Shipbuilding: Use of British Steel for Royal Navy

Lord Haskel Excerpts

Tuesday 30th November 2021 Lords Chamber

[Viscount Younger of Leckie (Con)]

There is quite a lot in the noble Lord’s question, but I will start by saying that shipbuilding in this country is a good story. Investment will double over the life of this Parliament, rising to £1.7 billion a year, and this will allow us to increase the number of frigates and destroyers beyond the 19 that we currently have by the end of the decade. The noble Lord mentioned the FSS, or fleet solid support, and he will know that all three ships must be delivered by 2032. The date for the initial operating capability and in-service dates will not be determined until the full business case is submitted. That ties in with another question, which is on the refreshed strategy, which will be rolled out and published very soon.

[Lord Haskel (Lab)]

Is the Minister aware that British steel producers are at a disadvantage because they pay a local carbon tax that is not paid by Chinese or Russian producers? We have been aware of this loophole for some time. To address this, will the Government introduce a carbon border tax? This is important not only for British jobs and British security but also to help address climate change.

[Viscount Younger of Leckie (Con)]

The noble Lord makes a good point, and the Government recognise the vital role that the steel sector plays in our economy and across all areas of the UK. We continue to work through the steel council to support its decarbonisation, and it is a core part of our ambitious plan for the green industrial revolution. The net-zero strategy, which the noble Lord will be familiar with, published in October this year, reaffirms our commitment to work and to setting targets for ore-based steelmaking to reach near-zero emissions by 2035.