Steel Industry: Wales

Holly Mumby-Croft Excerpts

Wednesday 21st February 2024 Westminster Hall

[Sarah Jones]

Obviously, we need to wait and see if there is a change of Government, and we would not assume that. Many of us are in constant conversation with Tata and the unions about the way forward, and we are also talking to the Government about a different approach. We are doing everything we can from an Opposition point of view, but obviously the Government hold the reins at the moment.

[Holly Mumby-Croft (Scunthorpe) (Con)]

The hon. Lady makes mention of talking to Tata, and presumably that has been ongoing for some time. Can she be very clear whether her understanding is that Tata would have removed all its UK-based jobs had it not been able to reach a deal with the Government for some support at Port Talbot?

[Sarah Jones]

That is not my understanding—no. What we are trying to focus on in any conversations we have about any industry on steel is what the future is and where we go from here—that is the important question.

My advice to the Minister is to go to the hon. Member for Ashfield (Lee Anderson) and talk to him about when he worked down the mines, and what happened to his communities when the mines shut—the cliff edge, the redundancies, and the closure of all the community assets that went with it. That is what we risk doing in Port Talbot with the cliff edge that we face—nearly 3,000 jobs, as well as the huge knock-on impact of one job in the plant linked to three jobs in the community. Let us not lose 3,000 jobs in Port Talbot. Do not spend half a billion pounds on that. Let that not be the Government’s legacy.

It is not too late; there is an alternative that we could all work towards. The multi-union plan helps us to transition in a way that protects jobs. That is what the Government should be talking about to Tata. It is not too late for the Government to have a steel strategy, to spend taxpayers’ money in a way that works for the UK, our economy and our security, and to listen to their own work, if not Labour’s. The Government’s 2017 review, “Future capacities and capabilities of the UK steel industry”, identified the barriers to growth: supply chains, competitiveness, skills, and research and development capability. Has the Minister read that? What is the Government’s response to that review from 2017? It could do with an update now but the basics are there. The Harrington review is clear:

“The reality is that many of our competitors chase investments via their industrial strategies backed by substantial government support…The UK needs to respond.”

Has the Minister read the Harrington review and what is the response on steel? What is the Government’s steel strategy?

Ministers talk about how important scrap is going to be, and of course it is for electric arc furnaces, but how are they incentivising measures to keep our scrap here rather than exporting it, which is currently the case? Ministers talk about how we need new technology, but electric arc furnaces are not really the new technology any more—they are years old. What are we doing to take us towards a direct reduced iron facility in the UK using hydrogen? What is the plan? What is the plan to grow the steel industry and where is the ambition? What are the Government doing about carbon border adjustment mechanisms? The steel industry will be exposed to unfair competition, so what is the Minister going to do about that? What is the plan on skills, and what is the Government’s view of the multi-union plan for steel in Port Talbot?

Many of the manufacturing industries that I meet across different sectors are at a crossroads. Bills are high, there is no strategy to support them, they are reducing their output and they are struggling to find people to work with them. The steel industry in Wales is a case in point; the Government’s last-minute, chaotic deal was a masterclass in how not to run the transition. Members across the House are worried about the future of the UK steel industry. Members across the House do not want thousands of steel workers to lose their jobs.

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[Dame Nia Griffith]

Will the Minister give way?

[Holly Mumby-Croft]

Will the Minister give way?

[Ms Ghani]

I will give way to the hon. Member for Llanelli and then to my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft).

[Ms Ghani]

Energy prices are a component. There is also the challenge that customers and users are seeking cleaner steel and the challenge of managing blast furnaces that are coming to the end of their life. It is a complicated scenario, but, because of the support that we have provided and the transition board that is focused on supporting the staff, there will continue to be steelmaking in Port Talbot.

[Holly Mumby-Croft]

Can I be clear in my understanding? In the negotiations with Tata—my hon. Friend has talked about the £500 million support package—did the Government get a deal, an understanding, some certainty over when the blast furnaces would be switched off as part of that deal?

[Ms Ghani]

My hon. Friend is far more knowledgeable on steel plants and steelmaking than I could ever be. The discussions continue. There is a consultation taking place. I was with the unions this week. They will continue to push their plans, which Tata has made clear are neither credible nor economically viable. But within those plans there is a proposal that electric arc furnaces will be upstream, not years away but in a couple of years’ time, which also gives assurances to the supply chains. My hon. Friend knows that the negotiations continue with British Steel and she will probably want to intervene on me later. A huge amount of support was provided by Tata and the transition board, which makes this a far easier programme of work to manage.

Tata has seen a decade of financial losses, with the Port Talbot plant reportedly losing £1.5 million every day. As I mentioned earlier, those challenges stem from complex international dynamics. China’s long-standing practice of flooding the global steel market with subsidised products has been a significant factor. Despite our efforts to mitigate the impact of cheap imports through domestic measures and challenging unfair practices internationally, we cannot ignore the harsh economic reality.

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[Ms Ghani]

I will go on to answer that point. We have provided support for the energy costs of high-energy industries, and the supercharger initiative is coming down the line, but I will reflect on that point shortly.

The reality is that the Port Talbot plant would have been in jeopardy. Its closure would have had devastating consequences for the town and would have posed a serious threat to the UK as a whole, endangering the 8,000 jobs provided by Tata Steel across the country and numerous small businesses in the steel making supply chain.

[Holly Mumby-Croft]

Will the Minister give way?

[Ms Ghani]

I will in a moment.

I am on record as having had a regular, constructive relationship, so it disappoints me when Members come to this place and do not accept the reality of what was taking place in Port Talbot. If we had not provided support—the biggest support we have provided to the steel sector—there would have been a devastating effect on the entire 8,000 jobs.

[Ms Ghani]

There is a queue.

[Holly Mumby-Croft]

I asked the shadow Minister whether all the Tata Steel jobs in the UK would have been at risk if a deal was not done at Port Talbot—presumably, that is where the “5,000 jobs saved” figure comes from. Will the Minister be very clear that her understanding is not the same as the shadow Minister’s understanding? I think her understanding is that all 8,000 jobs would have gone.

[Ms Ghani]

I thank my hon. Friend for putting that on the record. I am not sure what evidence the hon. Member for Croydon Central has that the plant would not have been under threat. When Tata circulated information prior to our debates or made announcements, it said that there was an absolute threat to Port Talbot and the company. The reality is that if we did not provide that support, there was a risk of losing all 8,000 jobs.

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[Ms Ghani]

Three million tonne electric arc furnaces do exist in other parts of the world; it is not a unique capacity of arc furnace. I spoke to the unions on Monday, so I know that they are continuing to put their plans forward. Let us see what happens in the next few weeks.

I think everyone recognises that a transition has to take place. We have talked not only about supply chain resilience, but about how we can use scrap steel in electric arc furnaces as technology moves forward. Tata has confirmed that it will observe 90% of its supply chain contracts.

[Holly Mumby-Croft]

Has the Minister’s Department carried out any work on the quality of scrap in the UK? I keep hearing about tonnages of scrap, but I do not think that anyone knows—or perhaps they do—what that scrap is made up of or whether it is suitable to go in electric arc furnaces.

[Ms Ghani]

My hon. Friend raises an important point. UK Steel and a number of other umbrella organisations have done a huge amount of work in this space, including with universities in Wales, and they have huge confidence that we could retain most of the 11 million tonnes of scrap steel that circulates in our economy and the 8.2 million tonnes that is exported overseas for use in the electric arc furnaces. Technology will move forward as well—it never stands still—but Tata is confident that it can meet 90% of the contracts it has in place at the moment.

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[Ms Ghani]

This is a decision for Tata to take. It has made it clear that the offers put forward by the unions are not really credible, because it does not think they enable a transition without a huge amount of losses, so they are not financially credible. However, the consultation is taking place. It is not that I just met the unions this week: I meet them regularly and obviously I attend the transition board as well. The consultation is to ensure that Tata can make the right decision, and one would hope that it does that in consultation with the unions and with their overall support, accepting that it is incredibly challenging when we are talking about any level of job losses.

[Holly Mumby-Croft]

The Minister says it is a decision for Tata to make, which I absolutely understand, but as the UK Government are putting in half a billion pounds of funding and investment support, do we not have some say in that decision as well?

[Ms Ghani]

We cannot force Tata. We put the support package in place when Tata said that it was struggling and making losses of over £1 million a day, but we cannot insist that Tata continues. We have provided an offer of support, and we want to ensure that the least amount of people are impacted, that the transition board provides support for those impacted, that supply chains continue to be resilient, and that any decision Tata takes to transition is one that meets the framework it puts forward. For example, if Tata plans to continue with its plan for a 3 million tonne capacity electric arc furnace by 2027, we need to ensure that all the milestones are met.

I want to touch on the issue of procurement, which we really have to address. First, less than 1% of UK steel is needed by the defence industry, and it has nothing to do with Port Talbot. This Government have implemented the procurement pipeline, which I was committed to doing when I became the steel Minister, to encourage our steel producers to access more contracts. In the last reporting year, there was an increase in the value of UK-sourced steel, from £97 million to £365 million. It is important to put that on the record, because Ministers say that they will try to increase UK procurement and we have most definitely done so.

I am worried that we are going to run out of time. The reality is that without our support there would have been a serious conversation fundamentally about the loss of 8,000 jobs at Port Talbot. I appreciate that the Opposition cannot understand the realities of business, but under Labour employment in the UK steel industry was cut back by more than half, or 40,000 jobs. Obviously, the Opposition do not appreciate the number of jobs that we hope to have saved.

We understand that Tata’s announcement will come as a heavy blow to the people of Port Talbot, but I recognise that everyone present accepts that we cannot stop the clocks. Technology has moved on. There has to be a transition, and this is a transition in which the majority of jobs will be supported with a substantial sum of money, and of course by the transition board as well. The transition we are talking about is one that enables us to adopt new technologies, with even more allowed to be adopted further down the line. It prevents the further loss of profit and prevents a dependence on imports going forward because we can use scrap steel within our own economy.

I assure the hon. Member for Llanelli that we are committed to working with Members throughout the House to realise a brighter future for our steel-making industry. If the options proposed by Opposition Members—whether it is the £28 billion or the £3 billion—were seen as serious and credible, I am sure that Tata would have taken heed of those support packages. Obviously it thought either that they were not credible or that they would not enable it to continue to do what it wanted—to transition to electric arc furnaces—and that they could have meant even more job losses in Wales and across the UK.

Protecting Steel in the UK

Holly Mumby-Croft Excerpts

Tuesday 23rd January 2024 Commons Chamber

[Holly Mumby-Croft (Scunthorpe) (Con)]

The news from Tata Steel is extremely concerning, and it leaves Scunthorpe as the last place in the whole of the UK that is able to make virgin steel. It is incredible to me that I am here again making the argument to retain the UK’s virgin steelmaking capability. There have been challenges from across the House on those views, so I will go into detail about some of those challenges.

Some people seem to think that we can make whatever we need in an electric arc furnace. It is true that the range of products is increasing all the time and will continue to expand, but those products are dependent on scrap and all scrap is not equal. We may have the correct tonnage of scrap in this country, but no one has yet convinced me that it is the correct quality of scrap. That is a really important point that we need to recognise.

People have said that we do not export iron ore from this country. That is incorrect; we do export iron ore as a country. People say that we do not have coking coal capability in this country. That is incorrect, because there is a perfectly good metallurgical coal mine in Cumbria waiting to be used. Some will make the argument about reducing the carbon footprint of steel products, using a purely electric arc model, to which I would again point out that many products melted in an electric arc furnace require an input of virgin steel in the mix. People on the works have told me—I listen to them because they know their stuff—that some of those products that they want to make in an EAF will need 30% virgin steel in the mix.

[Andrew Percy]

Is it not then clear that, given what my hon. Friend has said, it is vital that the Government negotiations with British Steel retain that virgin steel capability?

[Holly Mumby-Croft]

My hon. Friend, who knows a great deal about steel, is absolutely right. We need to remember that if we are not making that virgin steel here in the UK, it will come from someone else’s blast furnaces, probably from the other side of the world. We will have no control over the emissions or how that steel is produced. We will have no control over the welfare of the people who make it. The steel will then be put on a ship—a ship with a diesel engine, not a sail—and driven over here to be thrown into our electric arc furnaces to make that mix.

[Sir John Hayes]

My hon. Friend is absolutely right. The more that we make in this country—the more food we grow; the more products we produce—the more essential our manufacturing base becomes, and not just for our economic resilience and wellbeing, but for our move to this wonderful carbon-neutral future, which is so beloved of so many.

[Holly Mumby-Croft]

My right hon. Friend is correct. Put simply, unless we are going to stop using virgin steel in this country, we should have the ability to make it ourselves, so that we can take responsibility for those emissions and for the production methods, and for the working conditions of those who make the products.

Last week, my right hon. Friend the Secretary of State for Defence remarked that we are entering a pre-war world. A strong—or at least “in existence”—steelmaking industry is a core part of our nation’s defence capability. We may choose to buy the steel that we need for our defence from other countries—whether or not I agree with that—but resilience is not only about what we choose to do in future; it is also about what we may need to do, or what we may need to have the capability to do should the need arise.

On 18 September, I asked my hon. Friend the Minister for Industry and Economic Security whether she agreed that

“for national security reasons alone, we must ensure that we retain the capability to make virgin steel in this country”.

As I said in the urgent question that I later secured, that was confirmed to me by the Secretary of State the very same day, and I took contemporaneous notes of that conversation. On 18 September, my hon. Friend the Minister commented that I was correct on the importance of virgin steel, stating:

“obviously, we need a place for virgin steel, and that is in her constituency.”—[Official Report, 18 September 2023; Vol. 737, c. 1125.]

I have no problem with building electric arc furnaces—it is a good idea—but I passionately believe that the UK should retain, at least in the medium term, some blast furnace capability alongside that. After the sad news in Port Talbot, that has to be in Scunthorpe.

On 6 October, British Steel set out its plans, which it says are subject to appropriate support from the Government. They are the content of the negotiations that my hon. Friend is working so hard on. They talk about installing two electric arc furnaces, one in Scunthorpe and one in Teesside, and they propose maintaining current operations until a transition to electric arc steelmaking.

I want to be crystal clear: I expect the company to keep to its word on this. If we are to give British Steel hundreds of millions of pounds of public money, we need to ensure that it retains those blast furnaces until the transition. In short, that must be written into the deal. I do not want the sad events happening in Port Talbot to happen to my people in Scunthorpe. I do not want to see blast furnaces switched off early and steel being brought in from abroad and rolled in our mills. I want those blast furnaces to be on for as long as possible, maintaining jobs and keeping options open, so that we can explore alternative technologies, just as other countries are doing.

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[David T. C. Davies]

The Welsh Government have made it clear that they are not able at the moment to put in the sort of money that would be needed to come up with any kind of different plan. There is no other plan on the table, which is why we find ourselves in the situation we are in.

I will turn very quickly to a couple of points that were made. First, on primary or virgin steel, obviously all the iron ore and coal used in the plant is being imported. We are, therefore, at this moment, dependent on other countries for our virgin steel capacity. The advantage of an arc furnace, although this is not the situation that I want to be in, is that we would not be dependent on foreign countries for the supply of steel because, as the Minister for Industry and Economic Security, my hon. Friend the Member for Wealden (Ms Ghani) pointed out, we currently export 8 million tonnes.

[Holly Mumby-Croft]

Will the Minister give way?

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Wednesday 13th December 2023 Commons Chamber

[The Prime Minister]

We have a long-standing principle that anyone bringing dependants to the UK must be able to support them financially. We should not expect this to be done at the taxpayer’s expense. The threshold has not been raised in over a decade and it is right that we have now brought it in line with the median salary. The family immigration route does contain provision for exceptional circumstances, as the right hon. Gentleman knows, but more generally it is also right to look at transitional arrangements to ensure that they are fair, and I can tell him that the Home Office is actively looking at this and will set out further information shortly.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Q11. I make no apology for once again raising the issue of steel—[Hon. Members: “Hear, hear!”] We are now at serious risk of losing the ability to make virgin steel here in the UK. I know that the Government are working hard on this, but it is a matter of national security and we need the Prime Minister’s leadership on this issue. What is he doing to ensure that we are able to make our own virgin steel and that we do not lose it on his watch?

[The Prime Minister]

I praise my hon. Friend’s leadership in championing her local community and also the steel industry in the UK. She is right to do so, because it is an incredibly important part not just of our local communities but of our economy and security. She is right to put this issue on the agenda.

We are committed to working with the steel sector to secure a decarbonised future, supporting local economic growth and our levelling-up agenda. That includes our commitment to major support with energy costs and also access to hundreds of millions of pounds of grants to support energy efficiency and decarbonisation. I obviously cannot comment on conversations with individual companies, but my hon. Friend can see from our track record on working with either Celsa or Tata Steel that we have been able to support our fantastic steel industry, and we will always continue to do so.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Wednesday 15th November 2023 Commons Chamber

[The Prime Minister]

I have been consistent from the start that while Israel has a right to defend itself, it is important that it complies with international law. It is a point I have made in every meeting or phone conversation I have had with Prime Minister Netanyahu. It was a privilege to meet the hon. Lady’s constituents and to hear of the pain they are going through, which I have enormous sympathy for. That is why we are doing everything we can to bring hostages home. We are engaged intensively in diplomatic activity in the region and working to get foreign nationals and British nationals home, and I am pleased to say that well over 200 have now left Gaza. We will continue to do everything we can to ensure that everyone can safely leave who needs to.

[Holly Mumby-Croft (Scunthorpe) (Con)]

The Prime Minister knows that I stand unapologetically with my steelmakers in Scunthorpe. He knows that I believe, as many across this House do, that the UK must retain a virgin steelmaking capability, for strategic reasons if nothing else. Will he reassure the House that he is personally following developments at British Steel and doing all he can to retain what is a vital sovereign capability?

[The Prime Minister]

My hon. Friend is a fantastic champion for her local steelworking community. I hope she is reassured by the action that this Government have already taken to support steelmaking in our country, reaching a landmark agreement with Tata Steel to safeguard thousands of jobs there, as well as during the pandemic. I agree that it is important for our industrial base, and we will continue to have constructive conversations with all those companies to ensure that we can support them in their transition to a cleaner, greener steelmaking future.

British Steel

Holly Mumby-Croft Excerpts

Wednesday 8th November 2023 Commons Chamber

[Holly Mumby-Croft (Scunthorpe) (Con)]

(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on the announcement made by British Steel on 6 November, and provide an update on the negotiations between British Steel and the Government, and on the Government’s position on virgin steelmaking in the UK.

[The Minister for Industry and Economic Security (Ms Nusrat Ghani)]

Steel is vital to the UK economy. I fully recognise the importance of British Steel to local communities, particularly in my hon. Friend’s Scunthorpe constituency, where the company is a major contributor to local economic growth, and where she campaigns incredibly hard for steelworkers.

Global conditions have been tough for steel companies around the world. That is why we have changed the competitive landscape for British Steel and other energy-intensive industries by announcing the British industry supercharger—a decisive package of measures to reduce the long-term electricity price gap that exists between UK energy-intensive industries and competitor countries. That support will mean that strategically significant UK industries, such as steel, are safeguarded against the high industrial electricity prices that they have faced in too many recent years. We have also provided over £730 million in energy costs relief to the steel sector since 2013, in addition to the energy bill relief scheme. Steel producers will continue to receive support until 31 March 2024 through the energy bills discount scheme.

As my hon. Friend is aware, the Government made an extremely generous offer of support to British Steel earlier this year to help it to invest in a decarbonised and sustainable future. We have continued to work intensively with British Steel since then and will continue to do so. However, she will also understand that the detail of those conversations remains highly commercially confidential and that any public discussion risks undermining talks.

I know that this must be a deeply concerning time for British Steel employees and others in Scunthorpe following the company’s announcement on Monday of its plans for future operations. I can very much assure my hon. Friend that we will help affected workers and their families, and that we are committed to finding solutions to enable the ongoing sustainable and decarbonised production of steel. Just last month, for example, we announced a £1.25 billion joint-investment package with Tata Steel to secure a decarbonised future for steelmaking in Wales. That has the potential to safeguard several thousand jobs across the UK. In 2020, the Government provided an emergency loan to Celsa Steel to help it continue trading during the covid pandemic, saving over 1,500 jobs, with a further 300 jobs created since the loan was made.

[Holly Mumby-Croft]

I stand absolutely unapologetically with steelmakers and my community today, and I do not support these moves. In this Chamber on 18 September, I asked the Minister for Industry whether she agreed that we need to retain a virgin steelmaking capability in the UK for strategic reasons alone. She said

“obviously, we need a place for virgin steel”—[Official Report, 18 September 2023; Vol. 737, c. 1125.]—

and that that place was Scunthorpe. That was reiterated the very same day by the Secretary of State, and so pleased was I with the comments that she made that I took contemporaneous notes of that conversation.

British Steel is a private company and can make business decisions as it sees fit, but I am clear that if it is seeking hundreds of millions of pounds of public money, the Government must leverage that money to protect steelworkers’ jobs and maintain our sovereign capability to make steel in the UK. Electric arc furnaces melt scrap; to make virgin steel from scratch, we need blast furnaces. Can the Minister tell the House how the UK will make virgin steel if all our blast furnaces are decommissioned? Can she tell us how many countries in the G20 are unable to make their own virgin steel? Would the Government be comfortable with us being entirely dependent on foreign imports for the virgin steel we will continue to need in this country?

Will any financial support offered to British Steel seek guarantees on steel jobs and lock in, as a minimum, an interim period of blast furnace production to allow us to explore green options to run them? Did the Government know that this announcement from British Steel was imminent? When will I get a response to my letter of 29 September to the Secretary of State? Why did the Department not contact me until 5 pm on Monday, when I was sent simply a short text message? What support is the Minister offering our excellent North Lincolnshire Council, which is proactively working with British Steel to bring additional green jobs on to the site? This Government have a good record on steel—they have paid workers’ wages. Can the Minister confirm that steel remains high on the Government’s agenda?

I have 3,500 of the world’s finest steelmakers in my constituency. It is my privilege to come out and bat for them today. Thank you, Mr Speaker, for allowing this urgent question.

[Ms Ghani]

My hon. Friend makes lots of very credible points—there is very little for me to disagree with. She does indeed make representations at the highest levels of Government, and her priority has always been steelworkers; she has never played politics with that role. I put on record my apologies if I have not done due diligence and provided the public service that she should have received by being contacted much sooner on that particular day. There is nothing she could say that I would not be telling myself off for even more, and I hope I will not fall short in communications going forward.

My hon. Friend is absolutely right: I did indeed say at the Dispatch Box that my personal opinion is that there is a strong place for virgin steel production in this country, and that, of course, is in her constituency. We are in the middle of live negotiations, and any decision taken by British Steel is a commercial decision. My hon. Friend is also right that we are able to carry out due diligence on any support we provide; it is taxpayers’ money, and our primary focus is to safeguard the sector and jobs, including in her constituency.

My hon. Friend is right to note that we have prioritised the UK steel sector, and we will continue to do so. We need to provide it with support as it transitions, because that is also a choice being made by manufacturers, customers and consumers who are looking for greener steel going forward. Any decision we take and any support we provide will be to ensure that the sector is sustainable and competitive. We want the sector not just to survive, but to thrive.

My hon. Friend spoke about the support we have provided to the sector to date. We have provided hundreds of millions of pounds of support to British Steel to deal with its emissions, and over £730 million in energy cost relief to the steel sector since 2013. We have put the supercharger in place, as well as the steel procurement policy note, which does its very best to ensure that we procure more steel here in the UK. We have provided support to Tata to ensure that that part of the country can continue to make steel and to protect those jobs, and we have provided support to Celsa. My hon. Friend talked about the support we are providing to North Lincolnshire generally—there is a huge amount of support there. Since 2018, the Government have committed over £200 million in investment in the north and north-east Lincolnshire area.

I cannot say much more at this time because we are in the middle of live negotiations that are commercially sensitive. When British Steel put out its press release, that was the first time I saw it, but we must recognise that it was a proposal; many things have to fall into place for such proposals to become accurate plans—not only will there be issues around planning, but our negotiations have to conclude as well. I do not doubt that I will continue to lean on my hon. Friend, and that she will continue to champion steelworkers in her constituency and across the country.

Tata Steel: Port Talbot

Holly Mumby-Croft Excerpts

Monday 18th September 2023 Commons Chamber

[Ms Ghani]

There were so many questions, but I will do my best to address the most important ones. Conversations at Port Talbot have been going on for years—one could argue more than a decade. It is not news that the site needed financial support to ensure that it continued to be viable. Steel companies lose more than £1 million a day producing steel, and it is no longer viable without Government support. That is a route that many countries have taken.

The blast furnaces in Port Talbot can be operated for 15 to 20 years only before a major investment decision is reached, either to be relined or to be rebuilt. There was a very tight timeframe; it was important to find alternative energy—electric—to make sure that it would work with the timeframe of the new furnaces coming on site. That is why it is electric, not hydrogen—there are no hydrogen alternatives that can give us the steel that we need on the scale that we need. This is not only a £500 million investment. There is also £100 million to deal with the transition. As I said, the transition board will comprise union members, staffers, the Welsh Government and the Welsh Secretary of State. The conversation will take place, and consultation will occur. Those conversations have been happening for quite some time.

It is important to note that the sector is now secure. In a part of the UK that is incredibly important to us, thousands of jobs will be created—up to 16,000 jobs in the Celtic freeport proposal, which is linked to the renewables at Port Talbot. That will create even more jobs. Any transition that requires a consultation on jobs is always sensitive, which it is why it is important that the transition board will be stood up to provide the support needed. The site needed to make a decision. The best decision was for it to continue to make steel. That is what we will support it to do.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Tata in Port Talbot and British Steel in Scunthorpe are the last two steelworks in this country that have blast furnaces. There is a place for electric arc furnaces, but we need to remember that they melt scrap; they cannot make brand-new virgin steel from scratch; a blast furnace is needed to do that. My hon. Friend made the comment about steel being a strategic industry, and she is right. Does she agree that, for national security reasons alone, we must ensure that we retain the capability to make virgin steel in this country?

[Ms Ghani]

My hon. Friend is absolutely right on the importance of virgin steel production. She is the best champion for her constituency and her steel plant, which is now uniquely positioned as the blast furnace to make virgin steel. That will be important in line with our mantra of “continuity, certainty and security.” Conversations have been taking place with British Steel, the details of which are commercially confidential. My hon. Friend campaigns incredibly hard for the steel sector both in the constituency and across the UK. Those meetings will continue. She is right that, obviously, we need a place for virgin steel, and that is in her constituency.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Wednesday 5th July 2023 Commons Chamber

[The Deputy Prime Minister]

Rather than focusing on playing politics, we are actually delivering for the British people. I listened to the hon. Lady’s litany. I was interested to note that her leader has been in power for 100 days, and what has the SNP’s record been? Three failing First Ministers, two unfinished ferries and a failed deposit return scheme. I think we can all agree that the people of Scotland deserve better.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Q14. Conservative Governments have a proud record of supporting the UK’s steel industry. I have—[Interruption.] I do not know why Labour Members are laughing, because steel production halved under Labour. I have stood up many times in the House to talk about the importance of steel not just to my home town of Scunthorpe but to our whole nation. Does my right hon. Friend agree that we will always need steel in this country and that, if we cannot make it ourselves, we will have to ship it over from the other side of the world, with all the emissions and environmental and ethical concerns that that will inevitably bring? Will he reaffirm the Government’s commitment to taking further measures to ensure that we have sustainable, long-term steelmaking in this country?

UK Car Industry

Holly Mumby-Croft Excerpts

Wednesday 17th May 2023 Commons Chamber

[Ms Ghani]

I am grateful to the Chair of the Select Committee for being here. I was once on his Committee. Overnight, I went through the transcript and some of the submissions to that inquiry, and I noticed the submission from Nissan. I know that nobody wants to pick out all the positive things that were said, but there was a great point on page 4:

“The UK has strong promise as an EV battery production location due to strong demand, a skilled workforce, and attractive manufacturing sites.”

We somehow seem to be forgetting all the positive things that are said in submissions by the automotive sector.

We are working with those in the sector, as I have said. I meet them regularly and was with them just this week to deal with a number of challenges, whether to do with the Inflation Reduction Act or gigafactories. I can, of course, confirm that we are working with industry to do everything we can to ensure that there is greater commitment to gigafactories here in the UK.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Manufacturing and industry in this country are definitely an ecosystem, and when we start to lose chunks of it, that not only devastates communities but affects wider supply-chain businesses. The Minister will know that steel is crucial to car manufacturing. Can she reassure me and my constituents that she is considering those supply-chain businesses and doing everything she can to ensure that we have a level playing field in this country, not just for the steel industry but for manufacturing more widely?

[Ms Ghani]

My hon. Friend is once again the lady of steel, raising the topic on behalf of the whole industry across the UK. She will know about our recent work to look at procurement and the whole lifecycle of supply chains, and to ensure that we are doing everything we can in the UK. She knows about our commitment to the steel sector—we have provided billions of pounds-worth of support for energy costs, and now there is a huge amount of support for decarbonisation—and because of her work, steel will not be left out of any conversation when it comes to advanced manufacturing.

Afghan Resettlement Update

Holly Mumby-Croft Excerpts

Tuesday 28th March 2023 Commons Chamber

[Johnny Mercer]

Nobody who is in Afghanistan who is accepted by, or is eligible for, ARAP or ACRS will be disadvantaged as a result of what we are doing today. The situation in Pakistan, where we have over 1,000 people in hotels waiting to get to the UK, is clearly and demonstrably unacceptable. The challenge is that we cannot do anything about that if we have people in hotels in this country who have been offered accommodation and should have taken that accommodation, but are still residing in hotels, not allowing us to unblock that pipeline.

The hon. Gentleman knows my commitment on this issue, and I want to work with everybody on all sides of the House. I know that this Government have made commitments on this issue, but it is not an inter-party political issue: it is the nation’s duty to this cohort of Afghans who kept a lot of our constituents alive during the fight in Afghanistan. I urge all colleagues to work together to make sure that we can build that pipeline and honour our commitments to the people of that country.

[Holly Mumby-Croft (Scunthorpe) (Con)]

We certainly do owe a huge debt of gratitude to those brave Afghans who helped our armed forces and stood up for the values that we believe in, and I will not be alone in the House in remembering cases of individuals and families my office helped. My right hon. Friend is passionate about this, and he is an expert; frankly, his word is good enough for me on this. Is he absolutely reassured that this is the right thing to do?

[Johnny Mercer]

I have no doubts that it is the right thing to do, otherwise I would not be stood here today. It is an incredibly difficult policy area, so nothing is black and white: there is no zero-sum calculation here where everything we do is going to sort this out, and there is no zero-risk option here. However, that is not a good enough reason to not try to see through our commitments to a very difficult population. I keep hearing “18 months” thrown at me from the other side of the Chamber, but this has been an unprecedented situation. Nobody wanted these people to stay in hotels for over a year. We have clearly opened up these pathways; we want to make sure that these people integrate into UK society properly, and I am absolutely convinced that this is the right thing to do.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Wednesday 22nd March 2023 Commons Chamber

[The Prime Minister]

We are also cutting NHS waiting lists by resolving pay disputes and by getting doctors back to work, and we are stopping the boats with a new Bill to tackle illegal migration. That is a Conservative Government delivering on the people’s priorities.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Q2. I thank my right hon. Friend the Prime Minister for the efforts he has made to support the UK’s steel industry. We remain very concerned about job losses at British Steel in Scunthorpe, so will he today reassure my constituents in north Lincolnshire that we will never see the end of UK steelmaking under his watch?

[The Prime Minister]

The UK steel industry can have no greater champion than my hon. Friend. I know this must be a concerning time for British Steel employees, and we stand ready to work with her to support them. She is right that industrial sectors, including steel, have been able to bid into competitive Government funds worth £1 billion to help support them to cut emissions and become more energy efficient, and the Government’s recently announced British industry supercharger fund can help boost competitiveness in the UK’s key energy-intensive industries. I look forward to working with her to ensure a thriving steel industry in our United Kingdom.