Steel Industry

Anna Turley Excerpts

Wednesday 28th October 2015 Commons Chamber

[Ms Eagle]

I certainly am surprised. If the Business Secretary needs an Opposition day debate to encourage him to do his job by going to Brussels and talking to the Commission after years of not doing that, we will secure more such debates and persuade him to do his duty, which he should have been doing in the first place.

[Anna Turley (Redcar) (Lab/Co-op)]

I was proud to secure a Backbench Business Committee debate on the crisis in the steel industry. It took place just one day before the Redcar steelworks paused production, yet we were accused by the Minister for the northern powerhouse of “showboating”. Does my hon. Friend think that that is an appropriate description for a parliamentary debate?

[Ms Eagle]

I was fairly astonished to read the comments from the Minister for what the Government call the “northern powerhouse”. He said that what has happened to Redcar was a “tragic distraction” from his work on the northern powerhouse—I had hoped that he would have seen it as part of his job to try to get the Government to take much earlier action to head off an entirely foreseeable occurrence.

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[Andy McDonald]

My hon. Friend and neighbour makes a very good point. We have heard throughout that the coal in situ was not suitable for purposes other than the blast furnace. Other coal could have been brought in. Hargreaves was able and available for that and was not embraced. Any sensible Government would have grabbed that opportunity with both hands, but they did not do so.

[Anna Turley]

A lot of the conversation has been about the price of steel as the reason why SSI went under. We are talking about coke and, as my hon. Friend said, there were companies in Germany willing to buy all the foundry coke that we could make in those coke ovens. It was selling at over £500 a tonne, compared with the £100 a tonne cost for making it. That was a profitable business which could have kept the coke ovens going, it could have funded a proper mothballing of the blast furnace, and we could still have steelmaking on Teesside.

[Andy McDonald]

My hon. Friend is absolutely right. That would have been the basis for keeping that coke oven going and mothballing that blast furnace. It is no good the Minister coming to me after the event and telling me in hushed tones that she wishes she had mothballed the site. That will not do at all.

We hear about bringing forward compensation packages. When the Prime Minister was at the Dispatch Box today, it seemed to be a revelation to him that suddenly we were talking about bringing forward a compensation package. We have been talking about it in the Chamber for months. It is as if the scales have been removed from his eyes. The hon. Member for Bedford (Richard Fuller), who is no longer in his place, hit the point exactly when he spoke about the role of Chinese steel and the fact that it is produced at less than cost. We have now heard from the Prime Minister that he discussed it with the President of China. We want to know what action is going to flow from that discussion. There is no point just bringing it up. We want to know what is going to happen. If 94% of the steel coming to Europe is dumped on these shores, it is up to this Government to take action about it and not sit on their hands.

I went to Italy last Friday to speak to the representatives of FIOM from the Ilva plant in Taranto in southern Italy. What a difference from a Government who not only identify the strategic importance of the industry, but are prepared and have the political will to do something about it. They recognise the social impact of thousands of people losing their jobs and they will do anything to stop that happening. That is what we want to see in this country. In Italy there are solidarity laws so that people are not laid off. The bankruptcy laws were changed. In Teesside we saw creditors go to the wall—Hargreaves was struggling, as were personnel agencies, engineers, hairdressers and so on. In Italy, bankruptcy laws were changed so that such firms got tax relief on future businesses. That is what I call an active policy.

For the Minister to say that the Government could not embrace state aid is utter nonsense, and she knows it. Regional aid and environmental aid could have been embraced with no difficulty; that was done for carbon capture and storage at the Florange plant in France. We on Teesside are sitting on a wonderful opportunity that this Government are letting slip through their hands. We need an active industrial strategy. We need a Government who will access the European globalisation adjustment fund—they have not even made an application to it. We need a BIS Department that is scouring the world in advance, not saying, “We were caught out at the last minute”. The Minister responsible for the northern powerhouse openly admits that he had known for ages about the problems. The Department should have been getting on with it, scouring the world, making sure it had the capacity in financial and engineering terms to respond properly.

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[Anna Turley (Redcar) (Lab/Co-op)]

It feels tragic to speak in this debate on the future of the steel industry because, as my hon. Friend the Member for Wallasey (Ms Eagle) said in her introductory comments, our steel industry has gone—175 years of proud history and heritage that built the world, from bridges to stadiums to buildings of great note, has gone. That future is no more. That is the tragedy of which all hon. Members are aware.

The human tragedy remains. We have 3,000 people out of work and expect another 3,000 in the supply chain to go. I want to bring attention to that so that, first, it can be prevented from happening in any other constituency. I want to talk about the scale of what we are trying to deal with, the implications and the outstanding issues, and about the despair, anger and chaos that reigns in Redcar and Teesside.

As I have said, the coke ovens and the blast furnace are gone. John, who works there at the moment—he is one of the skeleton staff who are there to try to wind it down—tells me that the coke ovens are cooling rapidly, and that the brickwork is warping beyond good use ever again. He tells me that steel and coke making are at an end for ever.

[Andy McDonald]

Does my hon. Friend agree that it is an absolutely criminal act of industrial vandalism to let those coke ovens collapse when that was entirely and utterly avoidable?

[Anna Turley]

I could not agree more with my hon. Friend. The blast furnace and the coke ovens are national assets. They are part of British industry and manufacturing, and they are strategically important to our economy. They could and should have been preserved.

I want to talk briefly about two outstanding issues that are causing a great deal of concern in my constituency. The first is the training that has not arrived. We were promised £80 million, but it turns out to be £50 million when we take out redundancy and the statutory entitlement that the workforce should have had. That training is not coming through. We were told that a local taskforce would have control—I was pleased to be invited to sit on it—but the reality is that decisions are being made by officials. I understand that we are waiting for a decision from the Secretary of State to clear that money and send it.

[Sir William Cash]

The hon. Lady will know that the German Government provided subsidies for the training of employees, including steelworkers, to the value of €5.7 billion in 2013.

[Anna Turley]

The hon. Gentleman makes an important point. We should look at how the Germans support and respect industry and manufacturing.

[Sir William Cash]

They were allowed to do that by the EU.

[Anna Turley]

Absolutely. If they do it, why can’t we? I totally agree with the hon. Gentleman. We should also look at how the Germans support industry throughout their education system. He makes an important point.

The training is not coming through and plenty of people are coming to me—I have a huge postbag from people who are not accessing the training and support that they need. For example, Tom, an apprentice who came to my surgery at the weekend, has been an apprentice at SSI for three years and four months. He wants to continue and finish his apprenticeship and has worked very hard on it. He was told by a Department for Work and Pensions official that he should get a job in a bar or in retail.

[Sue Hayman (Workington) (Lab)]

I am being contacted by young people in my constituency who are finishing their apprenticeships, and who are concerned about accepting job offers from Tata Steel. Other young people are asking me for reassurance about starting apprenticeships in engineering and manufacturing, because they see no commitment from the Government to industry in this country. Does my hon. Friend agree that that is deeply concerning at a time when we have a national shortage of engineering and manufacturing skills?

[Anna Turley]

My hon. Friend is absolutely right. One of the great tragedies of this situation is the fact that 50 apprentices were due to start on the day that SSI paused production. Steel is a viable industry with a bright future, so engineering is exactly the sort of field we should be encouraging our young people into. The Government should be giving them confidence that they have an industrial manufacturing policy that will support their future.

An hon. Friend drew attention earlier to Lord Heseltine’s recent comment that now is a good time to lose one’s job. That was a grave insult to my constituents and all those who have lost their jobs in steelmaking, but I think that another comment he made was more profound. He said that we should not be supporting yesterday’s industries. That drove to my heart exactly how people on the Conservative Benches view the steel industry: yesterday’s industry. I totally disagree. It is an industry with a bright future. It should be a foundation industry for so many of the highly skilled manufacturing jobs that we want to create. Frankly, I wish we could give more reassurance to the constituents of my hon. Friend the Member for Workington (Sue Hayman).

I want to mention a couple of people who have contacted me about the trouble they have had with their training. Karl told me that he could not access heavy goods vehicle training because he was told that it is not currently a barrier to him getting work. I do not understand that. Dane, who is an electrical engineer, told me that he could have a course funded only if he had a job offer to go with it. There are a raft of problems that I am deeply concerned about. I was ever more concerned to hear that Subway was represented at the jobs fair that was organised a couple of weeks ago. I think that it is deeply inappropriate for highly trained, highly skilled steelworkers to be offered jobs making sandwiches at Subway. I hope the Minister agrees that is not the future we want for the industry.