UK Steel Industry

Debate between Iain Wright and Nicholas Dakin

Thursday 17th September 2015 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

The debate opened with strong, passionate and eloquent speeches from my hon. Friend the Member for Redcar (Anna Turley) and the hon. Member for Brigg and Goole (Andrew Percy), characterising what is good about the UK steel industry. Their speeches were measured and consistent, showing the overall picture of the future British economy.

We have been here before. We had an Opposition day debate in January on the future of the UK steel industry, in which I stated that we need to focus on the long-term competitiveness of the UK economy and that, as my hon. Friend the Member for Redcar said, manufacturing should be central to our vision for a modern, dynamic and innovative economy. I also said that steel matters as literally the foundation of a 21st century innovative economy, providing high skills and well paid jobs to parts of the country that often suffer in the larger economic picture, and offering a vital role in the supply chain of key sectors such as automotives, aerospace, construction and transport. It is such a significant foundation industry that other parts of our valued economy will build on. The Government need to recognise its importance and work in partnership with it to secure its long-term prosperity.

I am worried, however, that since the debate in January the scale of the crisis facing the industry has become ever more grave and urgent. My hon. Friend the Member for Redcar and the hon. Member for Brigg and Goole outlined the urgent national issues facing the industry, but I want to reiterate some of them. My hon. Friend mentioned the urgent situation facing the SSI plant in Redcar. In the months since we debated the issue in January, we have faced the prospect of the first national steel strike in 30 years. Last month, Tata announced the mothballing of a steel plant in south Wales, risking 250 jobs. The fall in the oil price has put on hold projects in the oil and gas extraction industry, meaning that Tata plants making world-class pipes—such as the pipe mill in my own constituency—and other steel plants face diminishing order books.

The hon. Member for Brigg and Goole mentioned Gary Klesch, who has abandoned his plans to buy Tata’s Long Products Division, including the great plant in Scunthorpe. He said to the Financial Times last month that workers in the UK steel industry were

“being led to the slaughterhouse”

by the Government’s failure to tackle high energy costs and Chinese imports. He asked:

“What is the industrial policy when it comes to the massive dumping of Chinese steel?”

As the hon. Gentleman says, we should doubt some of Mr Klesch’s motives in pursuing industrial assets, and those comments are emotive and provocative, but his comments on industrial policy do smack of some truth and we need to investigate that still further.

[Nic Dakin (Scunthorpe) (Lab)]

The real problem with Mr Klesch’s comments, when he withdrew his interest in Tata Long Products, is the impact they have had on confidence in steel. Does my hon. Friend agree that there is a big job for the Government to do to act to restore that confidence?

[Mr Wright]

Absolutely. I could not agree more with my hon. Friend. He is a passionate defender of the steel industry, not just in his constituency but across the country. He is absolutely right. Industry has a part to play in that, we in Parliament have a part to play in that and the Government also have a role. Government policy is ostensibly about priorities: where to divert attention and resources relative to other things that need to be done.

Other countries recognise the role that steel plays in a modern economy. At one extreme, this can mean renationalising the steel industry, as Italy has done, to safeguard capability for the future. Other Governments try to level the playing field for their domestic industries by addressing costs, taxes, procurement policies and imports to give their domestic steel firms at least a fighting chance. I am concerned that the British Government seem to do the opposite. This is not a personal criticism of the Minister on the Front Bench, who has taken more genuine interest in the steel industry in four months than her predecessor did in four years. She is a strong champion and we welcome her to her post. However, she recognises that the steel industry is facing a perfect storm. UK-based steel firms find it increasingly difficult, if not impossible, to export their products because of overcapacity in the global market, the high valuation of sterling, and uncompetitive costs based on unilateral energy bills and disproportionate business rates. As my hon. Friend the Member for Redcar said, energy prices for UK-based steel producers are 50% higher than for our European neighbours. How can we compete on that basis?

The Government advocate a wholly open domestic market, which leaves the industry vulnerable to dumping and fails to recognise smart local procurement, undermining UK-produced steel. The steel industry has one arm tied behind its back on exports, which, because of overcapacity in the global market, is increasingly difficult, and the other arm tied behind its back on imports. It is little wonder that the industry is punch-drunk and on the verge of a knockout.

I welcome this debate and I agree with the motion’s call for a key summit, but frankly we need more urgent decisive outputs. As Roy Rickhuss, general secretary of the Community union, has said:

“The UK steel industry is at a crossroads. Either it gets the support it needs from government to give it the chance of a competitive future or it continues to be subjected to warm words from ministers in the face of increasing decline.”

I could not agree with him more. On the subject of trade unions, this House debated the Trade Union Bill on Monday. In the Second Reading debate, I said that the Bill’s provisions run the risk of a more adversarial relationship between management and unions. The UK steel industry is characterised by fantastic, positive and productive industrial relations, which we lose at our peril. The UK steel industry will decline if the Bill is passed.

Steel Industry

Debate between Iain Wright and Nicholas Dakin

Wednesday 14th January 2015 Commons Chamber

[Mr Wright]

My hon. Friend, who has been a real champion on this issue, has pre-empted one of my later remarks. His clarification about the contract is absolutely right. This £790 million contract for 37,000 tonnes of steel for the Forth bridge project would have been really helpful in making sure that we had a vibrant long-term steel industry in Scotland, but all the steel came from China and Europe, and certainly none of it came from Scotland. How can that be allowed if we have a real industrial policy? I do not believe in protectionism or bailing out obsolete industries, but Governments of any complexion working with industry and the supply chain to ensure their viability is the key to a modern, innovative economy. Other countries are doing that and so should we.

[Nic Dakin (Scunthorpe) (Lab)]

My hon. Friend is making a powerful argument. Did he notice how the Italian Government stepped forward before Christmas to ensure that their steel industry could carry on into the future and be in a strong position to compete in Europe and the world?

[Mr Wright]

My hon. Friend is absolutely right. Governments, in conjunction with industry, can look at the global steel market, consider where they want to fit into the value chain and how they can exploit it, and work together in a co-ordinated way on research, development, innovation and skills to ensure that they fulfil the potential.

What has happened with long products provides a good example. It is important that this country continues to have a long products capability for domestic and international reasons. It is important that we remain a key player in that area. That is not about helping obsolete, old-fashioned industries; it is about thinking about the future and about how we can exploit the opportunities. Just because a single company, albeit one as strong and as important to this country as Tata, makes a strategic decision to divest itself of its long products division, which comprises about 50% to 60% of its steel operations, this country should not lose that capability. Should not such matters be considered in an effective industrial strategy? As I said, it is not about bailing out obsolete industries, but about identifying the parts of the value chain where we can make inroads and receive dividends in the future.

Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Iain Wright and Nicholas Dakin

Tuesday 17th April 2012 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

I rise briefly to support Lords amendment 31. It cannot be right, as my hon. Friend the Member for Wrexham (Ian Lucas) and others have said, that victims of asbestos-related diseases should be required to surrender a quarter of the damages they have been awarded to pay for legal costs. Those damages are awarded to recognise and compensate men and women, if it is at all possible to compensate them, for the pain, suffering and life-shortening illnesses they got from their work. In my constituency, the number of cases of asbestos-related diseases is far too high. The link between mesothelioma and exposure to asbestos in the shipbuilding industry is well known, as we have heard tonight. There is a common pattern involving high levels of mesothelioma and areas of shipbuilding or areas that contain ports and dockyards. Hartlepool is a former shipbuilding area and it is the 16th-worst affected place in Great Britain for deaths caused by mesothelioma.

In considering Lords amendment 31, I ask the Minister to consider one harrowing case out of many from Hartlepool. Mr C was diagnosed with mesothelioma after he had complained of breathing difficulties and a pain in his rib cage. Originally it was thought he had pneumonia but a CT scan and a bronchoscopy showed that he had mesothelioma. Mr C had left school at 16 and worked at South Durham Steel and Iron Company for the best part of a quarter of a century. He was regularly exposed to asbestos dust in the air and was not provided with any protective clothing or equipment. He was awarded £67,000 in compensation in recognition of his excruciating pain and suffering. He died five months after receiving that award.

The Government’s argument against the amendments—that the Bill protects against frivolous or fraudulent claims—is offensive in the extreme. The idea that these constituents of mine are ambulance chasers or people looking for a quick buck is risible. The notion that tens of thousands of pounds of damages should be taken from workers and their families who have suffered the harsh effects of a painful illness is another insult and injustice to them.

In a little over 10 days, the country will observe workers memorial day to commemorate those who lost their lives as a result of injury or neglect at work. Having listened to the Minister tonight and seen him in his place, I have to say that he does himself no credit with the smirking and the body language that are offensive to every single sufferer. The best way in which he could make amends is by honouring the spirit and values of workers memorial day, accepting Lords amendment 31 and getting rid of this huge injustice.

[Nic Dakin (Scunthorpe) (Lab)]

Sadly, the incidence of—