Steel Industry

Debate between Lee Anderson and Martin Vickers

Wednesday 16th October 2024 Westminster Hall

[Martin Vickers (Brigg and Immingham) (Con)]

It is a pleasure to see you in the Chair, Mrs Harris. I congratulate the hon. Member for Boston and Skegness (Richard Tice) on securing this timely debate.

Part of the British steel site at Scunthorpe falls within my Brigg and Immingham constituency, so needless to say I take a keen interest in its future. The site is known across the country and further afield for the steel it produces, which is top-quality virgin steel made from raw materials. This method of production results in products used for rail tracks and tyre wire, all the way to cruise ships and the Shard. British steel can be found all over the world. The steelworkers who make this world-class product are understandably proud of the skills they possess.

There is widespread, cross-party agreement that steel is incredibly important for everything we do, from defence to growth, which the hon. Member for Newport East (Jessica Morden) mentioned. If anything can be defined as a core industry—one of genuine strategic importance—it must be steel.

Workers and their families in my constituency and across northern Lincolnshire are incredibly concerned. They have heard rumours and seen press reports in recent weeks that suggest an early end to the imports of coke, the imminent closure of blast furnaces and escalating plans to import steel from the other side of the world to replace the products they make. Understandably, they want to know once and for all whether the rumours are true. They want certainty on whether the plan is to keep the blast furnaces running at least until electric arc furnaces are fully operational—does that still stand?

Prior to the election, Labour candidates stood on a platform of support for the UK steel industry, and billions of pounds were pledged. My constituents have not forgotten what they were told. They want to know where those billions are going and they want to see them spent in Scunthorpe. Will the Minister level with workers at the Scunthorpe site and set out exactly what this Government’s intentions are? Do they want to keep a domestic steel industry, like many countries around the world, or do they not?

The absolute least that the workforce at Scunthorpe deserve is for the Government to be completely frank with them on this issue. Do the Government value the work of steelmakers in Scunthorpe? Do they value the strategic capability of our nation to make our own steel? Do they want to keep domestic steel production for use in infrastructure and defence? How and when are they going secure that? If they cannot answer yes to those questions, can they explain what is so exceptional about the UK that means we cannot aspire to maintain a steel industry? The reality is that maintaining a steel industry will always demand support from the public purse. Without a steel industry, we are in effect admitting that we no longer aspire to be a major manufacturing nation and accepting that we do not value the defence industry.

In discussions on steel there are those who like to criticise the efforts of the previous Government. Although I do not want to spend the short time I have on political point scoring, I do think it is worth setting out some of the realities. The Conservative Government extended trade tariffs on steel products twice in the last Parliament; they did this having listened to MPs and businesses. It is a fact that they brought forward measures to help energy costs, and that they paid workers’ wages at Scunthorpe for many months to maintain jobs, skills and the site itself during the sale of the business five years ago. These were tangible, proactive decisions made by a Government who understood the importance of steel to our nation.

The former Member for Scunthorpe, Holly Mumby-Croft, mentioned steel over 200 times in questions and debates during her time in the House. I recognise that the current hon. Member for Scunthorpe (Sir Nicholas Dakin) is a Minister, meaning, I presume, that he supports the Government’s policies in relation to the steel industry. If his mailbag is similar to mine, he will know the scale of anxiety across the whole area. Just last week he was calling for a deal at Scunthorpe similar to the one in south Wales, where thousands of workers are set to lose their jobs. I want to see a policy that supports jobs, produces top-quality steel and supports the whole supply chain, which Scunthorpe relies on.

Under the last Labour Government, steel production and jobs halved in the UK. Will the Minister reassure workers at the Scunthorpe site that this Labour Government do not intend to repeat that legacy? I understand that the Minister is involved in current negotiations and will not be able to share all the detail the discussions. If that is the case, can she at least give the workers some clarity on when she expects there to be an announcement on the future of the site? Will she also reassure residents that she is working with North Lincolnshire council’s leader Rob Waltham, who proactively travelled to China a few weeks ago to meet the owners in person? He is taking a front-and-centre role in putting together a masterplan for the site to ensure that jobs and opportunities are brought to the area. He must be fully supported by the Government in that work; will the Minister confirm that that support will be offered?

I am conscious that there are those who will challenge the continuation of blast furnace steelmaking on environmental grounds, but it is quite clear that ending the production of virgin steel in the UK, and then importing virgin steel from abroad, would simply be offshoring our own emissions and adding the emissions involved in the transport of the steel to the UK. We should certainly not consider patting ourselves on the back for making environmental improvements if the Government’s plan is simply to allow the same or worse levels of emissions to be created elsewhere and for the steel then to be brought to the UK on diesel ships.

[Lee Anderson (Ashfield) (Reform)]

The hon. Member is making a great speech and makes a great point. Does he agree that if we are going to go down this road of net zero madness and make our steel more expensive, we should ban steel and steel products from other countries that are made in blast furnaces?

[Martin Vickers]

There would certainly be a case for the point the hon. Member makes. I gently point out that net zero is actually crucial to the economy of northern Lincolnshire, which I represent—I am thinking of the Humber Zero project and similar schemes.

I think you are urging me to come to a conclusion, Mrs Harris, so I will miss the next two or three pages out. I will say that whatever deal is reached now is in this Government’s hands. This an industry that, if lost, will be lost forever. I call on the Minister to redouble her efforts to secure the future of steelmaking in Scunthorpe and throughout the country. It is hard to exaggerate how crucial this is to Scunthorpe, to northern Lincolnshire and to the UK as a whole. We must bring this situation to a conclusion speedily to avoid the anxiety that workers are currently experiencing.