(3 weeks, 1 day ago)
Commons Chamber
Chris McDonald
My hon. Friend is right that this is an investment in our national security, our infrastructure, our industry, the workforce and the opportunities for young people in the Grangemouth area.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
Today’s news of UK Government investment in Grangemouth is welcome. Following the devastating announcement by ExxonMobil about job losses at Mossmorran in my constituency, the Mossmorran taskforce is now up and running to give maximum support to the workforce and to consider the future of that site. I welcome the news today that the Mossmorran workers will be prioritised for interview for new jobs created at Ineos in Grangemouth. The Minister and I have discussed this, but will he confirm that the Government are exploring investing in possible alternative futures for the site and the workforce at Mossmorran?
Chris McDonald
Industrial sites like the one at Mossmorran are incredibly valuable to the UK. We mentioned the strategic sites accelerator in our industrial strategy, and I would be interested to explore whether Mossmorran could be a part of that. It is important that we do that and that we move fast, because I learned only today that prior to this, the SNP-led Scottish Government have not held a single meeting about planning transition for Mossmorran, so we will have to run fast to catch up.
(1 month, 3 weeks ago)
Commons ChamberLet me say that the Father of the House was also very reasonable in the meeting that we had; I am glad that we had that opportunity. If we hit the absolute ambition of the solar roll-out, we will have 0.4% of land, but as I said to him, I recognise that a number of projects in particular areas have not been strategically planned for a long time. That is why we are bringing forward the strategic spatial energy plan, so that we plan the system across the whole of Great Britain and so that communities feel that things are being done not to them, but with them.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
Today’s news that ExxonMobil is to close the Fife ethylene plant in Mossmoran is a devastating blow to many of my constituents. I am furious that contract workers appear to have been locked out of the site this morning. News reaching me suggests that ExxonMobil staff, many of whom have decades of service, have been told that they will lose their jobs but have no idea of the redundancy package they will receive. That follows months of attempts to engage with ExxonMobil in good faith, during which it was not forthcoming about its intentions or about what the Government can do to save the plant and the jobs. ExxonMobil continues to ignore my requests for clarity. Will the Government do all that they can to support a future for the plant and its workers? Will the Minister join me in calling on ExxonMobil to share vital information at this incredibly—
Order. [Interruption.] I am speaking to the hon. Lady. This is a very important subject, and I really do think it matters—she is absolutely right. I think such issues should be heard and discussed in the Chamber. It might be worth thinking about putting in for an urgent question, because this issue is so serious.
(1 month, 3 weeks ago)
Commons Chamber
Chris McDonald
No; it is real. He will realise that soon. I was genuinely upset when the shadow Secretary of State described my words as cold; they were not. They were sincere and heartfelt, because I have been in this position myself. I really wish that the shadow Secretary of State and his colleagues had shown similar vigour when the steel industry in Teesside was collapsing around us, and my colleagues and I were at risk of redundancy. The Conservatives stood by, and left 10 days for a buyer to be found for the most efficient steel plant in the country before it closed.
I take the shadow Secretary of State’s comments about the uncompetitive business environment in the UK with a pinch of salt, because the plant has been significantly loss-making for five years. I wonder why that is. Could it be because of our high energy prices, resulting from the previous Government’s decision to tie us to international gas prices and put us at the mercy of Vladimir Putin?
The shadow Secretary of State talks about a transition. I know what a terrible transition is like, because I lived through one in the coalfield of County Durham. The Government are ensuring, in Scotland and throughout the UK, that the workforce in these industries have the benefit of a proper transition. That is why we have an industrial strategy, and why we have intervened in industry in the areas that I have mentioned.
Now we come to the point of education. Sometimes it is best to get our knowledge of industry, and industry in Scotland, from somewhere other than Twitter, because we do in fact still have ethylene production in the UK, at Grangemouth. I would have thought the shadow Secretary of State would have realised that. Perhaps he did not realise this, but none of the ethylene produced at Mossmorran was used in the UK anyway; 100% of it was exported to the EU. That was why I thanked the workers for their contribution to the UK’s balance of trade over so many decades.
Finally, the shadow Minister can debate the nuances of carbon taxes if he wants to, but this plant exports all its product to the EU. To do that, the plant needs to ensure that the product aligns with the market in which it finds itself, which obviously has the EU emissions trading system. If it received relief in the UK, it would have to pay that tax to the EU. Does the hon. Gentleman prefer that that money comes to the UK Government or that it goes to the EU?
The hon. Gentleman’s comments demonstrate that not only does he not understand this plant, but he does not understand the chemicals industry. I really wonder whether he cares for the workers at Mossmorran at all.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
This is devastating news for all the workers at the ExxonMobil Fife ethylene plant in Mossmorran, many of whom are my constituents. ExxonMobil must now be fully transparent and give proper clarity for the sake of all those affected.
This company made £25 billion in profits last year, yet over the course of multiple meetings with Ministers in recent months it failed to come up with any viable proposals to secure the plant and the jobs. In contrast, I have today met with representatives of Shell, which runs the adjacent Fife natural gas liquids plant, and it has confirmed that the jobs there are secure for the foreseeable future.
I am also in regular contact with trade union colleagues. Earlier today, both Fife council and I called for a new taskforce to be set up to explore future options for the plant and provide proper support to the workforce. Will the UK Government give full support and engagement to such a taskforce?
Chris McDonald
My hon. Friend is absolutely right that we need to focus on the workforce. Earlier today, I sought and was given reassurances by the company on the support that it will give to the workforce. Its expectation is that, of the 179 permanent employees, 50 of those will remain in employment until at least 2027-28 to support the safe decommissioning of the plant, and a further 50 will be offered relocation to its Fawley plant. I have also made inquiries about apprentices.
On her specific request for a taskforce, that would be usual in this situation. I absolutely support it, and I think a new and distinctive taskforce is required for this plant to address the very specific areas, not only for the plant but for the Fife community.
(6 months, 2 weeks ago)
Commons ChamberI always take a close interest in success stories from the north-east of England, and what my hon. Friend outlines is incredibly exciting. The high-tech SME cluster that he talks about will benefit in many ways from each of the sector plans, whether they are in advanced manufacturing, creative industries or defence. There are provisions on access to finance for them in this strategy and the dedication of resources from the defence budget, for instance, for that sector. Those businesses are set to fly, and with this industrial strategy my hon. Friend has a real chance to build and communicate the opportunities for them over the next few years.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
I really warmly welcome the modern industrial strategy, particularly all that it has to offer for Scotland. I also welcome the Business Secretary’s personal enthusiasm and energy about the potential for growth in Scotland—what a contrast with the SNP, which cannot help but talk Scotland down. I particularly welcome the good news for skills and innovation, which will benefit Scotland, and for reduced energy costs, particularly electricity costs, for our key manufacturing sites in Scotland. As I have discussed with my right hon. Friend, the ethylene plant at Mossmorran is a large employer in my constituency, supporting hundreds of high-skilled, well-paid jobs in Fife. Will the Business Secretary outline how this industrial strategy and other Government action will back the chemicals industry and the jobs it supports?
I think it was about a year ago when my hon. Friend and I were on the campaign trail in her constituency and visited businesses with the message that we would implement a strategy of this kind. I think that the Scottish economy, when mapped against our eight industrial strategy sectors, could be a description of Scottish success, and we should be excited about that. The ethylene cracker at Mossmorran is a very important facility. As my hon. Friend will know, high gas prices across Europe mean that all the crackers across Europe are under some degree of distress. I have been in conversations with my right hon. Friend the Secretary of State for Scotland about that and other crackers in Scotland that are affected by those high gas prices, and we continue that work. More generally, the chemicals sector is recognised as a key foundational sector in this strategy. It has had a lot of pressure in recent years, and we are seeking to improve that business environment.
(9 months ago)
Commons ChamberThe hon. Lady will have heard the answers I have given to some of the questions she raises, and the unequivocal assurances I have been able to provide. She talks about backbone—backbone and strength. Strength and wisdom are not opposing values. Backbone comes from putting our own national interest first, and negotiating on a basis in the interests of all our constituents, not bandying around rhetoric and escalating the situation. That, respectfully, is not the right way forward. The right way forward is to engage on national interest, make sure we are delivering and have the chance to find the right way through this.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
I thank the Secretary of State and his team for the enormous amount of hard work they have put in on this issue. It feels apt to mention that I represent the town of Kirkcaldy, the birthplace of Adam Smith, who I am sure would have had something to say about last night’s events. My right hon. Friend is keenly aware of the importance of the US market for Scottish exports, including but not limited to salmon and whisky, which I know he is very fond of. What further reassurance can he offer to Scotland’s leading export industries about the impact of these developments on trade with the US?
(11 months ago)
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The short answer to that is yes. I think some things are being done by devolved Government, but I was alluding to the rating of commercial premises in the run-up to Christmas. We need to reduce car parking charges and rates at that time because many businesses exist throughout the year only because of the turnover that they get between October and Christmas eve.
Richard Walker, the managing director of Iceland—who I understand is a supporter of the Labour Government, so I hope this is not viewed as a criticism—said just this week:
“The Treasury is right to look at levelling the playing field on tax, but it has parked its tractor in the wrong place going after hard-working British farmers. Let’s stop messing around and make online sales tax reform the priority. High streets and farmers are the bedrock of this great country, we need to get behind them.”
I could not agree more. We need a fundamental reassessment of where our high streets will be not in 15 years’ time but in 15 months’ time.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
I thank the hon. Gentleman for giving way; he is being very generous with his time. It is already clear from this debate that decline in our high streets is a common problem across the UK, including in my constituency. We probably all agree that it will take innovation, creativity and, crucially, investment to redevelop our high streets. Will the hon. Gentleman join me in paying tribute to the work of local organisations such as Love Oor Lang Toun and the Adam Smith Global Foundation in my constituency, which are doing so much to develop the future of Kirkcaldy?
I do not know those organisations, but I presume, on the basis of the hon. Lady’s endorsement, that they are very worth while and worth defending.
This week—this is a very topical issue—the Government in the Irish Republic have indicated that they will look at VAT terms. Of course, Northern Ireland is in very close proximity to the Republic. Here in the UK, VAT is charged at 20%, and in the Irish Republic it is 13%. That puts our high street retailers, particularly those in the hospitality sector, at a bit of a disadvantage. The Government in the Republic have indicated that they will reduce their rate yet again from 13% down to 9%, which means that the disadvantage gap for Northern Ireland retailers and consumers will widen considerably.
The Minister will obviously not be able to respond immediately. If he does, I would be very surprised. I would welcome his response if he were able to say, “I’m going to go to the Treasury and get special dispensation for Northern Ireland hospitality on the high street, with a 5% introductory rate for the next four years of this Parliament”—I think that would be an excellent idea that would get support across the divide in Northern Ireland. But I hope he will have some discussion with his colleagues to see what can be done. We are at an acute disadvantage, and it is most heavily felt. In the past couple of days, hotel managers and hospitality retailers have been on local radio saying, “Our opportunity for business is diminishing even more as a result of this decision to reduce VAT in the adjoining businesses, just a few miles across the border, down from 13% to 9%. We are struggling with charging a 20% rate.” So a 5% rate would be very welcome.
In conclusion—
(1 year, 2 months ago)
Commons ChamberI hope that the hon. Gentleman has a long and successful career in this House, but he will not have very long to wait; if he is concerned about a lack of investment in the NHS, I ask him to sit down with the Chief Secretary to the Treasury and ask exactly what the rate of growth will be for NHS spending and departmental spending in the years ’26-27 and ’27-28. Then perhaps he could come back and tell me what he thinks about that level of spending growth.
The Government talk of stabilising the economy—we have heard a lot about that—but this is not a Budget for stability; it is anything but. Let me educate Labour colleagues. There is nothing stable about lowering the rate of economic growth. All that does is create a more fragile and susceptible economy. There is nothing sustainable about a Government changing the fiscal rules after saying that they would not. Even with the potentially unsustainable levels of departmental spend, there is nothing stable in a Government having a razor-thin level of headroom that the OBR quantifies at only £10 billion—just one third of the level that the Chancellor’s predecessor set—to ensure that they remain within the fiscal rules, which they have just made up, by the way.
I will happily give way to the hon. Lady if she wants to talk about headroom in the fiscal rules, and the lack thereof.
Melanie Ward
The hon. Gentleman is talking about stability, but does he recognise the irony in his party—the party of Liz Truss—lecturing the Government about stability?
The—[Interruption.] I am trying to find something relevant to say to the hon. Lady. There is a—[Interruption.]
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
Some have spoken today of the wait for this Budget. Depending on our perspective, we waited either 16 weeks or 14 years, and I was in the latter camp. I was proud to sit behind my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves), the first woman Chancellor in the 800-year history of the office, as she delivered the Budget last week, and I was even more proud of the Budget that she introduced and what it means for working people of all ages in Cowdenbeath and Kirkcaldy. One in four children in my constituency are growing up in poverty; they have been failed by two Opposition parties. Save the Children Scotland said this year that the Scottish Government’s policies would not “move the dial” on child poverty, and the SNP has consistently failed to meet the targets it has set. Once again, its Members are not here to listen to the debate.
Because of this Budget, Labour’s fair repayment rate will mean that more than 1 million of the UK’s poorest households will be £420 a year better off from next April. That is expected to benefit 110,000 households in Scotland and to begin at last to drive down dependence on emergency food parcels. Many of those visiting food banks are in work, and the 6.7% increase to the national living wage and the even larger increase for 18 to 20-year-olds is an important recognition of the financial difficulty in which many of my constituents find themselves.
In Fife alone, more than 8,000 low-paid workers stand to benefit from the increase to the national living wage. The mineworkers’ pension scheme will return more than £1 billion to 112,000 former coal workers, 824 of whom are in my constituency. That means that the people who powered our country, who were so badly mistreated for so many years by the Conservatives, will receive a 32% increase to their annual pensions.
Finally, Labour’s Budget delivers the largest financial settlement to the Scottish Government in the history of devolution, with an extra £3.4 billion next year alone. It is over to the SNP now to use that competently to fix Scotland’s precious public services, which the SNP has run down over the past 17 years.
In conclusion, this Budget delivers for all age groups and all parts of my constituency in enacting our manifesto commitments to make work pay, to revive our public services and to tackle poverty. I am proud to support this historic Budget.