Protecting Steel in the UK

Debate between John Hayes and Alun Cairns

Tuesday 23rd January 2024 Commons Chamber

[Alun Cairns (Vale of Glamorgan) (Con)]

There is no question but that this is an extremely worrying time for families in Port Talbot and for the community at large. I know the community extremely well, and my father was a welder at the basic oxygen steelmaking plant in the steelworks for more than 30 years. Port Talbot is a community where everyone knows someone who is related to the steelworks in some way. The scale of the impact that this will have on the community should not be underestimated. It is not just the jobs themselves. There will be the contractual jobs and the associated roles with those contractual jobs, so there is a significant multiplier that follows on.

Of course, this is not the first time that we have been in this position or that the steelworks have been under threat. I can remember tens of thousands of people working there when I was growing up in the 1970s. The reality is that in 2016 we were in a similar position, when Tata planned to close the plant but, in opposition to what the Government are now claiming, the UK Government proactively worked with Tata to encourage a sale and, in the interim, the price of steel rose, which has given us a much longer lifespan for the site.

I want to point out that the commitment that Tata has shown is significant and needs to be recognised, because it has lost millions of pounds over time. In the close of 2018, as Secretary of State for Wales, I went to Mumbai to meet the chairman and chief executive of Tata, and to express my concern that the price of steel at that time was falling, and I wanted to know what their plans were. That is the proactivity with which the Government maintained an interest over time in seeking to support the industry and to support steel.

[Sir John Hayes]

I take my right hon. Friend’s point about commerciality, but the truth is that we can and should protect those core industries that are at the heart of our manufacturing capacity. If we open ourselves up to cheap foreign imports with huge environmental costs, we are bound to end in a situation of the kind he describes. I thank him and, in particular, my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) for their work, but it is for the Government to prioritise British jobs and British manufacturers.

[Alun Cairns]

My right hon. Friend makes an extremely important point, and I strongly agree with him. That is the proactivity that the Government have sought to pursue. I should correct the record, by the way: it was in November 2019 that I went to Mumbai to meet Tata.

However, the reality is that every time a Member of this House, on either side of the Chamber, has called for us to go further and faster and to be ahead of the curve in the green transition, another nail has been put in the coffin of heavy industry such as Tata in Port Talbot. That is the reality of the position. When we have passed climate change legislation here we have heard many Opposition Members—those who are now seeking to defend the jobs—saying that the Government are not doing enough on our green transition.

The £500 million is a significant sum, and we should not play it down. We must also remember that this is a devolved responsibility. Pre-devolution, that money would have been coming out of the Welsh block. We all know that since 2016 the Welsh Government have done nothing to reinvest in the plant after we managed to save it from closure, so I find it churlish when the Minister in the Welsh Government says he needs hundreds of millions. Those are the people calling for further devolution and further responsibility, but ultimately there is no accountability for the decisions, because investment in industry is a devolved function.

However, thanks to the Union and thanks to the United Kingdom Internal Market Act 2020, the UK Government can invest in the steelworks in Wales. That is the same Act that the Opposition voted against and to which the Welsh Assembly would not even approve a legislative consent motion in order for it to pass.

In the limited time I have, I also want to point out this is a two-blast furnace site; having one blast furnace operational makes it even more inefficient, and it will lose more money. My hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) highlighted a really important point about an arc furnace, and I have not heard the automotive sector say that it is content with that. Finally, I hope we will have a development corporation in order to save the economy in the area.