(2 days, 5 hours ago)
Commons Chamber
Chris McDonald
I thank my hon. Friend for his work as chair of the all-party parliamentary group for steel and metals-related industries. The Treasury is responsible for the carbon border adjustment mechanism and is consulting extremely carefully with the industry on that. I am sure that the Treasury will have heard his remarks and will take them into account.
Amendments 7 to 9 relate primarily to some of the environmental liabilities. The issue also arose in yesterday’s debate, where there were concerns about liabilities—the phrase “unlimited liabilities” might have been used. However, the liabilities are not unlimited. We have a reasonably good sense of what the liabilities are. We would expect the valuer to take those liabilities into account—that is quite right—but we have extensive experience with the remediation of similar sites elsewhere in the country.
The Committee has heard about the Ravenscraig site, but the Teesside site is a more recent example. The remediation of the Teesside site—the amount of public money spent on that—is well documented. The site in Scunthorpe is of a similar age, has had similar industrial activity, and is of a similar size. Ultimately, however, the Government are seeking to avoid the crystallisation of environmental liabilities by ensuring the continued operation of steel on the site. It is the responsibility of the valuer to take that into account when determining the valuation of the company. For that reason, the Government do not consider it necessary to support amendments 7 to 9.
Amendments 10 and 11 propose increasing the frequency of reporting on financial assistance to every three months. Again, it is the Government’s view that the current framework is proportionate in terms of the balance between transparency and delivery. We are incredibly concerned to ensure that we do not impose unnecessary administrative burdens. Inevitably, the management of a business acquired through the Bill and the civil servants in my Department would have to deal with the reasons for the business’s acquisition. Although we of course feel that reporting, transparency and accountability to this House are important, we are trying to strike a balance.
I know that amendment 20 is particularly important to the Opposition, so I will spend a bit of time on it. We are all incredibly concerned about value for money, but we have existing arrangements across Government to deal with that. It is already the case that Departments must secure value for money under the Treasury’s managing public money framework. It is also our view that the drafting of the amendment does not quite meet the requirement as described: that the National Audit Office would check the assistance prior to being approved. We think that putting this requirement in statute would unnecessarily reduce the Government’s ability to act quickly where support is needed. We have heard from many contributions today that on the presumption that the legislation will be required, the Government must be able to move quickly.
We have seen the need for acting quickly before. Harking back to a previous example of a failed steel business, I recall that we had only a matter of days within which to save the Teesside business due to a shortage of coal. Of course, we all remember that it was necessary to come back to Parliament at incredibly short notice to pass the Steel Industry (Special Measures) Act 2025, again because there was a shortage of coal, with the potential for those coal shipments to be diverted. It is therefore incredibly important that the Secretary of State is able to act quickly when required.
A couple of amendments have been proposed by Plaid Cymru Members—although they are not present, I think it is still responsible to address them. One amendment is about restricting the National Wealth Fund, with which I completely disagree. The National Wealth Fund is one of Government’s primary instruments for assessing potential investment opportunities and investing in industry. In fact, there is provision through the Government’s £2.5 billion steel fund for the National Wealth Fund to offer support to steel companies, as set out in the steel strategy. We intend to use whatever funding instruments are available to Government, not to restrict them.
Although Plaid Cymru Members are not present, another Welsh Member is. With the Minister mentioning the available funding, I will take the opportunity to raise a topical matter with him, which is the catastrophic fire that took place on the pickle line last week in Port Talbot. I want to put on the record our thanks to the emergency services and the steelworkers who worked so hard to contain it, as I know from my hon. Friend the Member for Aberafan Maesteg (Stephen Kinnock). The work is now being transferred to Llanwern, but it is a worrying time for those at Port Talbot. Does the Minister agree that, alongside the Bill, we must protect the jobs in the south Wales steel industry and ensure that they are fully equipped to support the expansion of sovereign steel that we all want to see as we go forward?
Chris McDonald
I thank my hon. Friend for mentioning the incident last Wednesday at the Port Talbot site. Pickle lines are notoriously susceptible to these sorts of incidents because of the high-temperature hydrochloric acid used to treat the steels. I would imagine that once such a blaze has taken hold, the effects can be absolutely devastating. I want to echo her commendation of the emergency services and the workforce, who are, in this situation, the first responders, protecting life and valuable industrial plants. I was incredibly relieved to hear shortly after the incident that every single member of staff was accounted for. It is a credit to Tata Steel and its management processes.
I am, however, concerned about our loss of productive capacity there as a result of this incident. As my hon. Friend rightly points out, we are fortunate in having another pickle line available in Llanwern, and I understand that as of last Friday Tata Steel is looking at restarting that plant and moving the work there—perhaps it has already restarted—but the hot mill was down for a time in Port Talbot. This really emphasises where we have points of vulnerability in our industrial capacity, not only in steel but more broadly. We are determined to address those points through this Bill, our steel strategy and our wider industrial strategy. I thank her for raising that matter.
(3 weeks ago)
Commons ChamberI very much welcome the Bill, which gives the Government new powers to intervene in the steel industry when doing so is in the public interest. I do so because I, alongside many other steel MPs over many years, have relentlessly made the point that the steel industry is of the utmost strategic importance to the country’s economy and security, and that we must do all that we can to protect and cherish it. While the focus of the legislation is the future of British Steel—I very much pay tribute to the efforts and fantastic advocacy of my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin)—the Bill also sends a clear signal about the Government’s commitment to the industry and workers more widely.
As Ministers know, steel is important to my constituency, both at Tata’s Llanwern works and at 7 Steel. I know that the steel Minister—the Under-Secretary of State for Business and Trade, the hon. Member for Stockton North (Chris McDonald)—met representatives from Llanwern this week. I also pay tribute to the steel unions —in particular, Community and GMB, which I am a member of—and Reg Gutteridge, the newly elected national chair of Community union, who I know will be an excellent advocate.
I completely understand that significant funding was necessary to help keep British Steel in Scunthorpe open, but it is really important that producers and steelworkers in Wales, at sites such as Llanwern, get their share of the Government’s billions of pounds of investment through the National Wealth Fund. It is also important that Ministers urge Tata to follow through on the future investments that it has talked about previously, including in Llanwern.
I really welcome the steel strategy; it is the first time we have had one. The Conservative party had 14 years to set one up and did not. We had a revolving door of steel Ministers, and I am afraid that the Conservatives’ woeful approach continues with their reasoned amendment today. Our approach is a real road map for the future. I welcome the new import quota and tariff levels to cut the amount of foreign-made steel that comes in, and to protect us from global oversupply. However, as others have mentioned, there are concerns at downstream plants that the import quotas for galvanised steel and hollow sections allow too much leniency for highly subsidised products from non-EU countries to come into the UK market and undercut manufacturers at sites such as Llanwern. Will the Minister look at that?
Ministers will be aware of the industry’s concern about the timing and design of the UK carbon border adjustment mechanism. I am keen to hear more about that. As my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) said, we are doing great work on procurement, and it is a big part of the steel strategy, but I am aware from 7 Steel, which has proved over and over again that it can supply high-quality products for High Speed 2, that some contracts are still being made for foreign-made steel. Will the Minister please check that and raise it with HS2? Energy is always an issue, and our underlying costs are still far greater than those of our European rivals, so I join others in asking the Minister to look further at more targeted support.
Those are a few of my asks, but I very much welcome the Bill and the Government’s clear direction of travel on steel. I will end by acknowledging the deep industry expertise and knowledge that the steel Minister brings to the job. It is recognised in our plants, and it is hugely refreshing after the last Government.
(2 months, 3 weeks ago)
Commons ChamberThe hon. Gentleman mentioned waiting for the steel strategy. The truth is that the steel sector has been waiting 80 years for a steel strategy, and this is the first time that one has been delivered. I think that showing a little bit of gratitude for what has been delivered today, on behalf of the sectors and businesses that he talked about, would be most welcome. I also point out that the 80 years over which there was no strategy included 2010 to 2015, when his party was in government.
Yesterday I was at Tata in Wales. The management, the ownership, the workers and the unions universally welcome this strategy and the £500 million that has already been put in to help transform the industry. That is the example of how we will move forward—with boldness, creativity and urgency.
This is indeed a welcome and bold steel strategy, and it stands in direct contrast with what happened under the Conservative party, which never had one. I thank all the Ministers involved, the industry and the unions. I declare an interest as a member of Community and GMB. As I am sure Minister will agree, this is a good start, but we should always aspire to be as ambitious as possible for our UK steel industry, our security and our infrastructure, as well as for the dedicated young workforce at Llanwern steelworks and 7 Steel UK. Will the Secretary of State work with industry to incentivise investments in projects that we do not currently make, so that we can reduce even further our reliance on imported steel?
(5 months ago)
Written CorrectionsLast week I met Community union representatives representing steelworkers across Wales, including in Llanwern—I draw attention to my entry in the Register of Members’ Financial Interests. They support the welcome movement on energy costs, and they know that the Government are working on procurement and that there will be a steel strategy, but the most urgent ask is on the EU’s steel import quotas and tariffs. Can the Minister please give us an update on those?
My hon. Friend is quite right to raise the issue of Llanwern; sometimes we focus on some of the other steelworks in the UK, but this is about the whole sector. I met Commissioner Šefčovič yesterday; we are very much on the case of trying to sort out precisely where we land with the EU safeguard, but we also need to ensure that the UK has a steel safeguard after the end of June. We will do everything we can to ensure that we have a strong and prosperous steel sector across the whole of the UK, including in Llanwern.
[Official Report, 11 December 2025; Vol. 777, c. 480.]
Written correction submitted by the Minister of State, Department for Business and Trade, the hon. Member for Rhondda and Ogmore (Chris Bryant):
(6 months ago)
Commons Chamber
Chris McDonald
I certainly recognise the issue of the quota, and the importance of our small-volume manufacturers such as Aston Martin and McLaren. I met McLaren last week, I had a meeting with Aston Martin this week as part of the Automotive Council UK, and I will meet Aston Martin’s chief executive in the new year. This is perhaps a good opportunity to congratulate McLaren and Lando Norris on his outstanding win at the Formula 1 championship—only 35 men have won the F1 championship, and 11 of them have been British. The motorsport industry is a fine example of British engineering and British sportsmanship coming together.
Last week I met Community union representatives representing steelworkers across Wales, including in Llanwern— I draw attention to my entry in the Register of Members’ Financial Interests. They support the welcome movement on energy costs, and they know that the Government are working on procurement and that there will be a steel strategy, but the most urgent ask is on the EU’s steel import quotas and tariffs. Can the Minister please give us an update on those?
My hon. Friend is quite right to raise the issue of Llanwern; sometimes we focus on some of the other steelworks in the UK, but this is about the whole sector. I met Commissioner Šefčovič yesterday; we are very much on the case of trying to sort out precisely where we land with the EU safeguard, but we also need to ensure that the UK has a steel safeguard after the end of June. We will do everything we can to ensure that we have a strong and prosperous steel sector across the whole of the UK, including in Llanwern.
(6 months, 3 weeks ago)
Commons Chamber
Chris McDonald
I do understand just how important the hospitality sector is to the hon. Member and her constituents, as a major part of the local economy. The Government’s clean power mission—investing in renewable energy, lifting the onshore wind ban and investing in offshore wind at pace—is bringing down energy costs and will bring down energy costs from 2030 onwards. The crucial challenge is how we help businesses to manage the transition between now and 2030. Measures such as the British industrial competitiveness scheme, which was announced in our industrial strategy, will support over 7,000 businesses across the country.
I very much welcome the increased help the Government are giving to energy-intensive industries such as Tata’s Llanwern works in my constituency through the increase to the electricity network charges discount. However, given that they still face problems competing with other European steel producers, may I urge the Minister to keep discussing with ministerial colleagues and trade unions what further measures we could take to protect them and shield them, to the benefit of sites such as Llanwern?
Chris McDonald
I thank my hon. Friend for raising the issue of Llanwern; it is a site that I know very well and have worked on in the past. She is right to raise the competitiveness of energy-intensive industries. In my earlier answer, I talked through a number of measures we are taking to reduce levies and energy costs for those industries, but she can rest assured that I continue to look at whether anything more can be done.
(9 months, 1 week ago)
Commons ChamberThe official receiver is independent. Of course, we are very interested in this, and are keeping in close touch with the receiver on what comes out of this. The hon. Member’s idea is not necessarily foolish, on this occasion. This is a legal process, and the official receiver legally has to think of the creditors who have suffered throughout—we have to think of them as well, and make sure we do the right thing—but we will continue to do everything we can to make sure that there is a viable future, whatever form that takes.
Like others, I very much appreciate the support being given today and the wider work being done on energy prices, procurement and more. By complete contrast, the Conservative party had no steel strategy, as my hon. Friend the Member for Sheffield Brightside and Hillsborough (Gill Furniss) said, and had a woeful record on steel over 14 years. However, market conditions are particularly tough—a point made to me strongly by trade union representatives at Llanwern steelworks over the summer—so will the Minister ensure that we support the steel industry as a whole, including Llanwern, and that Wales gets its share of the green steel fund?
We talked before Parliament returned about how we can support Llanwern and the work done there. My hon. Friend is right that this is a difficult time for the steel industry. There are headwinds that we need to address: we need to conclude the negotiations with our US counterparts and bring in energy price reductions, which will make a big difference, and we need the steel strategy. We are putting all these things in place. We believe that there is a great future for steel in south Wales, and we will continue to support it.
(1 year, 1 month ago)
Commons ChamberI thank the Lib Dem spokesperson for his support for our interventions and for his helpful questions. We will publish an impact assessment in due course, including classification considerations. He is right to point out that we did not answer his questions last time, and neither am I answering them this time, but I will ensure that I do. We have said that we will come back every four weeks with a statement, but I will write to him separately to ensure that he has the reassurance that he needs.
I cannot give the hon. Gentleman a date for the steel strategy, but I assure him that we are working as fast as we can. The issue is difficult because we are talking about spending £2.5 billion of public money. We have to ensure that we do that in the correct way. The roundtables that we have held, the advice from the Steel Council, and the work that we are having done by the Materials Processing Institute and Hatch to consider the economic issues that we need to grapple with, are really important—we must get that right. Of course, when we have a steel strategy, the House must have the opportunity to come and talk about it and be reassured that it is the right thing for the steel industry.
Last week, I met trade union representatives at Llanwern steelworks. I clearly understand and welcome the action taken at Scunthorpe, which stands in complete contrast with the Conservative party, which had no steel strategy in 14 years of government. Will the Minister be mindful of the promises made by Tata to invest in assets at Llanwern? We need that to be delivered. Plants like Llanwern should get their fair share of the green steel fund and procurement. What progress will we soon see on that?
(1 year, 1 month ago)
Commons ChamberI endorse my hon. Friend’s comments entirely. I do not believe there is a history of the SNP calling for the nationalisation of Grangemouth. It was, as ever, on the bandwagon. I think we all recognise that the SNP does not campaign on its record in running Scotland; it campaigns on grievance. My hon. Friend is absolutely right that the contrast is with a Labour Government in this place who are on the side of working people everywhere.
The Secretary of State mentioned Port Talbot. I appreciate the unprecedented circumstances we find ourselves in today, when the Government have rightly moved quickly to safeguard primary steelmaking, and the Secretary of State will be very mindful of the extraordinarily difficult circumstances that the steel industry in south Wales has faced. I recognise the £80 million fund available, but can he make sure that south Wales and Llanwern benefit from their share of the £2.5 billion clean steel fund? Can that also be at the forefront of his mind?
I am incredibly pleased to have the chance to answer the point my hon. Friend raises. The Port Talbot deal was originally negotiated by the previous Government. I did try to reopen it; I went to see Chandra in Davos and flew to Mumbai to talk to him about it. To be frank, I kept Port Talbot open on polling day, because it would have closed due to the industrial action that almost took place. The previous Government were nowhere to be seen, even before the result of the election was in. We were not able to reopen the deal, but we did negotiate a better deal. As a result, Port Talbot is in a stronger position than British Steel, because it has a long-term future in place. [Interruption.] This is because we improved on the deal that the Leader of the Opposition botched at the time. To be clear, the £2.5 billion green steel fund the Chancellor has put in place is in addition to the £500 million already going to Port Talbot. That is an incredibly important point.
(1 year, 3 months ago)
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Tata’s Llanwern steelworks in my constituency produces world-class automotive steel. The Minister has acknowledged the importance of the automotive sector. Will she also acknowledge the importance of having a strong steel industry, and of plants like Llanwern making steel for EVs, and put that at the heart of the forthcoming industrial strategy—a strategy that the Conservatives never had?
I am glad that my hon. Friend has managed, as ever, to bring steel into the debate. It is incredibly important, and that is why we will have a separate steel strategy, on top of the work that we are doing in the industrial strategy to ensure a thriving sector in the future. That will look at all the issues that we are grappling with and that she knows about, including the transition, energy prices, access to finance, access to grid connections and scrap. We will continue to ensure that the UK’s six steel producers can thrive and bring in new business.