UK Steel Industry

Debate between Iain Wright and Huw Irranca-Davies

Thursday 21st January 2016 Westminster Hall

[Mr Wright]

I will come to mothballing of blast furnaces, because that is another key finding by the BIS Committee. We found that job losses, plant closures and factors that have worsened since we published our report just before Christmas mean that the prospect of any future growth in the steel sector had been irrevocably damaged. We regretted that Ministers were unable to prioritise preserving existing capability and retaining skills in the steel sector in particular.

The Minister talks about a blast furnace. The blast furnace at Redcar was one of the most efficient in Europe. My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) talks about it as having been second only to Dunkirk, and he knows more about steel than anyone else I know. However, it has now been lost forever to the British manufacturing base. Why was it not considered for mothballing rather than cold closure? The cost of cleaning up the site is destined to be in the region of half a billion pounds, and that is likely to fall to the taxpayer. It is an absolute disgrace, and our manufacturing base has been forever undermined as a result.

[Huw Irranca-Davies]

What are my hon. Friend’s thoughts about the fact that there was a vote in the European Parliament last Tuesday, when a Labour motion was passed, thank goodness, to look at reviewing the effect on steel of European state aid rules, whereas last December when there was a similar motion—looking at the European state aid rules, but also at the dumping of Chinese steel—Conservative Members of the European Parliament voted it down? What is going on? Why are we catching up? What does it say about the Government that they say one thing here and another in Europe?

[Mr Wright]

That is an absolute disgrace. We should all, regardless of where we sit and to which party we belong, be identifying steel as a major and important foundation industry for the British manufacturing base and having a co-ordinated approach to ensure that we can safeguard and retain those assets and, crucially, those skills as much as possible. If we are moving towards the high-value-steel end, where we are producing steel, metals, and materials that are stronger, more flexible and lighter, we need the skills to be able to do that. The 2,000 people in Redcar are not coming back to the steel industry. The 750 people in Port Talbot will in all likelihood not come back to the steel industry. And the hundreds of jobs in the steel industry that have been lost in my constituency will not come back. That is to the detriment of the British manufacturing base and the future competitiveness of the UK steel industry.