UK Steel Production: Greensill Capital

Debate between Kwasi Kwarteng and Lucy Powell

Thursday 25th March 2021 Commons Chamber

[Lucy Powell (Manchester Central) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make a statement on the future of UK steel production following Greensill Capital’s recent insolvency.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

As many right hon. and hon. Members will be aware, it would not necessarily be appropriate for me to comment on commercially sensitive matters at this stage. However, I do appreciate that many Members of this House have expressed concerns to me, individually and in groups, about their constituents working in the steel industry and the families and workers that the industry supports.

Following Greensill Capital entering into administration on 8 March, I and the Department continue to follow developments very closely. As many hon. Members know, I have directly spoken to local management on a number of occasions, and I have also spoken to representatives of the trade unions—as recently, in fact, as yesterday evening. On all those occasions, I have seen a strong and united commitment across management, across the unions and certainly among officials in my Department. I have seen a united commitment to the workforce and our steel industry.

[Lucy Powell]

The Secretary of State has been dragged here to finally say something, because earlier in the week he had nothing to say. I do not expect him to disclose commercial information, but it is in the commercial interests of UK plc and the customers, suppliers and workers in Rotherham, Stocksbridge, Hartlepool, Scunthorpe, Newport and elsewhere to know whether the Government will step in if Liberty fails to refinance.

We have called for a plan B. It is in our national interests for all options to be on the table. Those options should not be blinkered by ideology, because domestic steelmaking is a cornerstone of our national security and economic prosperity. What is more, Liberty Steel businesses are viable and have made the switch to electric arc furnaces, at great cost. Can the Business Secretary confirm that he is considering all options, from immediate support—if due diligence is met—to public ownership, should the business fall into administration? Does he agree that nationalisation could be the best value-for-money option, especially when we look at British Steel, which the Government spent £500 million on and then sold off on the cheap to the Chinese?

Let us be honest: UK steel and steel communities have been betrayed by this Government, because they have no vision nor any plan. There was not a single mention of steel in the Secretary of State’s plan for growth. There has been very little sector support during covid. The clean steel fund keeps being kicked up the road. There has been no action, despite promises, on the crippling issues of high energy prices and business rates. There is no buy-British guarantee in Government contracts. He just scrapped the industrial strategy. It is no wonder that the investment climate in UK steel is so uncertain. Will he finally take this opportunity to set out his vision and plan the future of UK steel?

Oral Answers to Questions

Debate between Kwasi Kwarteng and Lucy Powell

Tuesday 23rd March 2021 Commons Chamber

[Kwasi Kwarteng]

The hon. Lady will know that in my meetings with management and relevant union leaders, I have always stressed that the management plans need to be worked through. We are monitoring the situation extremely closely. The hon. Lady will know that I have a direct interest in the future of Liberty Steel.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

Does the Secretary of State accept that, as well as supporting tens of thousands of decent jobs, UK steelmaking capacity is of key strategic importance to our future competitiveness and resilience? If he does, is he as concerned as we are about the future of Liberty Steel, and will he ensure that the Government are working now on a plan B with all options on the table, including public ownership, should the firm fail to secure finance? Or is he ideologically opposed to this, preferring the UK Government either to step aside or to spend huge sums to prop up businesses at risk only to sell them off cheap overseas?

[Kwasi Kwarteng]

The hon. Lady will know that we have a repeated and often stated commitment to decarbonisation in our industry. It was only last week that we published, under the leadership of my right hon. Friend the Minister for Business, Energy and Clean Growth, the industrial decarbonisation strategy. She will also appreciate that the steel industry is a vital part of that decarbonisation strategy.

Vauxhall at Ellesmere Port and Battery Manufacturing Strategy

Debate between Kwasi Kwarteng and Lucy Powell

Monday 1st March 2021 Commons Chamber

[Kwasi Kwarteng]

My right hon. Friend is quite right. The issues raised by his question are of critical strategic importance, and I fully appreciate the work that he did on driving the industrial strategy. As he pointed out, the industrial strategy set the foundation for vaccines and the success of the vaccine roll-out. He is quite right to point out that we need the same rigour and focus in ensuring that the United Kingdom continues to be an attractive place in which to invest for the manufacture of electric vehicles, in order to meet the Prime Minister’s 10-point plan. Electric vehicles were a key part of that 10-point plan.

[Lucy Powell (Manchester Central) (Lab/Co-op) [V]]

I thank the right hon. Member for Tunbridge Wells (Greg Clark) for securing this urgent question and agree wholeheartedly with him. Labour stands ready to do all we can to secure the future of Ellesmere Port. The plant has been a major employer in the north-west for decades and is highly efficient and productive. It would be a travesty if it did not have a long-term future. That is now in the Government’s hands.

The uncertainty facing Ellesmere Port and other car plants speaks to a deeper problem caused by the Government’s inaction on automotive. They have been asleep at the wheel. First, automotive has had no sectoral support during covid, despite the worst trading levels in 50 years, while it has received billions of euros in France and Germany. Secondly—[Inaudible.] The green transition for car makers is not underpinned by any meaningful investment or strategy. They need more than the platitudes of the 10-point plan. They need a world-leading gigafactory plan.

Thirdly, Ministers said that the Brexit deal would unleash Government to back British industry, but it has not. Instead, our EU competitors are unashamedly pumping support into their car makers, while ours are left hamstrung by new red tape. It is no wonder that international companies such as Stellantis are looking at their long-term investments and wanting more from our Government.

What further guarantees can the Secretary of State give to Stellantis and others that he will back the switch to electric with real support? What is he demanding from the Budget for automotive? Will he bring forward plans to create green jobs today by raising his ambition on gigafactories and other infrastructure? Finally, will he actually do whatever it takes to help British industry post Brexit, to ensure the bright future that our businesses and workers deserve?

[Kwasi Kwarteng]

I do not recognise some of the premises of the hon. Member’s question. The Prime Minister’s 10-point plan, far from being full of platitudes, is a world beater. I saw a story in The Guardian yesterday about the UN saying that other countries are struggling to meet our targets and our performance on decarbonisation and net zero, so I do not recognise that. She is right to suggest that we are 100% focused on securing these vital jobs. We are totally committed to net zero. I was lucky enough to be the energy Minister who landed the energy White Paper—the first energy White Paper that the Government published in 13 years. We are very focused on trying to land investment to drive the green industrial revolution here in this country.

Oral Answers to Questions

Debate between Kwasi Kwarteng and Lucy Powell

Tuesday 9th February 2021 Commons Chamber

[Kwasi Kwarteng]

My hon. Friend is utterly committed to supporting growth and entrepreneurship in his area. I am fully aware that he was a director of business support for four years for the Greater Birmingham and Solihull local enterprise partnership. He will know that our Government continue to back growth and recovery across the UK. I think, in his own constituency of Meriden, we have done this through £90.9 million of covid loan scheme support.

[Lucy Powell (Manchester Central) (Lab/Co-op) [V]]

Well, I have listened to the Secretary of State’s answers so far, and I am afraid that he is all mouth and no trousers. Let’s try again, shall we? Businesses face a £50 billion bombshell in April, yet many in hospitality, retail and services will not even be open by then. Councils are sending out business rates bills as we speak and difficult decisions are being made now. Does the Minister agree personally with Labour’s plan to extend the business rates holiday for at least six months as well as the furlough while public health measures remain, in order to deal with this bombshell before it blows a big hole in our economy?