Mark Tami
Main Page: Mark Tami (Labour - Alyn and Deeside)(9 years, 5 months ago)
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Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Davies, and to have the chance to raise an issue that is of concern not only to me and my constituency, but to many Members from all parts of the House. It is great to see a number of them here with me, as well as the shadow Minister for these issues in the shadow Business, Innovation and Skills team, my hon. Friend the Member for Hartlepool (Mr Wright).
The UK steel industry and the associated metals sectors comprise more than 24,000 enterprises, which directly employ more than 330,000 people and were worth more than £45.5 billion to the UK economy in 2012. Indirectly, two to three jobs in the broader economy are dependent on each job in the metals sector. Steel, as many of my colleagues will attest, is vital for many of the UK’s strategic supply chains, such as those in the automotive industries, construction and energy.
As many will know, Cardiff South and Penarth has a long and proud industrial history. It is just a stone’s throw from Tiger bay, where the coal hewed out of the valleys of south Wales was exported to the world and where the East Moors steelworks sprang, establishing Cardiff as a major player in the steel-making industry in the late 1800s. Although the original East Moors complex was closed in 1978, I am pleased to say that Cardiff remains a major centre for steel production, which is currently done by Celsa. It has one of the most carbon-efficient electric arc furnaces in Europe and the world and rolling mills that produce crucial products, such as reinforcing bar, for such UK infrastructure projects as Crossrail.
Mark Tami (Alyn and Deeside) (Lab)
I am pleased that my hon. Friend has managed to secure a debate on this important topic. Shotton steelworks is in my constituency. It produces high-end, top quality coated products. Does he agree that the price of energy is harming this important industry, which could do so much better if it could compete with companies in Europe that have much lower costs?
Stephen Doughty
I absolutely agree. It is very much the case that from Shotton to Cardiff, from Skinningrove to Llanelli, from Scunthorpe to Middlesbrough and from Newport to Redcar, steel producers are being outflanked by significant challenges, including energy prices, which continue to increase unabated. The rules of the game appear to have changed. I want to focus on a number of strategic issues.