Steel Industry

Hannah Bardell Excerpts

Wednesday 28th October 2015 Commons Chamber

[Hannah Bardell (Livingston) (SNP)]

I am pleased that, following last month’s Backbench Business debate, we have a further opportunity today to discuss the challenges facing the steel industry in the United Kingdom. Let me say at the outset that SNP Members will support the motion.

Since last month’s debate, more challenges have arisen than solutions have been implemented. The global pressures that triggered a series of recent announcements on job losses at UK steel plants have been apparent for a number of months and have been emerging for considerably longer, but the Government have been slow to act with our European partners. In the light of these announcements, the steel industry has been clear and united in its requests for Government assistance, but the Government have been flat-footed for too long. I welcome some of their very recent progress, but the timely delivery of what they have promised is key. I hope that today’s debate will offer them another opportunity to set out, in detail, the measures that they will take immediately to protect threatened jobs and support the continuing industrial production of steel in the UK, and also to provide a timeline for the delivery of that support.

Last week, Tata Steel announced its intention to consult on the mothballing of its Dalzell—Members should note the pronunciation of that; I was glad to note that Conservative Members managed to pronounce it correctly—and Clydebridge facilities, with the potential loss of 270 Scottish jobs. Each one of those jobs supports a further three in the wider economy, which serves as a reminder that closure of the two facilities will be felt not just locally, but much further afield. I intend to allow my hon. Friends who represent the communities involved to speak at greater length about the impact of last week’s announcement, but let me just say this: if there is to be a future for the industrial production of steel in Scotland, the lights at those plants must not go out.

The commitment from the SNP and the Scottish Government is clear. We will work relentlessly, and resolve to do everything in our power, to keep Dalzell and Clydebridge open. I am pleased, therefore, that the Scottish Government have assembled a cross-party, multi-agency Scottish steel taskforce, and that our First Minister has visited both sites affected. All members of the taskforce will work to explore a future for the facilities—and, unlike the Conservative party, I can say that that includes the trade unions.

I also welcome the commitment from Tata Steel to work with the Scottish Government to find an alternative operator. The plants at Dalzell and Clydebridge are powerful assets, with a labour force who are highly experienced in the processing of steel for use in military products as well as in the offshore oil and gas industry. The economic climate may be challenging, but I am confident that my colleagues in the Scottish Government and their agencies will do everything in their power to protect jobs and see production continue.

[Michelle Thomson (Edinburgh West) (Ind)]

Will my hon. Friend give way?

[Hannah Bardell]

I would like to make some progress.

Wherever the endeavour to save these plants may lead and whatever the outcome, our first consideration will always be the affected communities. Every job lost and every single redundancy tells its own personal story. For the communities of Motherwell and Cambuslang, which have been home to the facilities for generations, the news could not have been more devastating, and the workers and families face a very anxious and uncertain time ahead. Modern apprentices starting their careers face losing the opportunity to learn a trade in an industrial setting. Workers who have dedicated 30 years and more to these plants face losing their livelihoods and a nation faces losing a key part of its industrial heritage. I am conscious that these emotions are being felt not just in Scotland, but across the communities of south Yorkshire, the west midlands and Scunthorpe, all of whom have been subject to similar announcements and job losses at steelworks. On behalf of my hon. Friends on the SNP Benches, I express our solidarity with those workers across the UK who have an uncertain future ahead of them.

The primary challenge to Scottish, English, Welsh and, indeed, European steel is a common one. As the OECD has identified, excess global capacity is expected to widen to 645 million tonnes above demand this year. Much of that has been driven by rapidly expanding Chinese steel production. Although that production predominantly met domestic demand at the outset, since 2010 China has been a net exporter of steel. Since 2013 a near-collapse in domestic demand for steel in China has led to a dramatic increase in Chinese steel exports. Indeed, Chinese steel exports are likely to exceed 100 million tonnes this year. If we are to see a correction of global supply, it will be largely incumbent upon China to reduce capacity. In China’s case, that might need to be by as much as 30%, some way above its current target of a reduction of 80 million tonnes of overcapacity by 2017.

[Simon Hoare (North Dorset) (Con)]

Will the hon. Lady give way?

[Hannah Bardell]

No, as many Members wish to speak in the debate.

European-produced steel is unable to compete with such alternatives. As an illustration, according to recent data from the Steel Index, European-produced domestic hot-rolled coil at €415 a tonne is at a €53 premium compared with export prices from China. The presence of excess Chinese steel in European markets requires urgent redress, and I welcome the attention paid by the European Commission to the issue over the past year. There is some evidence that the anti-dumping duties are having some success, and there may well be a case for further action. I urge the Government to participate fully with our European partners in co-ordinating what that further action might be. However, in this endeavour I would also encourage the Government to consider carefully the impact of further anti-dumping duties on the global price competitiveness of European-produced steel.

I was pleased to note that the Secretary of State for Business, Innovation and Skills has belatedly recognised the importance of working with European partners to address the issues of dumping and overcapacity. Today’s press release from his Department triumphantly announces:

“Business Secretary to put steel top of Brussels agenda.”

While I would not wish to rain on the Secretary of State’s parade, I am sure that when he arrives in Brussels he will find the EU Commissioners quite well-versed, given that they have been taking action on these issues for over nine months. I had also hoped, given the impact on the Scottish steel industry, that the Secretary of State might accede to the request from the Scottish Government to be represented at the discussions in Europe today, and I am disappointed that the Scottish Government have once again been frozen out of fighting Scotland’s corner.

[Mr Kevan Jones]

On a point of order, Madam Deputy Speaker. I note that the Secretary of State has now left the Chamber. I might be an old-fashioned fuddy-duddy, but I thought there was a convention that a speaker should stay for at least the next two contributions before leaving the Chamber.

--- Later in debate ---

[Madam Deputy Speaker]

Order. I think we have dealt with this. I call Hannah Bardell.

[Hannah Bardell]

Thank you, Madam Deputy Speaker. Not only is there disrespect in Europe; there is disrespect in this Chamber. Members on the SNP Benches and people across Scotland may well ask what of the much-lauded respect agenda.

On Government support for the industry, we welcome the positive developments over the last week and welcome the Government’s commitment to the implementation of an energy compensation package to bring down the cost of energy to that enjoyed by rivals, the reduction of business rates in line with those of competitor countries, and more time to meet directives on emissions. I would, however, echo the note of caution from Gareth Stace, director of UK Steel, who told the Business, Innovation and Skills Committee yesterday that

“time is not on our side”.

The issues facing the industry in the UK are pressing and I would encourage the Government to outline today when they will bring forward promised measures to pre-empt any further damage to the UK industry or to jobs. These measures will, of course, be short-term support for the industry to weather what is a tumultuous period, but continuing industrial steel production in the UK in the long-term will not be ensured by a business rate cut here, a delayed emission deadline there or prolonged protectionism from the European Commission.

The Clydebridge steelworks that has been designated for mothballing first opened in 1887 as a giant of industrial Scotland. The steel plates it made were used in many of the most famous ships ever built—the Lusitania, the Mauretania, the Queen Mary and the Queen Elizabeth. The Dalzell works can trace its history to the 1870s. Scotland once had a proud and distinguished industrial heart, but I fear that for much of the latter half of the 20th century Scotland’s industrial story became one of decline.

This idea is encapsulated in a seminal hit—[Interruption.] Hon. Members should listen because I am making an interesting point. This idea is encapsulated in a seminal hit by one of Scotland’s favourite bands, The Proclaimers —if any Members do not know them, they should listen. “Bathgate no more”, goes the lyric, as the Leyland plant closed in 1986; “Linwood no more” as Hillman cars factory closed; “Methil no more” as the fabrication yards that assembled the North sea’s greatest rigs closed. My own grandfather spent a good part of his career at Leyland in Bathgate and I do not want a new generation of Scots to pen songs describing further decline in Scottish industry.

For the time being, the economic powers that Scotland needs to reindustrialise for the 21st century remain with Westminster, but successive Westminster Governments of all colours do not boast a proud record on stewardship of Scotland’s industry. I implore the Government to work with the Scottish Government to enable the development of a coherent, visionary industrial strategy for Scotland. What a refreshing change it would be to be able to help our industry thrive and not just survive, to innovate, to compete and to succeed, rather than stepping in and picking up the pieces when the jobs are lost and the damage is done.

I will conclude my comments the way I started them: by paying tribute to the workers, their families and the communities affected. We salute their resoluteness in this period of adversity. We stand with them in solidarity as they face uncertain and anxious times, and we on these Benches want to reassure them that the SNP Scottish Government will leave no stone unturned in seeking to keep Scotland’s steelworks open and Scottish steelworkers in jobs.