British Steel: Negotiations

Jim Shannon Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

Absolutely. I think the argument is sometimes lost when people say that we can bring steel in. Why would we want to do that when we have a sector right here? People do not often calculate the cost or the impact on the environment. We have put together substantial funding to help the industry take new technology on board, reduce emissions and decarbonise. I must say that when I have had meetings with those in the sector, they have enthusiastically embraced the opportunity to reduce carbon emissions and meet net zero targets. That is why we want to work hand in hand with them.

[Jim Shannon (Strangford) (DUP)]

On TV this morning, a journalist carefully outlined the case with reference to discussions between the Government and British Steel’s Chinese owners. I echo what the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) said about the supply of British steel; its supply to Northern Ireland is so important for the construction sector. What is forcing companies to look elsewhere is the increase in price, not a desire for a better product—the best product is British steel. Will the Minister commit to working with the industry to fund more efficient technology and mechanisms, and subsequently to aid the production of cheaper materials to maintain affordable buildings and enhance the British steel sector?

[Ms Ghani]

Absolutely; once again, the hon. Member asks a very sensible question. That is exactly what we are here to do. We need a cleaner, greener steel sector, so we need to do everything we can to support it in helping us to meet our net zero targets.

Artificial Intelligence: Intellectual Property Rights

Jim Shannon Excerpts

Wednesday 1st February 2023 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Richmond Park (Sarah Olney) for setting the scene so well, and the hon. Member for Folkestone and Hythe (Damian Collins) for contributing so well. When I listen to them, I am very aware that their knowledge of this subject is much greater than mine. However, I wanted, as I always do, to try to give a Northern Ireland perspective on it, because of its importance to creative workers and the creative sector.

The lockdowns were incredibly hard for so many businesses, but the creative arts were the forgotten business. I am pleased and proud to have been a member of Ards Borough Council for some 26 years prior to coming here. We had a massive focus on the creative arts. We promoted them greatly and got much out of them, as did our communities. During the covid crisis, for some three years, our musicians, actors, playwrights and theatre workers were unable to go to work, and the only way of keeping things going was to put those things online for people to enjoy and get a taster of.

Prior to the lockdowns, it was estimated that the creative industries—which are not quite the same as, but strongly overlap, the culture and heritage sectors—made up around 5% of businesses in Northern Ireland, employed around 25,000 people and accounted for 2.7% of Northern Ireland’s total gross value added, contributing some £1,088 million. That is no longer the case, as the lockdowns have decimated the sector. The hon. Member for Richmond Park put forward the case for the sector and the hon. Member for Folkestone and Hythe reiterated its importance, as will others who speak. I very much look forward to hearing what the Minister will say.

Thankfully, the lockdowns have ended, yet the threat to the creative industry has not lessened. Indeed, the proposals have escalated the threat. As the hon. Member for Richmond Park has put it so well:

“These proposals would be damaging to creative workers, such as in the music and publishing industries, as AI companies would be able to use their works without permission or payment. This would lead to a huge transfer of value from the creative industries to AI companies and also potentially damage the competitiveness of our world-leading creative industries”

That is the thrust of the issue. I am sure that the Minister will, as always, give an excellent response; perhaps he can solve the concerns and worries that the hon. Member for Richmond Park and others have. I look forward to that. I am given to understand that the Government and the Minister are taking this matter seriously. I know that there was a ministerial response to a question from the hon. Member for Richmond Park in December last year, yet it is right and proper for the importance of the issue to be underlined once more in Westminster Hall today.

For any computer system to be able to shred through data and text and circumnavigate the proper methodology is tantamount—I will use a Northern Ireland example, and we all know the product—to allowing someone to walk into the Tayto factory and steal the ingredients for the world’s best crisps, which of course Taytos are, and then say, “Well, they shouldn’t have put the ingredients on the outside of the packet!” I am being a wee bit facetious, but I am trying to illustrate the point in a way that all can relate to. The information is there, yet for someone to be able to walk in and take the specific ingredients without paying is not acceptable, and never can be.

I will conclude, because I am conscious that the right hon. Member for Warley (John Spellar) wants to speak. I am on record as being supportive of our creative industry, and this protection must be in place. I know that the Minister has been listening carefully; he always responds to the questions that we pose, and I am pleased to see him in his place. I know that he will ensure that the Government enhance protection for the only source of income that many creative workers have. A world without art is a world without light, and the Government must ensure that the light continues to shine brightly from the shores of this great United Kingdom of Great Britain and Northern Ireland—always better together.

Strikes (Minimum Service Levels) Bill

Jim Shannon Excerpts

Committee stage
Monday 30th January 2023 Commons Chamber

[Kevin Hollinrake]

I will give way to the hon. Gentleman.

[Jim Shannon (Strangford) (DUP)]

In relation to safety—others have mentioned this—the nurses that I have spoken to and been on the picket line with have told me that they want better pay and conditions and more staff, but they have also made sure that at no stage was emergency cover not available. The ambulance service staff who went on strike always made sure emergency cover was available. It is really a matter of staffing and wages. Does the Minister, who I respect greatly, understand that nurses have already ensured cover, and all they are looking for is fair pay?

[Kevin Hollinrake]

The hon. Member makes an important point. We are happy with the agreement we have with the Royal College of Nursing, and that is why we are not consulting on minimum service levels for nurses. On ambulances, we got only last-minute agreements—we had to negotiate on a trust-by-trust basis—that provided no confidence that the service would be in place and did not cover things such as strokes and chest pains in all cases. That would put somebody who is worried about having a stroke in a state of anxiety, and that is what we are trying to protect against.

Britishvolt

Jim Shannon Excerpts

Wednesday 25th January 2023 Commons Chamber

[Ian Lavery]

That is very, very well put. People in our region are very much aware that there has been investment in Teesside. I welcome every penny coming into the region, by the way—every single ha’penny of investment we can get—but it has to be further afield than just one particular pocket of the north-east region. As my hon. Friend says, there has been a complete lack of investment in our region and it has been left behind for decades now. That is just not acceptable any more. This is the idea that could have transformed and changed that for a lot of the people we proudly represent. People were excited by the thought they actually had the potential to get a decent job with good wages, terms and conditions.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this issue forward. He has been really active on this issue and he was active in the Chamber last week during questions, so well done to him.

I am sure the hon. Gentleman will agree that the news of an Australian company’s intention to potentially purchase Britishvolt, which I heard about today when talking to the hon. Member for Hemsworth (Jon Trickett), is truly good news. Does he agree that the Government must invest in British business, manufacturing and engineering? I see our highly skilled aerospace workers constantly fearful for their jobs and managers reluctant to expand. Further, will he join me in asking the Minister for the Government to focus—they must focus—financial investment in our manufacturers throughout all of the United Kingdom of Great Britain and Northern Ireland?

[Ian Lavery]

Yes, of course. I will come on to the nub of the questions the hon. Gentleman raises during my speech—I have only got through two paragraphs up till now.

The Britishvolt site has been kept alive for years. It is not just something somebody has come up with; it is to the credit of the former Labour-run council, which had the foresight to recognise the site’s advantages. It insisted on maintaining the site for industrial use to create thousands of potential jobs in the future, a prophecy that Britishvolt promised to make a reality. We should remember that projects on the scale Britishvolt was proposing do not just appear from thin air. They go through decades of decision making and planning. That was largely done by the Labour group on Wansbeck Council, which made the site so attractive to potential builders over decades.

Britishvolt arrived on the scene in late 2020 and was full of promise and potential. While many of the industry professionals I spoke to, along with others, expressed scepticism about its lack of experience and long-term plans, it continued to exceed expectations and gather support. I recall the chief executive ringing me up before Christmas that year, just out of the blue. He said, “I’m the chief executive of Britishvolt”—I had not heard of it—“and we are bringing 8,000 jobs to your constituency.” They were going to be well-paid, secure jobs—green industrial jobs. I promise you, Mr Deputy Speaker, I could not believe it. It was like all my Christmases had come at once. Since then, I have been heavily involved, only to be devastated by the current position.

As I say, Britishvolt arrived on the scene in late 2020. It impressed people so much that it managed to secure a £100 million grant from the Government’s automotive transformation fund. To many, that seemed to legitimise the company. There were still many people—many, many people, in fact—who doubted it, but they were confounded by glowing reports from the then Business Secretary, the then Chancellor and the then Prime Minister.

At the time, the then Business Secretary, the right hon. Member for Spelthorne (Kwasi Kwarteng), announced:

“I’m delighted to confirm we have now provided Britishvolt with a final grant offer through the Automotive Transformation Fund. The Blyth gigafactory will turbocharge our plans to embed a globally competitive electric vehicle supply chain in the UK and it is fantastic to see how the project is progressing.

The vast site will ensure Britain can fully capture the benefits of the booming global electric vehicle market. The well-paid jobs and growth it will generate for the North East of England will be transformational and are exactly the reason we are investing to make the UK the best place in the world for automotive manufacturing.”

In an interview with national media when the grant had been confirmed, he also claimed:

“It is absolutely what levelling up is all about. In fact, I can’t think of a project that demonstrates levelling up better than this one.”

The then Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), claimed:

“Britishvolt’s plan to build a new gigafactory in Northumberland is a strong testament to the skilled workers of the North East and the UK’s place at the helm of the global green industrial revolution.

Backed by government and private sector investment, this new battery factory will boost the production of electric vehicles in the UK, whilst levelling up opportunity and bringing thousands of new highly-skilled jobs to communities in our industrial heartlands.”

Last summer, before his departure from office, he gave me further guarantees in this House that support for Britishvolt was in the post and that the Government remained 100% behind the project.

The then Chancellor, who is now the Prime Minister, also took the opportunity to jump on the bandwagon, boasting:

“Once complete, this factory will produce enough batteries for over 300,000 electric vehicles each year…Our #PlanForJobs is working.”

So he claimed. At the time, everybody wanted a piece of Britishvolt, which was hailed as the poster boy of levelling up and as a tribute to the vision of life post Brexit held by this new-look Conservative party.

So where did it all go wrong? What actually happened? Why are we in this situation now? At what point did the Government go cold on Britishvolt, which was hailed only a year ago as the jewel in the crown of their levelling-up plans and vision for Britain? As ever, the Government will be keen to blame the cost of soaring energy bills and the knock-on effects of the illegal invasion of Ukraine, but that does not add up with the story across Europe. The website Sifted is tracking the development of 33 gigafactories across Europe, many of which are due to be up and running imminently. Germany has plans for 12 gigafactories, while the UK has plans for only three, one being the Cambois gigafactory we are discussing, which is now in great peril at best.

The underlying issue with Britishvolt is that as a start-up it had no capital to work with, and a range of issues meant it was not able to attract sufficient investment and meet the milestones that would have unlocked the Government funding that was promised—not a penny was ever received by the company, despite the benefits explained by the Prime Minister, the former Prime Minister and the former Business Secretary.

Steel Industry: Contribution to the UK Economy

Jim Shannon Excerpts

Wednesday 25th January 2023 Westminster Hall

[Jim Shannon]

It is a pleasure to speak in this debate. I commend the hon. Member for Newport East (Jessica Morden) for setting the scene so well. I do not have a steel factory in my constituency, or an industry that it is dependent on help from Government, but I do have a strong construction sector that depends on the British steel that comes from the factories in the areas others have spoken about, so it is important for me to put on the record why I support what the hon. Members for Newport East and for Scunthorpe (Holly Mumby-Croft) and others said in their introductions, and what others will say.

I remember the last Westminster Hall debate on steel. The hon. Member for Newport East spoke then as well, and I think the hon. Member for Aberavon (Stephen Kinnock) led the debate. We can see that he is in the main Chamber—his name is up there on the screen—and he cannot be in two places at one time, although I venture sometimes to try. The only reason he is not here is that he has obligations in the main Chamber; otherwise, he would be here.

I have listened with great interest to the contributions of Members today, and I agree with much of what has been said. I have long been outspoken about the need for us to bring manufacturing home to purpose-built, modern, green factories that give local people jobs and produce the renowned high-quality steel for which we are famed. I absolutely support what the hon. Member for Newport East and others have said.

You will know, Mr Pritchard, because your knowledge of the issue is every bit as good as mine, that a major issue for my constituents—many will be able to say it with me—is the Northern Ireland protocol. Why do I mention that now? Let me explain. Some of the Members here will be aware—I suspect that you are one of them, Mr Pritchard—that last August His Majesty’s Revenue and Customs informed steel producers of a 25% tariff on some GB steel imports into Northern Ireland. The steel sector is important to me, and it seems that we are being penalised more than anybody else. The tariff is directly related to the Northern Ireland protocol—it is one of the issues apparent between the UK Government and the EU, to which Northern Ireland has no representation—and the rule changes in relation to steel imports. Some of those steel imports reasons relate to Russia’s invasion of Ukraine; we understand that.

There are big factors that are impacting UK steel, and Northern Ireland in particular, as expert Sam Lowe has outlined. As has been reported:

“Essentially, steel from Great Britain had been able to enter Northern Ireland without a tariff because it was covered by a tariff rate quota (TRQ) for UK exports to the EU. A TRQ allows a certain amount of a product to enter a customs territory without a tariff being paid, but once a set limit is reached tariffs apply.”

So we in Northern Ireland are being penalised to the tune of 25% for our British steel—our own steel—in our own country. The report continues:

“However, when sanctions were applied to Russia EU businesses could no longer buy steel from there. So at that time the EU scrapped country-specific TRQs for the UK and others in favour of one TRQ for Ukraine and another TRQ covering all ‘other countries’.”

The Northern Ireland protocol means that Northern Ireland continues to follow EU customs rules, and therefore suffers disadvantage, pain and cost factors. It is hard to comprehend. The tariff-free limit for supplies from Great Britain to Northern Ireland is set to be reached quickly. The UK previously had access to its own country-specific quota, which it could rely on to accommodate steel moving from Great Britain to Northern Ireland, but now such movements will be covered by the “other countries” quota, which could fill up much more quickly, given that the entire world has access to it.

What does that mean in practice? It means a 25% tariff on British steel moving from Great Britain to Northern Ireland. It means that, while European manufacturers can supply the UK with no tariff, the same does not apply to businesses in my constituency of Strangford. We want to use British steel from Newport, Scunthorpe and elsewhere, as we have in the past. It means that the local steel supplier just two minutes from my office in Newtownards is wondering how, with a 25% tariff increase, he can continue to be involved with construction industry clients that are already teetering on the edge of bankruptcy because of increased prices. It means that my steel importers—my British steel importers—cannot supply the suppliers of other Members in this Chamber. It means that all right hon. and hon. Members should stand and join with me in actively opposing the Northern Ireland protocol, not as a Northern Ireland problem but as a UK problem that affects their local economies and mine. I support the steel industry wholeheartedly, and I ask that every Member in this Chamber recognises my position as the Member for Strangford and does the same for Northern Ireland against this insidious protocol.

[Mark Pritchard (in the Chair)]

Before I call the Front-Bench spokespeople, who will have 10 minutes each, I am afraid that I will have to set a time limit of four minutes for our final three speakers.

--- Later in debate ---

[Bill Esterson]

The Minister says from a sedentary position that I am making out that her role is not important enough. I am not doing that at all—I think it is a very important role. It is important that steel Ministers have longevity in the role, but it is also important that there is a strategic role at Cabinet level. That was the point I was making; it was certainly not my intention to undermine the Minister. I hope she will take back to the Secretary of State the points made in writing by the trade unions.

Returning to the Government’s late response, I hope it is not as a result of the announcements at Liberty that we are suddenly seeing press reports of hundreds of millions of pounds potentially being available. I know that the Minister will not be able to confirm that today, because of ongoing negotiations. But I do hope that the press reports come to fruition. When she was Prime Minister, the right hon. Member for Maidenhead (Mrs May) promised £250 million for a green steel fund, but that did not happen. I am afraid that our memory of what Government have previously promised the steel industry is still strong.

I gently say to Government Back Benchers that what sounds like blaming the last Labour Government for 13 years of Conservative policy does not wash with people. The figures show that steel industry production in this country has declined by half since the global financial crisis. Thirteen of those 15 years have been under a Conservative or coalition Government. We have fallen from 17th to 25th in the world for steel production since this Government came to office. Of course, this is at a time when China and India have dramatically increased their steel production and every other steel-producing nation has experienced decline—it is just that the decline has been higher in this country over the past 13 years. As Members have pointed out, of the top 10 steel-producing countries, we are the only country currently in decline. We have to address that. We can and should go through the history, as long as we learn from it. As long as we apply the lessons from history, we will be in the right place.

My hon. Friend the Member for Neath (Christina Rees) made a heartfelt contribution about the value to communities of the steel industry, using her own family history to make the point about how vital it is to the Welsh economy. Indeed, she was one of the Members who made the point about this country being the only one of the top 10 steel-producing nations where the industry is in decline. The question is: what are we going to do about it? We have to address the challenge of our energy prices. The prediction for this year’s energy prices is that in Germany, steel-producing companies will pay £107 per kWh for electricity and in this country it will be £174. This cannot continue. The Government must take action on the emissions trading scheme. Members have explained the significant cost to the industry—£120 million amounts to 60% of capital investment in the steel industry. These are the challenges the Government must take on in a strategic way, not by using yet another sticking-plaster approach to a problem in the economy.

The Government can and must do more on procurement. Environmental, social and labour clauses are at the heart of Labour’s plan for procurement. It is beyond belief that this country is the only major country that would even dream of giving a contract for warships to an overseas company. There is no guarantee that the Spanish consortium awarded that £1.6 billion contract will use UK-made steel in producing those fleet solid support ships. Other countries take a more strategic approach. The United States has the Inflation Reduction Act, with strong commitments to the transition to low-carbon steel production at its heart. Such a commitment has also been made by other countries whose investments are years ahead of what is going on in this country, including Canada, Spain, Belgium and Germany. They are committed to low-carbon steel production.

[Jim Shannon]

The hon. Gentleman mentioned the contract for warships. In Belfast, Harland and Wolff has benefited from that, but the disadvantage is that if it wants to buy British steel and bring it over to the Northern Ireland, it will be 25% more expensive. Again, that is a conflict of the Northern Ireland Protocol Bill.

[Bill Esterson]

The hon. Gentleman is absolutely right that we need to sort out the Northern Ireland protocol. That is a slightly longer and wider debate, but it is an important point for him to raise as a Northern Ireland MP.

I want to remind the Minister about the problem with Russian steel, which my hon. Friend the Member for Newport East mentioned. It cannot be right that melted and poured Russian steel can be diverted via a third country and then imported into this country. Sanctions have to apply to all Russian-produced steel. We have had the Government announcements, media reports and lots of talk over the past 13 years from 12 Ministers. What we need is a proper strategic approach. Labour is putting forward an industrial strategy and plans for a green steel fund of £3 billion. That is the kind of strategic long-term commitment that will deliver the confidence and certainty to the industry that is needed. We have a plan. We have proposed a billion-pound fund for energy-intensive industries and it could help right now. The Government can adopt our plan if they want to. It is there in writing in the public domain. They can adopt that plan or come up with their own, but it has to be at a strategic level—no more sticking plasters. We need a strategic long-term answer for the future of this vital strategic industry.

Retained EU Law (Revocation and Reform) Bill

Jim Shannon Excerpts

Report stage
Wednesday 18th January 2023 Commons Chamber

[Dean Russell]

I agree with my hon. Friend.

I am conscious of time. The bit that I really want to touch on is this legislation’s role with regard to growth and small businesses. In the different world that we live in nowadays, it is essential that our small businesses—I believe that they are about 99% of all our businesses—can be nimble. We used to talk about having a shop on every corner, and we now have businesses that can be in every corner of the world. We need to ensure that they can grow and that they are not burdened with spending most of their time doing admin and back-office stuff to fulfil legislation that is out of date and unnecessary. We need to know what that legislation is.

[Jim Shannon (Strangford) (DUP)]

While most of the United Kingdom will benefit from the Bill, and my party will support the Government when it comes to the votes, Northern Ireland is being left behind due to the protocol, which the hon. Member for Stone (Sir William Cash) referred to. Does the hon. Gentleman agree that while we do these things tonight, we must ensure that the Northern Ireland Protocol Bill goes through so that the people of Northern Ireland have the same rights as the rest of us in United Kingdom?

[Dean Russell]

I thank the hon. Member—my friend—for his comments. Absolutely, we need to get that sorted, because it is essential that we move forward in the right way.

My point on small businesses is that, at the moment, they need staff to do extra things to deal with Government—admin, processes and all those different things—and if we relieved that stress and enabled them to be more nimble, they could spend more of their time selling and doing rather than filling out paperwork. That has got to be a good thing. When we look at this legislation, we must ensure that everything is fit for purpose, that there is a purpose to it and that we are being purposeful in implementing it.

There are thousands of laws on the statue book that are not essential or necessary. They are just there, and many hon. Members probably do not realise that they exist. That cannot be good for this country. It cannot be good for growth and it cannot be good in particular for small businesses and those who run those small businesses.

There is lots more that I would like to talk about, but I will finish. I absolutely support the Bill and look forward to seeing it go to the Lords. I hope that Opposition Members will see the benefits that it will bring to this country and that, when they talk about taking back control, they realise that this is at the heart of that.

Cost of Energy: Ceramics Sector

Jim Shannon Excerpts

Tuesday 17th January 2023 Commons Chamber

[Jonathan Gullis]

I am grateful to my hon. Friend, who is an incredible champion for the people of Newcastle-under-Lyme and the ceramics sector, as well as my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), who is sat behind me—he was made in Stoke-on-Trent, born and bred, and is the heartbeat of our city. It is great to be surrounded by such supportive colleagues. My hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) is correct to say that as support will decrease from April onwards, there is a fear that, if prices were to go back up, while companies may be receiving good orders, they would be left with unaffordable bills. Wages are also having to be increased massively just to retain staff, let alone manage the recruitment crisis that the sector presently faces.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman on bringing forward the debate. I always like to come and support him, as he does me.

There is a local, independently owned ceramics businesses named Eden Pottery in my constituency. Some of its ceramics and pottery were used during the October season of “The Great British Bake Off”, so it has a bit of prominence. There has been recent news that the £150 payment will be distributed to small and medium-sized businesses at the end of February, but in some cases energy prices are trebling, so that will not really make a dent—I guess that that is what the hon. Gentleman is referring to. Does he agree that a greater assessment must be undertaken on the impact of that payment, and that additional funding really needs to be found as soon as possible?

[Jonathan Gullis]

I am grateful to the hon. Member, who is a really good friend. It is incredible that Strangford finds a way of linking itself to every single one of our constituencies across the House, and it could not be better served than by him; he is a doughty champion. I look forward to exchanging some pottery with him in the near future so that we can share in our fine ceramics. He is indeed correct to make the point about the cost implications of rising gas prices and the danger to small, medium and large firms, which could see lots of jobs lost if support goes earlier than it should do.

Strikes (Minimum Service Levels) Bill

Jim Shannon Excerpts

2nd reading
Monday 16th January 2023 Commons Chamber

[Grant Shapps]

I will make a little bit of progress first. Right now, up and down the country, households are struggling with the repercussions of high inflation caused by covid and Putin’s invasion of Ukraine. The UK is not alone in feeling the pressure, which is also felt by many other countries, particularly within the European Union. Recently, the Prime Minister outlined the Government’s priorities: to build a better, more secure and more prosperous future, one that this country and our workforce—public or private—fully deserve. By halving inflation, growing the economy and getting debt down, we can ensure that our vital public services are fit. As the Government get on with those priorities, we also have a duty to protect access to vital public services which, let us not forget, the public are paying for through taxation.

[Jim Shannon (Strangford) (DUP)]

Secretary of State, I believe in the fundamental right of a worker to withdraw their labour, whether that happens to be from an employer or against the Government. I understand that at this time many people feel the same, and for those who are toying with this idea, let me say that the ambulance service, nurses and doctors, for example, have been able to ensure that there was an emergency service. Do the Government really believe that withdrawing the right of a worker to withdraw their labour is what they are about?

[Grant Shapps]

I always think that people think very carefully about this issue, and they are right to do so. We are operating within the context of a crisis in global growth. The International Monetary Fund states that a third of the world will be in recession this year, caused by Putin’s illegal invasion of Ukraine—[Interruption.] I am surprised to hear Labour Members yawning and moaning. Putin invaded Ukraine—[Interruption.] What Labour Members do not seem to realise is that what then happened to energy prices caused a crisis that has put up inflation throughout the western world.

Skills and Labour Shortages

Jim Shannon Excerpts

Thursday 12th January 2023 Westminster Hall

[Patricia Gibson]

I have absolutely no problem with freedom of movement—we have suffered enormously as a result of no longer having it—but I appreciate that the Government will not move in that direction, so I am asking them to allow our public and private sectors to recruit from Europe as and when they need to in order to fill their skills gaps and jobs gaps. That is very difficult. The skilled workers criteria are too narrow and do not fill the gaps, even for the sectors that they are intended to help. They are not enough and do not take into account the strains and shortages in areas of the economy that they are not directed at. I believe that the Minister and the Government understand all the difficulties that I and others have mentioned, but feel trapped by their rhetoric. I hope they will get over that and take a common-sense approach, for the sake of our economic prosperity.

The Government commissioned the Migration Advisory Committee to review the shortage occupation list, but I understand that the review has been paused pending clarification of the Government’s priorities surrounding the skilled workers route. When the Minister gets to his feet, perhaps he will give us more detail of how the review is going, when it will be unpaused, and when we might see some benefit from it.

In the absence of any attempt to address the very serious situation in the way that I and many people across this House would like, and that would have the necessary impact on the challenges, I urge the Minister at the very least to play his part in persuading his Government to allow a Scottish visa to be established, so that those who wish to live in Scotland and contribute to its workforce may do so. By way of precedent, similar successful schemes have been established in Canada, Australia, New Zealand and Switzerland on a regional basis. Scotland should not suffer from a one-size-fits-all UK approach; its demographic, geographical and labour needs are entirely different.

It makes sense to allow asylum seekers who come to the UK to enter our workforce. They are stuck in hotels or Home Office accommodation at huge cost to the taxpayer, but many of them have valuable skills that we need, and they are desperate to enter our workforce, while we suffer skills and labour shortages. That defies all common sense.

[Jim Shannon (Strangford) (DUP)]

I support the hon. Lady’s comments. In Northern Ireland, the Syrian scheme came in, and that was followed by the Afghan scheme. We still have people who came in through the Afghan scheme in the Marine Court hotel in North Down. I have made representations to the Minister and the Department. Local companies such as Willowbrook Foods and Mash Direct are willing to give those people jobs, and those people want to work, but we cannot get them into employment. They are still stuck in a hotel. Would anyone like to be stuck in a hotel for one and a half years?

[Patricia Gibson]

Absolutely. We often hear from those on the Government Benches about how expensive the system is. Well, there is a way out. There is a way to benefit our economy, the asylum seekers, our communities and our workforce. It is a no-brainer. The situation defies all common sense. Refugee Action has calculated that if asylum seekers were given permission to work, that could generate up to £330 million annually for the UK Treasury. I urge the Minister to do what he can to persuade his Government to support the private Member’s Bill brought forward by my hon. Friend the Member for Glasgow North West (Carol Monaghan), the Asylum Seekers (Permission to Work) Bill.

The Scottish Government are doing everything they can with their very limited powers to address skills and labour shortages across Scotland, and have developed a “working with business” action plan. They are identifying new and existing actions that they can take, alongside business and partners such as skills agencies, to mitigate the impact of skills and labour shortages, and to stimulate economic recovery through a range of employability, skills and sector-specific interventions. However, the Minister knows that the real levers of power that have to be used if we are to address the issue are with the UK Government. If he says that the UK Government are not willing to take the necessary steps right now to address the shortages that are damaging the economy in Scotland, as well as the rest of the UK, he should make the case to his Government for devolving the necessary powers to the Scottish Parliament, so it can tackle this problem in a more effective and logical way in the interim, before independence for Scotland. In that way, Scotland can in the meantime attract and retain those with the skills and attributes that we need in our workforce, so that our communities, our economy and our country can grow for the benefit of the people of Scotland.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on leading the debate and on setting the scene so well, as she always does. It is a pleasure to follow the hon. Member for Wirral West (Margaret Greenwood) and I thank her for her contribution. In her introduction, the hon. Member for North Ayrshire and Arran made a point that I referred to in my intervention, but I want to reiterate it and take it from two angles.

First, I will speak about the Afghan refugees who have been staying at the Marine Court Hotel in Bangor, in the neighbouring constituency to mine, since their arrival from Afghanistan. As I have made the responsible Ministers aware, two major food production employers in my constituency, Willowbrook Foods and Mash Direct, have jobs available right now. Those jobs were available months ago; indeed, they were available more than a year ago. I find it frustrating that we have people who want to be active and have skills, and that there are jobs available for them, so I support the point made by the hon. Member. I not sure whether that issue falls within the Minister’s remit, but if not, will he pass it on to the relevant Minister?

The situation is frustrating because there are vacancies in food production in my constituency that are difficult to fill. It is not as though employers have not tried to fill those vacancies; they have been energetic and have been into further education establishments and schools to talk to people at an early stage about that type of work. It is well-paid work, with excellent remuneration, but it is frustrating for them not to be able to recruit within their area.

In modern times, there often seem to be shortages in many things. For businesses, especially our small and medium-sized enterprises, shortages in skilled staff are rife. That has been brought to my attention by many business owners in Strangford. After a few horrific years, with the impacts of covid, a dire economy and the cost of living crisis, we have to improve the situation. There are things that we can do, as other hon. Members have said. Staff are the reason our businesses can function. Without a sustainable staffing base, businesses cannot work on a day-to-day basis.

I mentioned Willowbrook Foods and Mash Direct, and in both those cases, the companies were in a position to offer workers accommodation as well, which is a real plus. They are often looking for new staff to fill the most important roles in the business. They are casting their recruitment campaigns widely, across the whole Province. They bus people in from Newry and Mid Ulster, and people even come from the Republic of Ireland to work there.

The hospitality sector in my constituency is facing major staff shortages. We are fortunate to have a number of coffee shops and small cafés, and a coffee culture has been created in my major town of Newtownards. Examples of coffee shops in my constituency include Fika in Greyabbey, No8 Court Street in Newtownards and Sugarcane in Comber, but there is often high employee turnover and wages are, by their nature, low. Hospitality businesses have been reaching out to previous applicants to entice them back and to hire them to fill vacant positions, which shows the huge impact of labour shortages on the hospitality sector. There cannot be an MP in this House, including you, Sir Graham, who is not aware of the dire shortage of staff in the hospitality industry.

The shortage of skilled labour is now the second biggest threat to the motor repair industry, compared with being ranked the 10th biggest threat in 2020. The mechanical industry can combat the skilled labour shortage by incorporating apprenticeships to train and develop new talent. To my eyes, the major issue with skilled apprenticeships is the low rate of pay, which has to improve. The Minister has good ideas to take things forward, which I know come from his previous business, so I am keen to hear his feedback on how businesses can progress with apprenticeships.

There may have to be a wee bit of a difference, where some sort of apprenticeship bonus is paid to some of those companies. Most apprenticeships, by their nature, last three years. I can give the example of a constituent who started an apprenticeship for a well-known car company when he was 15. He was being paid £3.10 per hour for his work. Wow—not many people could get away with that, even with funding from their mum and dad. Government funding of apprenticeships allows for apprentices who want to continue their work with their company to be paid fully and fairly, causing less of a problem for staff and businesses.

The right hon. Member for Chipping Barnet (Theresa Villiers) rightly referred to apprenticeships and I endorse what she said; I feel that apprenticeships can be improved. Again, I look forward to hearing the Minister’s thoughts on that issue.

The Recruitment and Employment Confederation stated that the UK economy could lose up to £39 billion a year from 2024—a massive sum—if the Government do not resolve labour and skills shortages. In a way, we in Northern Ireland have been very lucky, because our population has risen from 1.75 million to just over 1.9 million. Most of those people coming in are from Europe or further afield, so I suspect that we in Northern Ireland do not feel the pain as much as people in other parts of the United Kingdom. When those people come over, many of them stay; when Brexit happened, they applied to stay, and I helped some of them get jobs. They have become a very integral part of our community. People from Poland, Latvia, Lithuania and Romania—lots of people have come in—have brought their culture and their work ethic into my Strangford constituency, and have done extremely well. I see a real bonus in retaining them.

To put this into perspective, that loss of £39 billion a year from 2024 is equivalent to losing almost the entire current defence budget. It is also equivalent to roughly two Elizabeth lines annually—by the way, that line is off today, for some reason. That shows the financial sums that can be lost if we do not get this right. If we take those figures at face value, we see how severe our labour shortages are. The public look to us in this House—to us as MPs, to our Minister and to the Department—to give them the support and the answers they need, so let us do that to support our local communities. I know the Minister well and I am very keen to get his thoughts on how we progress this issue. I do not say that just because he is a long-time friend; I believe that he has an understanding of the issue, and I look forward to what he has to say.

Industrial Action

Jim Shannon Excerpts

Tuesday 10th January 2023 Commons Chamber

[Grant Shapps]

The hon. Lady might want to inquire of Members on her Front Bench—most of them are gone now, but one or two are still here—whether they would support a 19% pay increase. If they would, nice as that would be to do, how would they explain it to their constituents and to the financial markets as interest rates rise? If they would spread that across the entire economy, what would the impact be on the economy at large? Those are the simple but, unfortunately, difficult decisions that need to be made in government. Frankly, Labour’s failure to answer those basic questions is why it is not ready to run this country.

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Deputy Speaker. It is not often I get called to speak before halfway through, but I am very pleased to have been called. The sentiments expressed inside this Chamber about seeking a solution do not appear to match the negotiations outside of it. As the Secretary of State will know, for many NHS staff, this is about not just money, but safety on the wards. Many nurses have stated that they would be happy with additional staff to lighten the load along with a modest pay rise to cover the cost of living. Will the Secretary of State indicate what assessment has been made of safety on the wards in the light of ongoing action? Will the Secretary of State guarantee safety and a cost of living wage increase?

[Grant Shapps]

Of course, one reason that we have employed tens of thousands more nurses and doctors is to help to relieve the pressure post covid. We all understand that, given what happened with covid and what is now happening with flu, which is the worst it has been for 10 years, we are seeing particularly strong pressures on our hospitals. The point I am making today is that none of this is helped by the uncertainty. It is fine for workers to withdraw their labour—it is obviously a last resort, but we understand it—but please, give us an indication or a guarantee of where the safety level will be, and do so on a nationwide basis. In fairness to the Royal College of Nursing, it has done that. The ambulance unions, I am afraid, have not. We invite them to do so.