Steel Industry Debate

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Wednesday 11th May 2016

(8 years, 7 months ago)

Westminster Hall
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Angela Smith Portrait Angela Smith (Penistone and Stocksbridge) (Lab)
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I congratulate my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) on his brilliant speech, and Middlesbrough football club on getting to the premiership. It is good to see another Yorkshire team in the premiership.

Angela Smith Portrait Angela Smith
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It would be even better if another Yorkshire team, Sheffield Wednesday, joined Middlesbrough in a few weeks’ time. It is another steel football team.

I want to start by underscoring and supporting the points made by my hon. Friend the Member for Middlesbrough South and East Cleveland about business rates, energy prices, Chinese dumping, skills retention and procurement, which are all very important. I will just add that the sales process that Tata is undertaking needs to hold to a deadline that allows for a sale that delivers responsible ownership for the future. There is a lack of confidence in the current deadline. The feeling is that it is not the right deadline, not the right timetable, so comments on that from the Government would be welcome.

In the previous debate on this issue, in the main Chamber, I spoke about speciality in my constituency. I talked about Tata in Stocksbridge and I will simply reiterate the point that we make some of the best steel in the world and we do that with the best workforce one could ask for. I will leave it at that. My key aim today is not to reiterate the comments that I made then, but to make the point that we have a responsibility not to lose that capacity, especially in such a strategically important industry, so in the rest of my speech, I will focus on making just two key points.

First, the role of the Government in the current situation demands leadership, as my hon. Friend pointed out. The Government have at last shown a willingness to engage, and we are obviously all very relieved about that. They have also demonstrated, I think and hope, that they will be pragmatic in their approach. However, we need the Government to fulfil a much more powerful role, that of strategic lead in ensuring that the Tata sales process is placed firmly in the context of how the industry needs to develop in the long term to secure its sustainability. We need that role to be taken on by the Government now with no more delays or prevarication. Will the Minister please give us that direction? Will she give us concrete actions that demonstrate confidence in the future of steel in the UK?

My second point relates to the importance of innovation in delivering sustainability, and I echo entirely the comments made by my hon. Friend. Innovation in manufacturing improves productivity and secures its future, and there is no better example of that than the steel city, Sheffield. Huntsman developed the crucible process in Sheffield and Harry Brearley developed stainless steel there. Bessemer built the first commercial application of the converter process in Sheffield, and that technology revolutionised steel making, improving its quality while lowering costs significantly, leading to a far wider range of applications for steel products. The steel city became the biggest steel producer in the world, mainly because of Bessemer and his process.

All Sheffielders are immensely proud of our city’s history and achievements. Steel is in the DNA of Sheffield. It is in our blood. We are also passionate about reasserting the fact that steel making is an industry of the future, not of the past. The impact that Bessemer’s technology had on steel making demonstrates entirely that that future depends on investment in research and development.

The Minister should put investment in innovation at the heart of her support for the steel industry and place it at the heart of the much needed industrial strategy for steel. I can think of no better way of doing that than by announcing, as a matter of urgency, that some of the £500 million allocated to the Higher Education Funding Council for England will be brought forward to ensure a timely response to the needs of an industrial, rather than an academic, timetable. Whichever way the Minister does it, she should do it.

The Government need to signal quickly that they understand the importance of innovation to steel and manufacturing. By so doing, they will help to underpin the search for a new long-term ownership and sustainable future for Tata Steel, and they will underpin and make more robust the long-term prospects for the whole steel-making capacity of the UK.

--- Later in debate ---
Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
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It is a pleasure to serve under your chairmanship, Mrs Moon. I start by paying tribute to the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) not only for securing this debate and for his robust speech but for his stout defence of the steel industry during his time in Parliament and previously as a regional trade union organiser. I also pay tribute to Community and the other unions for their work and drive to save the steel industry in Scotland and elsewhere.

We have heard some useful contributions today, including from the hon. Gentleman, and the message that stands out to me is that the steel industry has a future. It is not a basket case. I absolutely agree, and that is the fundamental base from which we must approach the issue and upon which it must be grounded. We must talk up the industry as he did, not talk it down as others have in the past.

The hon. Gentleman and almost every other speaker in this debate posed serious questions to the Minister regarding the lesser duty rule and tomorrow’s vote on Chinese market economy status, to which I hope she will respond. We have heard contributions from the hon. Members for Scunthorpe (Nic Dakin), for Torfaen (Nick Thomas-Symonds), for Alyn and Deeside (Mark Tami), for Warwick and Leamington (Chris White), for Newport East (Jessica Morden), for Ogmore (Chris Elmore), for Aberavon (Stephen Kinnock), for Penistone and Stocksbridge (Angela Smith), for Thirsk and Malton (Kevin Hollinrake), for Bury St Edmunds (Jo Churchill), for Redcar (Anna Turley), for West Bromwich West (Mr Bailey), for Cardiff South and Penarth (Stephen Doughty), for Hartlepool (Mr Wright), for Neath (Christina Rees) and for Corby (Tom Pursglove) and from my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier). The very good debate we have had, to which they all contributed, and the turnout for it are a tribute to the industry.

It is worth stating on the record again that the Scottish National party Scottish Government have worked determinedly to find a new operator for the Dalzell and Clydebridge steel plants, and to maintain industrial steel production in Scotland. We said that we would leave no stone unturned and that is exactly what we did. It is also vital that the UK Government now work more co-operatively with the EU on anti-dumping measures, and bring forward a credible strategy—

Angela Smith Portrait Angela Smith
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Will the hon. Gentleman give way?

Neil Gray Portrait Neil Gray
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I have given a commitment that my speech will be very brief, to allow steel MPs to have their say, so for that reason I will not take interventions.

The Government must bring forward a credible strategy for heavy industry in the UK and take similar concerted action to save steel plants, steel jobs and steel communities in England and Wales. There have been job losses at UK steel plants for a number of years, especially as a result of Chinese steel, as has been outlined. The warning signs were there for the industry. The UK Government have been slow to act in the face of these challenges.

We urge the UK Government to work with trade unions and potential investors as the Scottish Government have done, to find a future for the workers at the English and Welsh steel plants. In the short term, it is critical that strong anti-dumping measures are secured with our EU partners. Whereas the EU imposed a tariff of up to 16% on dumped Chinese cold-rolled steel, the US recently fixed duties on it at 266%. As the hon. Member for Corby said at Prime Minister’s questions earlier today and indeed in this debate, we wonder whether the Prime Minister’s recent meetings with the US President, Barack Obama, allowed him to learn from the way that the US has acted in this regard.

The Business Secretary was reportedly the ringleader in blocking the EU’s attempts to regulate Chinese steel entering Europe—that is according to a spokesperson for the European Steel Association. That would be indefensible. Moreover, the Scottish Government have been excluded from talks on steel dumping, which is also outrageous, despite our request to be involved because of our interest in Scottish plants.

I take the opportunity again to pay tribute to and congratulate the hon. Member for Middlesbrough South and East Cleveland on securing this debate, and I offer our support and solidarity as he and others in this House work to deliver a bright future for the steel industry in this country.