Steel Industry: Wales

Debate between Jessica Morden and Nusrat Ghani

Wednesday 21st February 2024 Westminster Hall

[Ms Ghani]

The hon. Lady takes a very narrow view. Steel production in Europe is also coming under huge challenge, which is why they are also considering moving to far greener forms of producing steel. It is not just a UK problem.

[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.

British Steel

Debate between Jessica Morden and Nusrat Ghani

Wednesday 8th November 2023 Commons Chamber

[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

Debate between Jessica Morden and Nusrat Ghani

Monday 18th September 2023 Commons Chamber

[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

Debate between Jessica Morden and Nusrat Ghani

Thursday 29th June 2023 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

15. What steps she is taking to help support the steel industry.

[The Minister for Industry and Economic Security (Ms Nusrat Ghani)]

The Government are actively engaging with the steel industry for a sustainable future, and my right hon. Friend the Business Secretary recently visited Tata and British Steel to see work that is under way. Since 2020 the Government have provided some £35 million in direct funding to support steel producers, on top of the hundreds of millions of pounds in energy price relief for the sector since 2013.

[Jessica Morden]

I echo the earlier comments of my hon. Friend the Member for Aberavon (Stephen Kinnock) on the greater need for support to help our steel sector decarbonise. Steelworkers from my constituency rallied in Parliament Square yesterday, calling for the Government to support our steel sector, yet they will have heard the Prime Minister’s poor response to my hon. Friend the Member for Ogmore (Chris Elmore) at Prime Minister’s questions, when he merely referred to pre-existing packages of support and funding that was not exclusive to steel in the first place. When will the Government accept the scale of the challenge and commit to helping?

[Ms Ghani]

We accept the scale of the challenge; it is a global challenge to decarbonise the sector and many countries are feeling it. However, a potential £1 billion in support is not a small measure—it is a large measure. Dealing with the procurement process to ensure that we have UK contractors securing UK steel in their programmes of work is not a small task, nor is dealing with energy prices. We have provided more than £730 million. When the sector needs support and we know it is a valid use of taxpayers’ money, we have stepped in, such as with the more than £30 million in Government loans to Celsa Steel in 2020. That secured 1,800 jobs, and the money has been returned to the taxpayer. We are more than happy to work with the hon. Lady and all Members who have steel firms in their constituencies, but we are going to provide steady support for the long term.

British Steel: Negotiations

Debate between Jessica Morden and Nusrat Ghani

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

My hon. Friend, once again, nails the position that we are in. I know that the steel sector has such fantastic champions across the House. Since I have been in post, which is not very long, I have attended several meetings, briefings and debates in Westminster Hall, so I know it has fantastic champions, and it is a shame that those champions are feeling let down today. What is extraordinary is that there is a huge amount of growth coming down the line for steel. Demand for UK steel is expected to rise by 20%. Significant commercial opportunities are coming down the line. Once again, because British Steel has such fantastic champions and we have such superb MPs across the House, including my hon. Friend, they have been able to win some substantial deals for the sector. He mentioned steel safeguard measures. In 2022, we extended all 15 steel safeguard measures and agreed an extensive solution to the US section 232 tariffs, significantly increasing US market access for UK firms. The steel sector could not have better steel champions and, like them, I feel a bit let down today.

[Jessica Morden (Newport East) (Lab)]

The point that was made relentlessly by hon. Members in last week’s steel debate, and we really appreciate what hard news this is for steel workers today, is that high production costs mean that UK steel is unable to be competitive in the international market. The Government support is not as generous as other countries’, and some of the list that the Minister read out is older money and it is across industry, not just for steel. So does the Minister understand that a long-term plan is needed to give our industry confidence?

[Ms Ghani]

Because we have invested so much in renewables, we know that there will be better energy costs coming down the line, but we have had £800 million for the steel sector since 2013. We know that policy is being reviewed, and we are going to make sure that support is just as substantial going forward. The UK offers a great place to have a steel sector, and we know that there are opportunities for growth. We know there is going to be a 20% increase in UK contracts, we are looking at procurement and we have a fantastic skilled workforce. There is support to help decarbonise and take away some of the costs of emissions, too. Support has been available—up to £800 million—and support will continue to be available.

Oral Answers to Questions

Debate between Jessica Morden and Nusrat Ghani

Thursday 14th February 2019 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

7. What recent discussions he has had with port operators on preparations for the UK leaving the EU.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

Good morning, Mr Speaker. It is a pleasure to share the day of love with my colleagues under your watchful gaze this morning.

I have met port operators and their representatives on a number of occasions to discuss matters of current concern, including preparations for the UK leaving the EU.

[Mr Speaker]

Thank you.

[Jessica Morden]

Welsh ports, including Newport, have experienced strong growth and investment in recent years, contributing £1.4 billion to the UK economy. In a week in which we have witnessed Government mishandling and the Seaborne Freight fiasco, and just weeks away from the Brexit date, what confidence can we have that Transport Ministers are taking serious steps to avoid jeopardising our Welsh ports?

[Ms Ghani]

We are in constant communication with port operators, including Associated British Ports, which I believe has invested heavily in the port to prepare for Brexit and all the extra opportunities that will arise. We must not forget that our ports and maritime sector was great before we joined the EU and it will continue to be great after Brexit. Most of our ports are well used to dealing with traffic from both inside and outside the European Union and we will do everything we can to ensure that that continues.

Oral Answers to Questions

Debate between Jessica Morden and Nusrat Ghani

Thursday 18th January 2018 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

With the Severn bridges at long last coming into public ownership on 8 January, will the Minister meet me to discuss the future operation of the bridges, including abolishing the tolls following the long local campaign?

[Ms Ghani]

I am sure the hon. Lady, on behalf of her constituents, will welcome the news that this Government are reducing or abolishing the tolls on the bridges. This will make journeys much more efficient and open up the area to much more economic opportunity. I am more than happy to meet the hon. Lady to discuss anything further.

Trade Union Bill (Fourth sitting)

Debate between Jessica Morden and Nusrat Ghani

Thursday 15th October 2015 Public Bill Committees

[Nusrat Ghani]

Q 425 The Bill aims to modernise trade unions in just the way that work is modernised. Very few people now get a pay packet; the salary goes into your bank account. Surely, in that way, any worker should be able to choose whether they want to subscribe to a union or which union they want to subscribe to. That is why there needs to be a change in check-off.

Matthew Hancock: I agree with that and I will add something to it. It improves public protection because it ensures that it is an active choice of the member to be a member of the union, rather than getting the form in a pile of paperwork on day one, signing it off and the money always going out of your pay cheque before you receive it.

On check-off, I reassure Members about how sensible this change is by quoting the PCS union, which is the biggest union in the civil service. As of this morning, its website said:

“It’s quick and easy to sign up for direct debit—you can do it online in a couple of minutes… We are asking all members to do something very simple but very important—get ready to switch payment of your subs to direct debit. It only takes a few minutes”.

That demonstrates that this is not something that people should overreact to. Rather, it is a perfectly sensible change that has taken place largely already within the civil service. The PCS, which is the union that is mostly affected, confirms on its website that it is very simple and only takes a few minutes.

[Jessica Morden]

Q 426 In the previous session, we discussed the definition of important public services. From talking with Frances O’Grady, it seems that trade unions obviously are not clear who is going to be affected. Dave Prentis said he thought it was a “nightmare”, “ill defined” and would “lead to litigation”. Will we have a chance to debate these regulations and why have they had no consultation with you about what this will mean to them in practice?

Nick Boles: To correct you, we have had consultation, which is why it is not yet clear. The consultation only closed as the other consultations did. It is one of those funny things in government: you either get into trouble for not being specific, or you get into trouble for not having consulted. We wanted to say that we are clear about the sectors that this should apply to—health, education, transport, fire, nuclear decommissioning and border control. Then the question is, is it right that it should apply to anybody and everybody working within those sectors, whether in the private sectors, ancillary jobs or core jobs? Is there a practical way of narrowing down? We consulted on this point. We have had a lot of responses to the consultation. We will bring forward specific proposals before the legislation has received Royal Assent.