Harland & Wolff

Debate between Jonathan Reynolds and Richard Baker

Thursday 19th December 2024 Commons Chamber

[Jonathan Reynolds]

I very much share the right hon. Gentleman’s aspirations. He will know that most defence steels are higher end—they are specialised and tend to come from electric arc furnaces—and one challenge that we have inherited relates to the two remaining blast furnace sites in the UK. We have improved the situation in Port Talbot, but we could not change direction, with the blast furnaces going offline before the arc furnace was installed. We have inherited an even more challenging position in relation to Scunthorpe, but we are working closely with the company to find a solution.

I believe that we are missing real capabilities in the UK. I can see the economic and business case for plate mill, for instance, and for the long-term question of direct reduced iron in steel production. The steel strategy is part of delivering on that. A whole range of horizontal policies, particularly on energy prices, would have to be in a corresponding position for us to do that. The fact that the UK has such a small steel sector relative to the size of our economy makes us an outlier among developed nations and suggests that there is a real evidence base for improving it, and I will work with any Member of the House to deliver that.

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

Merry Christmas, Madam Deputy Speaker. This is a great Christmas for Methil. I thank the Secretary of State for Business and Trade, the Secretary of State for Scotland, and all those in Government who have worked so hard to secure this deal, which has saved 200 skilled jobs and apprenticeships at the Methil yard in my constituency, and 150 jobs at Arnish in the constituency of my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton). Does the Secretary of State agree that it is vital that all levels of Government, trade unions and stakeholders in the future of the Methil yard continue to work together so that, with GB Energy headquartered in Scotland, the yard can fulfil its huge potential in contributing to our ambitions for growth in the renewables industry in Scotland and the UK?

[Jonathan Reynolds]

I thank my hon. Friend for all his support and repeated submissions to the Department. I know how significant this matter is for his community, and he has fulfilled his role as a Member of Parliament in articulating it at every level of Government. I say the same for our hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton)—I visited the Arnish shipyard during the election campaign. It is so important in a job such as mine, and in a Department such as mine, to recognise that we must deliver for the whole United Kingdom. The diverse challenges we face do not detract from the fact that we must deliver for every part of the UK, and that is what we plan to do.

I also thank my hon. Friend for his comments about my officials, who worked very hard to deliver this outcome. I agree with him about the huge potential out there not just for shipbuilding, fabrication and maintenance, but for energy in particular. There is real optimism for the future, but it requires the kinds of foundations that we have put in place through this agreement.