Former Steelworks Site in Redcar Debate
Full Debate: Read Full DebateAlex Cunningham
Main Page: Alex Cunningham (Labour - Stockton North)Department Debates - View all Alex Cunningham's debates with the Department for Business, Energy and Industrial Strategy
(5 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I really appreciate my hon. Friend’s intervention. He makes his case incredibly powerfully. In so many communities around our country—in both England and Scotland—we have seen the devastation that can happen when industry declines and nothing replaces it. The site is of such fundamental importance to our local economy, and we cannot just allow it to smoulder. We cannot allow those jobs and skills to be lost. The next generation must not feel that they have to move away. We have got to accelerate the progress today.
I congratulate my hon. Friend on securing this debate. Following what my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) has said, lots of Scots came to Teesside from Lanarkshire—my home county—to work in the steel industry. We are talking about their future too.
My hon. Friend is absolutely right. Teesside is proud of being somewhere that workers came to from across the country—Scotland, Durham and even the south-west of England—to build the infant Hercules. We are a proud place with people from across the country, who came together to find employment. We want to be a place that attracts people from around the country and the world.
We have used the resources locally that the Government gave us to develop business cases and our skills to drive our economic recovery in the aftermath of the closure. The SSI Task Force—a collaborative effort—has created more than 2,000 jobs, supported 336 business start-ups and overseen the delivery of more than 17,000 training courses to support redundant SSI workers back into employment. Working with private sector partners such as MGT Teesside, award-winning employment and training hubs have ensured that local people are able to benefit from the jobs created by big new investment projects. The Grangetown training and employment hub in my constituency, jointly supported by Future Regeneration of Grangetown, the council and MGT, has already made great progress. Some 2,500 residents have been registered, 1,700 have undertaken training programmes, and 610 have been supported into work, 470 of whom were previously unemployed. A similar scheme in Skinningrove, in the constituency of the hon. Member for Middlesbrough South and East Cleveland (Mr Clarke), has been supporting employees made redundant from the Boulby potash mine, providing access to training, jobs fairs and support for those who want to set up their own businesses.
Local people are taking up the entrepreneurial spirit and setting up on their own. Independent shops and bars are starting to fill some of the empty units on our high streets, and some are run by former steelworkers. Our high streets still need support from things such as business rates, but the energy of local people is already driving their revival. Support from the local council to improve shop fronts, bring empty buildings back into use, and improve and expand accommodation on our industrial estates is also helping.
Big investors are also showing confidence in our area, which speaks well for the potential of the SSI site. MGT is investing £650 million in its new biomass power plant at Teesport. Just down the road in Whitby, in the constituency of the right hon. Member for Scarborough and Whitby (Mr Goodwill), Sirius Minerals is investing $4.2 billion in its polyhalite mine, with the material transported to an processed at Wilton International in my constituency. PD Ports and Redcar Bulk Terminal suffered significantly after the loss of the steelworks contracts. In just three years, they have reversed the damage, and have continued to build their businesses, bringing in millions of pounds of investment. They have not waited around or prevaricated; they have got on with it, showing the resilience and determination of our area.
I absolutely will. It is hugely important that this work draws together the six figures who make up the board. Ben provides exemplary leadership in his role as the first directly elected Mayor of the area, but he would be the first to say that it would be impossible to achieve anything without buy-in from Hartlepool, Darlington, Stockton, Redcar and Cleveland, and Middlesbrough. It is a team effort. The project transcends party politics. It must; otherwise it will fail.
The hon. Gentleman interrupted my thread about Ben’s role. Let me pick it up by saying that Ben led the Tees Valley’s first trade mission to the far east earlier this year. He led a delegation of local representatives in discussions with the three Thai banks that hold an interest in the former SSI land on the development corporation site. An agreement in principle was reached, which expires in February 2019, to transfer that land and its assets to the local public sector. In parallel, compulsory purchase proceedings have begun, to ensure that the land is back under local control as soon as possible. Separately, there is good reason to believe that a good deal to release the half of the site that is owned by Tata can be achieved in short order.
I just wonder about the potential for agreement. Surely the Government should be working for an agreement with the Thai banks, rather than taking the compulsory purchase route which, by the time the lawyers get involved, could take years.
The Government have put themselves four-square behind the initiative to release that land. When Ben went to Thailand to meet the banks, the full support of the British embassy was thrown behind him. I know that Ben is genuinely appreciative of the massive efforts made by the Foreign and Commonwealth Office, as well as the Department for Business, Energy and Industrial Strategy, to make certain that we communicate to the Thai Government—as well as to the banks—that this issue is of material interest to Her Majesty’s Government, and that there is an international diplomatic aspect to the need to release the land as quickly as possible.
None of this work is easy. The hon. Member for Stockton North is right that some of it will take years; there is no point in sugar-coating that. None of this lends itself to quick fixes, but critical progress is being made. We are much further forward from the ashes of October 2015 than we were in 2017 or 2016, and as a result, Ben’s work has been widely welcomed in our community. In September, he was voted “most inspiring person” by Tees Valley business leaders, and my constituents recognise that he is doing his utmost.
There is an upsurge of quiet positivity on Teesside, backed by analysis from the Bank of England showing that the number of unemployed people in the north-east is down by 18,000 on a year ago, and that our region accounted for almost a quarter of the entire reduction in UK unemployment over the past 12 months. The devolution of skills strategy to the north-east, and the £24 million that has been announced for our local schools through Opportunity North East—which aims to make the transition from primary to secondary education better and more effective, working in the interests of local young people—will add to that positivity, and I stand behind those announcements. As a proud Teessider, I recognise that the South Tees Development Corporation site is a once-in-a-lifetime opportunity for our area, and I am determined that we should seize it.
Here we come to the crux of the matter. I am a realist about elective politics. At present, a gulf exists between the Conservative and Labour parties about our values, our economic strategy and our role in the world; but we have a responsibility to work together, as the hon. Member for Redcar said. It is, of course, the right and the responsibility of the Opposition to hold the Government to account in a spirit of constructive criticism, but we must avoid crossing the line into casting gloom or negativity over our area’s prospects. That is a fine judgment call, but I have the sense that whatever the Government offer is not enough, and nothing Ben achieves is right. That is not because Opposition Members have a better alternative; it is, I fear, because Ben and the Government are Conservatives. We have to push back against that. If the choice is between anger and hope, I am clear that anger will not triumph over the hope of new beginnings and a fresh start for our area. We must not dampen the public’s enthusiasm, and we must not spook investors about the economic prospects of our area.
Following the Budget, we heard a powerful intervention from Steve Gibson—the man who has been a beacon of hope for Teessiders since the 1980s—calling for an end to the downplaying of what has been achieved.
I congratulate my hon. Friend the Member for Redcar (Anna Turley) on securing the debate and for talking up our area—the positive things that are happening in our communities—but also for laying out the greater challenges that it faces. We are here to discuss the former steelworks site, where many of my constituents spent their working life before SSI walked out on our community and the Government failed to act to save steelmaking on Teesside. Local people still ask, “Why can Governments bail out banks for billions of pounds, and bail out other industries, including the steel industry in other parts of the country, but when it came to intervening to save that site in Teesside, they just walked away?”
Today’s debate is as relevant to my constituents as it was three years ago, when many of them lost their jobs virtually overnight. It is relevant because the latest statistics, published yesterday, show an increase in unemployment in my constituency. Many of my constituents look to the Government to act, but it appears that the Government have just been putting on an act. A procession of Ministers has visited Teesside to talk the area up, but talk is all we have had. When those Ministers came to the area and made their various announcements, they did not invite Redcar’s local Member of Parliament to join them. We all want to work together, yet we constantly find ourselves excluded. There have been dozens of press releases from the Mayor of the Tees Valley promising investment, but little if any has been delivered to date.
When MPs speak up to ask questions about what is happening and to demand answers, they are accused of talking the area down, putting investment in jeopardy and somehow working against those who are trying to solve the problems that we all face. I am sick and tired of that. None of us went into politics to talk our area down; we went into politics to work with whoever can deliver for our people. If that were not the case—as my hon. Friend the Member for Stockton South (Dr Williams), my near neighbour, has already said—why on earth would our local authorities, which have worked so well together for donkey’s years, press for a devolution deal with a Government they know to have stripped tens of millions of pounds from our local council services? It was because they wanted to achieve something. They wanted the crumbs that were coming from the Government’s table, because they would make that little bit of difference on Teesside.
It is, however, a fact that there has been a real lack of progress in bringing jobs and investment to the site and, for that matter, to other parts of the Tees Valley. Yes, there are legal issues to be resolved and land ownership to be sorted out, but it has been three years since the last steel was produced and not a single long-term job has been created on the site.
My real worry is not just that the Government are failing to deliver for the site, but that the local authorities, in the form of the combined authority and the metro Mayor, will never see the promise of the heavy money to develop the site fulfilled, because that is billions of pounds. Yes, there have been plenty of announcements and repeat announcements, but we need the Government to take real action, resolving the legal problems. We hear that progress is being made and that things are being done behind closed doors. We do not know the detail, but I know that it is not creating jobs.
More than ever, in the face of the uncertainty that Brexit brings, Teesside industry needs assurance and confidence in the UK. The hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) talked about the fact that I chair the all-party parliamentary group on carbon capture and storage, and the importance of a project on that. I also chair the APPG on energy intensive industries. Those in industry on Teesside are beyond nervous about Brexit and what it means for them.
As a result of the proposed changes to the emissions trading scheme and escalating energy costs, we are facing a perfect storm that could land our big industries carbon tax bills running into millions, and cost hundreds more jobs on Teesside and thousands more across the country. We need an environment that can attract investors to the region, but daily news releases promising much but delivering nothing will not do that.
That includes a future for our Durham Tees Valley airport—a future that is more in doubt each day. That airport, and connectivity with London and the rest of the country, is crucial in attracting investors to the Redcar site and to elsewhere on Teesside. The Mayor promised to buy the airport, but we know that there is no more credibility to that plan than to his plan to achieve protected food status for the parmo, which doctors describe as a heart attack on a plate.
On the point about the parmo, I do not believe in the nanny state telling us what we should and should not eat. I love the parmo, and I will be the first to stand up for it. Everything in moderation.
On the airport, a non-disclosure agreement has been signed with Peel, the operators. I really do not think it is helpful or right to prejudice the status of those talks by dismissing the plan as something that will not happen. Precisely that attitude, frankly, led to Ben winning the mayoralty in the first place.
I am sure that the hon. Gentleman is blessed, like me, with a slim figure and a fast metabolism, and will be able to cope with the odd parmo. We have a duty to be held accountable and to hold others accountable for what they have said they will do, and we have to press on whether or not negotiations are going on elsewhere. The plans to develop the airport are shrouded in secrecy. The parties involved are bound by confidentiality agreements, and those of us who are asking questions on behalf of the people we represent are getting very limited answers.
We know some things though. We know that the £5 million grant to create an access road to the south side of the airport to allow further development has been allowed to lapse. Why? In reply to a letter from me, the chairman of Peel Group, which owns 90% of the airport, said that his company has invested £40 million in the loss-making airport in recent years. He does not confirm that the airport will close in 2021 when the current agreements run out, but I fear that that is exactly what is on the cards if the Mayor fails to sort this out.
The final sentence of Robert Hough’s letter does tell a story. He apologies for not being able to be more helpful, and adds:
“We hope that we will receive support from the Combined Authority to take the airport forward in the most sensible and appropriate way, but the ball is not in our court.”
That means that the ball is in the Mayor’s court—the man who blocked a grant to the airport to attract more holiday flights just last year. I have every respect for the Minister, having worked opposite him when he was pensions Minister, and I am sure he will confirm that the Government are not going to bail the Mayor out and use public money to buy the airport. Who is going to buy an airport that continues to lose millions? I certainly do not want Tees Valley council tax payers to pick up that bill. It is time the secrecy was ended and we started to get answers on how the Mayor is going to buy the airport.
Secrecy, however, is the order of the day for this Government. A Public Accounts Committee report published yesterday said that “excessive secrecy” was standing in the way of, among others, the chemical industry preparing for Brexit. There appear to be plenty of secrets around the SSI site too. Budgets have come and gone, with millions of pounds allocated to the South Tees Development Corporation, but we know that most of that was just to cover the ongoing costs of keeping the site safe. Some of the delegated powers, such as devolution of the further education budget, have been delivered, fulfilling part of the agreement made with the combined authority long before we even had a Mayor. I now appeal to the Minister to provide the kind of clarity that we all need, but particularly the clarity needed by the combined authority to make the real decisions that deliver investment and jobs.
Sadly, the upshot of failing to do that could be industry looking elsewhere—we have heard some illustrations of that this morning—rather than waiting for a suitable site that does not appear to be coming to fruition. We have been told that more than 100 investors have declared an interest in the site, but some of that interest is already waning over false promises and a clear lack vision. We do not need another news release. We need the Government to take real, decisive action now.
Absolutely. The steel industry has a future in the UK, but it is in specialist products, such as those produced in Skinningrove and Hartlepool. Sadly, we can no longer compete with the Koreans and Chinese in the production of bulk steel. The steel industry was based on Teesside because of the ironstone and coal mines up the coast. Now that we no longer have that resource on our doorstep, it is more difficult to be competitive in the steel industry, but we have expertise in specialist steels, stainless steels and specialist products, which I believe have a great future. Indeed, we have a strong automotive industry in this country to consume the steel that is being produced. I do think that there is a future for steel in the UK, but sadly it is no longer on the British Steel site that I visited with Peter Lilley, the then Secretary of State for Trade.
I mentioned opportunities on the site. The people of Tees Valley have put their trust in Ben Houchen as Mayor because they have memories of feeling let down in the past. They have opted for optimism, rather than for the negativity that was part of the other side’s campaign. I am very pleased that Ben is working collaboratively with local authorities and with the industry to deliver in the area, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) recounted.
I must mention the Sirius mining project, which will transform my constituency. There are already 600 people working on the Woodsmith mine site, boring a mile down the shaft to the polyhalite—an amazing resource that will make the UK a global supplier of fertilisers once again. The Boulby mine is coming to the end of its natural life and has already ceased production of muriate of potash, but it is getting into polyhalite; indeed, I have bought some to use on my own farm. There are opportunities.
As the Minister is in the room, it is important to acknowledge that we have only two fertiliser plants in the whole UK, one of which is in Stockton North, my constituency. Both plants are run by CF Fertilisers, and both are extremely worried by the Government’s proposals for a post-Brexit carbon tax, which they believe could ruin their business. Will the right hon. Gentleman join me in calling on the Minister for clarity on the matter, so that the existing fertiliser plants can continue to have a future?
Yes. I have visited the Billingham plant, and I know that ammonium nitrate is a very important plant nutrient. The development of shale gas is key. Ammonium nitrate is basically made from air and gas, so without a good, cheap and reliable source of gas, its production is under threat. The sooner we get on with fracking for that gas so that we have our own domestic supply, the better it will be for all the energy-intensive industries on Teesside, not least the fertiliser industry.
The potash site will transform the area by providing jobs, and not only to people in Whitby. Of those who are already working at the Boulby mine, about half are from the constituency of my hon. Friend the Member for Middlesbrough South and East Cleveland, about a quarter are from the constituency of the hon. Member for Redcar, and about a quarter are from my own. We already have a lot of people working in the mining industry, and it is important that they be redeployed as Boulby comes to the end of its natural life. The 23-mile tunnel from Whitby to Teesport is a phenomenal project that people around the world are observing with awe.
We need the Government to get behind the project. The hon. Member for Redcar mentioned Treasury guarantees; this is a very big project for a very small start-up company that will be an FTSE 200 company on the day it opens production. We need that support, because it would be a great shame to see other mining companies from around the world coming in and capitalising on the project after all the work that has gone into it. I hope that my hon. Friend the Minister will pass those thoughts on to the Treasury, because we need that backing. We are talking about 1,000 full-time jobs in the mining industry for at least 100 years. This is a product that people will always need; as long as people are eating, they will need nitrogen, phosphate and potash. The Woodsmith mine is a great source of potash.
As a farmer, the right hon. Gentleman knows all about fertilisers. May I seek clarity on what he said about workers at the Boulby potash mine transferring to the new mine? Is something happening at Boulby that we do not know about?
Boulby has been losing staff over the past few years and its production is being scaled down. It is already approaching the end of the muriate of potash seam—the potassium chloride seam—and is now in the lower seam of polyhalite, which is what the Woodsmith mine will produce. All mines have a natural life.
It is a pleasure to serve under your chairmanship, Mrs Moon, and I congratulate the hon. Member for Redcar (Anna Turley) on securing this important debate.
I want to speak about my constituency’s experience of a steel plant closing down, because there are valuable lessons to be learned from it. The Ravenscraig integrated steel mill closed 26 years ago in 1992. That was before devolution, so there was no Scottish Government and all industrial matters were dealt with by the UK Government. In the mill’s last two years, 4,400 people—mainly men—were laid off. Unemployment stood at 15% shortly after the closure and is still higher than average. The constituency still does not have the same number of highly paid and highly skilled jobs that it once had. The former MP for Motherwell and Wishaw, Frank Roy, did a lot of work to try to re-energise and rework the Ravenscraig site and led on a proposal to build a new town on it, but that has never come to pass because of recessionary pressures and local resistance.
Ravenscraig is slap bang in the middle of my constituency, between Motherwell and Wishaw town centres. The SNP Scottish Government made it a national priority in 2007, and lots of money has been poured in from various funds and resources. Ravenscraig Ltd was set up as a joint venture between Tata, Scottish Enterprise and Wilson Bowden when the plant closed. The site now has a new college, a new regional sports centre, less than 1,000 new homes—although more are being built—a pub, a hotel and a building research centre. There are proposals for more new homes and for a civic park. In 26 years, we have not come a terribly long way, given that it is a 1,400 acre site, most of which is covered by roads that do not necessarily lead anywhere yet.
I do not want to sound too pessimistic—as the hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) said, we need to have hope—but when something as big as the Ravenscraig integrated steel mill closes, that is a hammer blow to a community. Not much help, if any, was given by the then Conservative Government; I hope that the Redcar site does not suffer the same fate. North Lanarkshire Council—of which I was recently a member, as the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) still is—is spending quite a lot of money on trying to make the site viable.
As the council’s new chief executive, Des Murray, says, it has always been recognised that there needs to be a redevelopment site at Ravenscraig, because it is of symbolic strategic significance, but we cannot live on symbols. The hon. Member for Redcar talked about Redcar as an iconic site, as was Ravenscraig, but people cannot live on such sites. People do not get jobs just because sites are iconic. There needs to be real and continuous development.
I do not want to paint too gloomy a picture, because there are improvements. The new Ravenscraig regional sports centre has hosted international and national events to great success, and the new houses there are lovely. The site building is now creeping forward, and in April there was another planning application put in for a more modified, and probably more likely to be built, new area in Ravenscraig, which now includes industrial and retail centres as well as two primary schools and development of the civic park. This is all good news, but I have to warn people in Redcar that it takes a long time and does not necessarily lead to the kind of jobs that have been lost.
The hon. Lady is giving us a good illustration of why we need big, fast decisions and investment now. I am sure she will agree that Redcar cannot wait 20 years for the Tees valley to secure the good, well-paid jobs that we need. We do not want service jobs; we want good, well-paid jobs like we have had in the past—that needs decisions now.
The hon. Gentleman is absolutely right. I do not have a solution; I can only lay out what has happened at the Ravenscraig site. People have been doing their best, but the recession in 2007 really bit into developments there. When things get delayed, they do not always come back again, which is a real worry for everyone.
I give credit to North Lanarkshire Council, as I always do when it does things right, for continuing to work on the site and for trying to get more investment into it, but I fear that, with Brexit apparently here, this is going to be an ever-growing challenge to local agencies and authorities. Motherwell and Wishaw were iconic not just for Ravenscraig; there were always steelworks in my constituency. The fact that the Scottish Government managed to save what is now Liberty Steel—the DL works—and, in a neighbouring constituency, Clydebridge, is testament to the work that they have done and are trying to do.
We need steel. When I was first elected to Parliament, the all-party parliamentary group on steel and metal related industries was the very first one that I joined. I fought hard to save the steel industry in my constituency, and that was achieved. Ravenscraig does not make steel—it simply rolls plate—but it is still there. That is thanks to the work of the Scottish Government, who were determined to save that site and as many jobs as possible—not only the workers, but, more importantly, the apprentices who were working on the site at the time. It will be interesting to hear whether the Minister can give the same commitment to the industry in England and Wales. There are no longer steelworks in Redcar, but we need these iconic industries at our backs if we are to move forward as a group of countries.
I pay tribute to the hon. Member for Middlesbrough South and East Cleveland for saying that everyone has to work together, which I think everyone realises. It is not a party political issue when something like this happens, but things do move ahead on party political lines. We have to be cognisant of that fact, and people have to keep putting pressure on the Government to make decisions and to treat the area favourably, even if it is not recognised as a really good area for their party.
I go back to 1992, when very little was done by the central Government to support Ravenscraig and the workers who lost their jobs. I moved into the area shortly afterwards, and all I could hear was tales of when the steelworks used to be open and how Motherwell and Wishaw were such thriving, wonderful places. It took a long time for the towns to recover. They still have not recovered totally, because the jobs that people do now are completely different. I think that is what is found in Redcar, too.
I thank the hon. Lady for that intervention.
I have visited the site, although not recently—I was 17 at the time. I was brought up in Leeds and went on a school trip to visit the Neddy—the National Economic Development Council—in Newcastle, the steel site and the Wilton ICI chemical works nearby. I have never forgotten the scale of it.
I whizzed past the site in my current job, when speaking at a steel conference just next to it in the constituency of the hon. Member for Redcar. A lot of Members of Parliament have trooped up there, as have a lot of Ministers. There has been talk of hollow words, but it is much better that there is a general awareness throughout the Government. The Mayor and other parties involved with the development corporation are regular visitors to the Treasury and other parts of Government, and so they should be. It is part of our democratic system, and we all co-ordinate together; I hope everyone realises that my office is very much part of that. I have certainly had nothing on my desk to do with this project that has been gratuitously turned down, ignored or not taken seriously.
I have been scrawling furiously during the debate to try to prepare to answer the points that have been made. I will try not to go over the history again, as it has been well covered by other contributors. Perhaps for the sake of Hansard it would be convenient if I did, but I think it has been said very well.
The South Tees Site Company is funded by a grant of £118 million, which was granted in the autumn Budget 2017 and includes £48.9 million for improving the site. The point was made—eloquently—that a lot of that money had to be spent, but it is still taxpayers’ money. It did have to be spent, and I hope that it is the first of very much more to come in the future.
There has been talk of different projects and implications that they have been turned down by the Government. My personal experience of doing this job is that I have spoken expensively—I mean extensively—to Liberty Steel. In its case, both those words might be true! I have spoken to it to get a project, which is still very much in outline. It has not been rejected. There has been nothing put in front of us.
It might have been the hon. Member for Redcar, or another speaker, who said that this project is going to Scotland. That is not the case. I am in regular talks with the company and I have been to its offices. I have met the chairman and other officials, several times, with our own experts, to try to get the project to a state where it can be looked at as a serious proposal. This is not a criticism, but it is not yet at that stage. I hope it will be. We meet regularly, and the company knows that the door is open.
As far as INEOS is concerned, its decision was taken for commercial reasons. As has been mentioned, I think it was more of a question of not wanting a brownfield site and a start from scratch, rather than anything to do with this site, the Government saying no or anything like that.
I think the Minister will agree that the major impediment in our way—which, if resolved, could sweep away all that doubt—is the issue of land ownership and the associated legal agreements. When is that going to be resolved?
All in good time. I cannot give the hon. Gentleman a date now, but I will come to that shortly. I will make progress because I want to leave time for the hon. Member for Redcar to sum up.
The £14 million granted by the autumn Budget and the special economic area status for the site are both important. They came about because all those different Departments—including the Ministry of Housing, Communities and Local Government, and the Treasury—are working with South Tees Site Company, the development corporation and the combined authority. We have worked together on the proposals and will continue to do so. The 1,500 jobs quoted are a first step, but I know they are nothing compared to the number of jobs that were lost when SSI went into liquidation and struggled from crisis to crisis.
It is very easy to blame one Government and not the other or to say that the Government could have intervened by putting in a load of money to keep things going, but I have seen the consequences of that. I have seen places in the valleys in Wales where hundreds of millions—if not billions—of pounds were spent on keeping businesses open, and I saw a failed industrial policy in the north of England, where I was brought up. That does not mean that Government do not take part in industry—we are spending more money on research and development than ever before.
I really believe that the industrial strategy, in partnership with businesses, is the future. The reason why there is not a steel sector deal—as the shadow Minister, the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) mentioned—is that industry itself has not come up with its side of the proposals. I am working on this, meeting industry regularly, and am still hopeful, but that is work that must be done in partnership.
The Government responded immediately with support for the site when the closure took place, including a sum of £30 million that was ring-fenced for the statutory redundancy payments. The SSI taskforce, under the leadership of Amanda Skelton, took a leading role and deserves a lot of credit. The hon. Member for Redcar was a member of the taskforce and did a great job.
The clichés about people working together are predominantly true in this case; spats and disagreements come and go. I think it is fair to say that we cannot recreate what was there before—time has moved on. My right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) made the point about how steel has changed and certain commodity products cannot compete with much lower costs. Of the factors for the industry growing up there—iron ore, steel and water—only one remains. That does not mean that the site does not have a fantastic future—I really think it does. I am delighted that the hon. Member for Redcar quoted Lord Heseltine and former Chancellor George Osborne in different parts of her speech.
The Scottish National party spokesperson, the hon. Member for Motherwell, made a very—