EU Referendum: UK Steel Industry

Debate between Jonathan Edwards and Hannah Bardell

Wednesday 13th July 2016 Westminster Hall

[Hannah Bardell (Livingston) (SNP)]

It is a pleasure to serve under your chairship, Mrs Gillan. I want to start on a conciliatory note and very much congratulate the hon. Member for Cardiff South and Penarth (Stephen Doughty) on securing this debate. I have spoken a number of times on this issue. I congratulate Members of all parties on the work they have done, including the Minister who has been working in very difficult circumstances. However, without recycling too many of the arguments, it is important that we focus on what we can do as a result of the Brexit vote. It is important to point out, as my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) did, that we voted differently in Scotland and are looking to protect Scotland’s place in Europe. Our First Minister, Nicola Sturgeon, and the Scottish steel taskforce have been working very hard on that, and I pay tribute to all the steelworkers across the country who have lost their jobs as a result of the challenges facing the industry.

Some Members have picked up on the issue of pensions. We have seen various businesses, including the likes of BHS, do significant damage to our reputation as a country in terms of what they have done with pensions. It is very important that the steelworkers have their pensions protected and that in any negotiations the Government are a great champion of that.

I want to bust a couple of myths that the hon. Member for Cardiff South and Penarth mentioned. My hon. Friend the Member for Motherwell and Wishaw rebutted the comment on the Aberdeen western peripheral route, but it is important to remember, as the hon. Gentleman and other Labour Members will, the tragedy of the closure of Ravenscraig and what that did. I hope the hon. Gentleman will recognise the shoulders on which he stands and the work done by Labour members in Scotland, by the SNP and those across the political spectrum who fought to keep that plant open, but were not successful. That plant, until it was closed in 1992 by a Conservative Government, was the largest hot strip steel mill in western Europe. It is because of that closure that we are not able to produce the kind of steel that we would like to. That is a great tragedy. I hope the hon. Gentleman recognises that.

As I said, I want to be conciliatory in this debate because a huge amount of work has been done. For us in Scotland, there was concern about the potential closure of the Dalzell and Clydebridge plants, which was going to cost us more than 270 jobs. However, the Scottish Government established the Scottish steel taskforce, which brought together people from across sectors: local authorities, trade unions, the UK Government, Scottish Enterprise and more. It is also important to note the involvement and engagement that the Scottish Government had with the unions from an early stage, by contrast, I am afraid to say, with the UK Government. The First Minister said at the time of the sale to Liberty House, which is to be congratulated on its involvement and enthusiasm in taking over the steel plants in Scotland, that if there was any learning and experience that we could share with Port Talbot, we would be happy to do so. I hope the hon. Member for Aberavon (Stephen Kinnock), who has been a significant champion for his constituency, will take up that offer.

The hon. Member for Llanelli (Nia Griffith) spoke about energy prices and the impact on her constituency. The hon. Member for Strangford (Jim Shannon), who is a regular feature and I believe one of the greatest contributors in Westminster Hall debates, spoke passionately. Although he does not have a steel industry in his constituency, he wants to offer support and takes a glass-half-full approach. It is important that we take such an approach. There are many issues and challenges and it will be interesting to hear the Minister’s view. We do not know how long she may have left in her current role, but how does she see the negotiations with Europe going for the UK and what kind of trade agreements can we expect to see? As we know, the pound has fallen, which means that UK steel will be cheaper to foreign buyers, and that could boost demand. On the other hand, a lower pound means that imports will be more expensive. Imported coal and iron ore are used in some of Tata’s UK operations, so that is a concern. I would be particularly interested to hear the Minister’s thoughts on what will be done in that regard.

[Jonathan Edwards]

I am very interested in the point that, theoretically, the fall in sterling in normal economic times would help exports. The big issue is uncertainty—uncertainty in economics is toxic. Surely now we need an urgent statement from the Government that we will go for EEA status, to preserve our status within the single market. That would be one way of securing investment in steel.

[Hannah Bardell]

I could not agree more with the hon. Gentleman. He will know that joining the EEA and taking on those agreements would also include accepting the free movement of people. Most of us in the Opposition parties would agree that that would be positive, but, as we know, there are many on the Government Benches who disagree. This is a time of great uncertainty. It is simply unacceptable that there was no plan—as we read in the newspapers, things were thought about but not written down—and I think that everybody in British industry will be looking at that situation in shock.

The hon. Member for Rotherham (Sarah Champion) spoke about action on cheap, dumped steel and what can be done on tariffs, which a number of other hon. Members also raised. The hon. Lady also raised the issue of pension liabilities and her concerns for her constituents.

It would be remiss of me not to pay tribute to the work done by the unions and the devolved Administrations. Many workers are looking on, wondering what is going to happen to their jobs. At a time such as this, it is very important that we find consensus where we can. There will be differences of opinions and policies across the House, but we must work together to find consensus and to secure these jobs for Britain—to find a long-term economic and industrial plan, and to make sure that we secure as many jobs as possible.