Prax Lindsey Oil Refinery

Debate between Gareth Snell and Michael Shanks

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.

Prax Lindsey Oil Refinery

Debate between Gareth Snell and Michael Shanks

Monday 30th June 2025 Commons Chamber

[Michael Shanks]

Let me deal with that on two fronts. First, we have come to the House repeatedly to talk about Grangemouth. I have had meetings with a number of Members over the past year to discuss Grangemouth, probably more than I have had to discuss any other issue, and I have weekly meetings with Scottish Government Ministers, businesses or others to discuss Grangemouth’s future. No one wanted the outcome that we got from Grangemouth, but we have done everything in our power to turn that around and deliver a viable economic future for the site, so I do not entirely accept the hon. Gentleman’s criticism, which I think is misplaced.

Secondly, I apologise to the House for being unable to give explicit details about every part of the business, but one of the problems is that we have not been able to obtain clarity from the company about all the interdependencies within its own business group. We will discuss more of this in the coming days as we engage with the official receiver. It is important to separate the issue of insolvency for the refinery—the specific issue that we are discussing today—from the wider group issues, but I have no doubt that we will return to some of those in due course.

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

The shadow Secretary of State mentioned Moorcroft in Stoke. A small glimmer of light in what is otherwise a rather gloomy story is the rescue of that company by Will Moorcroft, the grandson of its founder, and the jobs that are potentially coming back. However, those jobs were put at risk, much like the jobs at this refinery, because of the eye-watering industrial energy costs that we face in this country. The Government have announced the British industrial competitive scheme, but it will not come alive for industrial energy prices until 2027, which is two years away.

I thought I heard the Minister say that the Government would consider the potential for changing the criteria for the energy intensive industry compensation scheme to bring in new sectors that could be offered some immediate help and some respite between now and the introduction of that scheme. If that is the case, will the Minister be clear about it at the Dispatch Box, and if he is able to look at the EIIC criteria, can he also look at the existing energy supercharger scheme, which would give ceramics companies in my constituency access to the support that they need in order to continue to thrive?

[Michael Shanks]

My hon. Friend is right to mention the impact of high electricity costs across industry. Since we came to office we have been doing everything possible—through the industrial strategy, and through other work that my colleagues in the Department for Business and Trade have been doing—to try to drive down energy costs, and we are doing wider work across the energy system to deliver clean power by 2030, and to bring down bills and reduce the volatility in bills that affects too many households and businesses throughout the country. We are looking at all the possible options, and I have said to the refinery sector that we are willing to look at all the schemes on a case-by-case basis. There is no easy answer to many of these questions, but we will, for example, consider eligibility for the industrial competitiveness scheme following the consultation that will open shortly, and it will be reviewed in due course.

I understand that the question relates to how fast we can move on some of these matters, but we need to ensure that we get this right, and we are doing everything we can, where we can, to move faster with some of the decisions.

Oral Answers to Questions

Debate between Gareth Snell and Michael Shanks

Tuesday 8th October 2024 Commons Chamber

[Michael Shanks]

I very much welcome the hon. Gentleman’s question—which I must say is somewhat of a surprise. I will absolutely meet him to discuss that. We have been clear that any technologies can be part of the solution and, if that can be part of the picture, I will meet him to discuss the options and the technology more generally.

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

One of the ways in which we can increase energy security is through community-owned and co-operative energy schemes. They give greater control to local people, who get a say in where profits go, and crucially they build resilience from international energy markets. Will the Minister say a bit more about where community-owned energy will fit into the energy security plan?

[Michael Shanks]

I thank my hon. Friend for that incredibly important question. Community energy has so many benefits in our energy mix, including giving communities a stake in our energy future. We also know that there are many social and economic benefits that come from that. We are committed to our local power plan, which will deliver investment in community-owned projects. Great British Energy will have a key role to play in supporting communities, capacity building and in that initial funding to help them deliver these projects.