(4 days, 2 hours ago)
Commons Chamber
Chris McDonald
Of course, my thoughts and those of the Government are very much with the workers and their families at what I know from personal experience is a very difficult time. We must recognise that the company has taken a commercial decision. Although we have explored every reasonable avenue of support, the firm faces significant global challenges. The Government stand ready to provide support through the Department for Work and Pensions rapid response service, and I and other Ministers would be very happy to meet the right hon. Member to discuss what more we can do.
Brian Leishman (Alloa and Grangemouth) (Lab)
The breaking news that the Mossmorran chemical plant is to close is yet more industrial vandalism put upon Scotland. Like what happened with Grangemouth, hundreds of on-site workers and their communities will be plunged into chaos. Why will the Government not take a future stake in what comes next at Grangemouth to give workers and communities prosperity and security?
(4 days, 2 hours ago)
Commons Chamber
Chris McDonald
I am committed to looking at the entire business environment for our-energy intensive industries—our heavy industry—because I want to improve the competitiveness. Perhaps I have an ally across the House who might help to point out areas that we could look at; I would certainly welcome that in the future.
I can perhaps provide a bit more detail on the two issues the hon. Gentleman raised: energy costs and the CBAM. On electricity costs, which are not the major factor for this site, the Government have introduced a range of measures to try to improve the cost competitiveness of the UK versus Europe, and we could talk about those in more detail at some other point. On gas, the UK is competitive with Europe; it is certainly cheaper than Germany and the Czech Republic, and it is slightly more expensive than Italy and Spain. The issue here is fundamentally the cost of gas in the USA, which is considerably cheaper, and we all understand why that is.
The CBAM issue is a bit more complex, because 100% of the material goes into the EU, so there is an issue around EU market alignment. Again, we could talk through that in more detail, but it means it is not quite as straightforward as if a domestic producer were asking for some relief from measures.
Brian Leishman (Alloa and Grangemouth) (Lab)
Sadly, this is an all-too-familiar story: private capital closing industry, leaving workers as disposable commodities to be tossed aside, and a community devastated. It is a carbon copy of what happened with Ineos and PetroChina and the Grangemouth oil refinery.
The Government stepped in at Scunthorpe, but they did not at Grangemouth and it looks like they will not at Mossmorran. Why not? Because Scotland is once again the victim of chronic deindustrialisation. For the sake of Scottish workers and communities, let’s get the £200 million spent, let’s get Project Willow going, let’s get new companies in, let’s get the good-paying jobs that my community and my town desperately need—and, for goodness’ sake, let’s have a bit of common sense and take some form of Government ownership in what comes next at Grangemouth.
Chris McDonald
I wholeheartedly reject the implication that there is some sort of anti-Scottish bias in this Government. I stand at the Dispatch Box as a McDonald, flanked by three Scottish Ministers. We all think very keenly about these issues in Scotland.
My hon. Friend made a point about British Steel at Scunthorpe. I mentioned the steel and shipbuilding industries, as well as other aspects of the chemicals industry, in my statement. The fundamental point was about having a sound business proposition. In this case, there was not a sound business proposition. The amount of money being asked for by the company, and the fundamental lack of profitability of the business over such a long period of time, meant that it was not a viable opportunity. That is why we need to look forward to how the workforce, in Fife and elsewhere, can transition into our new green economy.
(3 weeks, 5 days ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I reject the hon. Member’s assertion that this Government are somehow following a course without looking at the evidence. Clearly, oil and gas is a crucial part of our energy mix and will be for decades to come—we have been clear on that—but so too is building up what comes next. That means investing in the supply chains that were so often not part of the building of infrastructure that we have in our waters. We towed things in and switched them on, but had none of the jobs that went with them. We are determined to change that, but that comes with having a credible industrial strategy and a long-term plan for the future of the North sea, which we did not have under 14 years of the previous Government.
Brian Leishman (Alloa and Grangemouth) (Ind)
Incredibly, it is now eight months since the Prime Minister announced £200 million from the National Wealth Fund for the industrial future of Grangemouth. I have had meetings with numerous companies that have proposals and are, frankly, impatient to get started. When will this money be spent, and when will those jobs come to my town? All there is to show for it so far are the bones of an unjust transition and industrial devastation.
We have been looking at a number of proposals. I met the five companies that are the frontrunners for National Wealth Fund investment, along with the Scottish Government Energy Minister. A number of propositions are to be taken forward, and I hope we will have an announcement to make in due course. Of course, we have been trying not to just spend £200 million on the first thing that comes along but to find the genuinely long-term, viable industrial opportunities that deliver jobs at Grangemouth, not just for a year or two but long into the future. The hon. Gentleman is right that for far too long the site has been the victim of a lack of planning, and it is an example of a just transition done wrongly. We want to make that different by having a serious plan for long-term jobs on the site. The NWF has brought companies to the table, and we will deliver an announcement on that in due course.
(7 months, 1 week ago)
Commons Chamber
Brian Leishman (Alloa and Grangemouth) (Lab)
On that point, will the Minister give way?
I hope my hon. Friend will forgive me, but there is no time for me to give way. I reassure the hon. Member for Brigg and Immingham that in no way have we moved slowly—we have been moving at pace throughout our time in government.
There were suggestions that we should move to nationalise British Steel today and that this Bill is already nationalisation. It is not nationalisation and we are not moving to nationalise British Steel today. We are taking very significant powers that we do not underestimate. That buys us time to have the leverage and the time we need to look at what must be done next, but we will act in the national interest. As the Prime Minister said yesterday, nothing is off the table. There was a suggestion that we should use the Civil Contingencies Act 2004. That is difficult to do because it is very hard to meet the criteria; there has to be a risk of death, so we did not meet that criteria.
I agree with my hon. Friend the Member for Sefton Central (Bill Esterson) that economic security and national security are two sides of the same coin. The emergency legislation we have brought forward today is essential to protect British Steel, its workforce and the national interest. This Government will never hesitate to act in the national interest to keep Britain secure at home and strong abroad, and this legislation is proof of that. Today we take back control, and I urge all Members of this House to vote for this Bill.
(8 months, 2 weeks ago)
Commons ChamberI do not agree with that framing whatsoever. We have Putin who invaded Ukraine, leading to the massive global shock for energy prices, and we have a Secretary of State who is very pragmatically taking forward plans to, as the triangle tells us, protect and grow jobs, and give us energy security. I think most people in the country understand that. They get that we need energy security and to tackle the climate at the same time.
Brian Leishman (Alloa and Grangemouth) (Lab)
Scandalously, the workers of the Grangemouth refinery are to be the victims of a very unjust transition. The folly of a foreign state and private capital being in charge of such a key vital piece of energy infrastructure is laid bare, especially with no UK Government involvement. I am curious as to what ownership role the UK Government will take in the new energy industries that will be at Grangemouth.
My hon. Friend will know about the announcements that were made recently about support for Grangemouth. In the last couple of weeks, I met INEOS to talk about its chemical factory and the huge contribution it brings in terms of jobs and the provision of chemicals. The �200 million investment from the National Wealth Fund is really important in this space. The work that the Government have done to look at possible businesses and industries for Grangemouth in the future is really important and I am very happy to have a conversation with him.
(9 months, 3 weeks ago)
Commons ChamberThe hon. Lady might want to check again with the business she refers to, because, in the most recent Budget, the employment allowance was raised to some £10,500, which will help every small employer’s national insurance bill every year, and should ensure that more than 1 million firms benefit. That is a very practical measure; more broadly, on the point about national insurance contributions, she will know that Labour inherited a very difficult financial situation because of mistakes made by the Conservatives, and difficult decisions have had to be taken.
Brian Leishman (Alloa and Grangemouth) (Lab)
Small local businesses in Grangemouth such as pubs, restaurants, cafes, hairdressers and garages all rely on the custom that they receive from the workers of the Grangemouth refinery, but the Government have been very passive in allowing the refinery to close, thus impoverishing the local community. What message do the Government have, first for the refinery workers who face redundancy, and secondly for the small local businesses that rely on their custom?
In her speech yesterday, my right hon. Friend the Chancellor set out a series of measures that the Government want to take to boost growth across the country and benefit every part of the UK, from investing in modern road and rail systems to expanding airport capacity, rebalancing the planning system and driving investment in cheaper renewable energy, and by creating a national wealth fund that can back the new technologies of the future. I would be happy to meet my hon. Friend to discuss the specific concerns he has mentioned, if he thinks that would be useful.