Tata Steel: Port Talbot

Debate between Bill Esterson and Nusrat Ghani

Monday 18th September 2023 Commons Chamber

[Ms Ghani]

The hon. Gentleman is right that the sector has a vast supply chain, and we know how important it is for UK manufacturing. Last week’s data show that we are the world’s eighth largest manufacturer, so supply chains are imperative.

I am also working on an import supply chain strategy to ensure that we are as resilient as possible when importing from countries that may not share our democratic values. Work has been done internally on the supply chain. To secure the money in this package, Tata had to ensure it had a business plan and sight of its supply chains. This work has been ongoing for quite some time, and a lot of it has been commercially sensitive. Now we are able to speak about it, I do not doubt that more will be made public. We will continue to work on the supply chains, and I hope to put forward the import supply chain strategy by the end of the year.

[Bill Esterson (Sefton Central) (Lab)]

The UK is the only country in the G7 in which steelmaking is in decline. We need to be honest with ourselves that the job losses announced at Tata are a further continuation of that decline.

The Minister said there have been ongoing negotiations for a very long time on the switch to electric arc production, and she has been asked a number of times about the supply of scrap. Why is she not able to tell us that she has a plan to end the export of scrap steel and to secure its use for electric arc production in the UK, now that this decision has been announced?

[Ms Ghani]

The hon. Gentleman’s opening comment is factually incorrect. He says we are the only country in decline, which is not true. French production has declined by 21%, German production has declined by 13% and Italian production has declined by 12%. It is appropriate to make sure we are accurate in setting the scene. His opening comment was wholly inaccurate.

These commercial decisions are based on business plans and Tata’s relationship with is supply chain. The hon. Gentleman was with me at the event in Parliament last week or the week before, and we have put together a procurement policy note to ensure that we have more UK steel in our supply chains, and definitely in Government contracts. I will continue to do my best to ensure that the number goes on the opposite trajectory to steel produced in the rest of Europe.

Oral Answers to Questions

Debate between Bill Esterson and Nusrat Ghani

Thursday 14th September 2023 Commons Chamber

[Ms Ghani]

Steel is vital to the UK, but we know that the industry needs to decarbonise for a sustainable future. The Paris agreement made it clear that the sector had to reduce its global emissions by 93% by 2050. The Government are actively engaging with the sector on how best to achieve that, but decarbonisation pathways for specific sites will be commercial decisions for individual companies. Industrial sectors, including steel companies, can bid into Government funds worth hundreds of millions of pounds to help them go green. As I mentioned, we have done a huge amount to support energy intensive industries.

[Bill Esterson (Sefton Central) (Lab)]

The UK is the only major steel-producing nation where production is falling, but the Minister and her colleagues have been telling us for months that they cannot guarantee the use of UK-made steel in Government contracts, especially in the military. The thing is that the steel producers say that they can make whatever their customer asks by changing the production line. Will the Minister confirm that the reason we have a problem with steel in this country is the Government’s refusal to view it as a strategically important industry? The Conservatives’ sticking-plaster politics have failed steelworkers, as we have seen at Port Talbot.

[Ms Ghani]

I fundamentally disagree with the question—well, it was more of a statement. I made it clear when I took on this role that we would assess the level of steel in procurement contracts, and we have put together the steel procurement policy note, which will address how much steel is being procured in our contracts in the UK. We are doing a huge amount to ensure that the different types of steel that are needed are produced. We know how valuable the sector is, which is why we provided support with high energy costs and why we have a decarbonisation budget that the industry can link into. I fundamentally disagree with the hon. Gentleman’s proposition.

Oral Answers to Questions

Debate between Bill Esterson and Nusrat Ghani

Thursday 29th June 2023 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

The Minister said that she recognises the vital role that steel plays in this country, but the UK is the only country in the G20 where steel production is falling. It is also the only G7 country whose Government do not insist on using domestically produced steel in defence contracts. Meanwhile, UK steel producers pay 62% more than their German counterparts for electricity. Labour’s £3 billion green steel plan will give our industry the bright future that other countries are offering their steel sectors. Labour believes in our steel; why do this Government not?

[Ms Ghani]

I am not sure where Labour Members will get the money to fund that programme of work. I have not even got to the end of reading this paper but they will probably U-turn by the time I do, so I am not sure how sensible it is going to be. We have provided more than £1 billion for decarbonisation, unprecedented support to help with energy costs, and just recently, there was fantastic news from Celsa, when it was able to repay a Government loan of £30 million that we provided to them, sensibly spending taxpayers’ money. There is and always has been support available. When it comes to procurement, it is absolutely right that we do everything we can to make sure that we have UK firms procuring UK steel.

Oral Answers to Questions

Debate between Bill Esterson and Nusrat Ghani

Thursday 23rd March 2023 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

People in Scunthorpe, Rotherham and Port Talbot know how important steel is for their communities. We Labour Members understand how important it is, for communities and for the green transition. The UK is the only G20 country in which steel production is falling, but when asked about the survival of this strategically important sector, the Business Secretary said:

“Nothing is ever a given.”

Is that because the British steel industry is not safe in her hands?

[Ms Ghani]

I do not know where the hon. Member got that quote from, but the British steel industry is very safe in our hands. Let me explain why. There has been over £800 million of support for energy costs, and over £1.5 billion to support competitive funds to ensure that the sector can decarbonise. We have done a huge amount of work with our steel sector. Colleagues from across the House will agree that in every meeting, whether it is with the unions or the sector, we are on the side of the steel sector and steelworkers, including when challenging commercial decisions are taken.

Steel Industry: Contribution to the UK Economy

Debate between Bill Esterson and Nusrat Ghani

Wednesday 25th January 2023 Westminster Hall

[Bill Esterson (Sefton Central) (Lab)]

As always, Mr Pritchard, it is a pleasure to see you in the Chair. My hon. Friend the Member for Newport East (Jessica Morden) has set out a fantastically well-crafted case for the UK steel industry. The sense of the whole debate has been about the strategically important role that steel has to play in the UK—it is probably fair to say that everybody who has spoken has accepted that point, and indeed made that point. I dare say that in a few minutes’ time, the Minister will do so as well.

The economic and national security value of steel made in the UK is incredibly important. We have seen in recent times why it is so important that we have strong domestic supply chains in our core industries—that has been underlined by Putin’s invasion—and steel is at the forefront of the issue. Throughout the debate, a number of Members have made the case that it is dangerous to rely on imports, as well as for the importance of demonstrating confidence in the steel industry and a long-term commitment to it, the key role it has in the transition to low carbon, and its importance to regional economic success, jobs and communities.

My hon. Friend the Member for Rotherham (Sarah Champion) rightly spoke about the 185 workers whose jobs are at risk in her constituency alone, out of 440 redundancies at Liberty. Can we honestly see a future for this country where steel for civil aircraft made by Boeing and Airbus is not being produced by Liberty Steel? This issue is strategically important for our domestic supply chains, and Liberty is producing that steel for incredibly important customers. The impact on the workers, the families and the communities is a point that my hon. Friend made extremely strongly.

My hon. Friend the Member for Llanelli (Dame Nia Griffith) reminded us about the last-minute U-turn—it was so late that I think it was a last-second U-turn—on tariffs last summer. I am afraid that that U-turn is typical of what we have seen over 13 years of this Government when it comes to the steel industry. It is typical of their approach to many other aspects of the economy as well.

That is not the only late response we have seen. We saw it with SSI and the blast furnace in Redcar, which at that time was one of the leading examples of carbon capture, utilisation and storage in the steel industry anywhere in the world. The Government did not intervene, and by the time Ministers became increasingly involved, talking to the steel industry and unions in 2016, it was too late.

I know that the Minister has met the steel unions, but I hope she will impress on her boss, the Business Secretary, the importance of talking to the trade unions in the steel industry. As this is a strategically important industry, there should be interest at Cabinet level, as well as at the Minister of State level. I hope I am right in thinking that she is the Minister of State; otherwise, I have just promoted her.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

Well, you have just demoted me.

[Bill Esterson]

The Minister says from a sedentary position that I am making out that her role is not important enough. I am not doing that at all—I think it is a very important role. It is important that steel Ministers have longevity in the role, but it is also important that there is a strategic role at Cabinet level. That was the point I was making; it was certainly not my intention to undermine the Minister. I hope she will take back to the Secretary of State the points made in writing by the trade unions.

Returning to the Government’s late response, I hope it is not as a result of the announcements at Liberty that we are suddenly seeing press reports of hundreds of millions of pounds potentially being available. I know that the Minister will not be able to confirm that today, because of ongoing negotiations. But I do hope that the press reports come to fruition. When she was Prime Minister, the right hon. Member for Maidenhead (Mrs May) promised £250 million for a green steel fund, but that did not happen. I am afraid that our memory of what Government have previously promised the steel industry is still strong.

I gently say to Government Back Benchers that what sounds like blaming the last Labour Government for 13 years of Conservative policy does not wash with people. The figures show that steel industry production in this country has declined by half since the global financial crisis. Thirteen of those 15 years have been under a Conservative or coalition Government. We have fallen from 17th to 25th in the world for steel production since this Government came to office. Of course, this is at a time when China and India have dramatically increased their steel production and every other steel-producing nation has experienced decline—it is just that the decline has been higher in this country over the past 13 years. As Members have pointed out, of the top 10 steel-producing countries, we are the only country currently in decline. We have to address that. We can and should go through the history, as long as we learn from it. As long as we apply the lessons from history, we will be in the right place.

My hon. Friend the Member for Neath (Christina Rees) made a heartfelt contribution about the value to communities of the steel industry, using her own family history to make the point about how vital it is to the Welsh economy. Indeed, she was one of the Members who made the point about this country being the only one of the top 10 steel-producing nations where the industry is in decline. The question is: what are we going to do about it? We have to address the challenge of our energy prices. The prediction for this year’s energy prices is that in Germany, steel-producing companies will pay £107 per kWh for electricity and in this country it will be £174. This cannot continue. The Government must take action on the emissions trading scheme. Members have explained the significant cost to the industry—£120 million amounts to 60% of capital investment in the steel industry. These are the challenges the Government must take on in a strategic way, not by using yet another sticking-plaster approach to a problem in the economy.

The Government can and must do more on procurement. Environmental, social and labour clauses are at the heart of Labour’s plan for procurement. It is beyond belief that this country is the only major country that would even dream of giving a contract for warships to an overseas company. There is no guarantee that the Spanish consortium awarded that £1.6 billion contract will use UK-made steel in producing those fleet solid support ships. Other countries take a more strategic approach. The United States has the Inflation Reduction Act, with strong commitments to the transition to low-carbon steel production at its heart. Such a commitment has also been made by other countries whose investments are years ahead of what is going on in this country, including Canada, Spain, Belgium and Germany. They are committed to low-carbon steel production.

--- Later in debate ---

[Ms Ghani]

We need to put in place all the budgets that are available. I will quickly touch on procurement, which gives confidence in what we are hoping to do in the long-term for the sector; it does put together a plan.

As I said when I was at the APPG earlier, since I have been in post I have been focused on the issues that we are facing right now—with Liberty, for example. I cannot comment on the negotiations because they are live. I said to the APPG that, once we have got over that moment, I hope to sit down, do a refresh and look at everything we can provide the sector in the long term. What is happening in the United States is a game-changer, so we can try to push back on some of the challenges we have had on procurement previously. We can try to see what more we can do.

I am anxious that I have only four minutes left. On the £18 billion of energy relief, Gareth Stace, director general of UK Steel, said that the energy bills discount scheme provides

“important certainty and stability for steel producers’ production costs”.

We have legislated for the full range of tools allowed under the WTO rules so that the UK can tackle the threat of unfair trading practices and injuries.

Furthermore, in financial year 2020-21, the Government procured UK-produced steel worth £268 million for major UK projects—an increase of £160 million on the previous year. When I was the High Speed 2 Minister, before I realised I might get the steel brief, I always used to bang on to HS2 about not procuring more British steel. I hope to go back and reflect on procurement again, especially because it was in the BEIS Committee report—I want to say that before the hon. Member for Rotherham pushes that and reminds me of what I committed to.

About 8.4 million tonnes of steel is required for infrastructure projects in the UK, including 5.5 million tonnes for contracts for difference, which are not always considered public procurement, so there is huge scope for more procurement to take place in the UK. I will try to address that too.

There has been a huge level of engagement. The hon. Member for Sefton Central (Bill Esterson) said that it should be at Secretary of State level, but I have been meeting with the unions. I have kept every appointment that has been asked of me.

[Bill Esterson]

It should be both.

[Ms Ghani]

It is both. The Secretary of State regularly meets the senior members of all the organisations that try to speak to us about steel.

[Bill Esterson]

You haven’t met the unions.

[Ms Ghani]

I was with the unions yesterday and in front of the APPG today.

I am going to run out of time, so I will quickly touch on the carbon border adjustment mechanism. We are aware of the risk of carbon leakage, which a number of Members highlighted, and we have been monitoring the EU CBAM proposal with interest. As I said to the APPG this morning, once the consultation is out, it is absolutely vital that we put in the best submission. I have agreed to come back to the APPG to ensure we do that constructively.

Public procurement is a key focus of mine. I am trying to get over the negotiations at the moment, and I will reflect on what more we can do with procurement. We are looking at the BEIS steel procurement taskforce, and we will also reflect on what is happening in the United States.

On trade, Members know my positions on countries such as China and Russia, as double sanctionees. I know how important it is to ensure we are resilient in the UK. We work very closely with the Department for International Trade to put together the best packages for trade. I absolutely understand the points made about Russia. We are doing everything we can to ensure that that steel is not arriving here, but I will go back and see whether we can push back any further. I will do everything I can to ensure that happens.

My hon. Friend the Member for Scunthorpe was keen to reflect on the steel safeguards. We have agreed an extensive solution to the US section 232 tariffs to significantly increase US market access for UK firms.

I am anxious that I am going to run out of time, so I will respond to Members in writing. I reiterate my commitment to the sector and to appearing in front of the APPG as soon as possible to ensure we are putting together a good package and are able to lobby No. 10 and No. 11 collectively.

Support for New Adoptive Parents

Debate between Bill Esterson and Nusrat Ghani

Monday 21st March 2022 Westminster Hall

[Bill Esterson (Sefton Central) (Lab)]

I am delighted to be here and hon. Members will realise why shortly. I congratulate the hon. Member for Colchester on his speech, his presentation and the case he made. I hope we hear a similar speech from the Minister in a moment or two, and that the Minister accepts everything his hon. Friend said; I did not find anything that I disagreed with. I also agreed with the hon. Member for Scunthorpe (Holly Mumby-Croft).

As always, my hon. Friend the Member for York Central (Rachael Maskell) made an impassioned case in support of adoption. She knows, even if others do not, why the issue means so much to me. I say to the hon. Member for Colchester that it is not just the Conservatives who think that we should support our self-employed people; that is what the Labour party thinks, too. I speak from personal experience, because I was self-employed and started and grew small businesses for many years.

[Ms Nusrat Ghani (in the Chair)]

Order. Mr Esterson, I do not wish to stop your flow, but I think you are getting the constituency name wrong, as Mr Colburn represents Carshalton and Wallington.