Steel Industry (Special Measures) Bill

Edward Leigh Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

I have just come off the phone to Tom Smith, the trade union convenor at the blast furnaces, on behalf of my many constituents who work next door in Scunthorpe. My primary concern today is with the nearly 3,000 people who work in this plant. Let us be clear: we have been making the best quality steel in the world for 135 years in Lincolnshire, and we intend to go on doing it. We are not going to allow cheap, inferior Chinese steel to kill off our industry. The workers of Scunthorpe are breathing a sigh of relief.

We can be party political. I have to say that I thought the Chairman of the Business and Trade Committee made an excellent speech—he was positive and talked in strategic terms—but I do not know what the Liberal Democrat spokesman, the hon. Member for St Albans (Daisy Cooper), achieved by constantly attacking the Conservative party on what is a very complex issue. Of course we can be criticised because we sold this company to Jingye—yes, I agree—but how many voices on the Liberal Democrat Benches were speaking up at the time? Were they speaking up when Greg Clark, our then Business Secretary, paid the wages of the Scunthorpe steelworkers for many months? Were they speaking up when we saved Sheffield Forgemasters? This is a highly complex issue and we should be working together, so I support the Bill.

I know that we can be critical of the Government. Perhaps we should have acted sooner—my hon. Friend the Member for Brigg and Immingham (Martin Vickers) has been raising this point; I was sitting beside him at the end of March when he raised it and called for nationalisation of the industry—but we have now got to work together to save our steelmaking capacity.

We know, though, that this Bill is a bit of a sticking plaster. It is quite dangerous. Quite extensive powers are being taken by the Government, so there has to be a sunset clause. We are giving unprecedented powers to the Government. We can criticise them for not acting sooner, but this is a sticking plaster on a gaping wound.

Let us be honest: steelmaking in this country is under extreme stress. And why is that? Why are we loading the most expensive energy costs on to our own steel production? Why is Scunthorpe paying almost twice as much in energy costs as those in South Korea or in America? High energy prices make UK steel expensive to produce and uncompetitive versus that produced by our European counterparts. In 2024-25, the average price paid by UK steelmakers was £60 a kWh, compared with the German price of £50 and the French price of £43. We are making our own steel industry uncompetitive. We have to stop these green energy costs. We have to be realistic. The Secretary of State for Energy Security and Net Zero has now left, but we need to get real. We can take steel into public ownership now, but if we go on loading costs on our industry, we will have to come back month after month and year after year.

We will support the Bill, although we want a sunset clause. But we have to get real about China, too. Was it not obvious for weeks and, indeed, for months? This is a so-called private company, but there is no such thing as a private company in China. They are all under the cosh of the Government, under an autocratic regime. What do they care about the steelworkers in Scunthorpe? What do they care about our national interest? Never again, colleagues, must we allow such a strategic industry to fall into the hands of the Chinese, the Russians or anybody else.

[Ms Polly Billington (East Thanet) (Lab)]

Will the right hon. Gentleman clarify whether he was aware that the Chinese company that is now in possession of British Steel was sold it by a Conservative Government of which he was part?

[Sir Edward Leigh]

Of course I am, because I just said that. I have just admitted that it was a mistake, but I ask everybody what they were saying at the time. Of course, there is silence. It is easy to be wise after the event, but I am worried about my steelworkers—I am worried about their future.

[Sir Iain Duncan Smith]

rose—

[Sir Edward Leigh]

I give way to our former leader.

[Sir Iain Duncan Smith]

I want to make sure that my right hon. Friend puts the record straight: some of us on the Opposition Benches warned the then Government that it was wrong.

[Sir Edward Leigh]

There we are: some of us apparently warned the Government. I do not know how many.

We now know the true nature of our Chinese friends. We support the Bill. Let us make our steel industry really competitive again and let us make Great Britain great again.

[Several hon. Members rose—]