Protecting Steel in the UK
Debate between Nusrat Ghani and Andrew Percy(3 months ago)
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Ms Ghani
I will make a bit of progress and then I will take interventions.
Tata’s proposed plans have the potential to turn around its economic fortunes—it is losing £1.5 million a day—and to deal with emissions, but it is also about adopting new technology and meeting customers’ needs. I know that there are huge concerns, because that means job losses. The concerns hon. Members have expressed for the people of Port Talbot are our concerns too, and they are shared by Members right across the House. They have been represented by the Government in our negotiations with the company.
As I said, we are holding Tata to account, ensuring that the transition is managed properly so that every employee receives the support they deserve. That includes £100 million of funding for a dedicated transition board, chaired by the Secretary of State for Wales and including members of the Welsh Government, to support affected employees and to provide a plan to protect and grow the local economy in the next decade. Tata also announced on Friday that on top of that £100 million, it would provide an additional £130-million comprehensive support package for affected employees.
Andrew Percy
I thank my hon. Friend. She has been a friend to those of us on these Benches who have been concerned about our local steel jobs and she has been a champion within Government for our steel industry, so I thank her on behalf of our steelworkers for her support. May I urge her to be cautious in listening to the Opposition, who more than halved the number of people who worked in the industry last time they were in power?
It is clear that customers will want green steel in the future, but does my hon. Friend agree with those of us in Scunthorpe who want to retain a capability of some sort when it comes to virgin steel?
Ms Ghani
The technology has moved on. Although 90% of everything that we need can be made from recycled steel, there is a gap, and Scunthorpe is obviously filling that gap at the moment.
My hon. Friend also made an important point about the Opposition, who are talking about potential job losses. In 1997, 70,000 people worked in the steel industry; by 2010, that number had fallen to 30,600—a fall of 40,000 jobs or 56%. The Labour leader between 2010 and 2015 did not mention the steel industry once in Parliament. Our investment at Port Talbot is the largest that has been made for a substantial period, and although the situation is challenging, without that support there was a massive risk that Tata would have left Port Talbot.
British Steel: Negotiations
Debate between Nusrat Ghani and Andrew Percy(1 year, 2 months ago)
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Ms Ghani
Nationalisation is not going to solve any of the problems that we are talking about right now. The problems that the steel sector in the UK faces are the problems that it faces globally. It is unfortunate that the hon. Member thinks that nationalisation could be the answer to this or to everything. It would not make steel more competitive, it would close down the ability to raise money from capital markets, and the whole of the risk and burden would fall on the taxpayer, with no guarantee of a long-term, sustainable strategy. We are proposing to ensure that we have a long-term strategy which is providing support now. We provided support during covid. We are providing substantial support during the energy crisis, and there is a fund of more than £1 billion—£1.5 billion in total—to help with tackling emissions and energy costs. We have a long-term strategy in place.
Andrew Percy (Brigg and Goole) (Con)
I think the shadow Minister must have forgotten—I like her a lot, but I think she must have forgotten—who the Government were in 2009, when the mothballing of Teesside and the loss of 1,700 jobs commenced. I would hope that the Opposition do not use my constituents who are affected by this as political pawns in some game to try to bash the Government, because that would be pretty low. I know that the shadow Minister will not do that, and I hope others will not.
Everything British Steel has asked us to do as local MPs in the past few years we have done. We have gone out and fought for it to ensure our steel safeguards are protected and to ensure that, when the site ownership changed, hundreds of millions of pounds of UK taxpayers’ money was offered to support the new buyers and to pay the salaries of our constituents during that period, and, of course, we have done everything they have asked us to do on energy costs. So I am as angry as my hon. Friend and constituency neighbour the Member for Scunthorpe (Holly Mumby-Croft) at the way in which our workers are being treated by Jingye. This is no way to conduct a negotiation with Government and it is no way to engage with its workforce or with local Members of Parliament, at a time when the Government have put hundreds of millions of pounds on the table to help to support the sector. So I can only join my hon. Friend in demanding that Jingye and British Steel show a bit more respect to our constituents and negotiate in good faith.
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.