British Steel

Debate between Greg Clark and Anna Turley

Wednesday 24th July 2019 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the sale of British Steel.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

As hon. Members will recall, I made a statement to the House a few hours after British Steel entered insolvency on 22 May. This was, and still is, an uncertain time for the British Steel workforce, their families and their communities, for the customers and suppliers of the business and for everyone who believes, as I do, in the importance of excellent steelmaking and manufacturing in the UK.

In my statement, I said that, although the independent official receiver is solely responsible for the operation and sale of the British Steel business, I would, both personally and on behalf of the Government, do everything that I possibly could within my powers to help secure a good future for the whole of British Steel’s operations.

Following a visit to the Scunthorpe plant the following day and to Skinningrove and Lackenby on Teesside the day after with local MPs, including the hon. Member for Redcar (Anna Turley), we formed a British Steel support group to work together immediately and actively to pursue that aim. I chaired the group with the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), which has included British Steel management; trade unions Community, Unite and the GMB; the Mayor of the Tees Valley and the leader of North Lincolnshire Council and their officers; the chairs of the Humber, Greater Lincolnshire and Tees Valley local enterprise partnerships; UK Steel; Make UK, the manufacturers’ organisation, on behalf of suppliers and customers; the Federation of Small Businesses; Government officials and other local MPs, including the hon. Lady, my hon. Friends the Members for Middlesbrough South and East Cleveland (Mr Clarke) and for Brigg and Goole (Andrew Percy), and the hon. Member for Scunthorpe (Nic Dakin). The support group has now met eight times, usually in Doncaster, and sub-groups on the supply chain have met separately, as have local partners.

I wish to pay tribute to the hard work, tenacity and dedication of this group and the extraordinary commitment of the workforce who, during this time, have worked magnificently, not only to continue but to increase steel production.

Often in insolvencies, customer orders dry up, suppliers withdraw their services and the workforce drifts away, precipitating a rapid failure. In this instance, the opposite has been the case. The confidence that the support group has built, coupled with a Government indemnity to the official receiver, has allowed trading to continue, orders to be won and production to increase. This is without precedent in my experience.

Although all decisions are for the official receiver, I have been active, as Members know, in visiting prospective buyers in many parts of the world to make it clear that the UK Government will, within our legal powers, work with a good long-term owner of these important assets to see how we can help them to realise their vision for the company.

I am pleased to say that the official receiver has said that he is encouraged by the interest in purchasing British Steel and his special managers, EY, are currently in further discussions with potential buyers. The official receiver has made it clear that, given the complex nature of the operations, any potential sale will take time to deliver.

I said in May that I was determined to see the proud record of steelmaking excellence continue. The world needs steel, and British Steel is among the best in the world. To secure that will require, in my experience, the continued active participation of everyone that I mentioned earlier without interruption during the critical weeks ahead. In particular, whoever stands at this Dispatch Box will need to devote themselves unstintingly to achieve a great outcome for everyone concerned with British Steel, which I believe, although not certain, is certainly within grasp, and that is the flourishing of British Steel’s operations for many years to come.

[Anna Turley]

Let me begin by putting on record my thanks to the Secretary of State—not only for his response just now, but for the way in which he has responded to this crisis. We find ourselves in a fundamentally different position from the situation in 2015, where, either by design or flat-footedness, the Government failed to respond, with devastating consequences. This is a completely different scenario, and I am grateful to the Secretary of State for stepping in and helping to secure the asset, enabling the business to continue and ensuring that the workforce were paid. Through the indemnity that the Government have given to the official receiver, the Secretary of State has given us a very good chance of ensuring the future for British Steel in this country. I also thank him for his efforts in going around the world to help secure a buyer.

Of course, the situation remain precarious. In the past few weeks, we have seen the new Prime Minister running around the country waving kippers in the air; by contrast, 5,000 dedicated, highly-skilled workers in British Steel have been putting their shoulders to the wheel in Scunthorpe, Skinningrove and Lackenby, despite their livelihoods being in the balance. They have been producing at record levels and working with every effort they have to ensure that the business continues to produce the best steel in the world and to flourish. I pay tribute to all those working within British Steel. They deserve a Government who will be straining every single sinew to ensure that the business survives.

I pay tribute to the trade unions, including Community and Unite; every worker in British Steel; everybody in the customer base who has continued to ensure that requests for steel have come through, including some who have even stepped up their demands; everyone in the supply chain who has continued to work so hard to supply the business; and colleagues in the Doncaster round- table. I again pay tribute to the Secretary of State for the inclusive and positive way in which he has responded. However, I do have a number of questions for the Secretary of State—for whoever will be at the Dispatch Box in the coming days, weeks and months ahead.

First, does the incoming Secretary of State understand the implications of failure? We know what 5,000 job losses could be like in areas such as Scunthorpe, Redcar and Skinningrove where there is no alternative employment, and we know the cost of cleaning up the site: £1 billion. Does the future Secretary of State understand the loss of a major industry in Britain that any self-respecting major economy would value and recognise to be essential? Will they recognise the role of steel as a foundation industry for our defence, automotive and construction sectors and what reliance on overseas production could mean for our economy, our independence and our self-reliance?

Secondly, will the future Secretary of State endeavour to ensure that the official receiver continues to receive the indemnity for as long as it takes to find a buyer? Thirdly, will they endeavour to give wholehearted Government support to the bids that primarily keep the business together as one industry across Skinningrove, Lackenby and Scunthorpe? Will they pledge to prevent cherry-picking, to keep asset strippers at bay so that we do not suffer the same issues that we have experienced before and to ensure that the terms and conditions of the workforce are maintained? Will they ensure that any company that the Government support will invest in the assets and ensure that they are modernised for the future of our industry? Will they invest in research and development and be committed to the long-term interests of steelmaking in this country?

Finally, I hope that whoever will be at the Dispatch Box in the weeks ahead will recognise that they have the jobs and livelihoods of thousands of men and women in their hands, as well as the guardianship of a vital, modern, innovative and potentially world-leading British industry.

[Greg Clark]

I am grateful to the hon. Lady for asking the question that has given us the chance to talk about these issues. She has been dedicated and devoted to her constituents, as have other Members—starting the week with me in Doncaster with the colleagues I described to ensure that we can work together and join together to ensure that there are no gaps between any of the interested parties. That has had an appreciable effect, as has been noted by many prospective buyers. Certainly, many customers and suppliers have also observed the resolution and the unanimity of resolution behind this.

Many of the hon. Lady’s questions were addressed to whoever might be the Secretary of State under the new Prime Minister, so it would be presumptuous of me to answer on his or her behalf, but she has placed a clear set of requirements on the record and I endorse everything she said. Not only would the consequences of the loss of historical assets—hugely important in all the communities she mentions—be unconscionable; there would also be the loss of a substantial opportunity.

The hon. Lady, like me, believes that there is a strong strategic future for the British steel industry. As I said in my previous answer, the world is going to need steel. Through investing in infrastructure, this country has opportunities to make greater use of UK steel. We export much in the way of our scrap steel to other countries. That could be made better use of, both environmentally and in terms of industrial opportunities. If we invest—as we intend to and are doing through the industrial strategy—in the technologies that will make steelmaking cleaner, more efficient and suitable for new uses, there is every reason to think that the UK steel industry, including British Steel, can be a beacon showing the rest of the world how a modern manufacturing industry can flourish.

British Steel

Debate between Greg Clark and Anna Turley

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

I certainly agree with, and will act upon, the first part of my hon. Friend’s question. It is a matter for the official receiver to consider, but during the course of the day—after all, it was just this morning that the company went to court—I have had some early indications of interest. I intend to be active in helping to promote these important assets to prospective investors, whether or not they are currently aware of the opportunity this may give them to invest in successful facilities in the future.

[Anna Turley (Redcar) (Lab/Co-op)]

I thank the Secretary of State for engaging with me constructively on the phone this morning, which I appreciate. I also pay tribute to all those at British Steel who have worked so hard, particularly over the last three years, to try to make a success of the company. I was proud to be at the launch at the Lackenby beam mill in 2016 when, out of the ashes of the SSI disaster, we felt that British Steel would rise and be a strong, fantastic brand. Obviously, today is extremely disappointing for those workers and for others all across the country.

I implore the Secretary of State to learn the lessons of SSI from 2016. He spoke movingly today of the importance of keeping the assets going, which is the No. 1 priority. We cannot turn this off because of the consequences for individuals, for families, for communities and for local economies. We are still facing the clean-up costs, three years down the line, of a rotting, decaying site that is still toxic. That cannot be allowed to happen again. We must ensure that the assets are maintained and preserved and jobs safeguarded.

[Greg Clark]

I grew up in the hon. Lady’s constituency, and I am very familiar with the landscape of steelmaking across Teesside. We need to learn the lessons of this. Across the country, including in Scotland, as we have heard, there have been times when the steel industry has been challenged. Not everything has been done in the best way each time. We should learn the lessons and apply them in this case. I hope that the official receiver will do that, and the indemnity is partly given to provide the official receiver with the confidence that the liabilities, especially the safety aspects, will be covered.

Nissan in Sunderland

Debate between Greg Clark and Anna Turley

Monday 4th February 2019 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

I was at Nissan just recently meeting the fantastic workforce, some of whom are my constituents who had lost their jobs in the steelworks and subsequently been recruited by Nissan. It was made very clear to me when I was there just how important the EU market and the integrated cross-border just-in-time supply chains were. In their letter to Nissan, the Government say that they fully recognise

“the significance of the EU market to your presence in Sunderland.”

Why then are the Government keeping no deal on the table and playing fast and loose with my constituents’ jobs again?

[Greg Clark]

Everyone in this House has a responsibility: we need to protect the jobs of our constituents and to give them opportunities for the future. One way or another that involves this House agreeing on a plan for our relationship with the rest of the European Union. It might involve Members from all parts of the House leaving their comfort zone and being willing to compromise. Internationally, we have had a reputation for being willing and able to do that—to be a pragmatic and dependable place in which to do business. Now is the time to demonstrate that to the rest of the world.

Oral Answers to Questions

Debate between Greg Clark and Anna Turley

Tuesday 17th July 2018 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for his question, and I am sorry that I was unable to be in Grimsby. I could not be in Newcastle and Grimsby on the same morning, but that does not remove my commitment to visit Cleethorpes and Grimsby, and perhaps the free port proposal is one of the things that we could discuss when I do so.

[Anna Turley (Redcar) (Lab/Co-op)]

T9. Will the Secretary of State update my constituents on the ongoing discussions with his Department to transfer full responsibility for the former SSI steelworks site to the South Tees Development Corporation? Will he also pledge to commit the £200 million needed to regenerate the site, which would bring in 20,000 jobs and enable the Tees Valley to embark on its industrial renaissance?

[Greg Clark]

I pay tribute to the hon. Lady and other Members who have worked closely with the development corporation. The discussions have been very positive. They have not concluded yet, but I think everyone recognises that there has been great progress and that there is a very good future for that site.

Oral Answers to Questions

Debate between Greg Clark and Anna Turley

Tuesday 30th January 2018 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

Thank you, Mr Speaker. It is great to be back.

We have ambitious plans on Teesside to create 20,000 jobs on the former SSI steel site. The biggest issue holding us back is, obviously, the ownership of the site. Can the Secretary of State update us on what conversations he is having with the official receiver and the Thai banks to enable us to fulfil our potential, create jobs, and bring investment back to the site?

[Greg Clark]

I welcome the hon. Lady back to the House and commend her for her commitment to ensuring that we secure the best possible future for that site. I shall visit Teesside shortly to continue our discussions. There is great commitment on the part of both the Government and the local development corporation to finding the right solution. The ownership is not in the Government’s hands, but everything that can be done is being done.

Housing and Planning Bill

Debate between Greg Clark and Anna Turley

Tuesday 12th January 2016 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. As Housing Minister, he made a major contribution to the revival in house building that was necessary after the crash that took place under the previous Labour Government. We have seen, over the past five years, house building recover from the record lows of the previous decade, but, as this Bill makes clear, these are the first steps away from a much longer record over successive Parliaments. Indeed, the connection between supply, affordability and ownership is obvious to all, and yet for decades successive Parliaments and Governments failed to find a lasting solution not because they did nothing, but often because they failed to tackle the underlying issues.

In the previous Parliament, the Government’s focus was on recovery from the worst housing crash since the second world war, but in this Parliament, our focus has shifted from rescue to reform. Though wide-ranging in scope, the Bill does not represent the entirety of what needs to be done. As the Chancellor made clear in the autumn statement and as the Prime Minister said last week, the Government are committed to a comprehensive and ongoing programme of reform, addressing the whole of the problem and not just part of it. This Bill is of central importance to the overall strategy.

[Anna Turley (Redcar) (Lab/Co-op)]

I appreciate the Secretary of State kindly giving way. He talked about the previous Labour Government’s record, but could he explain why funding for affordable homes was slashed by 60% when his Government came to power in 2010?

[Greg Clark]

The record of the previous Government is very clear: we built more affordable homes, specifically more council houses, than the previous Labour Government did in 13 years, so we will take no lessons from the hon. Lady.

Oral Answers to Questions

Debate between Greg Clark and Anna Turley

Monday 29th June 2015 Commons Chamber

[Greg Clark]

As my hon. Friend knows, our intention is to transfer powers from Westminster to local communities, and it is for them to determine their arrangements. Places such as Manchester had that in mind when they set their own arrangements, so it is absolutely available in the west midlands.

[Anna Turley (Redcar) (Lab/Co-op)]

What has the increase been in the number of families who have met the troubled families assessment criteria since the programme began? Has the Minister made any assessment of the impact of his Government’s £12 billion of welfare cuts and of his swingeing local authority cuts on already struggling families who need joined-up local support?

[Greg Clark]

The hon. Lady visited my old school in South Bank to congratulate students there on being in the finals of the mock trial competition. Perhaps she will convey my congratulations to them as well.

On troubled families, my right hon. Friend the Prime Minister made a statement last week in which he said that more than 117,000 families have had their lives transformed by this crucial programme. It has saved public money as well as transforming lives. We will build on that during the Parliament. I look forward to her support, because Redcar and Cleveland is one of the principal authorities delivering on this.