UK Steel Industry

Christina Rees Excerpts

Thursday 21st January 2016 Westminster Hall

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I pay tribute to the previous Chairman, Mr Walker, for his handling of today’s proceedings. I also pay tribute to my hon. Friend the Member for Aberavon (Stephen Kinnock) for securing this high-quality debate, during which important and passionate points have been made. I look forward to hearing the Minister’s response.

The industry, as we have heard repeatedly, has gone through the most difficult and catastrophic times in recent years, but it is important to stop and reflect for a moment. Obviously, the ultimate tragedy for anyone in the steel industry is the loss or injury of a loved one, so I start by paying tribute to Peter O’Brien and Mark Sim, the two workers who were tragically killed at the Celsa plant in my constituency—it was a terrible day when I was informed of that. The plant is close to where I live in Splott. I have visited it many times, and it really is at the heart of the Cardiff South community. To hear of those deaths and the other injuries was a deep shock to everybody involved, and I pay tribute to those workers, their families and the entire Celsa workforce.

I will now reflect on the workforce in the steel industry as a whole. We have heard from many hon. Members about workers’ sacrifices and effort. Whether by accepting wage restraint or changes to shift patterns, they have done their bit to ensure that the industry has a viable future while it is buffeted by global market forces. My hon. Friend the Member for Newport East (Jessica Morden) spoke passionately about the role that steel plays not only across the UK, but particularly in south Wales. There is a backbone of steel running through south Wales from Llanelli and Carmarthenshire through Swansea and Port Talbot, through Bridgend and Ogmore, through Cardiff bay and into Newport. That is reflected on the Opposition Benches today.

[Christina Rees (Neath) (Lab)]

rose—

[Stephen Doughty]

It runs into Neath, too.

[Christina Rees]

Approximately 1,000 of my constituents work either at Tata in Port Talbot or at Trostre, and they are waiting to find out whether they will be affected, which would be devastating for them. Neath constituency is still reeling after what happened with coal.

[Stephen Doughty]

My hon. Friend sets out clearly how the situation affects her constituents. The impact on not only the directly employed workforce in all the plants and operations across south Wales and the UK, but all those working in the associated industries, cannot be overemphasised.

While we have the steel backbone that I described, we also have steel veins and arteries running out into many other industries—related manufacturing, training and expertise, and engineering. The loss of highly skilled jobs in the plants themselves has a knock-on effect on communities right across south Wales and the UK.

I pay tribute to the trade unions and especially Community, which plays a constructive role not only in these debates, but in facilitating the relationship between us and workforces in the plants to enable us to understand what is happening on the floor of the melt shop, and in the rod and bar mill, so that we can see with our own eyes the efforts that the workforces are putting in.

I will not reiterate a lot of points that I have made in previous steel debates, whether from the Front or the Back Benches. Instead I shall emphasise several of the points that have been made and ask specific questions of the Minister. I will focus on constructive solutions. I praise the work of the current steel Minister, and the Secretary of State for Wales has been open about and engaged on this matter with me and other south Wales Members but, to be honest, a lot of this is far too little, far too late. When I was elected in November 2012, one of my first meetings was about the steel industry. The Celsa management and I went to the Department for Business, Innovation and Skills to meet senior officials and Ministers. We presented detailed and carefully constructed warnings about what was happening in the market in terms of Chinese dumping and energy costs. We presented thought-through solutions, and we wanted to work together co-operatively and in partnership to find solutions. Unfortunately, a lot of the warnings were ignored.

I think back to a particular meeting I had in November 2014 in the Wales Office with the Secretary of State for Wales and the then steel Minister, who is now the Minister for the Cabinet Office. To be fair, the Secretary of State made an effort—I genuinely think that he cares about the future of the industry in south Wales—but I am sorry to say that that was simply not matched by the former steel Minister, the Chancellor of the Exchequer and officials in the Treasury and elsewhere. There has been a constant battle between those in government who genuinely accept that there is a problem and want to do something, including the current steel Minister, and others who either act with typical Whitehall caution, saying, “Oh, we can’t do this, Minister. We can’t do that, Minister,” or are actively not interested at all and are pursuing a laissez-faire ideology.

--- Later in debate ---

[Mr Iain Wright]

Will my hon. Friend give way?

[Christina Rees]

Will my hon. Friend give way?

[Kevin Brennan]

I will give way to my hon. Friend the Member for Neath (Christina Rees) first, who I forgot to mention, but who intervened on behalf of her constituents.

[Christina Rees]

I totally agree with my hon. Friend about life chances. My father worked at the site of the Steel Company of Wales. The Abbey went into the Steel Company of Wales, which moved on to Tata. When I was a schoolchild I played hockey at the Steel Company of Wales—it was the centre of the community. As for life chances, it put food on our plates at home. The threat of the closure of Trostre and Port Talbot is more than I can contemplate, given the devastating effect on communities.

[Kevin Brennan]

My hon. Friend is absolutely right. I know that the Minister understands this, but it is important to make it clear why Members feel so passionately about the importance of maintaining the steel industry both as a strategic asset to the country, and as the underpinning foundation of many of the communities we represent.