UK Steel Strategy
Lord Bishop of Oxford Excerpts(6 days ago)
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Baroness Lloyd of Effra (Lab)
My noble friend brings his experience and wisdom to the House. Welsh steel is expected to account for half of future UK steelmaking. As he will be aware, we have also invested £500 million in the electric arc furnace in Port Talbot. In addition to that, the Secretary of State for Wales will convene the National Wealth Fund and the private sector in a new initiative to help unlock investment in Welsh steel projects to help and support communities across Wales that rely on the industry.
The Lord Bishop of Oxford
My Lords, for seven years I was privileged to be the Bishop of Sheffield, and I am familiar with the complex ecology of south Yorkshire, articulated by the noble Lord, Lord Fox. For those seven years, each year I was the guest of the Cutlers Company, who would invite a Minister, always from London and normally the Chancellor. In those years it was the coalition and Conservative Governments. The script followed by the speakers from the Cutlers Company, who did not mince their words, was always the same. It was about the neglect of the manufacturing industry by government and, in particular, high energy costs. This seems to me to be the key to the next chapter in this strategy.
I would be very grateful if the Minister could expand further and give some assurance that, in five years’ time, the Cutlers Company in Sheffield will not be making the same comments about higher electricity costs than for their partners overseas. I would also be grateful if the Minister could say something about the connection between advanced manufacturing and research, and the revitalisation of the steel industry. It was said in my time in Sheffield that Sheffield still produced as much steel by volume, but employed a fraction of the number of people, and that was because of advanced manufacturing. Thirdly, I would be really grateful for an unpacking of the defence contingency, the importance of which I would underscore.
Baroness Lloyd of Effra (Lab)
The right reverend Prelate raises some important issues. There are two elements here in respect of energy prices. The first is the immediate action we are taking, including the supercharger, to support the steel industry now. The second is the investment we are making in renewable energy, clean power and nuclear energy that will set this country on the right track to low-carbon energy that has high energy security here in the United Kingdom.
The other point, on advanced manufacturing and R&D, goes to one of the particular strengths of the United Kingdom, which is our expertise and the types of firms we have. One benefit of the industrial strategy is linking the sectors we have set out there, which of course include defence, with the importance of high-quality manufactured low-carbon steel, which is what the UK excels in.
British Steel
Lord Bishop of Oxford Excerpts(2 years, 4 months ago)
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The Earl of Minto (Con)
My Lords, that sounds to me rather like the thin end of the wedge. Any return to some form of nationalisation is not appropriate. We operate in a global market now, in all sorts of categories. We must allow the commercial viability of each individual market.
The Lord Bishop of Oxford
My Lords, many of us around this House will have experience of what happens in communities when these devastating redundancies happen. I was Bishop of Sheffield in South Yorkshire for many years and saw the effects at first hand. Can the Minister say more about the Government’s plans to invest in the area to help those affected transition through? In particular, what industries and areas of employment does he see as appropriate to the Scunthorpe area, given all the technological and industrial changes that we are seeing?
The Earl of Minto (Con)
Since 2018, the Government have provided about £200 million-worth of investment into the north and north-east Lincolnshire, across a range of different categories. As far as this specific transition is concerned, I ask the House to consider the level of support that has been agreed by the Government —new government money managed by both the Welsh and Westminster Governments—which is providing some transition from the historic steel jobs of Port Talbot to the future.