Steel Industry

Debate between Ian Murray and Lord Vaizey of Didcot

Wednesday 14th January 2015 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

I declare my interest as a member of the wonderful Community union; I am very proud to be so. We have had an important and critical debate, sending out a strong message not just to the steel industry that we stand up for steel, but to the Government that more needs to be done. It is a sad indication of the Government’s commitment to this issue that we have heard only one speaker from the Government side—the hon. Member for Redcar (Ian Swales)—and nobody from the Conservative party. The Government Benches have been almost completely empty for the majority of this debate. This is not to belittle the contribution of the hon. Member for Redcar, but if someone lives in Redcar and wants a party that stands up of for steel, they should vote for the Labour party and get their MP on the Government Benches.

It is worth emphasising the importance of the industry to this country. The UK steel industry and associated metals sector has 24,000 firms employing more than 330,000 people and generating £45.5 billion in the UK economy. Every directly employed job in the sector sustains a further three jobs in the wider economy. Today’s debate is important, too, because steel is a foundation for supply chains of strategic sectors such as aerospace, automotives, construction and energy, which are so important to the UK economy. The debate is important because steel is an essential part of a low-carbon, resource-efficient future.

All these points have been raised consistently by my right hon. and hon. Friends, and particularly in the wonderful opening speech made by my hon. Friend the Member for Hartlepool (Mr Wright). The Secretary of State was ungenerous in his praise for my hon. Friend. I thought my hon. Friend made a very positive speech, outlining the industry’s problems, and it is important to raise with the Government our concerns about their actions in supporting the sector.

There is no bigger or more passionate supporter in this House of steel and manufacturing than my hon. Friend the Member for Hartlepool. He stands up for his constituents’ jobs and he stands up for his constituents in promoting the steel industry. Indeed, we should call him “Mr Hartlepool” and “Mr Manufacturing”. He does so much for current generations in Hartlepool and looks after the future as well. During his opening remarks, my hon. Friend was right to say that steel has to be a key part of the vision of a modern innovative economy. The UK steel and metal sector, as our motion rightly makes clear, provides highly skilled jobs—not just in my hon. Friend’s constituency, but throughout the United Kingdom, and we have heard contributions from Sheffield, Scunthorpe, Corby, Cardiff, Port Talbot, Newport and Clydebridge and Motherwell in Scotland.

My hon. Friend was absolutely right in his opening remarks to highlight the significant economic contribution that those facilities make through the wealth created by the plants and by the workers who make the steel. The wealth that is circulated in firms in the supply chain and businesses in those areas, not to mention through the steelworkers themselves, is often the foundation of many local economies. My hon. Friend stressed that the steel industry is the foundation of many valuable sectors of the economy, forming part of a number of important value chains in which Britain has a competitive advantage.

I have a number of pages to my speech and I would have liked to have run through them, but it is probably much better to reflect on the wonderful contributions made by my right hon. and hon. Friends. We heard speakers from Wales, from England and from Scotland who all had two things in common: standing up for steel and being Labour Members. Members from no other party—apart from the hon. Member for Redcar, who I am delighted to see back in his place—spoke in this debate.

I was delighted when my right hon. Friend the Member for Wentworth and Dearne (John Healey) mentioned the contribution of the Community union to this debate and reminded us that the union’s general secretary said:

“UK steel companies need a UK Government that can intervene just as they do in France and Germany.”

That was brought out as part of the general debate. My right hon. Friend also spoke up for his Aldwarke plant, explaining how it was saved in the past by proper co-operation among the trade unions, the Government and the owners.

Let me especially mention and pay particular tribute to my hon. Friend the Member for Motherwell and Wishaw (Mr Roy)—a steelworker himself for many years. Whenever he speaks in this House or when we speak privately and professionally together, he talks of his love for the steel industry. He stands up for his constituents in Motherwell and Wishaw, and he is a strong advocate of steel and jobs in his constituency. I was struck by what he said about all the processes involved in the steel industry. It is not just about forging and blacksmiths; it is about the cleaners, about the accountants, about the drivers, and about the wider supply chain. It is about every single business that the industry supports in his constituency.

My hon. Friend also referred to the Scottish Government’s approach to the steel industry. It was an absolute dereliction of duty for them to import £790 million-worth of steel from Poland, Spain and China for the new Queensferry crossing when there was a plant 35 miles down the road. We need Governments to stand up for industry in this country, rather than being full of rhetoric about standing up for it. Standing up for it in practice is slightly different.

We heard a valuable contribution from my hon. Friend the Member for Newport East (Jessica Morden), who rightly pressed the Government to do more. That has been a common theme in the debate. I hear the members of the Scottish National party chuntering behind me, but the facts speak for themselves. Moreover, none of them contributed to the debate, just as they did not contribute to debate on the urgent question on steel that was asked back in November. My hon. Friend spoke of the pressures on the steel plants in her constituency. As she explained, Tata and other companies have invested in key industries in her constituency for many years, but they cannot continue to do that in isolation, and the Government must help.

The Clydebridge plant in Cambuslang is in the constituency of my hon. Friend the Member for Rutherglen and Hamilton West (Tom Greatrex). It is a centrepiece not just of the constituency as it is now, but of the constituency’s industrial heritage. However, as my hon. Friend reminded us, it should be not just part of the past, but part of the future. He pointed out that procurement was vital, and, like many other Members, he mentioned the dangers involved in Tata’s sale of the long products division to Klesch, which has been raised in a number of other debates.

My hon. Friend the Member for Scunthorpe (Nic Dakin) speaks passionately about the steel industry in his constituency. He is one of the many Members who spring to mind and are always talked about in the same fashion when steel and manufacturing are discussed in the House. He was right to praise Tata’s contribution to the United Kingdom in the form of investment in skills and diversification—it has invested in a number of industries—but he was also right to worry about the future. That, too, was a common theme in the debate.

My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) spoke of the way in which the trade unions, Tata and the regions worked together to improve the position of the steel industry following the 2008 worldwide crash. He made a point that was at the heart of the debate when he said that it was all about livelihoods—people’s lives and communities—and not just about steel manufacturing and Government intervention. The Minister may wish to reflect on some of his comments.

My hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) told us that four generations of her family had worked in the steel industry, including her grandmother. I think that that is a wonderful model for those working in the industry.

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

And her grandmother’s sisters.

[Ian Murray]

The Minister may want to mention that in his speech. We were also reminded earlier of the contribution that my hon. Friend made in highlighting the Government’s decision about Sheffield Forgemasters.

My hon. Friend the Member for Llanelli (Nia Griffith) spoke about the steel industry in her constituency. She said that it was a proud British industry that should form an integral part of the future. My hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) pointed out that, in a globalised world, we did not want protectionism; all we want is a level playing field. I think that that is a very sensible and pragmatic approach. My hon. Friend the Member for Rotherham (Sarah Champion) is not just called Champion; she champions the steel industry and jobs in her constituency.

My hon. Friend the Member for Aberavon (Dr Francis) is a founder member of the all-party parliamentary group on steel and metal related industries. We shall certainly miss his contribution to steel debates when he leaves the House later this year. He ended with a poignant reminder of the dangers involved in the industry; we should all remember those whom he lost in the tragedies in his constituency.

We have had a wonderful debate, which has shown that Labour Members, at least, stand up for steel. Our motion makes clear the importance of the steel industry to this country. The industry supports tens of thousands of jobs, and supports many of the supply chains that are key UK sectors. It supports communities and livelihoods. The Government must provide a co-ordinated response that involves energy-mitigation measures, challenges the European Union in regard to certification and safety, and supports an active industrial strategy for the metals industry in the United Kingdom. It is time for the Government to stand up for steel. Labour clearly stands up for it, but we want the Government to support it as well. I commend our motion to the House.