British Steel

Anna Turley Excerpts

Wednesday 24th July 2019 Commons Chamber

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

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the sale of British Steel.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

As hon. Members will recall, I made a statement to the House a few hours after British Steel entered insolvency on 22 May. This was, and still is, an uncertain time for the British Steel workforce, their families and their communities, for the customers and suppliers of the business and for everyone who believes, as I do, in the importance of excellent steelmaking and manufacturing in the UK.

In my statement, I said that, although the independent official receiver is solely responsible for the operation and sale of the British Steel business, I would, both personally and on behalf of the Government, do everything that I possibly could within my powers to help secure a good future for the whole of British Steel’s operations.

Following a visit to the Scunthorpe plant the following day and to Skinningrove and Lackenby on Teesside the day after with local MPs, including the hon. Member for Redcar (Anna Turley), we formed a British Steel support group to work together immediately and actively to pursue that aim. I chaired the group with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), which has included British Steel management; trade unions Community, Unite and the GMB; the Mayor of the Tees Valley and the leader of North Lincolnshire Council and their officers; the chairs of the Humber, Greater Lincolnshire and Tees Valley local enterprise partnerships; UK Steel; Make UK, the manufacturers’ organisation, on behalf of suppliers and customers; the Federation of Small Businesses; Government officials and other local MPs, including the hon. Lady, my hon. Friends the Members for Middlesbrough South and East Cleveland (Mr Clarke) and for Brigg and Goole (Andrew Percy), and the hon. Member for Scunthorpe (Nic Dakin). The support group has now met eight times, usually in Doncaster, and sub-groups on the supply chain have met separately, as have local partners.

I wish to pay tribute to the hard work, tenacity and dedication of this group and the extraordinary commitment of the workforce who, during this time, have worked magnificently, not only to continue but to increase steel production.

Often in insolvencies, customer orders dry up, suppliers withdraw their services and the workforce drifts away, precipitating a rapid failure. In this instance, the opposite has been the case. The confidence that the support group has built, coupled with a Government indemnity to the official receiver, has allowed trading to continue, orders to be won and production to increase. This is without precedent in my experience.

Although all decisions are for the official receiver, I have been active, as Members know, in visiting prospective buyers in many parts of the world to make it clear that the UK Government will, within our legal powers, work with a good long-term owner of these important assets to see how we can help them to realise their vision for the company.

I am pleased to say that the official receiver has said that he is encouraged by the interest in purchasing British Steel and his special managers, EY, are currently in further discussions with potential buyers. The official receiver has made it clear that, given the complex nature of the operations, any potential sale will take time to deliver.

I said in May that I was determined to see the proud record of steelmaking excellence continue. The world needs steel, and British Steel is among the best in the world. To secure that will require, in my experience, the continued active participation of everyone that I mentioned earlier without interruption during the critical weeks ahead. In particular, whoever stands at this Dispatch Box will need to devote themselves unstintingly to achieve a great outcome for everyone concerned with British Steel, which I believe, although not certain, is certainly within grasp, and that is the flourishing of British Steel’s operations for many years to come.

[Anna Turley]

Let me begin by putting on record my thanks to the Secretary of State—not only for his response just now, but for the way in which he has responded to this crisis. We find ourselves in a fundamentally different position from the situation in 2015, where, either by design or flat-footedness, the Government failed to respond, with devastating consequences. This is a completely different scenario, and I am grateful to the Secretary of State for stepping in and helping to secure the asset, enabling the business to continue and ensuring that the workforce were paid. Through the indemnity that the Government have given to the official receiver, the Secretary of State has given us a very good chance of ensuring the future for British Steel in this country. I also thank him for his efforts in going around the world to help secure a buyer.

Of course, the situation remain precarious. In the past few weeks, we have seen the new Prime Minister running around the country waving kippers in the air; by contrast, 5,000 dedicated, highly-skilled workers in British Steel have been putting their shoulders to the wheel in Scunthorpe, Skinningrove and Lackenby, despite their livelihoods being in the balance. They have been producing at record levels and working with every effort they have to ensure that the business continues to produce the best steel in the world and to flourish. I pay tribute to all those working within British Steel. They deserve a Government who will be straining every single sinew to ensure that the business survives.

I pay tribute to the trade unions, including Community and Unite; every worker in British Steel; everybody in the customer base who has continued to ensure that requests for steel have come through, including some who have even stepped up their demands; everyone in the supply chain who has continued to work so hard to supply the business; and colleagues in the Doncaster round- table. I again pay tribute to the Secretary of State for the inclusive and positive way in which he has responded. However, I do have a number of questions for the Secretary of State—for whoever will be at the Dispatch Box in the coming days, weeks and months ahead.

First, does the incoming Secretary of State understand the implications of failure? We know what 5,000 job losses could be like in areas such as Scunthorpe, Redcar and Skinningrove where there is no alternative employment, and we know the cost of cleaning up the site: £1 billion. Does the future Secretary of State understand the loss of a major industry in Britain that any self-respecting major economy would value and recognise to be essential? Will they recognise the role of steel as a foundation industry for our defence, automotive and construction sectors and what reliance on overseas production could mean for our economy, our independence and our self-reliance?

Secondly, will the future Secretary of State endeavour to ensure that the official receiver continues to receive the indemnity for as long as it takes to find a buyer? Thirdly, will they endeavour to give wholehearted Government support to the bids that primarily keep the business together as one industry across Skinningrove, Lackenby and Scunthorpe? Will they pledge to prevent cherry-picking, to keep asset strippers at bay so that we do not suffer the same issues that we have experienced before and to ensure that the terms and conditions of the workforce are maintained? Will they ensure that any company that the Government support will invest in the assets and ensure that they are modernised for the future of our industry? Will they invest in research and development and be committed to the long-term interests of steelmaking in this country?

Finally, I hope that whoever will be at the Dispatch Box in the weeks ahead will recognise that they have the jobs and livelihoods of thousands of men and women in their hands, as well as the guardianship of a vital, modern, innovative and potentially world-leading British industry.

[Greg Clark]

I am grateful to the hon. Lady for asking the question that has given us the chance to talk about these issues. She has been dedicated and devoted to her constituents, as have other Members—starting the week with me in Doncaster with the colleagues I described to ensure that we can work together and join together to ensure that there are no gaps between any of the interested parties. That has had an appreciable effect, as has been noted by many prospective buyers. Certainly, many customers and suppliers have also observed the resolution and the unanimity of resolution behind this.

Many of the hon. Lady’s questions were addressed to whoever might be the Secretary of State under the new Prime Minister, so it would be presumptuous of me to answer on his or her behalf, but she has placed a clear set of requirements on the record and I endorse everything she said. Not only would the consequences of the loss of historical assets—hugely important in all the communities she mentions—be unconscionable; there would also be the loss of a substantial opportunity.

The hon. Lady, like me, believes that there is a strong strategic future for the British steel industry. As I said in my previous answer, the world is going to need steel. Through investing in infrastructure, this country has opportunities to make greater use of UK steel. We export much in the way of our scrap steel to other countries. That could be made better use of, both environmentally and in terms of industrial opportunities. If we invest—as we intend to and are doing through the industrial strategy—in the technologies that will make steelmaking cleaner, more efficient and suitable for new uses, there is every reason to think that the UK steel industry, including British Steel, can be a beacon showing the rest of the world how a modern manufacturing industry can flourish.

UK Steel Industry

Anna Turley Excerpts

Tuesday 9th July 2019 Westminster Hall

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

As always, Mr Hollobone, it is a pleasure to serve under your chairmanship.

I congratulate my hon. Friend the Member for Scunthorpe (Nic Dakin) not only on securing this debate but on the last few months, when he has been such a doughty champion for his constituents and for the steel industry in this country. We are very proud of him and I know that his hard work is going to pay off.

Of course, we know why we are here today participating in this debate, which is extremely timely and important because, yet again, here we are in another steel crisis, while steelworkers sit at home, hoping and praying that they have a future and a job and a salary to continue to provide for their families. Yet again they are in a precarious situation.

To be honest, it is depressing that we are here again, because a year ago tomorrow we had a debate in Westminster Hall, this exact same Chamber, which was three years on from the 2015 steel summit and all the promises that were made then, and all the asks that we made of Government. And here we are yet again, despite having seen the devastation that my constituents bore the brunt of. We can see what happens when we fail on steel.

My constituency is still struggling. I am here today, not just to fight on behalf of the 700 British Steel workers in my constituency today but because of what happened to us three and a half years ago in Redcar. We lost 2,200 jobs immediately in SSI and another 900 in the supply chain. I always say to people, “Imagine that in London, Manchester, or Birmingham. It would be devastating. Then put that in a seaside town, or a town like Scunthorpe, and imagine the effect of that on an economy, on a society, on a community, on families and on individuals.”

We are still not recovering; we are still not there. We know the average salary of those who worked in the steelworks; we know they are good jobs. They were the highest paid jobs in my constituency. The average salary is down by £10,000 a year. Many workers have had to move away to find other employment. Some are working in British Steel on Teesside or have even gone to Scunthorpe, where yet again they find themselves back in this precarious situation.

A month ago, I met a worker who had had 13 different jobs since he lost his job at the steelworks. That is the kind of insecurity and economic disaster that happens if the Government do not step in and stand by our steel industry, and that is before we even get on to talking about the reclaiming of the site, which stands there corroding and rusting. It will cost millions to get that ready for other businesses to come in, clean it up and bring jobs. I just raise that with the Minister to say that this is what happens—this is the cost of failure.

I pay tribute to the Secretary of State, who I am sure cannot be with us today because he is probably—hopefully—travelling the world and trying to secure a deal for British Steel. I pay tribute to him, because I think he gets that. He understands and, to be fair, things are different to what they were in 2015. The Government have stepped in; they have given the indemnity to the official receiver; they have bought us some time; and they have kept the workforce paid and the asset in place. So I pay tribute to him, but I have a few requests to make of him and of the Minister who is here in his absence today.

Obviously, we know that the official receiver is bound by his legal obligations. However, I will echo the sentiments that were expressed earlier today about keeping the business together. It is vital that the Government support bidders who bid for the whole business—no more cherry-picking and no more asset-strippers such as Greybull.

It is vital that we have the investment to deal with the environmental liabilities that are so important on the Redcar site, but the importance of innovation must not be forgotten either. We cannot beat China and others on price, but we can beat them on innovation, with lighter, stronger, greener steel. And I make a pledge again to—

[Mr Philip Hollobone (in the Chair)]

Order. To be helpful to the hon. Lady, we have five minutes of Back-Bench time still to go and the remaining speaker is not here, so she can slow down rather than speed up. [Laughter.]

[Anna Turley]

I am extremely grateful to the Chair, because I was barely pausing for breath. I can get back into my stride.

Innovation is crucial. The hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) mentioned the Materials Processing Institute, which is in my constituency. It is doing fantastic work. It has been around for 75 years; it was formed just after D-Day. It has a fantastic vision for innovation: new technologies, decarbonised steel, the digitisation of the steel and metals sector, and a circular economy for steel, alloys and rare metals. Those are really important innovations. If we do not support originations and businesses that are doing that work, I am afraid we will see more redundancies and job losses, and the loss of a huge amount of capacity and capability. Therefore, innovation must be at the cutting edge of productivity, and we must support innovation experts such as the MPI, which are at the heart of this.

Like other hon. Members, I want to highlight the importance of the long-term issues that we have raised time and time again in this place. We need action on energy prices, business rates and procurement. I hope that the long-awaited sector deal is not a figment of our imagination and that we will live to see one for the steel sector. Sector deals are as important for our sector as they are for the many other sectors that have had a response and engagement from the Government. That would send a clear signal that the Government are committed to the steel industry and want to do business with the private sector.

I will end on Brexit. The industry has been very clear that there is no Brexit deal that would bring benefits to the British steel industry. That is just a fact. Of course, the disaster of no deal cannot be underestimated. We would see 97% of our exports subject to trade restrictions, and 25% tariffs to the EU—£1 million per day for the steel industry in this country. We would lose access to £1.6 billion of research funds for coal and steel. As my hon. Friend the Member for Scunthorpe said, no deal means no steel. The industry could not be clearer about that.

I pay tribute to the Secretary of State, and I am grateful to the Minister for coming to respond. I know that he gets it. I know that the Government are trying to do all they can for British steel, and that he understands the importance of this industry to our country, our defence, our manufacturing and our place in the world. Unfortunately, the future of this proud industry hangs in the balance once again. I look forward to the Minister doing his part.

[Mr Philip Hollobone (in the Chair)]

We now come to the Front-Bench speeches, the first of which will be from the hon. Member for Motherwell and Wishaw (Marion Fellows). The guideline limits are five minutes for the SNP, five minutes for the Opposition and 10 minutes for the Minister.

British Steel

Anna Turley Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

I certainly agree with, and will act upon, the first part of my hon. Friend’s question. It is a matter for the official receiver to consider, but during the course of the day—after all, it was just this morning that the company went to court—I have had some early indications of interest. I intend to be active in helping to promote these important assets to prospective investors, whether or not they are currently aware of the opportunity this may give them to invest in successful facilities in the future.

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

I thank the Secretary of State for engaging with me constructively on the phone this morning, which I appreciate. I also pay tribute to all those at British Steel who have worked so hard, particularly over the last three years, to try to make a success of the company. I was proud to be at the launch at the Lackenby beam mill in 2016 when, out of the ashes of the SSI disaster, we felt that British Steel would rise and be a strong, fantastic brand. Obviously, today is extremely disappointing for those workers and for others all across the country.

I implore the Secretary of State to learn the lessons of SSI from 2016. He spoke movingly today of the importance of keeping the assets going, which is the No. 1 priority. We cannot turn this off because of the consequences for individuals, for families, for communities and for local economies. We are still facing the clean-up costs, three years down the line, of a rotting, decaying site that is still toxic. That cannot be allowed to happen again. We must ensure that the assets are maintained and preserved and jobs safeguarded.

[Greg Clark]

I grew up in the hon. Lady’s constituency, and I am very familiar with the landscape of steelmaking across Teesside. We need to learn the lessons of this. Across the country, including in Scotland, as we have heard, there have been times when the steel industry has been challenged. Not everything has been done in the best way each time. We should learn the lessons and apply them in this case. I hope that the official receiver will do that, and the indemnity is partly given to provide the official receiver with the confidence that the liabilities, especially the safety aspects, will be covered.

British Steel

Anna Turley Excerpts

Tuesday 21st May 2019 Commons Chamber

[Andrew Stephenson]

Delivering a deal negotiated with the EU remains the Government’s top priority. It remains the best way to provide security for the future of British jobs and businesses.

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

Redcar steelworks was closed by the Government three and a half years ago, with the loss of 3,100 jobs. After that biggest act of industrial vandalism, everybody came together and said, “Never again!” The Minister has said that he will leave no stone unturned, but is he willing to accept that if the worst should happen and the company goes into administration, the Government will step in to secure the asset this time—not let it go to waste so that it is still sitting there three and a half years later—and secure the workforce and their livelihoods?

[Andrew Stephenson]

The Government have been willing to act. We provided a £120 million bridging facility to the company earlier this month, which shows that we are fleet of foot and responsive to businesses that approach us with their concerns. I cannot comment on any current negotiations with this or any other company, but the Government are responsive, and, when it comes to this specific company, we have already shown our willingness to act, with that £120 million.

Nissan in Sunderland

Anna Turley Excerpts

Monday 4th February 2019 Commons Chamber

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

I was at Nissan just recently meeting the fantastic workforce, some of whom are my constituents who had lost their jobs in the steelworks and subsequently been recruited by Nissan. It was made very clear to me when I was there just how important the EU market and the integrated cross-border just-in-time supply chains were. In their letter to Nissan, the Government say that they fully recognise

“the significance of the EU market to your presence in Sunderland.”

Why then are the Government keeping no deal on the table and playing fast and loose with my constituents’ jobs again?

[Greg Clark]

Everyone in this House has a responsibility: we need to protect the jobs of our constituents and to give them opportunities for the future. One way or another that involves this House agreeing on a plan for our relationship with the rest of the European Union. It might involve Members from all parts of the House leaving their comfort zone and being willing to compromise. Internationally, we have had a reputation for being willing and able to do that—to be a pragmatic and dependable place in which to do business. Now is the time to demonstrate that to the rest of the world.

Former Steelworks Site in Redcar

Anna Turley Excerpts

Wednesday 14th November 2018 Westminster Hall

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

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.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

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.

[Anna Turley]

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.

[Alex Cunningham (Stockton North) (Lab)]

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.

[Anna Turley]

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.

[Mike Hill (Hartlepool) (Lab)]

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?

[Anna Turley]

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.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

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.

[Anna Turley]

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.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

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.

[Anna Turley]

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.

--- Later in debate ---

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

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.

[Anna Turley]

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.

[Mr Goodwill]

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.

--- Later in debate ---

[Marion Fellows]

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.

[Anna Turley]

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.

[Marion Fellows]

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.”

--- Later in debate ---

[Gill Furniss]

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.

[Anna Turley]

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.

[Gill Furniss]

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.

--- Later in debate ---

[Richard Harrington]

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.

[Anna Turley]

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.

[Richard Harrington]

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.

--- Later in debate ---

[Anna Turley]

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.

Budget Resolutions

Anna Turley Excerpts

Wednesday 31st October 2018 Commons Chamber

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

Britain as a country is becoming more unequal and whole communities are being left behind. In the real lived economy as experienced by my constituents, there is a sense that things are getting harder, not better. Although we have heard all week from Ministers about the number of new jobs in the economy, if we listen to those in my community, they will tell us that work has become more insecure, more temporary and less well paid, with fewer rights and longer hours. For many people in Redcar and elsewhere, no matter how hard they work for how many hours and however many jobs they take on, work is not paying.

Eight years of austerity have ravaged communities such as mine. The Tories said that those with the broadest shoulders would bear the greatest burden of austerity. Well, that turned out to be a deceit, as it was communities such as Grangetown, South Bank, Redcar and Eston that bore the brunt of the bedroom tax, the welfare cuts, fewer police keeping our streets safe, NHS walk-in centre closures, fewer buses and, ultimately, the closure of our steelworks. With universal credit coming to Redcar and Cleveland for full roll-out on 28 November, the five food banks that have been established in my constituency under this Tory Government are preparing themselves for a surge in demand for food parcels.

The dire warning from history is that if people feel their political and economic system has broken its obligations to them, they will turn to extreme alternatives. The global financial crash has heralded a rise in populism across the globe—in the USA, across Europe, and in Brazil this week. I would put UKIP and the hard-core Brexiteers in the same boat. I represent a constituency that voted for leave in the EU referendum in 2016, and my firm conviction is that the underlying causes of that snapshot of opinion two years ago were economic. Many people felt then, and feel now, that the economy is not working for them and their families. There is a strong sense that London and the south-east is sailing ahead, while towns in the north get left behind.

The old industrial jobs on Teesside are disappearing—no more the scores of thousands of jobs for young people leaving school at ICI, at Tees dock or in the steelworks that lined the river. Those jobs are gone and that security has gone, and what new jobs have replaced them are low paid and unstable. Of course, the final blow for us was the closure of the SSI—Sahaviriya Steel Industries—steelworks in Redcar in 2015, ending 175 years of steel making. It was not just the loss of over 3,000 skilled jobs; it was the loss of pride, dignity and hope, and the sense that the Government just did not care. No wonder my constituents shouted out in rage in the 2016 referendum.

What is the answer? One thing is for sure: it is not simple enough to be written on the side of a bus. The solution is certainly not a hard Tory Brexit. Crashing out of the EU with our trade deals in tatters would be a disaster for the remaining industries and the small businesses in Redcar, and I will oppose it. A slump leading to a recession leading to misery is not what people voted for, and I will not enable it.

Is a continuation of austerity the answer? No. Cuts to public services have slowed down our recovery. Austerity has ruined lives, and made our society more divided and our communities more brittle. We need to invest in public services and to borrow the money to do that. We need a massive injection of investment: more teachers, doctors, nurses, mental health specialists, police officers, firefighters and social care providers. Redcar and Cleveland Council needs the money it has been denied since 2010 to deliver the services people deserve. Taking £90 million away from local services has consequences for people’s lives.

This Budget did not deliver on anything that is needed on the scale required. The solution we need to bring our country back together is for the Government to invest in and prioritise communities that have been left behind and that roared in anger two years ago. Teesside has so much potential, and it is ready to be at the forefront of a new modern industrial renaissance. This is where we really needed support in the Budget, but £14 million does not come close to the £200 million needed to clean up the whole former SSI site. Civil servants were very quick to email straight after the Budget to say that this £14 million has not even been confirmed and is subject to making a business case to the Government.

I welcome the new powers, but the question is this: what exactly is a special economic area and how does it differ from the existing enterprise zones, of which there are already plenty in Teesside? If its only powers are to allow the development corporation to keep business rates, then that is nothing new, as councils will be able to do that from next year anyway. Does that mean that rates on the site will now go to the development corporation and not to Redcar and Cleveland Council? If so, local people are paying once again to fill the gap because the Government will not pay to clean up the mess they have left on the site. I have no doubt that the Government should pay—they closed the site, they rejected offers to keep it going and three months later they stepped in and took a stake in Port Talbot.

I am deeply worried by how little we saw in the Budget for Teesside. We have the potential on the site not just to turn things around for the people of Redcar and Teesside but to show the way on the sort of economy we could have in this country: a leading hub for green industries, creating jobs and helping us meet our climate change targets, carbon capture and storage, hydrogen economy, recycling and energy generation. We have a great future in Teesside—the brains, the hearts and the hands. We can make it happen.

--- Later in debate ---

[Robert Jenrick]

We have heard in this debate that this is a Budget for high streets and town centres. With great respect, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) said that we had borrowed one point of the Labour party’s five-point plan for the high street, and that is true, we did—we are committing to pilot a register of empty shops—but we looked at the other four points in the plan and, frankly, they were thin gruel. We decided that we could do better, and we have.

We are providing a 30% discount to small businesses, affecting 90% of our retailers across the country, and we have created a £675 million future high streets fund—a competitive fund for people across the House and across the country to bid into to secure between £5 million and £25 million to transform their towns. I was surprised that Opposition Members repeatedly criticised the idea of having more homes in town centres, because that is not what the public say. We want vibrant communities in our town centres, and we want to make it cheaper and easier to create shops, workplaces and homes there.

We also heard about great ideas in the Budget. We have to grow the economy in all parts of the country. For example, we heard from my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) about the special economic area that we are creating in Teesside, working in partnership with the hon. Member for Redcar (Anna Turley). That has the potential to transform investment in that area.

[Anna Turley]

Will the Minister say a little more about what this economic area is? If it is just keeping business rates locally, local authorities will be able to do that next year anyway. Will he indicate a bit more what it will be exactly and what it will mean for the clear-up of the site?

[Robert Jenrick]

I am happy to give the hon. Lady further details. We shall provide business rates retention, and we promised that in the spending review we shall consider whether it is possible to enhance the capital allowances. We have provided £14 million up front to ensure that two plots of land on the site are remediated so that jobs and investment can come in as soon as possible.

We have also announced new university-linked enterprise zones and a competition for more development corporations, starting with one we announced a month ago at Toton in the east midlands. We made an announcement about realising the potential of the Oxford-to-Cambridge arc of opportunity, with a new expressway and railway linking Oxford and Cambridge, and I am sure that the constituency of the hon. Member for Cambridge (Daniel Zeichner), with whom I have spoken about it on a number of occasions, will benefit.

In Coventry, we will support the automotive sector. We are in regular conversation with JLR about the issues described by the hon. Member for Coventry South (Mr Cunningham). In the Budget, we announced funding not only for Coventry as city of culture but, at the request of Mayor Andy Street, for a centre for autonomous vehicles in the city, which I hope will build on the great reputation of the automotive sector.

Oral Answers to Questions

Anna Turley Excerpts

Tuesday 16th October 2018 Commons Chamber

[Claire Perry]

My hon. Friend is quite right that solar PV has an important role to play in the energy system. It might be ideal on some existing or new build homes. What I hate to see is the tokenistic solar panel that some developers pop up on roofs. Obviously, there may well be more effective and expansive measures to reduce running costs and cut emissions. When the Prime Minister launched her buildings mission as part of the industrial strategy earlier this year, she targeted the measure of overall energy. We want to halve the energy consumption of all new buildings by 2030 and we are working closely with the construction sector to deliver that goal.

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

As Ministers know, the development corporation site in Redcar is critical to the economic development of the Tees valley, and to get international industrial investment, we need affordable energy supplies. Will Ministers review the current arbitrary limit of 100 MW on the amount of electricity that can be supplied by private wire networks so that we can bring in jobs and investment, and fulfil our potential?

[Claire Perry]

As always, I commend the hon. Lady and her colleagues for doing such an amazing job, cross-party, in promoting the next iteration of Teesside as the centre of clean economic growth. I know that the Secretary of State has met the company. We are aware of the issues. We will continue to review this, but we will also continue to review the chance to have a low-carbon industrial cluster, which is the way to get the new investment and get the carbon down in the area she is so proud to represent.

Oral Answers to Questions

Anna Turley Excerpts

Tuesday 17th July 2018 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for his question, and I am sorry that I was unable to be in Grimsby. I could not be in Newcastle and Grimsby on the same morning, but that does not remove my commitment to visit Cleethorpes and Grimsby, and perhaps the free port proposal is one of the things that we could discuss when I do so.

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

T9. Will the Secretary of State update my constituents on the ongoing discussions with his Department to transfer full responsibility for the former SSI steelworks site to the South Tees Development Corporation? Will he also pledge to commit the £200 million needed to regenerate the site, which would bring in 20,000 jobs and enable the Tees Valley to embark on its industrial renaissance?

[Greg Clark]

I pay tribute to the hon. Lady and other Members who have worked closely with the development corporation. The discussions have been very positive. They have not concluded yet, but I think everyone recognises that there has been great progress and that there is a very good future for that site.

2015 Steel Summit Commitments

Anna Turley Excerpts

Tuesday 10th July 2018 Westminster Hall

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

I beg to move,

That this House has considered progress on 2015 steel summit commitments.

It is a pleasure, as always, to serve under your chairmanship, Sir David. I am pleased to have secured this debate, which comes almost three years on from the 2015 steel summit. At that summit, in the midst of the steel crisis, steel producers, steelworkers, trade unions and parliamentarians came together with Government to discuss the challenges facing the industry and the support needed to at least level the playing field. We were not looking for special favours or advantages, just a fair environment so that British steel makers were not fighting against state-subsidised steel from east Asia or excessive energy costs compared with our competitors in Europe.

My constituents in Redcar felt the sharp end of that battle when the SSI steelworks and coke ovens were closed. Cheap Chinese steel had put the works under strain from falling prices, but it was Government inaction, in the face of pleas from parliamentarians, industry and the Community trade union, that left the works in a battle for survival. The closure wiped out 3,000 jobs and many more in the supply chain, rippling across our local economy.

Redcar is resilient and we are fighting back, but many families continue to struggle, working on lower wages in insecure jobs, working away or not working at all. Many come to my surgeries or visit the local citizens advice bureau, struggling with mortgages and personal debt. I do not repeat that story to dwell on the past, but to highlight why it is so important that the steel industry gets the support it needs to thrive. We cannot countenance any more reductions in steelmaking capacity in the UK after the loss of 175 years of steelmaking on Teesside. We cannot be complacent, as before, about the loss of any more steel jobs.

To return to the 2015 summit, there was a united request in the form of five asks, or five areas where the industry was struggling to remain sustainable, often because we were at a disadvantage compared with our competitors around the world. We were playing fair, but the playing field was tilted against us. I am speaking in the past tense, but sadly not enough progress has been made on those asks since 2015. The playing field is still uneven and tilted against British steel. While the existential urgency of the 2015 crisis may have passed, my town stands as a warning of what can happen if complacency sets in and the industry is not given the support it needs to survive.

[Stephen Kinnock (Aberavon) (Lab)]

On the point my hon. Friend has made about what happened in Redcar, does she agree that the closure of the blast furnace and coke ovens there was an act of industrial vandalism that led to the loss of a strategic asset for our country? Does she also agree that the steel industry needs to be seen as a strategic asset and in the context of our national security?

--- Later in debate ---

[Anna Turley]

My hon. Friend is right. It was the second-largest blast furnace in Europe and the coke ovens were fantastic; they were capable of producing much more, including foundry coke, for which there was a huge market. It had a huge role still to play in the British steel sector, and we did not have a strategic nationwide approach to looking at those assets and preserving the value they had for our economy and for the future. I know many hon. Friends here want to contribute and share their thoughts and experiences, so I will not take too much time, but I will just give an overview of where we were and where we are now.

First, I will start with electricity costs. We asked for help with bringing the cost of electricity in line with that of our EU counterparts. In 2015, the Government introduced compensation for energy-intensive industries a few months earlier than planned, but a large disparity between electricity prices in the UK and the EU still remains. It translates into a total additional cost to UK steel producers of around £43 million per year, or around 17% of the sector’s net earnings, which is a significant margin to be losing in excessive energy costs. Europe offers many examples of acceptable state aid solutions to the energy challenge, but the Government have not given any serious consideration to what we can do.

Secondly, I come to business rates, which irk sectors across the UK, not just steel. The sector has put forward a number of proposals, such as removing plant and machinery from business rates calculations or offsetting previous trading losses against future business rates, but change in this area has been met by resistance, even though the sector has committed to reinvesting any savings, which would have a huge impact on local steel-producing regions. That feels like a short-sighted approach from the Government, ignoring a powerful tool for incentivising capital investment, increasing the productivity of the sector and helping to deliver a northern powerhouse boost.

Thirdly, public procurement is another area where the UK has so much potential to support UK steel makers, especially through large infrastructure projects such as HS2 and the Heathrow expansion. I know that British Steel in my constituency has aspirations to win contracts on those projects, and many other colleagues will have similar ambitions for their areas. There has been a close working relationship between the sector and Government on procurement.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Does my hon. Friend agree that the Government have missed a real opportunity for UK plc generally, and for steel in particular, with their decision to refuse the Swansea Bay tidal lagoon?

[Anna Turley]

My hon. Friend makes a vital point, not just in terms of opportunities in that area for the creation of jobs and the boosting of the local economy, but in terms of the huge implications for the steel industry that we know such major infrastructure projects have in keeping that pipeline going.

The publication of an annual steel pipeline to provide early sight of such opportunities for UK producers has revealed over 4 million tonnes of steel requirements in the coming years. The publication of the procurement policy note on procuring steel in major projects has also helped to encourage a more holistic and proactive approach to steel procurement. Despite these steps forward, the benefits of this relatively low-cost way of subsidising UK steel and jobs are not being maximised. The guidance is interpreted differently by different Departments and organisations, and information sharing is still far too limited. Clearer and more detailed data on the amount of UK steel in public projects would be a welcome improvement, to track progress and to ensure it is held up to the light of public scrutiny. Introducing a baseline for levels of steel in UK projects would also help to maximise the benefits to domestic steel production.

Fourthly, trade remedies have been an incredibly important defence mechanism in the battle against state-subsidised steel, which is flooding the market and forcing down prices.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Does my hon. Friend agree that, in the light of the American steel tariffs, there is a real danger that steel that has hitherto been going to the US will be diverted and dumped on to the British market, and that the current UK policy is going in the wrong direction, unlike that of the European Union, which is going in the correct direction?

[Anna Turley]

My hon. Friend is absolutely right; I know colleagues have raised that issue a number of times with the Secretary of State for International Trade. The implications of the steel tariffs that President Trump has announced are not just a direct existential challenge to our steel industry here; the knock-on effect of further dumping from the Chinese market and others into our market is a real crisis coming down the line.

Such unfair trading practices put UK steel at a disadvantage for trading fairly without a single bit of state support. Thanks to work within the EU, dumping methodology has been reformed and a modernised regime has had a big impact in reducing the levels of dumped steel in the EU market. It is a real worry that, when we leave the EU, the UK will not endorse the same kinds of protection and the UK steel market could be in danger of being swamped. The UK Government’s unexplainable opposition to the modernisation package within Europe suggests that they will not introduce the same approach in the UK system post-Brexit. The proposals so far suggest there could be a much more difficult and drawn-out process for initiating defence measures, by which time the damage would have been done.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

I congratulate my hon. Friend on securing the debate. As someone from a ceramics area, the issues she is talking about resonate with the industries I talk to. Does she share my concern that not only do the Government seem not to want to commit to the European calculations for dumping, but the introduction of an economic interest test and a public interest test gives further opportunities for Ministers to take away the protections, even if they were to update the methodology themselves?

[Anna Turley]

My hon. Friend is right. It is vital that we all contribute, and that the Government listen to the debate as we produce the legislation and look to leave the EU.

Our fifth ask was on environmental regulations, which is one area where there has been positive progress, allowing more time for specific sites to meet the requirements of the industrial emissions directive. However, one fully completed promise and some minimal progress on others is not a great record, almost three years on from the steel summit.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate my hon. Friend on securing the debate. Listening to her analysis, a balanced scorecard on the Government’s performance would not show a terribly high score. Does she agree that, three years on from that steel summit, it would probably be a good idea for the Government to convene a steel summit to review how the industry is doing now and set us fair for the future?

[Anna Turley]

My hon. Friend makes an important point. Three years on, it is vital that we look at the crisis we were in, where we are now and the impact of any measures brought in. He is right to put that suggestion forward. I remember his raising it on the Floor of the House at the height of the steel crisis and being met with guffaws and laughter, as if a steel summit would be an irrelevance and meaningless. It actually acted and secured some outcomes. He is absolutely right that three years on is the time for an update and to pull the sector and the industry together to look at what more we need to do.

Our key asks have been put forward again and again in applications for a steel sector deal. This process started in 2016, and we are still waiting. The issue appears to have been kicked into the long grass, and the complete absence of progress on a sector deal in the last 10 months has meant no improvements in levelling the playing field for UK steel makers. The longer we delay bringing forward a sector deal, the more time we lose to prepare the industry for the future challenges.

Those challenges are already emerging, such as in Donald Trump’s decision to impose tariffs on steel and aluminium imports into the US. That underlines what my hon. Friend said about this being an important time to come together and take stock of the implications of the new world that we are in. The tariffs will cause the UK to lose out not just in the direct hit to our exports but, as my hon. Friend the Member for West Bromwich West (Mr Bailey) said, from the diversionary effect as global steel makers look for another market to sell to.

I will finish by talking about why this matters. There are some, including in government, who continue to view steel as a sunset industry that has had its day, and which they would prefer to see in managed decline. That is a short-sighted and pessimistic view of an industry that should be at the heart of the UK’s ambitions for the future. Steel—especially many of the specialist types that the UK manufactures—is a crucial component for so many areas of Britain’s industrial landscape. It underpins our industries, from aerospace to automotive.

Steel has huge future potential. For instance, the Materials Processing Institute in my constituency is working to develop new specialist steels that will form part of the future export market. The industry is crucial to our industrial and manufacturing competitiveness. We have to value domestic production, not through protectionism but by empowering it with a fair playing field.

I secured the debate because progress in supporting British steel has stalled. My constituents and I know too well what complacency can mean for steel jobs in the UK. I hope Ministers will listen and take a renewed interest in backing our steel industry.

--- Later in debate ---

[Anna Turley]

I appreciate the Minister’s response to that question and her update on the steel council; I am glad that it is meeting regularly. I just want to go back to the point made by my hon. Friend the Member for Scunthorpe (Nic Dakin), in his first intervention in the debate, about the option of putting together another steel summit. I feel that the time for that is now. Particularly if the sector deal is struggling, getting everyone together and getting everything on the table might just help to facilitate it.

[Claire Perry]

In my closing remarks, I was going to address the hon. Lady’s point on that, because I think we have made progress in ensuring a sustainable and competitive future for UK steel. However, we cannot be complacent. We know that there are global challenges that affect the sector dramatically. We have made progress on improving the competitiveness and innovation of the industry, and it is really heartening to see that we have these brilliant companies wanting to do the R&D and innovation in the UK. With global or European companies, that has not always been the case: they have made decisions to make certain sorts of products here, but to keep the R&D and intellectual capital elsewhere.

We will continue to work in partnership with the steel sector. This involves not just the companies, but the unions, the devolved Administrations and other stakeholders—in particular, the local communities. I will raise with the Under-Secretary the question of whether the time is right for another steel summit, particularly in the light of international events. Ideally, it would be when we have some progress to report back from the conversations that we are having at a diplomatic level.

I close by thanking sincerely the hon. Members present for raising these issues once again and by assuring them that there is no complacency and we are all dedicated to this vital strategic industry.

Question put and agreed to.