Sheffield Forgemasters

Lord Walney Excerpts

Wednesday 8th September 2021 Lords Chamber

Asked by

[Lord Walney]

To ask Her Majesty’s Government what assessment they made of the benefits of acquiring Sheffield Forgemasters.

[The Minister of State, Ministry of Defence (Baroness Goldie) (Con)]

My Lords, Sheffield Forgemasters is a unique and key strategic supplier to the UK’s defence programme. The decision to acquire this company will secure the supply of components for critical current and future UK defence programmes while preserving jobs and safeguarding important skills within the UK. The acquisition was assessed as offering the best value for money for taxpayers from the options available.

[Lord Walney (Non-Afl)]

I thank the Minister for that reply. The Government’s acquisition of this great British company is highly welcome. It will help secure the submarine supply chain for future generations of vessels. Can the Minister say how much of the up to £400 million—which was announced via press release last week—has been allocated to what and under what timescale? How will the Government maintain their commitment to net zero alongside allowing this energy-intensive industry to perform its critical task for the nation? How can the Government allay fears that the company’s governance through the Ministry of Defence may inhibit its potential to expand into other key sectors, such as civil nuclear power, which are also desperately needed?

[Baroness Goldie (Con)]

I thank the noble Lord for the tenor of his remarks and say to him that the proposed investment of £400 million over 10 years will be in defence-critical plant, equipment and infrastructure. That will include plans for a replacement heavy forge line, building a flood resilience scheme, and major machine tool replacements. It will be for the board of directors of the company to determine its activity in relation to climate change and targets for emissions. It is the case that the company has a healthy suite of commercial customers outwith defence. That is one reason why the company’s future has the potential to be very exciting.