Prax Lindsey Oil Refinery

Gareth Snell Excerpts

Tuesday 22nd July 2025 Commons Chamber

[Michael Shanks]

On redundancy, because of how the company went into insolvency, the workers will be entitled to statutory redundancy. That is not acceptable, given the role that they played in delivering for the company for many years. That is why I have publicly asked the owners of the company to put their hands in their pocket and improve the redundancy package. It is not possible for the Government to improve the package directly, but I am still hopeful that the company owners will do the right thing. We are providing a training guarantee to the workers, from Government funds, to make sure that they have that enhanced support.

I am happy to take away the point about heating oil. We have been assessing the situation over the past few weeks, including a number of weeks during which fuel has not left the refinery at its normal pace, to see what the impact is on supplies across the region. That impact has been minimal. That is partly because a significant amount of fuel and products come from the refinery next door. However, we will continue to monitor that, and if there is an impact on prices, I am happy to look into that.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Much like the ceramics sector, the refinery sector is an energy-intensive industry that is at the mercy of industrial energy prices, which are beyond its control but have a huge impact on its viability. It is welcome that the Minister thinks that the energy-intensive certification programme could expand to include the refinery sector, but he will know that the business level test is a huge barrier that needs to be overcome; it means that many companies will not be eligible for the programme. He will also know that the British industry competitiveness scheme is not due to come online for another two years; indeed, consultation on that scheme has yet to be opened. Refineries and ceramics companies are looking down the barrel of ever-increasing industrial energy bills. Will he give them some indication of what help and support is available now, before the new schemes come online, so that we do not have more statements about closed factories in the next few months?

[Michael Shanks]

My hon. Friend is right, and it is deeply frustrating that we inherited many of these issues, which were unresolved for such a long time. These are not problems that arrived in the past 12 months. Bringing in the refinery sector for talks with Government about the challenges would have been a fairly obvious thing to do at least once in the past 13 years. Clearly, that did not occur to the previous Government, and we have inherited challenges.

My hon. Friend is right to say that consultations will take time, unfortunately. It is right that we conduct a proper consultation to make sure that there are not any unintended consequences. The Minister for Industry, who is a Minister in both the Department for Energy Security and Net Zero and the Department for Business and Trade, is looking at how we can do that as quickly as possible. I am happy to follow that up with her. My hon. Friend is also right that nobody wants to be talking about redundancies in any part of our economy, and we are doing everything we can to bring down prices to prevent redundancies.