Former Steelworks Site in Redcar Debate
Full Debate: Read Full DebateAnna Turley
Main Page: Anna Turley (Labour (Co-op) - Redcar)Department Debates - View all Anna Turley's debates with the Department for Business, Energy and Industrial Strategy
(5 years, 9 months ago)
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I beg to move,
That this House has considered the future of the former steelworks site in Redcar constituency.
It is an honour to serve under your chairmanship, as always, Mrs Moon. I pay tribute to all colleagues who are here to support this debate. The former steel site in my constituency has huge implications for the entirety of the Tees valley, so I am pleased that colleagues from both sides of the House are here to work towards the future of the site. As someone once said, we are all in this together. Regionally, locally and nationally, it is vital that everyone does their bit to ensure we build up from the devastation three years ago and get our communities back on their feet. The site is the key to the future of the Tees valley economy.
I secured this debate to draw attention to the biggest opportunity for new industry and jobs in the UK, and hopefully to send a strong message to investors around the world that the Tees valley is open for business and has the Government’s full support behind it. The South Tees Development Corporation site covers almost 4,500 acres on the south bank of the river Tees. It was once the beating heart of industry, with shipyards, blast furnaces and chemical works lining its banks, and employed tens of thousands of people at its peak. On a visit to Teesside during the 19th-century boom, William Gladstone observed:
“This remarkable place, the youngest child of England’s enterprise, is an infant, but if an infant, an infant Hercules.”
Those booming, Herculean years sadly did not last forever. Although the area is still home to many successful businesses, its industrial footprint is significantly reduced and employment opportunities are much fewer. We aspire to rebirth the infant Hercules again by combining our great skills, infrastructure and our location in the north-east to build a new generation of industry and deliver growth across the Tees valley. Again, I welcome the support of colleagues from across the region. The jobs and investment that could be created in the Tees valley are of benefit to workers and businesses in every part of our area, and colleagues from all parties are lobbying hard for our region to get the support it needs.
The steelworks site—the epicentre of the devastation three years ago, from which our local economy has struggled to recover—must be seized as an opportunity to truly realise the northern powerhouse. The first mayoral development corporation outside London, led by cross-party politicians and local business, is working its socks off to realise the site’s potential. Our local master plan for creating 20,000 jobs on the site builds on interest from more than 100 global investors. Those investors and my constituents desperately need the work that I had in mind when I secured this debate.
The master plan demonstrates to the world that we have a clear vision in Teesside for the jobs we want to create. The support we have received so far from the Government, including the measures in the Budget, which I will speak about shortly, is a welcome demonstration that they have an appetite to help us deliver our vision. However, if investors are to commit to invest in Teesside, they need to know, when they head into negotiations with the development corporation, that the Government are fully behind the project. For investors to be confident that Teesside is the place to be, they need greater certainty that the development corporation is equipped with everything it needs to deliver the plan, and that the Government’s long-term financial commitment is certain. I seek those assurances from the Minister today.
First, I want to talk about some of the successes achieved by local people who have rolled up their sleeves and got on with driving our area forward. I am incredibly proud of the local teamwork to support people who lost their jobs at the steelworks, and to help many others into work. After the devastation three years ago, the community, local authorities, and local businesses, partners and politicians rallied together to put in place excellent support services. We did not just sit back, leaving the damage to smoulder.
I just want to send a message of solidarity from Lanarkshire, where Gartcosh closed in 1986 and Ravenscraig closed in 1992. Both are big scars in Scotland, and both are still empty fields. Housing is getting built, but the work promised to us is very slow. I totally agree with my hon. Friend about what we have seen at Redcar. Jobs need to come to the places that jobs were taken away from.
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.
On Teesport, does my hon. Friend agree that we need to have a serious discussion about the port’s future in respect of the idea of free ports post Brexit to generate more income for the area?
My hon. Friend is absolutely right. We have had some really positive cross-party discussions about a free port in Teesport. The potential to create jobs, attract investment and elevate the area on the global stage is huge. We have got to ensure we get it right, but there is massive potential there, Brexit or no Brexit.
I want to talk a bit about the opportunities on the SSI site. We are building on a strong foundation of public and private sector talent and on Teesside’s determination. We have the same ambitions for the steel site and a strong local team of business leaders, local authority officers and cross-party politicians, who are all working hard to deliver on those ambitions. There are many innovative projects with an interest in the site—from energy generation and materials processing to rail and renewables—and lots to get excited about. Much of the detail is protected for commercial reasons, but some of the details have been reported in the local media. Metal production could be coming back to the site, with proposals for an aluminium cast-house facility. A £5 billion energy plant focused on clean gas is also in the pipeline, and will potentially create thousands of jobs.
I secured this debate not simply to congratulate everyone and say that everything is marvellous. I am afraid it is not. I am already aware of two big investments that will now go elsewhere, attracted by better support. The first is by the chemicals company INEOS, which was looking to Teesside as the location for its new 4x4 manufacturing plant for Projekt Grenadier. That £600 million investment could have created more than 1,000 new jobs. The South Tees site and a location in Germany were shortlisted, but it was announced just over a week ago that the company may now look to Wales instead. That is a big lost opportunity for the regeneration of the development corporation site and for jobs on Teesside. The car industry is one of our region’s key strengths—the supply chain is well developed and we have a great skilled workforce.
The other lost investment I am aware of is by a major steel company with significant UK operations, which was looking to develop an electric arc furnace on Teesside, building on the excellent research into electric steelmaking by the Materials Processing Institute in South Bank. That would have returned primary steelmaking to Teesside, continuing our long and proud history of doing that. Instead, the company is now looking at a more attractive offer from the devolved Government in Scotland.
We must ask why those companies made those decisions. I believe the Government could have given them more certainty and financial support. I highlight those incidents not to spread doom and gloom—I know how important it is to talk up the area—but we need to recognise what is at stake if we cannot secure the confidence of those who are looking to invest.
The hon. Lady is absolutely right that it is disappointing that the Land Rover Defender plant will not come to Teesside, but does she recognise that the site that has been allocated is an existing Ford automotive plant where there are a lot of skills? No doubt it was that, rather than the fact that the Government were not prepared to support Teesside, that tipped the balance.
I thank the right hon. Gentleman for that intervention, but that just demonstrates the urgency of the need to sort the site out and get it ready. We just cannot compete with other sites if we still do not own the site and it needs huge investment to get it ready. That is why this debate is so urgent.
Brilliant companies are investing in our area. I have mentioned Sirius’s $4.2 billion project. At full production, that will have the ability to increase the size of the Tees valley economy by 18%, and some 800 people are already working on the site. However, to reach its full potential, that project, like others I have mentioned, will require a Treasury guarantee to match commercially raised funds.
I sincerely hope that the Government back up our local ambitions with the finance necessary to support that project and others, and that they avoid their natural inclination to be risk averse when it comes to backing such major projects. I urge them to believe in us in the Tees valley and in the companies that want to invest in great projects there. I am raising a warning flag. The Government must pull their weight and put the required money behind those bids, or we will continue to lose out to devolved or other nations.
The biggest barrier to realising our ambitions is the ownership of the charge on the former SSI land, which remains with the Thai banks. That is holding back progress. Negotiations with those banks are ongoing following the signature of a memorandum of understanding between the banks and the development corporation in May. That was due to expire at the end of October, but I understand it has been extended until early next year, although no press release was issued to acknowledge that. The local team is working hard, supported by funding from the local councils, to conclude a deal for the SSI land and for land owned by others, such as Tata. It is hindered in those efforts by premature announcements of multi-million pound investments that are some way off. Such announcements put at risk the chance of securing an affordable, locally negotiated deal, and risk raising local expectations. Of course, we have compulsory purchase as a backstop should those efforts fail. That process has started—landowners know they will receive nothing for the land should a deal fail.
As a first step, we need the Government to do everything in their power to support ongoing negotiations and ensure that they result in a successful agreement at the earliest opportunity. If that involves providing funding to seal the deal, that option must be on the table. Failure to gain ownership of the land and assets is holding everything back, and Ministers need to go beyond ad hoc funding commitments to provide confidence that long-term support will be forthcoming.
That brings me to funding. Before the Budget, the development corporation had just £5 million to progress regeneration work, which is not enough to get the land ready. Given the complexity of the industrial assets involved and the huge amount of work that needs to be done to clean up the site, that will cost an awful lot of money—£5 million will not stretch far. Although the management funding of £118 million in last year’s Budget was welcome, it was just keep-safe money that the Government had a legal duty to provide to protect the public from industrial hazards. It was the absolute minimum required to keep the site safe and protect the lives of those who work there and of the local community. It was also aimed at reducing the Government’s management costs.
In this year’s Budget, three years on, the Government announced that the site is to become a special economic zone. It is not yet clear what that actually means. At this stage, the extra powers the area will be granted for being such a zone are limited to being able to retain 100% of business rates growth. There is little difference between such a zone and existing enterprise zones, of which we already have plenty around the Tees valley, and that power is already granted to local authorities. Business rates retention will increase to 75% in 2020-21 and to 100% for the pilot schemes that are already under way in 20 local authority areas.
I was concerned that that change would mean taking money that would otherwise have been received by Redcar and Cleveland Borough Council, placing the cost on local people and public services. However, answers to written questions I tabled following the Budget reassure me that that will not be the case. All business rates growth over and above the current baseline will be retained locally and shared between the development corporation and the borough council according to a formula that is still to be agreed.
Although it makes sense that the private sector should help to fund the ongoing development of the site, I am concerned that progress will be extremely slow if that is the main source of funding for regeneration. That mechanism will begin to pay off only when new industries are established, and as we do not yet own the land, that is some time away. We would like reassurance from Ministers that that will not be the limit of central Government’s contribution to the clean-up of the site, not including their long-term legal responsibility to keep the site safe.
I recognise that the Budget also included £14 million to support short-term measures to help unlock two projects on the most shovel-ready land, which is currently owned by Tata. That is obviously welcome, but in the grand scheme of things it is a very limited measure when compared with the many millions that will be needed not only to prepare land but to provide crucial infrastructure.
It is really important that we clarify that that £14 million is instrumental to ensuring that those two sites are available for two metals projects that will create 1,500 jobs. Although in isolation those projects represent small parts of sites, they are viable and ready to roll, and they will create real jobs in a very short period of time.
Absolutely. It is great to see those projects, but three years on we are still waiting for one job to be created. I cannot wait for those jobs to be developed. I welcome the £14 million in the Budget—that is positive—but we want more, and we want the pace to be quicker. That £14 million is not sufficient to undo the damage to the local economy, which lost 3,000 jobs, with the average salary declining by £10,000. The impact of that is not sustainable. We need jobs as quickly as possible. I welcome that start, but we must accelerate.
The £14 million also depends on a successful business case being presented to the Government and on businesses being prepared to invest. I have warned about lost projects for exactly that reason: there is no guarantee that interest will turn into real investment if there is not confidence in the site.
One of our biggest warnings when the steelworks closed was that the longer-term cost of managing and regenerating the site would far exceed the limited funding needed to mothball the blast furnace and keep the coke ovens alive. Given that the Government decided not to do that, despite their offering to step in to save Port Talbot a few months later, the onus remains on them to pick up the tab for the consequences. There can be no backing out. I wrote at the time to the Secretary of State:
“Any attempt by the Government to divest itself of this responsibility, without a proper jointly developed strategy, would be challenged.”
That is therefore what people would expect me to do should I begin to have concerns. I also remind everyone that, after his appointment as Government investment tsar for the Tees valley, Michael Heseltine said:
“The money to clean up the site will be what it costs. No-one knows what the condition of the site is and although there have been estimates, they are estimates based on guess work. So it is much better to make it clear, central government will pay the clean-up costs and underwrite them whatever the bill comes to.”
As we head to the comprehensive spending review in the spring, my constituents and I are looking to the Government to provide the guarantees we need that sufficient funding will be made available to help realise our ambitions. The site is and will remain a high-risk proposition for new investors until the Government confirm that they will provide the financial backing they promised in 2015. That would mean the STDC being able to purchase the land, start real investment in infrastructure, as set out in the masterplan, and ensure that new investors can invest with confidence. Without that, I fear the development corporation will follow the lead of INEOS and turn elsewhere. I really hope it does not come to that. That is why I was so determined to make the case for funding at the time of the Budget and why I secured this debate. We need a guarantee that when we have the land, the Government will stand fully behind us for the long haul.
I want to mention additional powers. Beyond central Government funding, there are other areas where the development corporation needs to be granted sufficient resources to maximise its potential. It needs to be able to offer financial incentives to potential investors so it is on the same level as other areas in the UK. Those may include enhanced capital allowances, which would help businesses on the site to invest in new technology and machinery—especially low-carbon, green infrastructure, on which we are keen to take a lead in the Tees valley. Powers to enhance the development corporation’s ability to raise cash for infrastructure, such as tax increment financing, would also be helpful. This would be a logical extension of the business rates retention scheme that has already been announced. I would like to know that Ministers are looking to expand the powers available through the special economic zone, which would offer further reassurance to investors as well.
Investing in infrastructure will also be an extremely important factor. Remediating the land, where necessary, is the first step. However, turning that land into a modern industrial site, with the roads, rail and services needed to function well and attract new investment, is crucial.
One especially important area is power, as affordable energy is vital if the site is to remain attractive to potential investors. As my Tees Valley colleagues and I have told the Department for Business, Energy and Industrial Strategy, the cap on the amount of electricity that can be supplied without paying supply levies on the private wire network operated by Sembcorp could be a deterrent to new industries.
Our local master plan sets out a vision for mixed energy sources focused on renewables, and includes the potential for either a gas or biomass-fuelled power plant. This will require significant investment, and in the medium term we have an established business here that is ready to invest its own resources in the development of a power plant, which could provide the affordable power needed for new industries looking at the site.
In conclusion, this issue is of overwhelming importance to my constituents. Barely a weekend goes by without people asking me what is happening on the site and when they will begin to see jobs. I know that locally everyone is working their socks off, and I pay tribute to all on the development corporation board, many of whom give up their time voluntarily.
However, I am afraid that I cannot bite my tongue as press releases lauding success continue to fly past when there is not yet a single new job on the site, and when we appear no nearer to a breakthrough on the ownership issue, or to seeing a firmer commitment from the Government on funding the overall clear-up. Although I understand the importance of commercial sensitivities and will always abide by them, it is important for the community and the country that there is some accountability about where we are and what is behind the delay.
I sincerely hope that this speech can prompt a constructive debate that is free from party politicking. No one here is talking Teesside down; we all want the best for the area, and we all know the brilliance and the potential of our constituents and our communities. This effort is a sincere and earnest one to do what I have pledged to do about something that is the responsibility of us all: to fight tooth and nail to secure the jobs and investment for this site and the wider Tees Valley, and to ensure the Government keep their promises and do right by the people we represent.
If the Minister takes nothing else from today’s debate, it should be the commitment of all parties and all players in the Teesside area to ensuring that the site, which sadly no longer produces steel, is seen as a big opportunity, as the hon. Member for Redcar (Anna Turley) said at the start of her speech. With the Mayor of Tees Valley, Ben Houchen, leading on that, we are in a good position to mobilise everyone to make sure that it happens.
The Labour party has learned some harsh lessons about that. I was the candidate in Redcar in 1992, standing against Marjorie Mowlam. I do not think that Marjorie would have stood by in the way that her successor did, and not fought tooth and nail to keep that site. Labour learned that harsh lesson at the ballot box when a large Labour majority was swept away by a Liberal Democrat who did fight for the site.
Does the right hon. Gentleman not agree that the steps taken by the Labour Government at that time mothballed the site and kept it open for another investor to come along and bring it back to life? The problem was that in 2015 this Government just turned off the switch and closed it, when they could have invested and kept it open like the Labour Government did.
I would leave that to the people of Redcar, who took that judgment in 2010 and did not feel that their Member of Parliament at the time had the commitment. I would not lay the same charge at the hon. Lady’s door. She has fought tooth and nail for that site, and has possibly learned some of the lessons of the past. People do understand whether a Member really is committed to the local people and industry, rather than seeing a constituency as a convenient place to get elected and then pursuing their career nationally.
As candidate, I visited the site on a number of occasions. At the time the blast furnace was operating at full bore, having recently been refurbished. I was shown two concrete bases on the South Gare site for the second and third blast furnaces that were due to be installed there. Indeed, we visited the basic oxygen steelmaking plant—the BOS plant—which at the time was colouring everything in the area with red dust, so some people in the area might not rue the passing of that big concrete building, which was where the crucibles of iron were blasted with oxygen and turned into steel.
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.
Regarding the hon. Lady’s experience, does she sense that there was a loss of skills and a loss of the workforce in any way? My big concern is that the longer this delay goes on, the more people will move away from Redcar to look for work elsewhere, and we will lose our highest-skilled and best workforce.
The hon. Member for Stockton North (Alex Cunningham) has already said that Scots people go all over the world looking for work. Yes, there were people who left and people who retrained. There was a very good deal in those days for the steelworkers who were made redundant; they were given, I think, two or three years’ training, which allowed many to go to college or university and completely retrain. In fact, my predecessor retrained and then became an MP, which was not necessarily what he retrained for, and he moved away—part-time, anyway—down here to work.
It really is important that all parties look at what happened after Ravenscraig shut, because that is comparable and it should be used as a template, in some regards to complement what is still going on there, but in others to look at this and say, “We mustn’t allow that to happen. We mustn’t allow things to stall and nothing to happen for long periods.”
I am sorry; we must get on.
We have waited more than a year since steel companies set out what was needed, but we are yet to see action from this Government. Without that and wider industrial regeneration, there is little safety for other steel towns, and there is not the environment that will deliver success for south Tees.
This summer, Labour launched the Build it in Britain campaign, committing a Labour Government to using the capacity and expertise of Britain’s industries to fulfil far more of the country’s infrastructure needs. A Labour Government would have prevented the collapse of SSI Redcar, stepping in where this Tory Government were unwilling to save jobs and expertise to support the economy.
There will be a future for the south Tees site; I am sure of that. With great Labour women such as my hon. Friend the Member for Redcar and council leader Sue Jeffrey fighting for their area, I am confident there can be huge success.
I have to say that I found the remarks by the right hon. Member for Scarborough and Whitby (Mr Goodwill) about the former MP for Redcar, the late Marjorie Mowlam, very distasteful. [Interruption.] You referred to Mo Mowlam.
The remarks were directed at my predecessor, Vera Baird, but my hon. Friend makes an important point, and I totally agree that the remarks were disrespectful; Vera Baird did her best in extremely difficult circumstances. I come back to the point that unlike the Conservative Government, the Labour Government saved the steelworks, which were reopened.
I thank my hon. Friend for that intervention.
To conclude, the Government must properly back this fantastic opportunity, not just for Redcar’s sake, but for our future economy. If they cannot deliver the ambitious plan that the South Tees Development Corporation master plan lays out, a Labour Government will.
Just currying favour with the Chair—but it is actually genuinely true. One of the most interesting days I have had in this job was spent visiting Mrs Moon and her constituency.
I thank the hon. Member for Redcar (Anna Turley) for securing the debate. These are very important topical points and I congratulate her on the consistency of her representations on this project. The whole area is very lucky to have the MPs that it does—the hon. Lady, my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) and the other MPs who have spoken today. It is also lucky to have the Mayor, Ben Houchen.
There is a bit of an undertone of “who said what where”. That is not for me to go into, but I make a plea to all parties, including those not in the room, that these matters are much better dealt with on a consensual, cross-party basis. If anybody feels that I and my office can help in that, I am very pleased to offer that help.
I concur with the Minister’s comments and I reassure him that the reason for calling today’s debate is to try to move on to the substantive issues of the site. I welcome the positive, constructive tone that we have struck today, because I think that is the only way forward.
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 appreciate the Minister’s response, which was thoughtful and considered, giving us a real sense of positivity. I am glad that he took the trip that he did when he was 17. Everyone who knows our area well knows that it is never forgotten. It is one of the most fantastic places in the country, and the sense of pride, opportunity and passion in our town and area will carry us through this situation and enable us to rebuild.
I thank all colleagues who participated in the debate. We have heard a fantastic range of views and experiences from the past, as well as important challenges and questions from this side of the Chamber. I also thank my colleagues on the Government Benches. As has been said many times, we will make a success of the site—bringing jobs, investment and opportunities for the people we represent—only if we work together constructively. I sought to secure the debate this week in particular because I was, frankly, disappointed at the nature of the Budget debate and the level to which it degenerated. I am pleased about the positive and constructive discussion that we have had today.
It is vital that MPs have the opportunity to represent their constituents and to ask these questions. We live in a democracy in which everyone in a public position is accountable for the decisions that they make. We all know that it will take time to regenerate the site, that the ownership issues are complex and that there are confidentiality issues at stake, but we have a fundamental duty to our constituents to raise these issues and to hold the Government to account. Anyone who knows me or my colleagues knows that we will be holding the Government’s feet to the fire every single day that we are in this job, to get the best for our constituents.
Today’s debate was held to make sure that the Government’s long-term commitment is there and that warm words and positivity are backed up by money. That will be the bottom line in all this. I am very proud of the work being done locally, and of the positive and constructive relationship that I have with Ministers. I am grateful that the Minister’s door is always open. We will continue to work together to champion businesses that seek to invest in our site and I am extremely positive about its future, which could unlock a new industrial renaissance in the Tees valley. The onus is on all of us to work together to drive that, and I thank everyone who has contributed to the debate to make that happen.
Question put and agreed to.
Resolved,
That this House has considered the future of the former steelworks site in Redcar constituency.