Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 29th June 2023 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

2. What steps she is taking to help the steel industry to decarbonise.

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

The Paris agreement made clear that the steel industry needs to cut emissions by 93% by 2050, and the Government recognise the vital role that the steel sector plays in our economy. The 2021 net zero strategy sets out our aim to make the transition to a low-carbon economy, and reaffirms our commitment to continuing to work with the steel industry on decarbonisation.

[Stephen Kinnock]

Hundreds of steelworkers gathered in Westminster yesterday to make absolutely clear their feeling that the Government are not doing enough, particularly in comparison with competitor nations, when it comes to investment in the transition to decarbonised steel. The numbers do not lie. The Government are also worryingly slow in introducing a carbon border adjustment mechanism. UK Steel has estimated that nearly 23 million tonnes of non-EU steel could flood the UK market if the UK fails to introduce its own carbon border adjustment mechanism at the same time as the EU in 2026. When will we see the Government stepping up and investing in green steel as is being done in competitor countries, and when can we expect the introduction of a British CBAM?

[Ms Ghani]

We have been supporting the steel industry, with more than £1 billion available in grants to help decarbonise the sector and the provision of more than £730 million to cover energy costs since 2013. The CBAM is clearly an issue for many countries, not just ours. We have just finished one consultation, and will produce a response in due course. A transitional reporting phase is due to start in October, with full introduction in 2026. The EU is still developing details about CBAM implementation, and has a consultation open on proposed reporting requirements until 11 July. I know that the hon. Member chairs the all-party parliamentary group for steel and metal related industries, and I urge him to ensure that all businesses express their views as strongly as possible. I think we are meeting on Monday to make sure that we can provide a substantial response.

[Mr Speaker]

I call the shadow Minister.

[Bill Esterson (Sefton Central) (Lab)]

The Minister said that she recognises the vital role that steel plays in this country, but the UK is the only country in the G20 where steel production is falling. It is also the only G7 country whose Government do not insist on using domestically produced steel in defence contracts. Meanwhile, UK steel producers pay 62% more than their German counterparts for electricity. Labour’s £3 billion green steel plan will give our industry the bright future that other countries are offering their steel sectors. Labour believes in our steel; why do this Government not?

[Ms Ghani]

I am not sure where Labour Members will get the money to fund that programme of work. I have not even got to the end of reading this paper but they will probably U-turn by the time I do, so I am not sure how sensible it is going to be. We have provided more than £1 billion for decarbonisation, unprecedented support to help with energy costs, and just recently, there was fantastic news from Celsa, when it was able to repay a Government loan of £30 million that we provided to them, sensibly spending taxpayers’ money. There is and always has been support available. When it comes to procurement, it is absolutely right that we do everything we can to make sure that we have UK firms procuring UK steel.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

3. What recent assessment she has made of the potential impact of her Department’s trade policies on food prices.

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[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

8. What recent assessment her Department has made of the potential effect of the UK’s withdrawal from the European single market on business and trade.

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

Having regained our regulatory sovereignty now that we have left the European Union, we are now able to ensure that our regulation is tailored to the UK economy, supports our businesses and protects our consumers. Having left the single market, we can focus on UK trade with the world, where total trade is up 24%, so the answer to his question is that the effect is that total trade is up.

[Neale Hanvey]

Resilient and effective routes to market are essential for trade. The congestion that is currently being experienced at Dover is a significant barrier to effective trade. We can add to that the HGV miles from Scotland to the south-east and the impact on the quantities carried, on perishables and on costs, never mind the environmental impact. Will the Minister meet me to discuss how we reintroduce direct links from Scotland to mainland Europe and ensure trade is friction-free from Scotland?

[Ms Ghani]

I do not think the hon. Member heard my answer: trade is up. The reality is that this scaremongering just has to stop. The scaremongering is basically a cover for petty nationalism, and I would ask him to be passionate about the market that matters, which is between Scotland and England.

[Neale Hanvey]

rose—

[Ms Ghani]

If the hon. Member was passionate about Scottish businesses and Scottish jobs, he would be passionate about the single market that matters.

[Luke Hall (Thornbury and Yate) (Con)]

9. What steps she is taking to implement the Neonatal Care (Leave and Pay) Act 2023.

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[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.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

16. What steps her Department is taking to help reduce potential barriers to trade for Cornish businesses.

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

We are targeting a global hit list of barriers whose removal will deliver massive new opportunities for UK businesses throughout the country, including in Cornwall. It is estimated that that will be worth more than £20 billion over five years. The Government are working to open up new markets, including for Cornish farmers. British lamb is now being exported to America for the first time in over 20 years, and British beef is being sent to the Philippines.

[Mrs Murray]

Many of the businesses in my constituency pay an additional tax by way of a toll to cross the Tamar, which can run into many thousands of pounds for them. What representations has the Department made to the Department for Transport to have that additional tax, which can make it harder to compete with firms in the rest of the UK, removed?

[Ms Ghani]

I thank my hon. Friend for bringing that to my attention. She is such a powerful voice for Cornwall. I am surprised that the Department for Transport has not yet buckled, because I know what a champion she is for her constituency and the region. I will ask my team to engage on this matter with their counterparts at the DFT and the Department for Levelling Up, Housing and Communities. I know that she will not stop until she gets what she deserves for her constituents, so I am more than happy to give the strength to her elbow.

[Dr Luke Evans (Bosworth) (Con)]

17. How many trade deals have been agreed since 2019.

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[Siobhan Baillie (Stroud) (Con)]

I am concerned that the UK is being left behind on hydrogen internal combustion engines. The EU and the USA are now recognising hydrogen combustion engines as zero emission, but the UK is refusing, which means that the automotive transformation fund for industrialising the technology is not available. I am working with brilliant companies such as BorgWarner in Stonehouse and the Renewable Hydrogen Alliance to raise this issue. I have spoken to the Secretary of State for Transport and I am raising it with the Prime Minister; I hope that my right hon. Friend the Secretary of State for Business and Trade will use her brilliant brains on this matter too.

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

I hope that my hon. Friend will allow me to use my brain to help unlock this with the Department for Transport. We have the automotive transformation fund and the Advanced Propulsion Centre, so we are doing a huge amount of work in this space to ensure that we are not only on the cutting edge of electric zero-emission vehicles, but looking at what the opportunities are for hydrogen. We do not want to be left behind anywhere in this space, but we do need to align ourselves with the rest of our Departments, and I will do so.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

T2. The Fresh Produce Consortium, which represents 70% of the UK’s fresh produce supply chain, recently warned that post-Brexit import charges will hit small and medium-sized enterprises the hardest. Does the Minister accept that the post-Brexit trade deals are driving up already soaring food prices, as well as hitting small food producers at a time when they are facing real difficulties as a result of increased operating costs?

[Richard Graham (Gloucester) (Con)]

Over a third of the value of every Airbus sold in the world comes from the United Kingdom’s aerospace manufacturing—whether it is wings, engines, landing gear or other avionics—but all of the Airbus sales are recorded in international statistics as exports from France because the final take-off is from Toulouse. What can the Department do to try to make sure that the value of these exports, especially to the fast-growing Asia-Pacific region, is recognised as being partly from the UK?

[Ms Ghani]

This is a great opportunity to talk about Airbus’s 500-plane deal with Indian airline IndiGo. It is the largest aviation deal in history, and it has been done on our watch. We are providing the certainty that businesses need in order to go out and confidently secure such contracts. A lot of the jobs will be in the UK, but I will take away what my hon. Friend said, because we want to be able to show precisely the level of investment in the UK and the number of jobs that are created by this deal.

[Mr Speaker]

Order. I remind Ministers that they should be speaking to me, not to the Back Benches.

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[Tim Farron (Westmorland and Lonsdale) (LD)]

How does it help UK Steel to decarbonise, or help the UK to reclaim its position of global leadership in reducing climate emissions, to support the opening of a sure-to-be-doomed new coalmine in west Cumbria?

[Ms Ghani]

I do not think the hon. Gentleman has ever had a positive story to tell about his region, let alone his constituency. We have a positive story on steel, and we have the same challenges as most countries in trying to deal with decarbonisation. We have issues around energy costs that we have been providing all our advanced manufacturing sectors with, and we want to ensure that we diversify our access to different forms of energy.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Going back to Brexit, can the Secretary of State name one Scottish sheep farmer who is happy with the Brexit deal, or any seafood producers and exporters that she spoke to who are happy with Brexit? Can she name any Scottish farming sectors that are happy with Brexit?

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[Mr Speaker]

Order. I do not know whether the Minister wants to respond.

[Ms Ghani]

indicated dissent.

[Mr Speaker]

If not, there was nothing disorderly, and I cannot continue the debate. What I can say is that the hon. Member has certainly put his view on the record.