed the keys over to Liberty—but it has also brought most of the Caparo assets out of administration. We think that that might have saved up to 1,000 jobs. The continuing sale to Greybull of Tata’s long products division based in Scunthorpe is further evidence that the industry has a viable future.

The Government are committed to the record infrastructure investment programme. That is only possible because we continue to take the difficult decisions to keep the economy strong. HS2, Crossrail, the new aircraft carriers and the unprecedented procurement rule changes for publicly funded projects that we have made in recent months mean that the United Kingdom’s steel industry can compete and will win major public contracts.

I very much agree with the hon. Member for Cardiff South and Penarth (Stephen Doughty). I was very pleased to visit the outstanding Celsa steel plant based in his constituency just a few months after my appointment last year. He levelled criticism at the SNP in Scotland and the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier). It really is not on. If I said, “Go and check out a website,” I would rightly be derided by Opposition Members, and properly so. The Scottish Government have to put their money where their mouth is and change the procurement rules. They have to copy and learn from what the United Kingdom Government have done and ensure that that steel in Aberdeen is going to British plants. There are no excuses now for that not happening. I am very proud of what we do.

[Mr Betts]

Something else that the Government can do is deal with the problem of energy costs for the UK industry. They are 85% higher than the costs for the German industry. Is the Minister going to act on that?

[Anna Soubry]

We have acted. Not only have we now got the compensation package up and running—we are paying out tens of millions of pounds—but from 2017 energy intensive industries will find themselves exempt.

--- Later in debate ---

[Mr Betts]

Eighty five per cent higher!

[Anna Soubry]

The hon. Gentleman can keep on shouting, and I will start to fall out with him. I am happy to say that I will be visiting his constituency and the steelworks there. As he knows, he will get an invitation, just as everyone always does. In Sheffield, we have good examples of outstanding steel makers and ability. Some 50,000 tonnes of Celsa’s UK steel has been used in Crossrail—the biggest construction project in Europe, built almost exclusively using British steel. Some 95,000 tonnes of British steel was used in the construction of the new Elizabeth aircraft carriers, and Network Rail sources 98% of its steel rail from the United Kingdom—as we all know, it comes mainly from Scunthorpe.

On the point about Ajax, a large part of that steel was unfortunately not made in this country. The remainder was certainly going through a UK buyer. There is of course more that we could do, but we are mapping out indicative quantities of steel for key projects in the infrastructure and Government construction pipelines, including HS2, new nuclear and offshore wind. One piece of work that I am determined to carry on doing relates to fracking. There is a huge job that can be done that will have huge benefits for our steel industry. I will speak bluntly: we have to get on with fracking. I met representatives of that industry only recently. We know that fracking could have real benefits for our steel industry. It was a great joy and pleasure to go to the plant in Hartlepool, which also has excellent unions, good management and an outstanding workforce and is hugely important for that community. They make an outstanding product. They do not make the seamless pipes that have to be used for fracking, but I do not see why we cannot look at making their pipes absolutely compliant so that they can be used.

I had another great visit going up to Rotherham to meet Members who represent the steelworks there. It also has an excellent workforce, outstanding unions and good management with a credible plan and a long-term future. I am proud, as we all should be, of the fact that one third of all landing gear apparently has a component made in Stocksbridge. I was also told that every aeroplane in the world has at least one component made from steel from Stocksbridge.