Tata Steel: Port Talbot

Debate between Lord Anderson of Swansea and Lord Fox

Tuesday 19th September 2023 Lords Chamber

[Lord Fox (LD)]

My Lords, I thank the Minister for allowing us to debate this Statement. The noble Baroness from His Majesty’s loyal Opposition made some important points, and I associate myself with her remarks. I have some additional questions.

The agreement to fund the installation of new arc furnaces for steel making will have a positive effect on emissions, and that is good news. However, as the noble Baroness said, the package could mean as many as 3,000 job losses in the UK, and in one area of the UK. That is a terrible outcome.

Tata is reported as warning that there would be a

“transition period including potential deep restructuring”

at the plant. I am not sure that I understand what that means. Can the Minister please translate it for your Lordships’ House in real terms and real lives? Those jobs are being shed. What plans do the Government have to support those people and that local economy when the jobs go? What are the plans for retraining, for example? What are the realistic expectations for a concentration of new and different jobs in that area?

As we also heard, the electric arc furnaces deliver different grades and qualities of steel compared to what we get from a blast furnace site. What is the Government’s assessment as to how the new capacity in this country as a result of that will affect the profile of steel we need to import? To add to the point that the noble Baroness made, what is the assessment on resilience in this country as a result of this change?

The new coal mine in Whitehaven that was last year partially waved through by Michael Gove is also a factor here. West Cumbria Mining said that the coking coal that it would produce would be used for steel making in the UK and Europe. As the Minister knows, electric arcs do not use coke. Yesterday’s announcement removes at a stroke a large proportion of the domestic market for that mine, meaning that the mine will be almost solely for export only, which even further removes the legitimacy of that venture.

The Statement mentions that the British industry supercharger, aimed at assisting electricity prices and helping to make them competitive for energy-intensive industries, will be applied here. His Majesty’s Government responded to the consultation on this only on 5 September, so I suspect that this is its first outing. I really do not understand what it is, but it is cited in reports. Can the Minister please write to us outlining what it is and what it means? I saw the consultation on the British industry supercharger and the response to it, and it is cited as being applied here. How is it applied? What are the terms of that application and what does it mean in energy terms for this business? What other businesses are now in line to benefit from it—not least Scunthorpe, where the Chinese owners cited energy costs as the reason for their shutting down of its coking ovens?

I have a couple of other points. Tata expects to release land at Port Talbot for transfer or sale following the closure of the blast furnaces. This land presumably hosted high industrial activity for decades, so who will be responsible for the not inconsiderable costs of decontaminating and remediating this land before it becomes useful and valuable for anything else? Who will be stumping up these costs?

In conclusion, we have seen a number of government interventions, including the also Tata-owned Jaguar Land Rover, Nissan, BMW and perhaps, going forward, British Steel. It has been said by some that these are foreign investors who are masters at extracting subsidies. We understand that there is an international subsidy competition going on here, but how does the Minister respond to that charge? The Chancellor has said that he was not prepared to go toe to toe with the US and EU in the subsidy bidding war, but this looks like the Government reacting to things when they settle in their in-tray. A patchwork of deals is a poor substitute for a coherent industrial strategy. Where is His Majesty’s Government’s plan? What are the Government seeking to cause to happen, or should we expect further examples of sticking plaster activity?

[Lord Anderson of Swansea (Lab)]

My Lords—

Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No. 2) Order 2018

Debate between Lord Anderson of Swansea and Lord Fox

Monday 16th April 2018 Lords Chamber

[Lord Fox (LD)]

My Lords, the Minister may find himself bathed in warmth from this corner of the House as well: we welcome this step forward. He raised a couple of points which we would like some clarity on. Will the Minister confirm whether the payslip itself will detail different hourly rates within the gross hourly performance, or simply an average number, as this was not clear? He also referred to raising with an employer the question of whether payment has been fair. Raising such an issue with an employer, and perhaps ultimately going to a tribunal, would be much easier if the burden of proof was on the employer rather than the employee. Have there been any thoughts about looking at the burden of proof in employee tribunals? Otherwise, the Minister’s injunction to raise the matter with an employer is unlikely to yield the sort of result that he is implying.

Overall, the gig economy and the sort of jobs set out by the noble Lord, Lord Monks, have created a group of employees who sit between full employment and self-employment. This goes some way to reaching out and giving them rights. Noble Lords on this side of the House would be pleased if a new, clearer status of dependent contractor was carved out from the Taylor report. That would give rights such as this, as well as a variety of other employment rights, to workers who are neither fully employed nor fully self-employed but sit between the two. Where are we in terms of fuller implantation of the Taylor review?

[Lord Anderson of Swansea (Lab)]

My Lords, to ensure that the provisions of this welcome order are fully complied with, have the Government considered the case for having some form of uniform payslip?