Oral Answers to Questions

Debate between Holly Mumby-Croft and Lee Rowley

Tuesday 7th June 2022 Commons Chamber

[Kate Griffiths (Burton) (Con)]

16. What steps he is taking to support the manufacturing sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

Manufacturing —from the heaviest of our industries to our most modern fourth industrial revolution factory—is the bedrock of our country’s resilience, and we are committed to supporting it. This year, we will launch a new manufacturing investment prospectus to promote the UK as the destination of choice for investment, and to signpost the support available to businesses.

[Holly Mumby-Croft]

Decarbonisation and the production of green steel represent a huge opportunity for steelmakers such as British Steel in Scunthorpe. Steelmakers are raring to go, but they need further policy guidance before they invest. Can my hon. Friend reassure me that he will continue to work closely, in the excellent way that he has done, with steelmakers to ensure that they have the guidance they need to reach those goals?

[Lee Rowley]

I can absolutely reassure my hon. Friend that we want to continue to work with British Steel, and with her—she is a champion for Scunthorpe and the surrounding communities—to ensure that it has a strong future, and to plot a pathway to treading more lightly on the earth.

Oral Answers to Questions

Debate between Holly Mumby-Croft and Lee Rowley

Tuesday 11th January 2022 Commons Chamber

[Lee Rowley]

As the hon. Lady will know, because we have talked about it in other debates, the Government continue to look at options on this. We have very regular engagement and interaction with the steel industry, including the Steel Council, and other meetings, including ones just in the last few days. It is important to note the extensive support and help that has been given to energy-intensive industries, including the steel sector, since 2013 and beyond.

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

I thank my hon. Friend for work that he has done for steel. He will know that the Prime Minister himself has stood in this Chamber and spoken about the unfair historical energy costs that steel industries have faced in this country. What conversations need to take place between BEIS, the Treasury and No. 10 to bring forward a solution so that my world-class steelmakers can get on a fair footing?

[Lee Rowley]

My hon. Friend is an absolute champion for her constituents in Scunthorpe and for the continuing success of the steel industry in that area. We continue to work very closely with our colleagues across Government to determine how we can provide support and look at options around the temporary issues that have been caused in the past year or so and then the longer-term issues. I would be happy to talk to her further.

Energy-intensive Industries

Debate between Holly Mumby-Croft and Lee Rowley

Wednesday 24th November 2021 Westminster Hall

[Lee Rowley]

I am grateful for the hon. Gentleman’s intervention. I do acknowledge the challenge of the Grangemouth plant and the excellent work that goes on there. I have spoken to INEOS on several occasions since taking up my post. He and his colleagues have contributed to the carbon capture and storage debate actively and noisily over the past few weeks. He knows that an initial two sites have been announced and the intention is to have four by 2030. The Minister of State, Department for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands) has articulated that we want to continue to work with the Scottish cluster to see what is possible there.

I want to touch on a number of points that individual Members made. My hon. Friend the Member for Stoke-on-Trent South rightly highlighted—along with many Members—the challenge of energy prices. We acknowledge and accept there are challenges with energy prices. My hon. Friend the Member for Scunthorpe highlighted price spikes noted in just the past few days. From conversations I have had, this debate and wider discussion within industry, we know that there are challenges. I thank colleagues, unions, industries and trade bodies for articulating that in recent months.

There is significant price volatility, which it is important to acknowledge. Prices have spiked and started to float down over recent weeks. I hope all Members would accept that in the past two years alone we have had very low prices and very high prices. We are at a particular place in the market at the moment.

[Holly Mumby-Croft]

Will my hon. Friend comment a little more on those lower prices? Although we might have seen lower prices, we are still at a significant disadvantage in the steel industry compared with competitors in the EU. Although he has made an important point, it does not negate the issue we are talking about.

[Lee Rowley]

I am grateful to my hon. Friend for her intervention. She is right to point out that there two factors here. One is the volatility and how the price has moved and the second is the compactor. The latter point is well made by colleagues from all parties. I know hon. Members will acknowledge that we have provided more than £2 billion of support in under a decade in price-release schemes for energy-intensive industries. I accept that there are significant concerns about the position we are in and where we are seeking to go. I hope that that will be acknowledged and contextualised within that reality.

When formulating where we do or do not go in future, I hope hon. Members will accept that the situation is extremely complicated. We have a very diverse group of energy-intensive industries—more than 70 sectors—as the hon. Member for Southampton, Test highlighted. We have a range of exposures, challenges around efficiencies and hedging strategies. My hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) pointed out the challenge of hedging strategies in recent months. Other forms of mitigation might be possible.