British Steel

Debate between David Chadwick and Sarah Jones

Tuesday 22nd April 2025 Commons Chamber

[Sarah Jones]

My hon. Friend makes important points and that is exactly what we are looking at in the steel strategy. On dumping steel, having been requested to examine the issue by British Steel, the Trade Remedies Authority has agreed to look at steel safeguards and ensure that they are fit for purpose in the here and now. We are also looking at what happens beyond 2026, when the steel safeguards stop, to ensure that sufficient safeguards are in place. All the issues she mentions need to be looked at, including electricity prices and energy prices, which doubled under the last Conservative Government. As we have said before, 53% of global steel production comes from China. We need to look at that imbalance, at how we can ensure cheap steel does not come into this country and at how carbon leakage is working. We are working hard on all those issues.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

If the Government now believe that primary steelmaking capacity is critical for the security of the UK, do they also recognise that the skilled workers needed to produce that steel are equally as important? If so, why were they willing to let 2,800 of them be made unemployed last September in Port Talbot?

[Sarah Jones]

I hope the hon. Gentleman understands that the interventions that we made in this case were different for a number of reasons. When we were in Opposition, we worked with Tata to try to get it to change its plans, but we were unsuccessful. When we came into Government, we improved the deal that the previous Government had negotiated and we improved the redundancy offer. We got Tata to commit to invest in assets and free up land for other things, and we got it to provide a package of measures to improve that situation. The hon. Gentleman is right that that package meant the closure of the blast furnaces and the building of an electric arc furnace, with the closure happening before the electric arc furnace arrived, and because of the way that electric arc furnaces work, they are more efficient and need fewer people. We have been working really hard through the transformation board, led by the Secretary of State for Wales and the Welsh Government, to ensure that everybody has a significant package of support to try to ensure they transition to other jobs. That work is ongoing and progressing well, and we will continue to focus on it.

The two situations were fundamentally different. In Scunthorpe, British Steel was in the middle of a consultation on potential redundancies, and it failed to secure the materials to keep the blast furnaces going, which would have completely broken what British Steel should have been doing during that consultation. We could not allow that to happen, those blast furnaces to close and thousands of people to be suddenly made redundant, which is why we intervened in the way we did.