Steel Industry: Wales
Jessica Morden Excerpts(1 month, 4 weeks ago)
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Jessica Morden (Newport East) (Lab)
Happy birthday to my hon. Friend the Member for Neath (Christina Rees). I commend my hon. Friend the Member for Llanelli (Dame Nia Griffith) for securing this important debate. Its importance was highlighted for me and other hon. Members on Saturday, when we marched in solidarity with the workers of Port Talbot and Newport and the unions, which I praise for their work. There was a lot of strong political support on both marches, including from my hon. Friend the Member for Newport West (Ruth Jones).
We should never underestimate just how difficult a time this is for these highly skilled workers and their families. I should point out to the Minister that the average age of a steelworker in Llanwern is now 34, so they are people with mortgages and families to support. That will also be true for those at Port Talbot, represented by my hon. Friend the Member for Aberavon (Stephen Kinnock). In my time as an MP, I have seen year after year just how workers in Llanwern have repeatedly had to adapt and innovate to keep the business alive. I pay tribute to them for that. These are well-paid jobs and, as we often say, for every one job in the plant, there are estimated to be three more in the wider community.
I am sorry that the Government and the company have put the workers in this position. We feel deeply for them and we commend the unions for all they are trying to do, because this is a bad deal for steel. We need the best deal for steel, not the cheapest deal for steel, which is what the Government are offering. As the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) said, no matter how the Government dress it up, they are giving £500 million to Tata to make redundant up to 3,000 people—300 in Llanwern. In doing so, they are in effect ending our history of making virgin steel—we will be the only country in the G7 and G20 not to do so—at a time when we will need this steel to build our green infrastructure.
At a time of global insecurity, we will be reliant on imports. The Secretary of State for Wales claimed on Monday that closing the blast furnaces will make us “less dependent on imports”, when he knows that Tata will have to import steel shipped in diesel-fuelled vessels from India. As the Welsh Government’s Minister for Economy, Vaughan Gething, has said, the UK Government are alone in seeking to propel the steel industry off a cliff in this way. In the Netherlands, Sweden and Canada, we see Governments working in partnership with their steel industry.
The UK Government are not contemplating the multi-union plan, which promises a fairer, just transition to a greener future for the sector. The UK Government shut the Welsh Government and unions out of decision making on this matter, and the Secretary of State has claimed that those proposing credible alternatives to protect jobs and virgin steelmaking for the future are “unconstructive”. These are plans that his Conservative colleagues in the Senedd backed in a vote very recently. Then we have the Secretary of State for Business and Trade calling plans to make up to 3,000 people redundant a “good news story”.
We are now in the third week of the formal consultation period, and Ministers continue to signal that this is a done deal. Will the Minister confirm today that she will not undermine the consultation and that she is still willing to engage constructively with Tata and the trade unions should the opportunity for an alternative approach arise? Will she also set out whether she has had assurances from Tata that the consultation will be given as much time as it needs—beyond the 45-day mandatory minimum, if necessary—for a path forward to be agreed? There is still little detail available about how the funding available to the transition board is planned to be spent. Will she also elaborate on that and confirm whether steelworkers, supply chains and communities that may be affected beyond Port Talbot, including in my own constituency, will be supported?
We have often said this, but we have had 12 Steel Ministers and 14 years of inaction, with this Government vacating their role as the champion for our steel industry in a green industrial future. It is the Labour party that is filling the void of ambition by committing to accelerate a £3 billion green steel fund to invest over the next five years in the future of our sovereign steel industry. I strongly urge the Government to look again at the deal. If they will not step up and look again, they should step aside and let us have a Government who will.
Jessica Morden
On the issue of competitiveness, we pay 50% more for our energy costs in this country than they do in Germany. The German Government are putting around £2.6 billion into helping the industry transition. That has a major effect.
Ms Ghani
I will go on to answer that point. We have provided support for the energy costs of high-energy industries, and the supercharger initiative is coming down the line, but I will reflect on that point shortly.
The reality is that the Port Talbot plant would have been in jeopardy. Its closure would have had devastating consequences for the town and would have posed a serious threat to the UK as a whole, endangering the 8,000 jobs provided by Tata Steel across the country and numerous small businesses in the steel making supply chain.
Cabinet Office
Jessica Morden Excerpts(2 months, 2 weeks ago)
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Jessica Morden (Newport East) (Lab)
John Glen
As I have said, if the House of Commons has indicated its will by the amendment, that piece of legislation moves to the House of Lords and the Government will respond at that point. That is the week after next. That is the process of the House. I have recognised the need to ensure that we get the clinical, legal and care experts in place. They are in place, and they are working on some of the complex issues the hon. Lady alludes to. The psychological support is now in place, but I am doing everything I can in every dimension of this complicated problem to deliver as quickly as I can.
[Official Report, 18 January 2024, Vol. 743, c. 1015.]
Letter of correction from the Minister for the Cabinet Office and Paymaster General:
An error has been identified in my response to the hon. Member for Newport East (Jessica Morden) in Topical Questions. The correct response should have been:
Protecting Steel in the UK
Jessica Morden Excerpts(2 months, 3 weeks ago)
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Jessica Morden (Newport East) (Lab)
That was a brilliant contribution from the Chair of the Business and Trade Committee.
This afternoon, steelworkers from Port Talbot, Llanwern and beyond are up in the Public Gallery. They have come here today to ask the Government to step up after last week’s announcement from Tata. On their behalf, we implore Ministers to pursue, before it is too late, all avenues to secure a longer, fairer transition that supports our steel industry and jobs. We need a meaningful consultation with the trade unions and full consideration of the alternative options that they have proposed, because we want the best for steel, not the cheapest, which is what we have before us.
Nick Smith
My hon. Friend is a great champion for steelmaking in Llanwern. Does she agree that the negative impact of the Government’s plans for steel in south Wales will be massive? Will electric arc furnaces be suitable for the Zodiac line at Llanwern?
Jessica Morden
Indeed, last week’s announcement was devastating for Port Talbot, for the people from Newport who travel to work there, and for communities across wider south Wales. Over 18 months, 2,800 Port Talbot workers have been affected, and Tata expects that 300 further roles could be impacted at Llanwern in Newport East in around three years’ time. As my hon. Friend says, that would affect the Zodiac line, which produces world-class automotive steel and was the best processing line in the world when it was built—it remains one of the best. As the unions have highlighted, Zodiac will, in the short term, be reliant on imports. Big questions remain about the quality of steel produced in electric arc furnaces. These are high-value products, and it is a precarious position for Llanwern to be in.
As has often been repeated in recent days, no matter how the Government dress it up, they are giving Tata £500 million to make 3,000 people redundant. In so doing, they are ending our ability to make virgin steel—the only major economy in the world to do so—and that is shameful. It leaves us reliant on imports at a time when demand for steel, which we will desperately need for our green infrastructure, is only growing, and at greater cost. The imported steel will come over here, as the hon. Member for Scunthorpe (Holly Mumby-Croft) said, on diesel-fuelled vessels, shipped thousands of miles from countries with lower environmental standards.
It does not have to be so. As others have said, an alternative plan has been proposed by the steel unions. We pay tribute to them for the fight that they put up on behalf of their members. The Syndex plan is credible and based on a phased transition over a decade. Officials at Tata have acknowledged to unions that the union plan was serious and deliverable, but would not commit to the extra funding. The Government must step up, as other countries are doing—in fact, there cannot be a developed country in the world that approaches the matter in a worse way than this one.
Labour will step up. A general election cannot come soon enough for our steel industry. We have long pledged a £3 billion fund to decarbonise UK steel production. This Government’s plan is not a serious one; it is yet another sticking plaster from a Government without a proper industrial strategy. We have had 12 steel Ministers since 2010, and six in the last four years alone.
Let me address the attacks made this week by the Secretary of State for Wales at a time of awful news. This deal was done without Welsh Government or trade union support. Welsh Ministers have repeatedly contacted UK Business Ministers. The First Minister tried to get a phone call with the Prime Minister on Friday but was not allowed one. The Welsh Government have used all the levers that they have. We must not allow the UK Government to make irreversible decisions. Not only is steel part of Wales’s history, but it is vital to our greener future.
Oral Answers to Questions
Jessica Morden Excerpts(3 months ago)
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Alex Burghart
Better competition and better procurement are at the heart of the Procurement Act 2023, which the hon. Lady will have seen go through the House of Commons and the House of Lords last year. The Act creates a world-leading framework for the good use of public money in acquiring goods and services.
Jessica Morden (Newport East) (Lab)
John Glen
As I have said, if the House of Commons has indicated its will by the amendment, that piece of legislation moves to the House of Lords and the Government will respond at that point. That is the week after next. That is the process of the House. I have recognised the need to ensure that we get the clinical, legal and care experts in place. They are in place, and they are working on some of the complex issues the hon. Lady alludes to. The psychological support is now in place, but I am doing everything I can in every dimension of this complicated problem to deliver as quickly as I can.
Infected Blood Inquiry: Government Response
Jessica Morden Excerpts(4 months ago)
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John Glen
I do not think that I can be expected to respond to individual cases here, but I have ensured that we have the right range of professional expertise—the very best available in this country—so that all those different cases of infected and affected, going off quite a range of experiences over a very long period, are properly interrogated as the details of the scheme are worked through.
Jessica Morden (Newport East) (Lab)
The Government had to make this statement after losing the vote two weeks ago, but there is little in it for families like the Smiths, who—please know this, Minister—finally saw hope in that vote. Campaigners have called for months and months for the preparatory work to be done. How long will victims now have to wait for what the House has asked for?
John Glen
As I said, it will be 25 sittings days after the publication of the report. That is when the Government’s comprehensive reply will be given.
Oral Answers to Questions
Jessica Morden Excerpts(4 months, 2 weeks ago)
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Jessica Morden (Newport East) (Lab)
May I join others in paying tribute to Glenys Kinnock, who was much loved by us all?
Earlier this year, the Secretary of State told my hon. Friend the Member for Cardiff Central (Jo Stevens) that his Government would prioritise helping the most vulnerable, yet Welsh households still face the consequences of 13 years of his Government’s economic failures, with a historically high tax burden and his own constituents paying on average £240 more each month on their mortgages. Can he explain, then, why his Conservative colleagues in the Senedd are calling for the Welsh Government to withdraw their £40 million mortgage support scheme for those at risk of repossession?
David T. C. Davies
The UK Government have already brought forward a mortgage charter to support anyone getting into difficulties. I hope that the hon. Lady agrees that the fact that the Government have delivered on their pledge to halve inflation over the past year will mean that everyone in Wales is better off; that the cut to national insurance will mean that everyone in Wales is better off; and that the increase in the living wage as well the Government’s commitment to ensuring that pensions and benefits are uprated in line with inflation will mean that everyone on low salaries is better off.
British Steel
Jessica Morden Excerpts(5 months, 1 week ago)
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Ms Ghani
Absolutely. That is why procurement went up by £97 million recently. I was looking at what the industry group UK Steel reflected on when it came to steel produced by electric arc furnaces—the reality is that a substantial amount of speciality military-grade steel can be manufactured using electric arc furnaces. We are working very closely with the steel sector to do everything we can to ensure that it secures UK contracts.
Jessica Morden (Newport East) (Lab)
The Minister seems to be ignoring events in south Wales last week. I met steelworkers from Llanwern last week, who understandably are deeply worried following speculation about the closure of the blast furnaces at Port Talbot. What conditions were attached to the £500 million grant agreed with Tata? Was this the agreed plan? What are the Government actually doing to safeguard jobs?
Ms Ghani
We put in place a programme of work and a substantial sum of money—around £100 million—to ensure that the transition took place in a just fashion. Decisions will be taken by the transition board—as has been mentioned—about providing upskilling and reskilling and ensuring that there are assurances in the supply chain. The board is made up of the Secretary of State for Wales, the Minister for the Economy of Wales, the Secretary of State for Levelling Up, Housing and Communities, and the hon. Member for Aberavon (Stephen Kinnock), who chairs the all-party parliamentary group for steel and metal related industries. Those decisions will be taken locally and in consultation.
Tata Steel: Port Talbot
Jessica Morden Excerpts(7 months ago)
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Ms Ghani
It is unfortunate that the right hon. Member has taken such a narrow view. We are providing £500 million to ensure that the plant will continue to make steel, and to support the jobs in the industry. There are 8,000 direct jobs and 12,000 jobs in the supply chains which would disappear if there were no steel plant in Port Talbot. I should have thought that the right hon. Member, who has been so passionate about net zero, would appreciate the work that is being done in this regard. There is no alternative energy source that can deliver net zero, at scale or within the timetable that is required, given the infrastructure that is in place.
In case the right hon. Member thinks that it is just the Conservatives who are saying this, I invite her to read what UK Steel has said about this decision. It has said that this is a really important day for the steel sector in the UK, and that the Government are showing a real commitment to the future of steelmaking here. It is not just a question of our ambitions for net zero; the UK steel sector itself has put together a road map to net zero, which this investment will enable it to reach.
The right hon. Member alluded to the Celtic freeport. That will create 16,000 jobs, and will also ensure that a supply chain in renewables continues in that part of the country. It is unfortunate that the she cannot understand that the discussions that took place for so long could have continued the uncertainty, and, potentially, the age of the furnaces could have caused the site to close down. That would have been terrible, but we have ensured that we now have certainty, continuity and security.
Jessica Morden (Newport East) (Lab)
We have seen years of inaction on steel from this Government while watching other countries around the world invest proactively, but the investment announced on Friday will lead to potential job losses that will be deeply felt in Port Talbot and across south Wales. Why was there no consultation with the unions and the Welsh Government, who should surely have had a voice in ensuring that there is a fair transition to decarbonisation? What will the Minister do to provide clarity for workers about, for instance, the impact on downstream plants such as Llanwern, and to address the point about the grades of steel needed?
Ms Ghani
Any change will be challenged by those potentially affected, which is why the transition board is being set up with a budget of £100 million to ensure that people who are impacted are given the support that they need. It is hard not to go on repeating that this has not come out of the blue, and that discussions have been taking place forever. I speak to the hon. Member regularly about this matter. I know that it is difficult for her to reflect on it in the Chamber, but we finally have some certainty. She mentioned that no decision had been made for what seemed like forever, but this is a really good decision: it is protecting jobs, it is protecting the industry next to her constituency, and it is ensuring that there is a future for steel at Port Talbot. It is good news, although we know that there is some difficulty, which is why, as I have said, we are establishing a transition board.
The hon. Lady also mentioned the unions. They were in Westminster recently, attending a huge event co-hosted by our fantastic iron lady, or rather steel lady, my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft), as well as UK Steel. There was a presentation of the procurement policy note, but also a discussion about the road map to net zero. This is a route that was identified, and it is one that we have now taken to ensure the longevity of steelmaking in Port Talbot.
Oral Answers to Questions
Jessica Morden Excerpts(7 months, 2 weeks ago)
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Johnny Mercer
Yesterday the Northern Ireland Troubles (Legacy and Reconciliation) Bill passed this House. Legacy is an incredibly difficult issue. Victims have been let down for many years. Veterans have been let down. This Government made a commitment that we would see through our promises to both those groups, and that is what we did yesterday. I am disappointed that the Opposition voted against it again, but politics is about choices, and I am proud of what this Government have delivered.
Jessica Morden (Newport East) (Lab)
Jeremy Quin
I have heard many times from the hon. Lady about this subject and about her constituents. She speaks about it passionately in this House and has done so for a number of years. I come back to my earlier answer: we paid interim compensation last year, as the House is aware, and the second interim report has come through. I am expecting the final report in the autumn, putting us in a place to respond as swiftly as possible once it is received.
Infected Blood Inquiry
Jessica Morden Excerpts(10 months ago)
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Jessica Morden (Newport East) (Lab)
I also thank my right hon. Friend the Member for Kingston upon Hull North (Dame Diana Johnson) and the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley), for giving us this opportunity, on a cross-party basis, to have this debate, which is really important—there is much support for this, as we have seen—and for their campaigning work on this issue through the APPG.
As has been apparent from the many debates we have had in this House over the years, the infected blood scandal is a deeply personal issue for constituents of ours. We are all, across this House, saying the same thing today: “Please do not delay, Minister. Please act with urgency lest we continue to compound this massive injustice.” I say that for my constituent Linda Ashcroft, who lost her husband, Bill Dumbelton, at the age of 49, after he contracted HIV and hepatitis C from NHS blood products he was given to treat his haemophilia. Bill lost his job at BT because of his HIV status, and lived his final years under a cruel cloud of uncertainty. His death in 1990 left Linda to deal not only with the emotional trauma of his loss, but with a huge financial burden. Linda tells me that, after 33 years, she is still looking for closure. She asked me to relay this to the Minister: “Please do not leave victims begging for compensation—it’s inhumane”. So please could he hear her?
In the same year that Bill passed away, my constituents the Smiths lost their seven-month-old son Colin to AIDS and hepatitis C. It was a tragic case, which I have repeated often in this place. Colin spent much of his short life fighting illness contracted as a baby from factor VIII blood product, sourced from a prison in Arkansas, with his family having to fight to discover that fact. The indignities that the Smith family suffered beggar belief, from the bullying and abuse of their children to the loss of Mr Smith’s employment. Like other bereaved parents, they were excluded from the interim payments scheme. Bill and Colin should still be with us today, and I pay tribute to Linda and to the Smiths. I do not know how such families have maintained such dignity through all of this, fighting for all these years. I am in absolute awe of them. I imagine how we would have felt if any of this had happened to us personally. The best tribute we can pay after all they have been through is to make sure there are no more delays.
It is right that the Government have accepted the moral case for compensation, and not just for those directly infected, but for those affected. We talk about the contaminated blood scandal in a singular sense, but we are really referring to injustices in the plural: the intertwined tragedies of lives lost and lives ruined.
I know the Paymaster General says that he understands and respects the gravity of the situation. We all appreciate the complexities of the long-term compensation framework for victims and know that requires careful attention, but I also reiterate what everybody else has said this afternoon: time is of the essence, and the continued wait for redress just adds to the layers of pain, frustration and injustice that the infected and affected feel.
After all, this is a group of people who have had more than enough experience of waiting. It has been 40 years since the information on the dangers of the contaminated blood products was published, and 35 years since the Government agreed funding for the Macfarlane Trust to assist haemophiliacs who contracted HIV from contaminated blood products. It has been over 30 years since my constituents lost those they loved most, eight years since the Scotland-only Penrose inquiry, and six years since the right hon. Member for Maidenhead (Mrs May) launched the infected blood inquiry—something for which campaigners had been calling for decades—and next Sunday marks the fifth anniversary of the inquiry officially getting under way.
It has been two years since the then Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), told the infected blood inquiry that the Government had a “moral responsibility” to address the issues, and a year since Sir Robert Francis produced his study on options for the compensation framework, which was intended to guide the Government in preparation for Sir Brian Langstaff’s final report, but the Government have still not formally responded to that study. We are a now just a few months down the line from Sir Brian’s second inquiry, and I join other Members in urging the Minister to tell us now how advanced the work is and to update the House on whether the Government will respond and accept its recommendations in full, and if so, when.
The Paymaster General has spoken previously about the Government working “at pace” on this. I hope the hon. Member for Glasgow South West (Chris Stephens) is wrong, but we need those commitments and we need to hear them today. I was very moved by the party and the briefing we received today from the campaign groups, and by hearing the campaigners talk about what is decided about them, calling for “Nothing about us is done without us.” That is still hugely important now.
I also echo fellow Welsh Members’ comments about the remarks by Haemophilia Wales. I would be grateful if the Paymaster General acknowledged for the record that although health is devolved, this issue is not, and that it is related to a scandal that pre-dates devolution and therefore responsibility for compensation rests solely with the UK Government.
Reference has been made to the article in the Daily Mail about one-off interim compensation payments for people who must have died within a strict three-month period last year. Will the Minister respond to that, too?
Ultimately, with all of the matters discussed today, the key issue we keep coming back to is time—time that is fast running out. More than 500 people affected by the scandal are estimated to have died since the inquiry began, in addition to the thousands of people already lost far too soon. There is simply no time to waste in delivering compensation to surviving victims and others affected. I urge the Government again today to end the uncertainty, end the delays, and act swiftly to do what is right. Victims, families and the British public deserve nothing less.
My right hon. Friend the Member for Kingston upon Hull North said when opening the debate that it was about truth and justice—
Mr Deputy Speaker (Sir Roger Gale)
Order. I am sorry but the hon. Lady is out of time. I call the Scottish National party spokesman.