Steel Industry

Carolyn Harris Excerpts

Wednesday 16th October 2024 Westminster Hall

[Richard Tice]

The Minister indicates that I may be wrong. This is urgent and we cannot wait six to 12 months. We cannot run the risk of civil servants saying, “I’m sorry, but we haven’t got it done by March; it will be the summer.” I urge the Minister and her team to say, “Let’s get this out before Christmas.”

My five-point plan is first to take a strategic stake in British Steel to guarantee that the blast furnaces in Scunthorpe will not close. We cannot run that risk. Otherwise, if the electric arc furnaces are not built, we have nothing—niente, zip. The second part of my plan is to scrap the carbon taxes and the potential carbon border adjustment mechanism.

The third thing is to stop the dumping of cheap imports from nations such as China. That requires, if necessary, appropriate tariffs and protectionism. America is doing it to protect its own steel industry and we should do the same. Unbelievably, according to the House of Commons Library, which helpfully produced a 50-page report yesterday, just two weeks ago, far from increasing tariffs we had to reduce tariffs on imported steel because Port Talbot has closed. Seriously, you couldn’t make this up. It is absolute insanity that we are now reducing tariffs in order to import steel. With the long-term planning that should have happened under the Conservative Government, we could have worked out that if we shut Port Talbot we would be short of rolled steel. What are we going to do about it? That is what has gone on. So that is the third part of my plan.

The fourth part is to buy British. The Secretary of State for Energy Security and Net Zero wants more and more wind turbines, but as I understand it not a single bit of British steel is used in all those turbines, which all come from overseas. If we want more turbines—some people do; some do not—maybe we should make it a condition that we use British steel to grow our own economy with more jobs and more money. Those four things plus the fifth thing are all deliverable by this Government. That is what I urge the Minister to consider.

The fifth thing is the right thing to do. I accept that it is not going to happen, but if we want cheaper electricity and to be more competitive, the fastest way to do it is to scrap net zero. That would bring down prices. It would stop us wasting tens of billions of pounds and stop blighting our countryside with thousands and thousands of pylons, including in my constituency. The first four components of my five-point plan the Government can and should do to protect our steel industry, which is strategically vital. Not to do so is negligent to the point of criminality.

[Carolyn Harris (in the Chair)]

I remind Members that they should bob if they wish to be called.

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[Lee Anderson]

Do you want to intervene, Minister?

[Carolyn Harris (in the Chair)]

Order. Mr Anderson, I am “you”.

[Lee Anderson]

Sorry, Mrs Harris. I will wind up now because I am quite angry with the madness of this place that we work in. There are families and communities out there relying on us to save their jobs, and Members opposite sit there with glazed expressions on their faces. Come the next election, people in those communities will boot you all out.

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[Jim Shannon]

I am sure the Minister has many football skills. Last night one of the players, the young fellow Price, scored a hat trick—yes, it was an admirable victory. If everybody showed that backbone and strength of character, certainly we would be in a better place. I thank my hon. Friend—I know that was moving away completely from the subject matter but he nonetheless reinforced the point to be made.

Northern Ireland plays an important role in the success of the UK steel industry, although back in 2022 that was under attack from the damages of the Northern Ireland protocol and the outbreak of war in Ukraine. It was said at the time that steel exports from Northern Ireland could face up to 25% tax and tariffs, but it is good to report today that that has since been addressed by the Windsor framework. That is one of the positives that came out of that process: I wish there were more.

What springs to mind is the 1,100 steel businesses across all parts of the United Kingdom and the 33,400 jobs that hinge on them—we cannot ignore those; they are so important. We have seen recently the threats to job security due to decisions to close production in certain steel plants. Only two weeks ago, Tata shut down its blast furnace 4, which was the final furnace operating at the UK’s biggest steelworks in Port Talbot. That resulted in 2,800 job losses across south Wales, not to mention that Port Talbot was pivotal to steel construction in Northern Ireland. That is why, in debates on steel, we do not necessarily have to have a manufacturing base in our constituency to see the benefits. The benefits for us in Northern Ireland were quite clear: the steel produced in Port Talbot came to Northern Ireland.

The hon. Member for Boston and Skegness rightly raised concerns about the impact that our net zero advancements could have on the steel sector. It is crucial that we get this correct while ensuring a proper balance. Our defence industry relies heavily on domestic home-grown steel to build tanks and warships. That raises issues of us potentially relying too much on foreign imports, which the hon. Member referred. We should not ignore that, and our focus should be on providing incentives to the fantastic local companies we already have and putting them front and centre to the UK steel sector’s success. We must modernise to advance our steel industry and properly take care of it and get it right together.

We must also be able to source steel locally; doing so is of major importance for many industries across the United Kingdom, from aerospace and defence to boats and other transport. For us in Northern Ireland, the aerospace sector is very important.

I know the debate is not about this but I want to ask the Minister a question about Harland & Wolff that I had hoped to ask in Defence questions. Will the Minister give Northern Ireland Members some update on where we are with Harland & Wolff? During my discussion with the Minister about Defence questions on Monday, the Minister said, “Jim, ask this question and I’ll be happy to come back with an answer.” Harland & Wolff is really important, No.1, for the jobs it provides, but also for the connectivity that we have, with all parts of the United Kingdom coming together. Defence and aerospace are important for our manufacturing base in Northern Ireland, but also for the continuation of how we work better together.

I support our steel system. I want the best for it. We all want the best for it and I know that. I also hear and respect the concerns of other Members about its future. And there is no doubt at all that more needs to be done to preserve and protect it.

In conclusion, society will progress and changes will be made, but it is important that we remember the benefits that our steel sector brings to the United Kingdom economy. Moreover, there are the jobs that it provides for my constituents in Strangford and for people further afield—indeed, in all areas of this great United Kingdom of Great Britain and Northern Ireland. So, I sincerely look forward to hearing from the Minister and assessing what steps our Government will take to preserve our steel sector, and I have hope—much hope—that that action will allow for all of our nations to play their part together.

[Carolyn Harris (in the Chair)]

I call the Lib Dem spokesperson, Clive Jones, to speak.

[Clive Jones (Wokingham) (LD)]

It is a pleasure to serve under your chairmanship, Mrs Harris, and I congratulate the hon. Member for Boston and Skegness (Richard Tice) on securing this debate. It is also a pleasure to speak for the first time in my capacity as a Lib Dem Front-Bench spokesman.

Steelmaking is of vital strategic importance to the UK. We need to build the crucial infrastructure required to generate sustainable growth and to safeguard our national security, which must be important to all of us in this Chamber today.

Although the Liberal Democrats welcome the news that new technologies will lead to carbon emissions from steelmaking in Britain falling, the neglect of the steel industry in recent years is just another part of the previous Conservative Government’s disastrous legacy. This Government finally need to move from a patchwork of last-minute rescues to a long-term plan that will set the steel industry on a sustainable footing.

The steel industry’s situation illustrates that we desperately need a real industrial strategy that includes a proper plan for steel. Although I welcome the Government’s Green Paper, which was published earlier this week, and hope that it will provide our business community with much-needed certainty in the eight sectors that the Government have highlighted as being growth drivers, the absence of the word “steel” is strikingly apparent.

We accept the need to move towards less carbon-intensive modes of production, but it is vital that any job losses are mitigated by reskilling, retraining and new green investment. We must be certain that this investment in skills and regeneration is properly targeted where it can have the greatest impact on communities that currently rely heavily on steel production.

With 2,800 jobs set to be lost, the Government need to take action as soon as possible to bring certainty for those employed in steelworks. So, I ask the Minister today what the Department is doing to ensure that job losses are mitigated, and how will the steel strategy, which is set to be published next year, link to an industrial strategy?

[Carolyn Harris (in the Chair)]

I call the shadow Minister, Greg Smith, to speak.

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[James McMurdock (South Basildon and East Thurrock) (Reform)]

I thank my hon. Friend the Member for Boston and Skegness (Richard Tice) for securing this debate. If I may, I will read a message that I received from someone I know:

“This Westminster Hall debate in infuriating. Talk is cheap!”

I highlight that because we all seem to agree how important the steel industry is. I acknowledge the past and that not all of that lies squarely on the Minister’s shoulders. I ask her to include in her response the steps that the Government will take to secure that future.

As the hon. Member for Newport East (Jessica Morden) eloquently put it, there are advantages to the more advanced technologies, but, as clearly laid out by my hon. Friend the Member for Boston and Skegness, there are practical reasons why they may not become reality—and we need to deal with reality. We all seem to accept and agree—

[Carolyn Harris (in the Chair)]

Order. May I remind Members that interventions are meant to be short and to the point?

[James McMurdock]

Apologies. We all agree that this is vital; will the Minister please lay out how it will become practical?

Business Confidence

Carolyn Harris Excerpts

Tuesday 15th October 2024 Westminster Hall

[Mims Davies]

I thank the hon. Gentleman for his intervention, about his community and the local economy in Northern Ireland. This matters so much. These people are stridently working to earn wages every week—not only for themselves, but for their sectors, families and communities.

I agree with the hon. Gentleman’s point about the online challenge, which is gargantuan. It is absolutely right for us to seek to future-proof many of these businesses, which have been going for decades. It is difficult to start a business, let alone maintain one. If we let businesses fail because we do not support them for the future, we will look back in real horror.

Senior businesses, let alone small businesses, are already warning that the employment package announced last week will limit investment and reduce growth and jobs in years to come. Of particular concern is the cost imposed on small businesses. The Federation of Small Businesses is leading the charge on that, warning that small businesses will be looking at the changes with trepidation. The Government have only just managed to meet their self-imposed target of 100 days. They have left 70 measures to come in for 2026, meaning that uncertainty for businesses involved will carry on. That is a real concern.

Comments from Ministers over the past few weeks have caused chaos. First, the Leader of the House stated that there would have been a real risk of a run on the pound if the Government had not withdrawn winter fuel support from our pensioners; in the meantime, the Prime Minister had to disavow the Transport Secretary’s comments, stating that she did not speak for the Government. I say to Ministers that they speak not only for their Departments but for industry and sectors. They would do well to stop walking around with placards and remember that they are, allegedly, running the country.

I appreciate that the Prime Minister is new, and collective responsibility among Ministers is a cornerstone of Cabinet government. I am sure that this Minister will be working diligently to do what he can to support that. I was a Minister for a number of years—I was Employment Minister during the covid years—and I know how difficult it is. I genuinely wish Ministers well. Holding this debate today and being really honest about businesses’ and our constituents’ concerns has meant that the issues have been aired and heard. The national interest demands that the Government get a grip so that they can unleash the investment through the summit, spur economic growth, deliver those local jobs and live up to the promises that they have made to the British people. Otherwise, we are in for a long and costly five years.

In closing, I ask the Minister to reassure my businesses and our communities that the Government truly understand the impact of instability. What action will the Government take about Crawley college, for example? Unfortunately, it is shutting down engineering places as we strive for the new future. That concerns me because many businesses in East Grinstead and beyond need such engineering and apprenticeship places to support their future. Ministers should be truly working across Government to make sure that the next five years are a success for all our communities and constituencies, so that we have the public services and local economies that we are all striving for and aspire to.

[Carolyn Harris (in the Chair)]

Order. I intend to call the Front-Bench speakers at 5.8 pm. All Members should take that into consideration and keep their remarks under five minutes.

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[Jerome Mayhew]

No, I am not going to take an intervention. I feel quite strongly that if an hon. Gentleman cannot make it to the start of a debate, wanders in halfway through and then seeks to make an intervention to ask a question—

[Carolyn Harris (in the Chair)]

Order. Can we keep it to the debate, please?

[Jerome Mayhew]

I will, but I would just like to refute this. Perhaps if the hon. Gentleman takes out Hansard, he will find the answer to his question in the first half of the debate.

My hon. Friend the Member for Meriden and Solihull East (Saqib Bhatti) is right that business is in an uncertain holding pattern and that SMEs are the lifeblood of our community. The hon. Member for South Basildon and East Thurrock (James McMurdock) is quite right to say that his community is rich with potential. He expressed concerns, however, over the delay of the decision on the lower Thames crossing, and said that he thought the Government should have taken a more professional approach towards DP World. I agree with him. Finally, my hon. Friend the Member for Bromsgrove (Bradley Thomas) rightly pointed out that between 2010 and 2024, growth was higher in the UK economy than in all the main EU economies, and that there is opportunity if we focus on entrepreneurship and on rural businesses.

Throughout this debate we have highlighted the slump in confidence since Labour came to power—and not just in business confidence, but in consumer confidence. Why is that? Well, do not take my word for it. The ex-chief economist of the Bank of England, Andy Haldane, said that the Government’s approach has generated

“fear and foreboding and uncertainty among consumers, among businesses, among investors”.

Labour’s plan appears to have been, “We’ll come into power, we’ll say it’s all terrible and so much worse than we thought it was, we’ll say that there’s this black hole”—a black hole, by the way, that Treasury officials were unable to find when the Financial Times asked to see the data behind it—“and this will give us political cover for long-planned tax increases.”

The problem is that political games in this case have been paid for in lost jobs and futures. After nearly four months of inaction, this inept political vacuum has been filled by speculation, rumour, kite flying and denial. The “So what?” is that Government incompetence has cost jobs. The CBI has just said that it is clear that firms are holding back from employment because of Budget fears. The consultancy AJ Bell has said that directors of listed companies have doubled sales of shares since the general election—that is businesses voting with their feet. Evelyn Partners has said that a third of private business owners with turnovers in excess of £5 million have accelerated their exit strategies. Why? Because of fears about capital gains tax and inheritance tax relief. This is our entrepreneurial future being destroyed by the inaction of the Government.

It does not matter whether the rumours are true or false; the fact that they are rumours is having devastating impacts in its own right. Now the direction is clear, and it appears that the Government will increase employer national insurance contributions. As Paul Johnson of the Institute for Fiscal Studies said, that is a clear breach of the manifesto promise. When considering the issue previously, the Chancellor of the Exchequer said that an increase was an anti-business measure—I agree. The Office for Budget Responsibility has told us that an increase in employer national insurance contributions will lower wages.

Labour is pulling off the triple: misleading the public, harming business and lowering wages—all with the same policy. The more business sees of this Government, the less it likes them. When will this party of opposition that finds itself in government get a grip?