Steel Industry (Special Measures) Bill

Clive Betts Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Sir Iain Duncan Smith]

I am grateful for that, because it allows me to say something that I had not been planning to say: we sit on an island of gas, so why, for goodness’ sake, are we not drilling for it? We need it, and we will need it strategically. There is a need for strategic industry, and I agree with the Secretary of State on that. However, the issue does not stop there; it stops elsewhere, in the production of energy. I simply leave that point for him, and he can argue it with his right hon. Friend the Secretary of State for Energy Security and Net Zero.

I want to say one final thing. In the course of this Chinese company’s operations, I have talked to a number of people involved in the business, and its record on health and safety and on the abuse of the workers in the blast furnace area has been shocking. We should look into that much more carefully. The company has brought in cheap Chinese workers and pays them nothing like what it pays the British workers. Many of those workers have ended up burned and in great difficulty. I simply say that this is not a company we should be doing business with right now.

[Mr Deputy Speaker (Mr Clive Betts)]

We will go to the Front Benchers at 1.40 pm, so if Members who are called could be as brief as possible, that would be appreciated.

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

I thank the Secretary of State for his speech and his decisive action. This will be a meaningful day for the people of Scunthorpe. I know how important jobs in the steel industry are. Davy Roll, otherwise known as Union Electric Steel, has stood at the heart of Gateshead, in our town centre, for over 150 years. It is the only cast steel roll maker left in the country and it is at risk of closure. Steel is incredibly important for our future, and the Government are taking decisive action.

I am reminded today of a place close to my constituency. Ten years ago, the people of Redcar were let down. I pay tribute to Members, including my hon. Friend the Member for Redcar (Anna Turley), for their campaigning. At the time, Redcar had the second most efficient blast furnace in Europe, and yet it was abandoned, along with 2,300 jobs. A proud town was let down. Today, Scunthorpe and Redcar have learned the difference a Labour Government make and the difference decisiveness makes: they save jobs and change lives.

[Mr Deputy Speaker]

Thank you for that. If Members can keep contributions to around three minutes, that will be helpful. I call Liz Saville Roberts.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Deputy Speaker]

Order. I remind Members that each contribution should take no more than two to three minutes.

--- Later in debate ---

[Laurence Turner (Birmingham Northfield) (Lab)]

I am glad to be called in this debate. I declare an interest: the GMB—one of the steelworkers’ unions, whose parliamentary group I chair—has donated to my constituency party.

Twenty years ago, the MG Rover car plant in my constituency collapsed, with devastating consequences that are felt to this day. Today, all our thoughts are with the steelworkers and their families at Scunthorpe and Teesside, and I hope that we can do something to avoid such a future for them.

I do not want to speak for too long, but I would like to make a few points. First, today’s decisive action is welcome. I think all our constituents would rather have a Government who acted at great speed than a Government who acted too late. Secondly, I echo the point raised earlier by my hon. Friend the Member for Brent East (Dawn Butler) about the importance of steelworkers’ participation in the days ahead. If the Government could also clarify any changes in plans for the UK Steel Council, that would be appreciated. Thirdly, what role will Jingye now have in the running of British Steel on a day-to-day basis? It is clear that workers have lost confidence in the management—as shown by reports this morning that management from Jingye were refused entry to the plant—and that a change in that day-to-day management is needed.

I would like to respond to a couple of points made in the debate. The last time that this House carried legislation that had the effect of nationalising steel, that legislation was 108 pages long. Nationalisation is clearly outside the scope of the urgent emergency legislation that we are debating today. We have also heard much about costs, including energy costs. I do not wish to add to the informed comments made earlier, but the OECD has also said that the root cause of the industry’s current problems is “global excess capacity”. In other words, the UK has been left at the mercy of over-production and the dumping of artificially subsidised goods. The Manufacturing Trade Remedies Alliance has long called for our trade defences to be strengthened, and I hope that those calls will be listened to in a way that they were not under the last Government.

I would like to end on a personal note, because I have thought about one person in particular today: a family member, my aunt’s father, who began his career at the Ravenscraig steelworks in Motherwell. He rose to become a branch officer, national executive member and later a salaried official of the Iron and Steel Trades Confederation, the forerunner of today’s Community union. In the peripatetic life of a trade union official, he later worked in the west midlands, Corby and Scunthorpe. He was fierce in the defence of his members, and the gentlest and most modest of men in private. I understand that he is still remembered on the executive of Community, and if he could be here today to witness this most difficult chapter in the steel industry’s history, I am sure that he would offer valuable perspective and wise counsel. With your permission, Mr Deputy Speaker, I would like to enter his name in the record of this place: Dick Knox.

[Mr Deputy Speaker]

I thank all Members for their help in being brief for the last few contributions, but unfortunately we have time only for a final Back-Bench contribution. I call Sir Jeremy Wright.

[Sir Jeremy Wright (Kenilworth and Southam) (Con)]

I am grateful to you, Mr Deputy Speaker.

I can accept that there is broad agreement in this place that we should take action to preserve virgin steelmaking capability in the UK, but quite frankly, it is not enough for this House just to agree that we should do something. It is our responsibility to look at the detail of what the Government are proposing and to decide whether it is properly targeted and appropriate for the task. There is not going to be a Committee stage or a Report stage in this Bill; that is what the clock tells us. This is our only opportunity to look at the detail of the Bill, and I am afraid that precious little of that has been done today.

Let us have a look at what powers the Secretary of State is going to be given—by the end of today, as things will probably unfold. The Secretary of State will have powers that apply to all steel manufacturers in England and Wales, not just to the particular company over which he has specific concern. There will no doubt be shivers running down the spine at Tata Steel as well, because the Bill applies to that company too. The Secretary of State can act, according to this Bill, in order to instruct those companies to deal in specific ways with what are described as “specified assets”. As I mentioned to him earlier, that does not limit the measure to blast furnaces or to anything else that is specifically required to generate virgin steel. The Secretary of State can give directions to ask and require a company to do pretty much anything that company could otherwise do, and if the company refuses to do it, the Government have powers to take control of assets, including powers to enter premises by force if necessary, and criminal penalties that can lead to imprisonment. These are very serious powers indeed, and I am afraid that this House is simply not being given the opportunity to scrutinise them as they require. They also look suspiciously, by the way, like nationalisation—so perhaps it would be easier to call this thing what it really is.

Let me address one or two specifics before I finish. I hope that the Secretary of State, for whom I have huge respect, will think about—I think he has and will—some of the problems that this legislation will throw up. First, there is highly likely to be considerable controversy over whether a company in question is complying with a Government instruction. A company is likely to argue that point. As the Secretary of State pointed out, in respect of his particular concern we are dealing with a company that he does not trust and that he believes has acted in bad faith thus far. I have no reason to think, nor does the Secretary of State, that the company might not continue to do so.

Secondly, the Secretary of State is making himself responsible for claims against the company that arise from specific instructions given to it by the Government. That is what the indemnity clause means. In those circumstances, there will be a further dispute about whether the relevant problem has arisen because of what the Government have told the company to do or because of something it has control over. As I said, the Secretary of State is enabling there to be two hands on the tiller, and that will store up headaches for the Government. I urge him, despite the fact that we have not had the chance to explore the matter today, to think very carefully about how the Government will protect themselves and the taxpayer from the oncoming complexities.

[Mr Deputy Speaker]

I call Dame Harriett Baldwin for the official Opposition.