Steel Industry (Special Measures) Bill

Bill Esterson Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Andrew Griffith]

I will take an intervention if someone wants to answer this question: has anyone in Government asked the ONS whether, as a result of the powers that are being taken in this Bill, from today British Steel will be classified as publicly owned, whether it has been formally nationalised or not? No answers.

[Bill Esterson (Sefton Central) (Lab)]

rose—

[Andrew Griffith]

That is a bit slow. [Interruption.] Go on then.

[Bill Esterson]

That is a relevant question, given that the hon. Gentleman was Boris Johnson’s business adviser when the Jingye deal was being negotiated. What advice did he give Boris Johnson about whether to accept that deal?

[Andrew Griffith]

Disappointingly, there was no answer to my important question about the ONS and whether this asset will sit on the Government’s balance sheet. Perhaps when the Minister winds up, he will provide an answer to that important question that affects the nation’s finances.

The markets know, the world knows and we know that the Chancellor’s headroom was inadequate from the very moment that she sat down after her last emergency Budget. Only this week, the Bank of England took the unprecedented step of cancelling the planned sale of Government bonds. Today’s botched nationalisation will further unsettle international markets. When will the Chancellor be presenting her next emergency Budget, and what are her plans to update the markets?

There we are: a disrespect of this House; the Government treating Parliament with disdain; nine months of dither and delay; and a botched nationalisation of steelmaking, with the British taxpayer on the hook. It is crystal clear that when Labour negotiates, Britain loses. This is not a serious Government. It is a Government shaped by events, not in control of them. It is government by sulky teenager—not sharing their plans, not answering the question, and when it goes wrong, it is everyone’s fault but theirs.

--- Later in debate ---

[Bill Esterson (Sefton Central) (Lab)]

Well, thank you, Mr Speaker—no pressure. [Interruption.] I will put some of my papers down.

May I start by praising the Business Secretary and his team for the way in which they have introduced the legislation? I add to that my praise for trade unions, local management and Members of Parliament of both main parties—not least my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin), who, being a Minister, is not speaking in the debate. I joined him on a 2023 visit to Scunthorpe, where the very concerns about Jingye that we have heard today were shared with us by local management and trade unions alike. It is no surprise that those concerns have come to pass.

The last Government were warned, and they chose not to take the action needed. Ministers in the last Government told me that steel needed by the Navy and by those across our economy could not be made at Scunthorpe, or at other steel plants. Interestingly, the local management and the trade unions told me that they could make whatever their customers asked them to make by adjusting production. Again, it is a pity that the last Government did not listen, or we might be in a rather different place now. During the last Parliament, we were the only country in the G20 where production of primary steel, and steel overall, was falling. If the blast furnaces were allowed to close, we would be the only country in the G20 without any primary steelmaking capacity, which underlines why today’s legislation is so important.

The steel at Scunthorpe is of strategic national importance. Some 95% of our rail tracks are made at Scunthorpe, and the steelworks there carry out automotive, construction and defence production, all of which are critically important to this country. In addition to what is made now, there are opportunities in energy transition and defence. Some 25 million tonnes of steel will be required over the next 25 years in the offshore wind sector alone, so there are great opportunities if we can secure the future of Scunthorpe.

At the Liaison Committee last Tuesday, the Prime Minister mentioned that the grid connection plan for the Scunthorpe site is only due in 2034. Our electricity prices are 46% above the average for International Energy Agency states. The Government have to address the challenges of slow grid connections and uncompetitive industrial energy prices if they are to enable the modernisation of industry as a whole, and steel in particular.

[Sarah Edwards (Tamworth) (Lab)]

The Business and Trade Committee, of which I am a member, has heard evidence about the importance of the steel industry, and about the need for primary steelmaking to be retained as a key pillar of UK industrial sovereignty. We have heard that blast furnaces still play a critical role in strategic and high-grade steel production. Does my hon. Friend agree that our economic security is intrinsically linked with our onshore industrial capabilities, and that our Government’s focus on both construction and defence in these uncertain times means that this Bill is very welcome news?

[Bill Esterson]

My hon. Friend makes extremely well the point that our economic security and our national security are two sides of the same coin. I am pleased to hear about the work being done by the Business and Trade Committee; in his excellent speech, the Committee’s Chair, my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), mentioned the Sub-Committee that has been set up.

I want to talk about Port Talbot, because the Energy Security and Net Zero Committee visited it two weeks ago. There will be a delay of several years between the closure last year of the blast furnaces there, and the opening of the new electric arc furnace, which is a massive cause for concern in south Wales and beyond. The excellent financial support provided by this Government, and Tata’s willingness to engage, are a good example of industry and Government being partners, and an indication that the industrial strategy that the Government plan to bring forward is already being effective.

The Bill gives the Government the opportunity to secure steelmaking in this country. I congratulate the Secretary of State and his colleagues on their decisive action. Workers and the nation as a whole are grateful for the work of this Government, who are doing absolutely the right thing.