Steel Industry

Jim Shannon Excerpts

Wednesday 16th October 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mrs Harris. It seems like only a few minutes ago that you were chairing the last debate yesterday in Westminster Hall, and here you are again. I commend you on your perseverance and obviously on the fact that you do not need any sleep at all to look fresh and well—well done.

First, I thank the hon. Member for Boston and Skegness (Richard Tice) for leading today’s debate. As he always does, he set the scene in a very admirable way, underlining his concerns, which many of us in this Chamber share as well. There is no doubt that this is an incredibly important debate not just for myself but others, and we need to discuss these matters.

Looking at the steel industry in the UK over the years, it dates back as far as the 17th century when steel production was initially established. Steel was traditionally used for larger projects such as bridge building and weight-bearing items like rail tracks—the hon. Member referred to the trains and rails in India. In 2020, steel contributed some £2 billion to our economy and was responsible for 0.1% of the total UK economic output. Jumping forward to 2023, the latest reports show that UK steel production and demand plummeted to new historic lows of 5.6 million tonnes and 7.6 million tonnes respectively, which fall well below the levels seen at the peak of the pandemic in 2020. That is unfortunately quite discouraging.

I should have said at the start, and I apologise for not doing so, that it is nice to see the Minister in her place—I wish her well. She was telling me earlier in our conversation on the way to the hall that she has dual responsibilities. I very much look forward to her response to our inquiries. Everybody’s wish in this Chamber is to see the steel industry secured. It is also nice to see the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), in his place, and I look forward to his constructive contribution.

[Mr Gregory Campbell (East Londonderry) (DUP)]

In the positive tone my hon. Friend is adopting, and maybe in a light-hearted sense, would he agree that a man yesterday showed considerable backbone, of real steel: Michael O’Neill, the Northern Ireland manager, who picked a team of under-21s and thrashed Bulgaria 5-0? That is a real backbone of steel and we need to see some positive results like that from this debate.

[Jim Shannon]

I am sure the Minister has many football skills. Last night one of the players, the young fellow Price, scored a hat trick—yes, it was an admirable victory. If everybody showed that backbone and strength of character, certainly we would be in a better place. I thank my hon. Friend—I know that was moving away completely from the subject matter but he nonetheless reinforced the point to be made.

Northern Ireland plays an important role in the success of the UK steel industry, although back in 2022 that was under attack from the damages of the Northern Ireland protocol and the outbreak of war in Ukraine. It was said at the time that steel exports from Northern Ireland could face up to 25% tax and tariffs, but it is good to report today that that has since been addressed by the Windsor framework. That is one of the positives that came out of that process: I wish there were more.

What springs to mind is the 1,100 steel businesses across all parts of the United Kingdom and the 33,400 jobs that hinge on them—we cannot ignore those; they are so important. We have seen recently the threats to job security due to decisions to close production in certain steel plants. Only two weeks ago, Tata shut down its blast furnace 4, which was the final furnace operating at the UK’s biggest steelworks in Port Talbot. That resulted in 2,800 job losses across south Wales, not to mention that Port Talbot was pivotal to steel construction in Northern Ireland. That is why, in debates on steel, we do not necessarily have to have a manufacturing base in our constituency to see the benefits. The benefits for us in Northern Ireland were quite clear: the steel produced in Port Talbot came to Northern Ireland.

The hon. Member for Boston and Skegness rightly raised concerns about the impact that our net zero advancements could have on the steel sector. It is crucial that we get this correct while ensuring a proper balance. Our defence industry relies heavily on domestic home-grown steel to build tanks and warships. That raises issues of us potentially relying too much on foreign imports, which the hon. Member referred. We should not ignore that, and our focus should be on providing incentives to the fantastic local companies we already have and putting them front and centre to the UK steel sector’s success. We must modernise to advance our steel industry and properly take care of it and get it right together.

We must also be able to source steel locally; doing so is of major importance for many industries across the United Kingdom, from aerospace and defence to boats and other transport. For us in Northern Ireland, the aerospace sector is very important.

I know the debate is not about this but I want to ask the Minister a question about Harland & Wolff that I had hoped to ask in Defence questions. Will the Minister give Northern Ireland Members some update on where we are with Harland & Wolff? During my discussion with the Minister about Defence questions on Monday, the Minister said, “Jim, ask this question and I’ll be happy to come back with an answer.” Harland & Wolff is really important, No.1, for the jobs it provides, but also for the connectivity that we have, with all parts of the United Kingdom coming together. Defence and aerospace are important for our manufacturing base in Northern Ireland, but also for the continuation of how we work better together.

I support our steel system. I want the best for it. We all want the best for it and I know that. I also hear and respect the concerns of other Members about its future. And there is no doubt at all that more needs to be done to preserve and protect it.

In conclusion, society will progress and changes will be made, but it is important that we remember the benefits that our steel sector brings to the United Kingdom economy. Moreover, there are the jobs that it provides for my constituents in Strangford and for people further afield—indeed, in all areas of this great United Kingdom of Great Britain and Northern Ireland. So, I sincerely look forward to hearing from the Minister and assessing what steps our Government will take to preserve our steel sector, and I have hope—much hope—that that action will allow for all of our nations to play their part together.

[Carolyn Harris (in the Chair)]

I call the Lib Dem spokesperson, Clive Jones, to speak.

--- Later in debate ---

[Sarah Jones]

The hon. Gentleman will understand that I am not in a position to define what commercial companies do. While we are trying to do what we can, I cannot do anything other than say that we are working incredibly hard with the owners to ensure that we get to a point that we want to get to.

The hon. Member for Strangford (Jim Shannon) mentioned Harland and Wolff, and the same situation is true there. We are working hard to understand the situation and we are hoping for a resolution relatively soon.

[Jim Shannon]

Will the Minister be generous and kind enough to let us know about the situation now and what she hopes progress will be over the next few weeks, if she does not mind?

[Sarah Jones]

The process of selling the company is going through. That is a market situation, being dealt with in that way, so Government are not providing funding or anything such as that at this point. We are allowing the process to take its course, but we are obviously talking to all parties to do what we can to ensure that we get the right outcome. I have been talking to politicians from all four of the Harland and Wolff sites, as can be imagined, and there is uncertainty in each of those areas, whether that is in Scotland, Devon or Belfast. We are working hard to ensure the right outcome.

To close my remarks, in steel, not to mention the wider economy, the inheritance of this Government from the previous Government was nothing short of a travesty. We had more than a decade of lurching from crisis to crisis, with no clear plan to safeguard the future of a competitive domestic steel industry. This Government are determined to change that, making the steel industry in this country fit for the future so that it is not left behind in a decarbonised world.

The Government are on the side of Britain’s thousands of steelworkers. We have not talked about the other parts of the country where we also have steel production. Marcegaglia, which is in Sheffield, announced a couple of weeks ago that it is investing £50 million in a new electric arc furnace in Sheffield, so we have incumbents here in the UK that are doing well.

The Government are determined to ensure the future of British steel. We are on the side of Britain’s thousands of steelworkers and we are working closely with our trade unions, experts and others to develop our steel strategy. We believe that steel will forge our future, not just our past, and I look forward to working with all hon. Members in this place to develop a steel strategy that sets us up for the next 10, 15 or 20 years to come.