Steel Industry

Lord Moylan Excerpts

2nd reading
Saturday 12th April 2025 Lords Chamber

[Lord Moylan (Con)]

My Lords, during the speech of my noble friend Lord Hunt of Wirral, I carefully watched the Labour Benches and, when he made some moderate criticisms of the Government, he faced what might be described as a certain degree of genteel barracking. What I did not see on the faces of those on the Labour Benches opposite was any suggestion or hint of apology—an apology, first of all, for rushing this legislation through Parliament with practically no scrutiny, when it, or something like it, must have been foreseeable in recent weeks. There is no apology at all for the policies chosen to implement net zero, which have included ramping up the price of electricity to an unprecedented level, and one that has no comparison in similar economies—as explained with such patience by my noble friend Lord Howell of Guildford. There has been no apology for the incompetence of their negotiations. An insight into their negotiating ability has already been given to us in relation to the Chagos Islands, and now we see something similar happening with the steel industry. There has been no apology for their recent resultant decision to block the domestic mining of coal fit for coking. This is no way to treat Parliament and no way to treat our industrial sector—and no way to treat the workers involved and their families.

I accept that there may be a case for extraordinary measures in the case of steel production, for the reasons set out—I thought quite well—by the noble Lord, Lord Tunnicliffe, in relation to defence and the needs of our industry more broadly. What I am not persuaded of is the assertion that steel is somehow exceptional. There may be a case for that but, as the noble Lord, Lord Kerr of Kinlochard, pointed out, the case needs to be made and, so far, the Government have done nothing but assert it. Even the speech just now from the noble Baroness, Lady Drake, did nothing but assert what is so special about steel. What about other industries under threat from high electricity prices? What about glass, chemicals, cars and concrete? Do the Government have a plan? Are these extraordinary measures that we are taking today part of a strategy, or are they simply the result of panic?

The Bill itself is remarkable. It is not in fact nationalisation, as the Minister was keen to point out. It is in some ways almost worse: it is the confiscation and control of a private company, for whatever reasons, with no safeguards and no sunset clause, as things currently appear. Who knows—one may be inserted in the Bill before it completes its passage.

I conclude with a question that illustrates the rush with which the Bill has been prepared. In Clause 3(4)(a), the Bill allows the Secretary of State to enter the premises “using force if necessary”. I am curious to know whose force he is going to use; he does not have a force at his own disposal. The Bill does not give him powers to direct police forces to enter the premises and creates no provision, that I can see, whereby he can apply to the court for something that would allow bailiffs to operate. I would simply like to know, as a practical matter, how the Secretary of State is going to exercise this power to use “force if necessary”, should the owners of the factory choose to close the doors in his face.