Coryton Oil Refinery

Debate between John Baron and Stephen Metcalfe

Wednesday 27th June 2012 Commons Chamber

[Stephen Metcalfe]

Those discussions have been taking place behind closed doors and in private. I am sure that the Minister will tell us in his response what the reasons were and what avenues were explored. I can tell the hon. Gentleman that Thurrock council’s economic impact assessment, conducted by DTZ, estimated the impact to be closer to £1 billion. That represents a potential contraction in economic activity of 0.07% of the national economy, which is getting close to a third of the contraction we experienced in the past quarter. One of my arguments has always been: are we really willing to let that go without exploring every avenue? That is one of the questions I have asked in private, and I am hoping that we will hear it answered by the Minister in public this evening.

As the House will be aware, that call for state aid, including from me, has been growing over the past few weeks. I have raised the issue on the Floor of the House and, as I say, in private. I have asked that Ministers examine every conceivable angle, and check and double-check that there is no way they can help within the boundaries of what is possible.

We have to remember that the refinery spends tens of millions a year in the UK on maintenance, chemicals, utilities and business rates. Every three to four years it has a maintenance project, which results in approximately £150 million being spent in the UK, and that was due to take place this autumn. The impact of this closure will be felt across the whole country, but the hardest hit of course will be those in the local area. The economic cost will be great. In employment terms alone, the closure of Coryton will affect 800 families directly through the loss of employment, leaving aside those who work for suppliers. That is 800 families who will now have a more difficult time feeding their families—putting food on the table. To add salt to the wound, if the planned turnaround project had gone ahead this autumn, the number employed there may well have risen to more than 2,000. It is hard to underestimate what a blow this is; we are exporting manufacturing jobs and replacing them with service jobs, and nothing like in the same numbers.

I had also hoped, despite the work the Department has undertaken on developing a refining strategy, to persuade the Minister to look again at the issue of diesel capacity; I had hoped that he might move on that just a little. As he will be aware, I and the Government are being accused of not doing enough to support this business—not doing as much as was done for the banks—so all I can do now is to seek publicly answers to questions that I have put privately for months. I realise that the Government were highly unlikely to be in a position to purchase the business, but I wanted to look for a more imaginative solution where they support the business on a commercial basis or through some form of loan guarantee.

In light of the above, I wish to put a number of questions to the Minister. First, will he confirm that he and colleagues from across the Government looked at every conceivable angle on providing some form of financial assistance for this business so that it could be kept open? Will he tell the House whether he or any of his colleagues received a formal, structured and specific request for state assistance from the administrators, or were discussions just of a vague nature, along the lines of, “It might be helpful if some money was put across”? Can he reassure the House that the full level of economic impact was taken into account when they were deciding whether financial intervention was possible? By far the biggest impact will be on jobs, so what steps are the Minister and colleagues across the Government taking to support those who are losing their jobs, and when will that support be available?

Finally, in the light of the information that has been handed to me in recent weeks, of what I have said this evening and of the concern that has been expressed about the process, the way in which it has been handled and the fact that the refinery is of such significance, will the Minister support my call for a parliamentary inquiry into the process, if for no other reason than to ensure that everyone, from the work force and the bond holders to each and every stakeholder, has been treated fairly by this process?

[Mr John Baron (Basildon and Billericay) (Con)]

I congratulate my hon. Friend on his hard work. He knows he has had our support in his endeavours. Given the valid concerns he has raised, can he explain where the downside is of having a parliamentary inquiry?