Steel Industry: Contribution to the UK Economy

Debate between Holly Mumby-Croft and Stephen Crabb

Wednesday 25th January 2023 Westminster Hall

[Stephen Crabb]

I accept that point. I remember bringing representatives of Celsa Steel from the constituency of the hon. Member for Cardiff South and Penarth (Stephen Doughty) to meet various Ministers at different points during that period of government. Celsa was incredibly open about opening its books and showing costs to Ministers. The point that Celsa made, when we put in place the support scheme for energy-intensive users, was about the disparity with competitor countries. That is a valid point that the Government should address. We are in an intensely competitive steel-production environment.

I come back to my point. Some Opposition Members hope to be in Government in a couple of years’ time as Ministers. They will have a string of companies knocking on their doors continuously asking for support and help. The trade-offs they will need to make, with regard to responsibility to taxpayers and the public finances, will be difficult. Difficult decisions need to be made. In the case of steel, at times the global challenges have felt so big that the amount of support being sought was almost unlimited. Ministers need to make difficult decisions, but I accept the point made by the hon. Member for Newport East that we need to look at the disparity with international competitors.

[Holly Mumby-Croft]

My right hon. Friend is making an interesting speech. He reflected on previous Governments’ approach to steel. He knows, as we all do, that under the last Labour Government steel jobs and steel production halved. The point he makes about fairness is an important one, and I thank him for making it.

[Stephen Crabb]

I thank my hon. Friend for that contribution. My other argument is about looking forward. I reiterate my remarks about the importance of new green technologies and green industries for the UK economy in the years and decades ahead. British steel has a crucial role to play in that, but that will not happen by accident; it will require deliberate choices on the part of Ministers. We will not capture the full economic value of these new industries by accident. To ensure that we maximise local domestic content and supply chains will require a plan and deliberate choices by Ministers. To that end, I want to talk about the bid by Port Talbot, one of the UK’s most important steelmaking communities.

There is a joint bid by Port Talbot and Milford Haven in my constituency for a freeport—a Celtic freeport that will be used as a platform to help launch a new industry of floating offshore wind. We hope that Welsh Steel will play a key part in the supply chain. I do not expect the Minister to comment on a live bidding process, but I wanted to put that on record. If the hon. Member for Aberavon (Stephen Kinnock) were here, I know he would make the same point. That is a very exciting freeport proposal, with real projects and economics behind it, and I hope the Government will look favourably on it.