Harland & Wolff

Debate between Jonathan Reynolds and Bob Blackman

Thursday 19th December 2024 Commons Chamber

[Jonathan Reynolds]

I am grateful to the hon. Gentleman for his observations and questions. It was really important to us that we keep all four yards together—there had been an assessment that, for understandable reasons, the Belfast yard was more commercially valuable, so there was a real chance that any unstructured rescue package could have lost the two Scottish yards. There were question marks about those yards in particular, so keeping the business together and protecting the future of those workers was hugely important to us, and I am delighted that we have been able to achieve that.

The job guarantees for the non-Belfast yards will last for two years. The guarantee is for 90% of the overall job numbers, simply to provide the usual degree of flexibility in running that business, but that guarantee covers the majority of the workforce and keeps them in place. The deal also comes with investment in those Scottish yards, so whatever the future holds, those yards will be even more competitive and more able to bid for the kinds of contracts that will secure the long-term prosperity we are all seeking. I am always genuinely willing to work with colleagues across any part of the UK to secure the kind of outcome we have achieved today, and I am grateful to the hon. Gentleman for recognising that.

[Bob Blackman (Harrow East) (Con)]

As someone who has consistently and regularly called for more shipbuilding to take place in the UK rather than be exported, today’s statement is good news, and I congratulate the Secretary of State on announcing this decision. He has clearly said that further orders have been added as a result of this deal. What further defence and—much more importantly—commercial opportunities are there for Harland & Wolff to acquire contracts from across the world, rather than building elsewhere?

[Jonathan Reynolds]

I share the hon. Gentleman’s aspirations and recognise his calls for UK shipbuilding to have a higher priority in future than it has in the past. To be specific on what I was saying in the statement, there has been a revision to the value of the fleet solid support contract; it has required a little bit of additional support—but not greatly and on commercial terms—in order to deliver it. There are not promises of additional work packages on top of the contractual agreements made by the previous Government, but because Navantia UK is such a world-renowned expert builder of shipping of all sizes, as well as the investment that comes with this deal and the more competitive nature of the yards in future, there are genuine grounds for optimism. I see real opportunities in fabrication and maintenance, but particularly in energy. I also think that a little bit of competitive diversification in the military shipbuilding sector’s supply chain is welcome, creating better value for money in procurement. Across the board, this is a positive story for Harland & Wolff and its employees, but as the hon. Gentleman has described, it is also a positive story for UK shipbuilding.

Stellantis Luton

Debate between Jonathan Reynolds and Bob Blackman

Wednesday 27th November 2024 Commons Chamber

[Jonathan Reynolds]

I very much believe that industrial strategy is essential to the future of the United Kingdom. I hoped that this would be supported on a cross-party basis, and I see no reason why Conservative Members, or anyone else, would not support an industrial strategy. Indeed, some Conservative Members, or their predecessors, held positions similar to the one I hold. They got this and believed in it, and did quite a good job in some difficult circumstances within the Conservative party. Yes, an industrial strategy is essential to this Government, and I hope the whole House will get behind our plans for Invest 2035. The response from industry has been superb. It is what we need as a country, and we should all get behind that.

[Bob Blackman (Harrow East) (Con)]

It is clearly a sad day for Luton and workers there, but the Secretary of State must remember that this is not just about Luton but about the whole car manufacturing industry, and workers up and down the country in that industry will be saying, “Am I going to be next?” Will the Secretary of State set out his position on conversations that he is having with other car manufacturers to ensure that the same thing does not happen to them?

[Jonathan Reynolds]

I reiterate the points I made in my statement: this is about the whole sector, and while we walked in to find a certain position with this plant when we formed the Government on 5 July, we recognise that there are also sector-wide issues. That is why we have been having these conversations, and why we are willing to show pragmatism and change some of the policies we have inherited to ensure that they are working for British industry.

The hon. Gentleman asked about specific conversations. As I said in my statement, just last week we had a meeting with all the major UK-based original equipment manufacturers and wider representatives of the sector to talk about the flexibilities that might be required to make this policy work in a way that does not undermine British industry, but gets us to a common destination for industry, Government and consumers together. That is exactly what we are doing, and whatever Conservative Members feel about the previous Government’s policy, I ask them to get behind that ambition.

Port Talbot Transition Project

Debate between Jonathan Reynolds and Bob Blackman

Wednesday 11th September 2024 Commons Chamber

[Jonathan Reynolds]

I thank my hon. Friend very much for her question. Let me say again that I wish that we were in a position to do even more, but I can tell hon. Members that this is the maximum improvement that was possible within two months. I know that in constituencies such as my hon. Friend’s people are seeking more than anything else a recognition that steel is not a sunset industry. It is vital to the future; it is not the case that it should be in inevitable decline in the UK. Indeed, we are an outlier in terms of the size of our steel industry among comparable G7 and OECD countries. This could be and should be a very positive story, and I am honestly confident that we can deliver that in future.

[Bob Blackman (Harrow East) (Con)]

The right hon. Gentleman mentions procurement, and over countless years we have had statements and new strategies for steelmaking. Will he set out his plans to secure a long-term order book for steelmaking in this country, so that investors can make sure that they get value for money as well as the taxpayer? Equally, how will he endeavour to use the public purse to purchase British steel, while at the same time encouraging the export of British steel to other parts of the world?

[Jonathan Reynolds]

I am grateful to the hon. Member for his question and very much agree with him. As the shadow Secretary of State, I avidly read the statistics that the Department published about UK content in domestic steel procurement. We must recognise that it is usually relatively high, but only in the sectors where we are producing particular grades of steel. Part of the strategy has to look at future demand, not just for what we already produce, but in terms of gaps and business opportunities. If we are improving the business environment, we need not just to help incumbent producers in the United Kingdom transition, but bring in new entrants, creating more competition in the market. I can see that there is significant demand in the market. It is the market that is driving the demand for green steel. I have no concerns about the future order book; it is the business environment taking advantage of that demand that this strategy needs to address.