Oral Answers to Questions

Lee Rowley Excerpts

Tuesday 16th November 2021 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

3. What steps he is taking to promote the onshoring of manufacturing jobs and production to the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The Government are committed to a strong, vibrant and diverse manufacturing sector in the United Kingdom. The west midlands—and the UK as a whole—is already a great place to do business. The Government will continue to focus on encouraging businesses, improving the long-term competitiveness and productivity of manufacturing via initiatives such as Help to Grow, the Made Smarter programme, the Catapult programme and others.

[Jack Dromey]

For this country’s manufacturing base to prosper and succeed, it requires a firm commitment from Government to support the making and buying of goods manufactured in Britain. The Minister will be familiar with the shameful decision by Melrose to shut a factory in Chester Road, Erdington with 70 years of history; those manufacturing jobs were instead exported to Poland. What steps will he take to recoup the £67 million of taxpayers’ money given to Melrose to export jobs to Poland? Will he send an unmistakeable message to Melrose that it will get not one penny more of taxpayers’ support unless it works with the workforce and all the key stakeholders to find an alternative manufacturing use for its site in one of the most deprived communities in Britain?

[Lee Rowley]

I thank the hon. Gentleman for the question. We were disappointed, as he was, by GKN Melrose’s decision. Ultimately, such decisions are for individual companies, but we realise the significant impact on his community and are working with the local community to try to find alternative ways to support employees in the area.

[Richard Fuller (North East Bedfordshire) (Con)]

The Minister knows that one of the best ways to promote the onshoring of manufacturing jobs and production to the UK is to shape regulation to support enterprise. What steps has his Department made to take forward the recommendations of the Prime Minister’s taskforce on innovation, growth and regulatory reform?

[Lee Rowley]

We know regulation has a critical part to play in ensuring that we get the frameworks right for long-term investment and support. My hon. Friend will know that one of my colleagues who was appointed alongside me was an author of that report, and the Secretary of State and I, and all Ministers, will continue to review what we can do to improve regulation over the long term.

[Stephen Flynn (Aberdeen South) (SNP)]

When it comes to manufacturing, the first thought on the mind of all Scotland fans this morning is quite how Steve Clarke and his team continue to manufacture so many brilliant wins.

Notwithstanding my necessary gloating, I have a serious question for the Minister. Does he agree and accept that to harness, safeguard and expand manufacturing jobs in Scotland’s tidal energy sector, his Government must deliver the £71 million that the industry has asked for?

[Lee Rowley]

We know there is a substantial amount of work to do to decarbonise the UK economy, including the energy sector. We are doing that in a range of ways, and I will continue to co-ordinate with the Minister of State, Department for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), to support that activity.

[Stephen Flynn]

I am afraid that answer simply does not cut it. This is a world-leading industry based in Scotland, and it has the capacity to provide 11% of the entire UK’s electricity. The Minister will be aware that the likes of Canada, France and Japan have put in place financial mechanisms to capitalise on tidal energy. Is he seriously saying that his Government would rather see jobs offshored to those countries than see them in Scotland?

[Lee Rowley]

I apologise if the hon. Gentleman did not hear my first answer. I said that the Department will continue to look at all opportunities to decarbonise the electricity grid and to ensure that, over the long term, energy can support that decarbonisation. We will continue to look at tidal, and we will bring forward the opportunities that we are able to bring forward.

[Mr Philip Hollobone (Kettering) (Con)]

Will my hon. Friend confirm that the Chancellor’s capital investment tax relief of 130% is leading to a sharp increase in manufacturing investment, demonstrated by Alpro at its superb manufacturing site in Burton Latimer in the Kettering constituency?

[Lee Rowley]

My hon. Friend gives a brilliant example of where the support that is being provided by the Treasury and the Chancellor can, over the long term, ensure investment in plant and machinery and improvement in productivity across the country.

[Richard Thomson (Gordon) (SNP)]

4. What steps his Department is taking to allocate funding from the Clean Steel Fund before 2023 following the development of hydrogen-based steelmaking projects in Sweden and Germany.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The Government continue to work with the UK steel sector, through the UK Steel Council, regular meetings and constant dialogue, to understand its decarbonisation plans, whether through electric arc, industrial carbon capture equipment or other emerging technologies such as hydrogen.

[Richard Thomson]

In contrast to Germany’s €3 billion hydrogen plan, there was no new funding announced in the recent Budget for clean steel projects. As 2023 is far too late, with primary steel plants accounting for 15% of UK CO₂ emissions, will the Government now commit funding to clean steel projects similar to the ones we see in Germany and Sweden, or will steel communities be left standing by once again while European competitors get on with levelling up their industries?

[Lee Rowley]

I caution against the hon. Gentleman’s comparison. We have a similar ambition to countries such as Germany on things like hydrogen, and we have already published our hydrogen strategy. I have had extensive engagement with the steel sector in my two months as Minister for steel, including another visit yesterday, and we continue to want to support the industry on its decarbonisation journey. We know it is challenging, but there are already examples and we will continue to work with the industry to ensure it happens.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Years of Tory neglect and inaction mean the UK is falling further behind in the race to win the future of green steel production. Governments around the world are committing to their steel industries with long-term investment, but the Minister, the Budget and, indeed, the hydrogen strategy have failed to deliver any timetable for how the Clean Steel Fund will be implemented. There appears to be no urgency and no plan.

Will the Secretary of State tell us today whether he will back Labour’s plan for a £3 billion steel renewal fund to achieve near-zero-emissions steel production by 2035 to secure UK steel’s future? If not, why is he so content to see British industries lose out, more British businesses go under and more British jobs lost?

[Lee Rowley]

That is neither an accurate reflection of the situation nor an accurate reflection of the historical support that has been given to the steel industry. Since 2013, there has been £600 million-worth of support for electricity price relief. The industrial energy transformation fund was opened last year and steel companies had the opportunity to apply for it, and we have published the steel procurement pipeline and the steel safeguards. We will continue to work with this important sector to ensure that it can decarbonise and has long-term support for its future.

[Mr Speaker]

I call Neil Parish.

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[Huw Merriman (Bexhill and Battle) (Con)]

10. What steps he is taking with the Secretary of State for Transport to help support the aviation sector to decarbonise.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The Jet Zero Council, which is jointly chaired by my right hon. Friends the Secretaries of State for Business and for Transport, brings together industry leaders and the Government to discuss how best to reduce the impact of aviation on our environment. The recently published net zero strategy provides the framework, and the commitment made in the Budget to extend funding for the Aerospace Technology Institute to 2031 demonstrates the importance that the Government attach to making progress on this issue.

[Huw Merriman]

The issue with sustainable aviation fuel is not how to produce it—we can do that—but how to bring the price down so that there is a return on capital and an investment case for it, as there is for renewables. What more can the Government do to support sustainable aviation fuels, and does the Minister agree that we need a global approach to the solution?

[Lee Rowley]

My hon. Friend is absolutely right to highlight the challenges of bringing the cost down, as is the case in so many areas of the net zero strategy, but progress is being made. We are keen to support the development of new technology solutions. He will know that we have set out an ambition for 10% of the UK’s aviation fuel to be SAF by 2030. We recognise the challenge of the cost, but I know that my hon. Friend, in his capacity as Chair of the Transport Committee, has announced an inquiry into the matter; I look forward to working with him and understanding the conclusions and proposals that he puts forward.

[Kerry McCarthy (Bristol East) (Lab)]

It has just been revealed that the Transport Secretary is spending departmental money to lobby against the development of private airfields. This includes lobbying against plans to build a battery gigafactory at Coventry airport. What hope do we have of decarbonising transport when the very Cabinet member responsible for that brief is more interested in having somewhere to land his private jet? What conversations is BEIS having with the Department for Transport to ensure that it takes this matter seriously?

[Lee Rowley]

I am not sure that this is Transport questions, but it is a question in that spirit. I understand that my right hon. Friend the Secretary of State absolutely disputes the description that has just been given by the hon. Lady. On her question, there is a huge amount of work under way to try to decarbonise aviation, as demonstrated in the announcements last week at COP and the work that the Government have been doing for a number of years. We will continue to do that to ensure that we hit the net zero target by 2050.

[Darren Henry (Broxtowe) (Con)]

11. What steps his Department is taking to support the renewable energy sector.

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[Robert Largan (High Peak) (Con)]

14. What steps he is taking to support energy-intensive businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

We have continued to engage extensively with energy-intensive companies, including by visits from me as recently as yesterday. We want to understand their concerns and help secure a competitive and viable future for industries, which support so many high-skilled, high-wage jobs across the UK.

[Robert Largan]

High Peak is home to the UK’s largest quarries and much of our lime production industry. Those lime producers are essential for construction, engineering and infrastructure, but they are being hit by a double whammy of soaring global energy prices and an outdated UK emissions trading system, which is still benchmarked at the old EU level, geared towards European plants operating to a significantly lower standard and also in receipt of generous state subsidy. The UK’s lime producers are committed to doing their bit to tackle climate change, but the current benchmark is unachievable given their production chemistry. I urge the Minister to urgently review the UK’s emissions trading system benchmark for lime producers.

[Lee Rowley]

As a fellow Derbyshire MP, I know how much of a loud, independent and big voice my hon. Friend gives to High Peak since his election in 2019. I am proud to work with him. On this specific subject, we know there are long-term challenges for industries and individual sectors, and we are grateful for his comments. I am happy to meet him to talk more about this, if that would be helpful.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

15. What steps his Department is taking to help reduce the cost of achieving net zero emissions by 2050.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

My hon. Friend is right to highlight the importance of driving down the cost of transition to tread more lightly on the Earth over the long term. Significant progress has already been made in the cost of technologies such as solar panels, and the recently published net zero strategy commits to working with business to realise further economic opportunities.

[Gordon Henderson]

While I welcome that answer, does the Minister agree that achieving net zero emissions will depend on individual householders? Many people in my constituency are finding it difficult to afford their fuel bills, even without the cost involved in installing new heating systems such as heat pumps. What can the Government do to help those people?

[Lee Rowley]

My hon. Friend is right that we must work with householders and businesses on a longer-term basis so that we can deliver the net zero ambitions we set ourselves by 2050. As the Minister for Business, Energy and Corporate Responsibility has highlighted a number of times, we are trying to drive down the cost of technology over the long term. A number of firms have come forward on some of the technologies we hope to use, such as heat pumps, and have indicated it should be possible to do that.

[Robert Largan (High Peak) (Con)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

My hon. Friend is absolutely right that we have made huge progress so far or we have made a good start in trying to achieve decarbonised flight, and we will continue to do that. It is examples such as the fantastic work demonstrated over the summer, which I know he was present for, at Exeter airport, supported by the Department for Business, that will allow us to meet our long-term ambitions in this sector.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

T2. A loophole in company law means that Bain Capital does not have to reveal how much it is paying the army of advisers helping it demutualise Liverpool Victoria. FTI Consulting, Clifford Chance, Fenchurch Advisory Partners and others have all benefited, perhaps by as much as £50 million or more. Does the Secretary of State not think that the members of Liverpool Victoria, whose money this is, have a right to know exactly how their money is being spent?

[Lee Anderson (Ashfield) (Con)]

T6. Carl Berridge’s company in Ashfield produces energy-saving boilers and heating solutions for industry, and he tells me that many businesses are unaware that new technologies can substantially reduce their energy consumption in a cost-effective way. What are the Government doing to ensure that industry gets the right information and businesses such as Powergas have the incentives they need to reduce the carbon footprint of industry?

[Lee Rowley]

I pay tribute to my hon. Friend for the work he does in Ashfield and for his incredible voice in this regard. He is right to highlight how technology will take much of the weight of the transition over the next 30 years, and the importance therefore of companies supporting such technology development. We are engaging with businesses, and we will continue to do so, through programmes such as boosting access for SMEs on energy efficiency. I am happy to talk to my hon. Friend about that if it helps.

[David Linden (Glasgow East) (SNP)]

T3. Last month, I met Ed Burns, the managing director of H. Grossman Ltd, a toy company based in Glasgow East. Alongside the British Toy & Hobby Association, it is concerned about the growing number of unsafe toys being sold to UK customers by third-party sellers via online marketplaces. Will the Minister meet us to discuss the campaign to tighten up safety on children’s toys?