Protecting Steel in the UK

Debate between John Hayes and Holly Mumby-Croft

Tuesday 23rd January 2024 Commons Chamber

[Holly Mumby-Croft]

My hon. Friend, who knows a great deal about steel, is absolutely right. We need to remember that if we are not making that virgin steel here in the UK, it will come from someone else’s blast furnaces, probably from the other side of the world. We will have no control over the emissions or how that steel is produced. We will have no control over the welfare of the people who make it. The steel will then be put on a ship—a ship with a diesel engine, not a sail—and driven over here to be thrown into our electric arc furnaces to make that mix.

[Sir John Hayes]

My hon. Friend is absolutely right. The more that we make in this country—the more food we grow; the more products we produce—the more essential our manufacturing base becomes, and not just for our economic resilience and wellbeing, but for our move to this wonderful carbon-neutral future, which is so beloved of so many.

[Holly Mumby-Croft]

My right hon. Friend is correct. Put simply, unless we are going to stop using virgin steel in this country, we should have the ability to make it ourselves, so that we can take responsibility for those emissions and for the production methods, and for the working conditions of those who make the products.

Last week, my right hon. Friend the Secretary of State for Defence remarked that we are entering a pre-war world. A strong—or at least “in existence”—steelmaking industry is a core part of our nation’s defence capability. We may choose to buy the steel that we need for our defence from other countries—whether or not I agree with that—but resilience is not only about what we choose to do in future; it is also about what we may need to do, or what we may need to have the capability to do should the need arise.

On 18 September, I asked my hon. Friend the Minister for Industry and Economic Security whether she agreed that

“for national security reasons alone, we must ensure that we retain the capability to make virgin steel in this country”.

As I said in the urgent question that I later secured, that was confirmed to me by the Secretary of State the very same day, and I took contemporaneous notes of that conversation. On 18 September, my hon. Friend the Minister commented that I was correct on the importance of virgin steel, stating:

“obviously, we need a place for virgin steel, and that is in her constituency.”—[Official Report, 18 September 2023; Vol. 737, c. 1125.]

I have no problem with building electric arc furnaces—it is a good idea—but I passionately believe that the UK should retain, at least in the medium term, some blast furnace capability alongside that. After the sad news in Port Talbot, that has to be in Scunthorpe.

On 6 October, British Steel set out its plans, which it says are subject to appropriate support from the Government. They are the content of the negotiations that my hon. Friend is working so hard on. They talk about installing two electric arc furnaces, one in Scunthorpe and one in Teesside, and they propose maintaining current operations until a transition to electric arc steelmaking.

I want to be crystal clear: I expect the company to keep to its word on this. If we are to give British Steel hundreds of millions of pounds of public money, we need to ensure that it retains those blast furnaces until the transition. In short, that must be written into the deal. I do not want the sad events happening in Port Talbot to happen to my people in Scunthorpe. I do not want to see blast furnaces switched off early and steel being brought in from abroad and rolled in our mills. I want those blast furnaces to be on for as long as possible, maintaining jobs and keeping options open, so that we can explore alternative technologies, just as other countries are doing.