UK Steel Industry

Hannah Bardell Excerpts

Monday 29th February 2016 Commons Chamber

[Kevin Foster (Torbay) (Con)]

How do you follow that? What I would say is that in describing as a “dinosaur” something that would be Britain’s biggest single construction project and would create 25,000 jobs west of Bristol, it comes as no surprise to me that one party is in danger of becoming extinct in the whole of the south-west peninsula.

Why have I, as the MP for Torbay, which has no direct steel links, come along to this debate? It is because the issues raised in this debate impact on us all. I look at some of the firms starting to expand around Torquay, exporting high-tech, high-quality manufactured products, and realise that if China started to move into those markets as it modernises its economy, we could be debating those types of products in a few years’ time and seeing what China might do.

I am interested in the impacts of what we are talking about on the ground. Some concepts can sound rather odd—the idea of a “lesser duty rule”, for example, and the impact it might or might not have in this area. There is a debate to be had about how the European Union can modernise some of its trade defence practices, so that where issues such as this come up, they can be responded to more quickly.

Given the numbers provided by the hon. Member for Hartlepool (Mr Wright), it is clear why it is so important that we work as part of 28 states. In view of the sheer scale of China and what it is doing, if we were trying to operate as 28 separate individual states, we would face the danger of each of us being picked off individually, as happened in the 1930s. That would be most worrying for us. It will therefore come as no great surprise to hear that I am one of the remain voters among Conservative Members, and I view it as absolutely right to bring a united front to this issue. We should bear it in mind, however, that not so long ago the European Union was busy dumping surplus agricultural products into the markets of, for instance, African countries. When we request other countries not to dump into our markets, we must also ensure that we in the European Union practise what we preach, and do not inflict on other countries what we are complaining about in relation to some of our own industries. I accept that the lesser duty rule is not making a direct impact in this instance. I am talking about the principle of how the correct tariffs are created and decided, on the basis of advice from industry.

The Government should also think about the way in which our procurement works. I was interested by the response to my intervention on the speech of the hon. Member for Motherwell and Wishaw (Marion Fellows), but I think it is worth pointing out that from the decks of the Queen Elizabeth aircraft carriers in Rosyth, 94% of which were constructed with British steel, it is possible to see a major construction project that is being built with steel from elsewhere in the world.

[Hannah Bardell (Livingston) (SNP)]

rose—

[Kevin Foster]

Let us hear the defence. I will happily give way to the hon. Lady.

[Hannah Bardell]

At the beginning of the hon. Gentleman’s speech, he asked what he was doing here. Perhaps his purpose was to be the proponent of misinformation. I can confirm to him that during the procurement process to secure fabricated steel for the new Forth crossing, no company from Scotland, or from the United Kingdom as a whole, made a bid for the contract. A further subcontract for steel fabrication was awarded to Cleveland Bridge in Darlington, and raw steel was supplied by Tata in both Scunthorpe and Motherwell. I hope that that clarifies the position, and that the hon. Gentleman now stands corrected.

[Kevin Foster]

It was interesting to hear those comments, which sounded very similar to the comments from the Government that the hon. Lady has been attacking.

--- Later in debate ---

[Hannah Bardell (Livingston) (SNP)]

It is a pleasure and a privilege to bring up the rear, so to speak, in such an important debate. If I may be light-hearted for a moment, the hon. Member for Wallasey (Ms Eagle) was challenged to a rugby match at the beginning of the debate, so I am pleased to inform her that I took part in the first mixed rugby match recently, representing the MPs and Lords. I even scored a try. [Hon. Members: “Hooray!”]

The number of debates we have had on this issue and the number of times we have returned to it show the strength of feeling not just across this House, but across the nations of the United Kingdom. It is a pleasure to follow my hon. Friends the Members for Rutherglen and Hamilton West (Margaret Ferrier) and for Motherwell and Wishaw (Marion Fellows), who spoke passionately about their constituencies, as did Members from across the House. My colleagues have been involved in the Scottish taskforce and have done extensive work in engaging with their respective local communities on the future of the steel industry in Scotland and in standing up for their rights and interests. As they said, the steel industry has been at the heart of their constituencies for generations. Our thoughts continue to be with the many towns and communities across the UK that are at the mercy of the volatility in the global steel market and the glut of steel production, as well as the UK Government’s lack of commitment and action.

I pay tribute to the work of everyone on the Scottish steel taskforce, including the union representatives. I am particularly pleased that they have been included in the Scottish taskforce, by contrast with the situation at the outset south of the border. They were at the heart of our discussions and engagement from the very beginning.

Fergus Ewing MSP, my colleague in the SNP Government, is the Minister for Business, Energy and Tourism. He faces many challenges, but he and his colleagues in the Scottish Government and Parliament, including Clare Adamson MSP, who is from a steelworking family, continue to work tirelessly to keep the Dalzell and Clydebridge steel plants open. They are committed to finding a buyer for the sites, continuing commercial production and keeping as many jobs as possible onsite and in Scotland.

The strategic importance of the plants to Scotland and the UK cannot be overstated. It is apparent in the specialist skills and knowledge and the innovative approach that are inherent in Clydebridge and Dalzell. According to UK Steel, the Dalzell plant is the only plant in the UK capable of rolling and processing the steel that is used in the Ministry of Defence’s special armour plate and for certain requirements of the offshore oil and gas industry. The Clydebridge plant specialises in producing difficult-to-make high-strength steels that are used in some of the most challenging environments in the world. We truly have a world-class industry that we in Scotland believe is worth fighting for.

However, when the UK Government are faced with an opportunity to fix the issues, they are flat-footed and seem to shy away. A case in point is the issue of tariffs, which has been discussed extensively this evening. It is shameful that the UK Government have actively blocked the proposals to raise tariffs on Chinese steel. The UK Government confirmed in mid-February that they had blocked proposals from EU members to block the dumping of cheap steel products in the EU by China. The Government’s blocking of the proposal came after the Secretary of State signed a joint letter from European Ministers, pledging

“to use every means available and take strong action”

against China and Russia. He has the means at his fingertips, but he chooses not to use them.

The UK Government must work harder with their European partners to address the dumping of cheap steel in European markets, which is, as we all know, undermining UK steel production. Although 2% of UK steel demand was met by Chinese imports in 2011, that figure has been forecast to rise to 8% this year and next. We are all keen to hear from the Minister on that point.

The message is clear: there are vital skills, innovative approaches, and a unique and distinct heritage in Scotland and the UK steel industry, but how far will the Government go to save it? When I was doing research for this debate, I came across an article in the Scunthorpe Telegraph:

“Scunthorpe’s main steel union Community has slammed Business Secretary Sajid Javid for stating the UK steel industry could not expect to be to bailed out in the same way as the banks.”

A spokesman for the Community union said:

“The Prime Minister himself has said that steel making is ‘vital’ to the UK economy, so these are ill-judged remarks from Mr Javid.”

I could not agree more.

The UK Government have the money, political will and determination to bail out the banks, but they cannot find it in their heart, or indeed their pockets, to support an industry that is of vital strategic importance to our economy. I am not, of course, calling for the nationalisation of steel production assets, but I simply suggest that the Government are short on political will and creativity in supporting the steel industry in its time of need.