Oral Answers to Questions

Lee Rowley Excerpts

Tuesday 11th January 2022 Commons Chamber

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

9. If he will make an assessment of the confidence of Scottish businesses in the UK Government.

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

Business Ministers regularly engage Scottish businesses on policy making and to discuss business-related issues. In challenging times, the UK Government have provided significant taxpayer support to businesses across the UK, including in Scotland, and we will continue to work with them in the months ahead.

[Steven Bonnar]

Just last week, the Federation of Small Businesses flagged up the grim realities of Brexit, citing that 74% have experienced a sharp fall in international sales and exports because of import checks on trade with the EU, yet that reality is completely at odds with the outpourings of Lord Frost who used the new year honours list to purport an opaquely upbeat metric on the success of businesses across these isles. How are Scottish businesses supposed to feel any shred of confidence in this Government when such comments are completely at odds with what is happening on the ground? Even Baroness Davidson, the face of the Scottish Tories for the past decade, says that

“I despair when I see people—even those of my own party—dismissing business or disrespecting the herculean efforts that people have gone to”.—[Official Report, House of Lords, 9 December 2021; Vol. 816, c. 2021.]

[Lee Rowley]

I know that this is a surprise to the Scottish nationalists, but we have made the decision as a country to leave the European Union, and we are now in the process of ensuring that that is a success, not just for businesses in Scotland, but for businesses all across the United Kingdom as a whole, and we will continue to do that in the months ahead.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Given that shops in Scotland had a greater reduction in footfall than any other part of the UK, given that the Scottish Licensed Trade Association has called the additional restrictions in Scotland a “knock-out blow”, given that the Aberdeen and Grampian chamber of commerce has called on the Scottish Government to pay up or open up, and given the abandonment of the Scottish oil and gas sector and its workforce, will my hon. Friend be able to give an assessment of Scottish businesses’ confidence in the Scottish Government?

[Lee Rowley]

I am grateful to my hon. Friend for his apposite and very important intervention this morning. He is a huge and doughty campaigner for Scottish interests, unlike individuals on the SNP Benches. It is comments such as those from the Aberdeenshire chamber of commerce that demonstrate how the confidence of Scottish businesses should be in the UK Government rather than the Scottish Government.

[Stephen Kinnock (Aberavon) (Lab)]

10. What recent discussions he has had with the Welsh Government on ensuring that the power supply for Baglan energy park remains connected until a permanent connection to the national grid is secured.

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

I am grateful to the hon. Gentleman for his question and for raising this issue. I know that this has been a challenging time for some tenants on the energy park. Given that these issues are largely devolved, officials from the Department for Business, Energy and Industrial Strategy and I are regularly in touch with the Welsh Government on this matter and this includes, as he is aware, an exchange of correspondence in the past few days, along with regular meetings between officials.

[Stephen Kinnock]

The Minister knows that in just three days the official receiver is due to turn off the power on the Baglan energy park. The intransigence of the official receiver is putting huge pressure on local businesses and also creating massive environmental and public health risks. Section 400 of the Insolvency Act 1986 clearly gives the Business Secretary the power to direct the official receiver. Why will the Minister not step up, take urgent action and direct the official receiver so that the potentially catastrophic consequences for these businesses, houses and communities can be averted in just three days?

[Lee Rowley]

As I have said, I completely appreciate that this is a challenging time for tenants on the energy park. We have, as a UK Government, sought to review all of the powers that are available to the Government, including section 400 of the Insolvency Act. It is our view that it is not advisable to use that process at this stage. We have, as the hon. Gentleman knows, written to the Welsh Government giving a number of indicators about how we can mitigate the challenges and I look forward to speaking with the Welsh Government further, including in my meeting with the Minister for the Economy tomorrow.

[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

11. What new support he plans to provide to energy transition projects in Scotland.

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[Jessica Morden (Newport East) (Lab)]

13. What steps he is taking to support the steel industry.

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

The steel industry plays a vital role in our economy. Through the Steel Council and regular engagements with steel industry, the Government are working with the sector to develop a plan to support its transition to a competitive, sustainable and low-carbon future.

[Jessica Morden]

For UK steelmakers, paying 61% more than their German competitors for industrial energy is not only a barrier to investment but a direct barrier to decarbonisation, with the future of this foundation sector being fundamental to our net zero ambitions, so when will Ministers commit to providing Government support to bridge the electricity price gap?

[Lee Rowley]

As the hon. Lady will know, because we have talked about it in other debates, the Government continue to look at options on this. We have very regular engagement and interaction with the steel industry, including the Steel Council, and other meetings, including ones just in the last few days. It is important to note the extensive support and help that has been given to energy-intensive industries, including the steel sector, since 2013 and beyond.

[Holly Mumby-Croft (Scunthorpe) (Con)]

I thank my hon. Friend for work that he has done for steel. He will know that the Prime Minister himself has stood in this Chamber and spoken about the unfair historical energy costs that steel industries have faced in this country. What conversations need to take place between BEIS, the Treasury and No. 10 to bring forward a solution so that my world-class steelmakers can get on a fair footing?

[Lee Rowley]

My hon. Friend is an absolute champion for her constituents in Scunthorpe and for the continuing success of the steel industry in that area. We continue to work very closely with our colleagues across Government to determine how we can provide support and look at options around the temporary issues that have been caused in the past year or so and then the longer-term issues. I would be happy to talk to her further.

[Mike Amesbury (Weaver Vale) (Lab)]

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

--- Later in debate ---

[Peter Gibson (Darlington) (Con)]

T2. I commend BEIS Ministers for their enlightened decision to locate part of their team in Darlington. At the same time as we level up with more jobs in Darlington, LNER is planning to reduce services to Darlington, which will have a detrimental effect on connectivity. What steps is my hon. Friend, in collaboration with colleagues, taking to protect connectivity vital to businesses in Darlington and right across the country?

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

As my hon. Friend knows, a decision has not yet been taken on the outcome of the timetable consultation. Transport connectivity is largely an issue for other Departments, none the less we appreciate the importance of connectivity and infrastructure. We know that my hon. Friend will be an absolute champion of that—he has done a huge amount in his short time in this location.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I welcome the tribute that the Secretary of State just paid to our friend Jack Dromey, who was a great champion of British industry and of British workers and simply an all-round great man.

Over the last decade, Conservative Ministers cancelled the zero-carbon homes programme, banned onshore wind development, launched the eco-insulation programme and tore it up within one year. They reduced the UK’s gas storage capacity and at one particularly silly moment, the current Foreign Secretary claimed that solar panels were a risk to domestic food production. All those decisions have made this country more dependent on volatile wholesale energy prices than we otherwise would be. We know that means that there is an extremely difficult situation for British households, but it also risks making large swathes of British industry uncompetitive. The Secretary of State says that he is working hard, so what is his plan?

--- Later in debate ---

[Lee Rowley]

I know that my hon. Friend is a huge advocate. I obviously cannot comment on individual applications. I am happy to come and visit and her support is noted.

[Fleur Anderson (Putney) (Lab)]

T5. A recent survey showed that 91% of Wandsworth businesses are suffering negative effects from new Brexit regulations. Will the Minister commit to a region-by-region impact assessment of how businesses are adapting to the Government’s Brexit deal or are the Government leaving businesses to sink or swim?