British Steel

Debate between Baroness Bennett of Manor Castle and Baroness Gustafsson

Thursday 24th April 2025 Lords Chamber

[Baroness Gustafsson (Lab)]

Creating an ongoing, viable concern is absolutely the aspiration for the sector, not necessarily with regard to British Steel specifically, but the much broader sector. As I said earlier, we have the immediate-term question of how we make sure that the day-to-day operation of British Steel is ongoing and running. That second longer-term piece is how we make it a financially sustainable industry and one that is able to wash its own face economically. To that part, that is where that steel strategy is really core. With regard to the specifics of what we are spending in the here and now, that is absolutely information that will be made available within part of the department’s accounts when they are published.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the annual volume of steel scrap exported from the UK was 7.22 million tonnes in 2023, 8.24 million tonnes in 2022 and 7.4 million tonnes in 2021. That figure is not going down: it is bobbling around, which is a product of both the supply of scrap steel from within the UK and what is happening in markets to which it is being exported, particularly the Indian subcontinent. My question is about the Government’s long-term vision. That amount of steel would ensure that if we were to recycle that ourselves under the best possible environmental conditions, we would obviously be creating jobs and opportunities to secure a supply of steel for the just transition that we need. Is the Government’s long-term vision a circular economy in steel so we are not exporting scrap steel?

[Baroness Gustafsson (Lab)]

I can confirm that thinking about how we create that circular economy within the steel industry and how we think about scrap steel will absolutely be a key aspect of the steel strategy.

--- Later in debate ---

[Baroness Gustafsson (Lab)]

I am more than happy to follow up specifically on that matter with you separately.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Minister spoke about seeking new private sector involvement in Scunthorpe and the steelworks. We have seen so much private sector involvement in sectors such as the water industry, with essentially the privatisation of profits and cash and the socialisation of debts and costs. Can the noble Baroness assure me that that will not happen here?

[Baroness Gustafsson (Lab)]

I think we have been clear about the best way forward: we would like this to be a commercially run business, with private investment and government acting in support. But we will do whatever it takes to give the UK the best chance to safeguard the future of steel-making. That is why we would talk about the most likely outcome, as the Secretary of State has mentioned, being that of nationalisation.

UK-US Trade and Tariffs

Debate between Baroness Bennett of Manor Castle and Baroness Gustafsson

Thursday 3rd April 2025 Lords Chamber

[Baroness Gustafsson (Lab)]

On my noble friend’s question about the impact not just within the UK but outside, if we think about our supply chains, we see that so many are interconnected and have a fierce reliance not just on the UK, the US or Europe but on so many other countries that pass through those supply chains—especially when we think about things such as digital services that we are championing. Making sure that we support those industries, not just to support their economies and those that could be most in need but to support our supply chains, is something that would ultimately benefit both sides of that equation.

I come back to the fact that, today, I am just speculating, because I still do not understand fully how those tariffs will affect our supply chains and some of the sectors within those other countries. Yes, we need to make sure that we have strong and robust supply chains and are supporting those nations that benefit most from the value of that international trade, but I cannot comment further on exactly what the specifics look like at this point in the absence of more detail.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Minister spoke about strengthening the US-UK relationship further and about a positive trading relationship with the US. This tone reflects the Pollyanna approach that seems to bear no relationship to the reality of we saw last night of the great game show-like display in Washington—an attempt to divide and rule.

The noble Lords, Lord Purvis and Lord Bilimoria, spoke about working with the majority of the world’s trading countries—those countries that want to follow the rule of law and an orderly system—yet what we are hearing from the Government is again and again talk of leaving our long-term economic future in the hands of whether or not we are, from one day to the next, in President Trump’s favour. Surely, we must hear more about defending that rules-based order and working together, as the noble Viscount just said?

EU Law

Debate between Baroness Bennett of Manor Castle and Baroness Gustafsson

Tuesday 28th January 2025 Lords Chamber

[Baroness Gustafsson (Lab)]

I cannot comment on the specifics of the exact regulation that may or may not be coming. With regard to the trading relationship and making sure we have trade agreements in place, the Government are constantly and doggedly pursuing that to make sure we have a clear trade relationship that is free from barriers that get in the way and impede trade.

[Baroness Bennett of Manor Castle (GP)]

My Lords, before the previous general election, the Royal Society of Chemistry was calling for a national chemicals agency to overhaul our

“broken chemicals regulation and management system”.

Since Brexit, the EU has stepped ahead in addressing many chemicals that are a threat to public health and environmental health. We are now getting further and further behind almost every day. Are the Government going to follow the recommendation of the Royal Society of Chemistry?

[Baroness Gustafsson (Lab)]

On the possibility of a chemicals agreement, as we have said, we will work to improve the UK’s trade and investment relationship with the EU across a wide range of areas, including this one. But it is too early to discuss scope or specific areas in greater detail.