Oral Answers to Questions

Bill Esterson Excerpts

Thursday 14th September 2023 Commons Chamber

[Ms Ghani]

Steel is vital to the UK, but we know that the industry needs to decarbonise for a sustainable future. The Paris agreement made it clear that the sector had to reduce its global emissions by 93% by 2050. The Government are actively engaging with the sector on how best to achieve that, but decarbonisation pathways for specific sites will be commercial decisions for individual companies. Industrial sectors, including steel companies, can bid into Government funds worth hundreds of millions of pounds to help them go green. As I mentioned, we have done a huge amount to support energy intensive industries.

[Bill Esterson (Sefton Central) (Lab)]

The UK is the only major steel-producing nation where production is falling, but the Minister and her colleagues have been telling us for months that they cannot guarantee the use of UK-made steel in Government contracts, especially in the military. The thing is that the steel producers say that they can make whatever their customer asks by changing the production line. Will the Minister confirm that the reason we have a problem with steel in this country is the Government’s refusal to view it as a strategically important industry? The Conservatives’ sticking-plaster politics have failed steelworkers, as we have seen at Port Talbot.

[Ms Ghani]

I fundamentally disagree with the question—well, it was more of a statement. I made it clear when I took on this role that we would assess the level of steel in procurement contracts, and we have put together the steel procurement policy note, which will address how much steel is being procured in our contracts in the UK. We are doing a huge amount to ensure that the different types of steel that are needed are produced. We know how valuable the sector is, which is why we provided support with high energy costs and why we have a decarbonisation budget that the industry can link into. I fundamentally disagree with the hon. Gentleman’s proposition.

Oral Answers to Questions

Bill Esterson Excerpts

Thursday 29th June 2023 Commons Chamber

[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.

Oral Answers to Questions

Bill Esterson Excerpts

Thursday 23rd March 2023 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

People in Scunthorpe, Rotherham and Port Talbot know how important steel is for their communities. We Labour Members understand how important it is, for communities and for the green transition. The UK is the only G20 country in which steel production is falling, but when asked about the survival of this strategically important sector, the Business Secretary said:

“Nothing is ever a given.”

Is that because the British steel industry is not safe in her hands?

[Ms Ghani]

I do not know where the hon. Member got that quote from, but the British steel industry is very safe in our hands. Let me explain why. There has been over £800 million of support for energy costs, and over £1.5 billion to support competitive funds to ensure that the sector can decarbonise. We have done a huge amount of work with our steel sector. Colleagues from across the House will agree that in every meeting, whether it is with the unions or the sector, we are on the side of the steel sector and steelworkers, including when challenging commercial decisions are taken.