UK Steel Industry

Debate between Alex Cunningham and Marion Fellows

Monday 29th February 2016 Commons Chamber

[Marion Fellows (Motherwell and Wishaw) (SNP)]

When I was preparing for today’s debate, I wondered how I could speak on this or similar motions without repetition, deviation or hesitation, which are the famous rules of Radio 4’s “Just a Minute” programme. I will break all those rules, because I will use repetition and—not too much—deviation, while the only hesitation will be when I struggle to find words to explain what the Government say they are doing to help save the UK steel industry.

Since I attended the UK steel summit in Rotherham on 16 October, along with many other Members currently in the Chamber, in excess of 6,000 jobs have been lost across the UK. Job losses at Dalzell plate mill in my constituency and at Clydebridge in the constituency of my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) are included in that number. I will come on to describe how job losses and effective Government action differ across the UK.

Community the union has called for the UK Government to take action now, and has asked them

“to do everything in their power to safeguard the future of this vital strategic, foundation industry of fundamental importance to UK manufacturing and industrial supply chains.”

Along with UK Steel and Eurofer, Community has challenged the Government to come out positively for scrapping the lesser duty rule, which inhibits the rate of duty that can be imposed on Chinese dumped steel. It is hypocritical in the extreme for this Government to vote for anti-dumping measures on the one hand and to fight to retain the lesser duty rule on the other.

The Government support market economy status for the Chinese. Where is the sense in that? It is another example of doublespeak. Yes, the Prime Minister spoke to the Chinese about the dumping of steel, but it seems to have been a rather one-sided conversation. We have no proof that the Chinese even listened, as there has been no diminution in the problem. It is no secret that the Government need Chinese money to build nuclear power stations. Is that uppermost in their mind? It is time they put UK manufacturing interests first. The Chancellor has already trailed that further austerity is coming down the track, and where did he choose to make that announcement? Shanghai.

When pushed, the Government have pointed to the five asks put forward at the UK steel summit. They have made progress on some of them—they have managed to get agreement from Europe to implement the energy-intensive industries package ahead of April 2016, but that is of very limited help during the current financial year. As far as anti-dumping measures are concerned, I have already explained that the Government are in two minds about that, according to industry leaders. There has been no movement on competitive business rates for larger manufacturers and, given the Chancellor’s announcement about further austerity measures, it is difficult to see how and when that will happen. There has been movement on gold-plating EU regulations, but that has so far had minimal effect. Progress has been made on procurement guidelines, but that will affect future infrastructure projects and is not helping the UK steel industry at present. We are in dire times.

[Alex Cunningham]

I was brought up at Harthill, near Ravenscraig, in Lanarkshire, and I have seen the scars that still exist in those communities 20-odd years after the closure. Does the hon. Lady agree that we need to take specific action if we are to prevent such scars in other communities?

[Marion Fellows]

I absolutely agree. The former Ravenscraig site is in the centre of my constituency, and I go through it almost weekly. It is still scarred, and it is still a monument to what happens when steel businesses close down.

Each time there have been job losses in the steel industry, the Government have moved in to help. The help has been to find people other employment; there have been few timely direct measures to help keep steel plants open. The UK Government have been challenged numerous times to come up with a UK manufacturing strategy and to employ joined-up thinking to help foundation industries, including steel. That is what other European countries do.

The comparison between what the Scottish Government and the UK Government have done is stark. Within days of the announcement of the mothballing of the Scottish plants, the Scottish Government set up a Scottish steel taskforce, with a remit to find a buyer for the plants and to do everything possible to retrain and upskill the workforce to make sure they would be ready when a buyer was found. Skills Development Scotland has created the steel industry advanced manufacturing upskilling programme to provide an incentive to retain key and essential staff. That will enable a knowledgeable and skilled team to be assembled quickly when an alternative operator is found.