Energy-intensive Industries

Debate between Lee Rowley and Judith Cummins

Wednesday 6th July 2022 Westminster Hall

[Lee Rowley]

My hon. Friend is an absolute champion of the ceramics industry, and I know how important it is for his constituency. As he indicates, it has been a real success story for our country, and we want to ensure that it continues to be a success story. His advocacy in this place is absolutely the way to ensure that that happens. We accept that there is a challenge—there is no question of that. Over recent months, the Government have acknowledged that challenge in papers such as the British energy security strategy, which is important and has been welcomed by a number of industries as part of our ongoing dialogue, and have started doing things to address it.

I am glad the hon. Member for Bradford South has acknowledged and welcomed the compensation scheme. It is not something to quickly pass over; it is a substantial increase in money—if that is the yardstick we are using. It is substantial confirmation that we are serious about supporting our energy-intensive industries. From the extensive conversations I have had with colleagues in this place and with the industries themselves, the changes coming from that have been welcomed. When people say, “The Government need to do something”, the Government have done something.

The energy security strategy is clear that there will be a further consultation on a further element of what we are seeking to do, and I expect that to begin shortly. We are considering using that strategic dialogue, which the hon. Lady indicated is important, about what else is reasonable and proportionate to do over a longer period of time. None of these issues is straightforward or has a simple solution; otherwise, this Government or previous ones, including the Labour Government pre-2010, would have done it. It is a difficult and challenging problem and we need to do something about it, as the Government have done, and look at what can be done in the future.

I will address a few of the hon. Lady’s points. Unless we contextualise this conversation and conduct it in a reasonable manner, it will go off in all sorts of directions that are ultimately unhelpful. I understand that ultimately it is for other people to choose their words, focuses and emphases, but there has been progress on this agenda in recent months and that should be acknowledged. It is recognised that the Government are absolutely serious about supporting these industries.

[Judith Cummins]

I take that as some kind of criticism of my words, many of which were given to me to represent British industrial businesses. We have heard so much from the Minister about the difficulty, accepting that there is a challenge and listening, but he needs to act because British businesses and energy-intensive businesses are suffering and crying out for more help.

[Lee Rowley]

Those are exactly the kinds of statements that I think, with the greatest of respect, are not entirely helpful. The Government have acted, and it should be acknowledged that we have done so. Hundreds of millions of pounds have been brought forward in recent weeks, which should be acknowledged as a significant step forward. As I have already said during the past 10 minutes, we accept there is a challenge, and we are going to do more. We have already committed to bringing forward at least one additional consultation—

[Judith Cummins]

rose—

[Lee Rowley]

I am happy for the hon. Member for Bradford South to take some of my time. What exactly should we do?

[Judith Cummins]

I am happy to take up some of the Minister’s time. Shall I repeat the eight questions that I asked in my speech that he has not—[Interruption.]

[Judith Cummins]

I am happy to send the Minister a copy of the eight questions I asked him in my speech. He is yet to address a single one of them.

[Lee Rowley]

The challenge with this debate is that we all accept there is a problem, and we all accept that there is a wider context of global issues—some of which are beyond our control—but ultimately, the hon. Lady needs to propose as well as oppose. If she has a proposition, I would be very happy to hear it, as would the Government, but I did not hear a proposition in the 20 minutes that she spoke for.

“Do more” needs to be followed by another sentence that says precisely what to do, because when you talk to energy-intensive industries—I am not suggesting that the hon. Lady does not—and have detailed dialogue with them, you realise that there is a significant amount of nuance underlying this discussion. As my hon. Friend the Member for Stoke-on-Trent South has outlined, you have some energy-intensive industries that are very heavily based on gas. You have other energy-intensive industries that are very heavily based on electricity, as my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) has indicated. Other businesses that are not energy-intensive industries are also reliant on some unusual ways of procuring and using energy, and if we do not recognise that nuance in any solutions that we propose, ultimately—

Oral Answers to Questions

Debate between Lee Rowley and Judith Cummins

Tuesday 7th June 2022 Commons Chamber

[Lee Rowley]

That is a curious line of questioning from the Opposition Front-Bench team, given that Nissan has made £1 billion of investment in recent months in Sunderland, Stellantis has made an investment of more than £100 million in Vauxhall at Ellesmere Port, and there is additional investment in green technology and life sciences—the list goes on and on. Of course there is more to do, and of course as a listening Government we will always look at what more we can do to make us the most attractive place to invest in the G7 and across the world. We have a good track record that we will continue to build on.

[Judith Cummins (Bradford South) (Lab)]

8. What steps his Department is taking to help ensure affordable energy provision during winter 2022-23.

Freeports

Debate between Lee Rowley and Judith Cummins

Thursday 11th October 2018 Westminster Hall

[Judith Cummins]

I will come on to the importance of defining what is a freeport. A 2011 review of special economic zones by the World Bank suggested that many such models had become white elephants, with the cost of revenue lost to the Exchequer outweighing the benefits. At the same time, The Economist reported that they create distortions in economies and that many fail, leaving a long trail of failed zones that either never got going, were poorly run or in which investors gladly took tax breaks without producing substantial employment or export earnings.

Reports have repeatedly surfaced from free enterprise or free trade zones around the world that demonstrate lax enforcement of labour laws. Polish workers have been sacked for an illegal strike against poor working conditions at a business located in a special economic zone. There are similar examples in China, Cambodia and elsewhere. The European Parliament’s director general for external policies found that often in such zones

“the governance of labour rights may differ from the rest of the country and fall below international legal standards”.

If the Government are considering such a model, will they tell us how they intend to ensure that workers’ rights are protected and enforced? Will the Minister tell us what discussions he has had with trade unions?

Serious concerns have been raised about how a combination of tax incentives and relaxed monitoring and supervision, even by competent regulators, has resulted in a reduction in finance and trade controls and enforcement, creating opportunities for money laundering and the financing of terrorism. The intergovernmental Financial Action Task Force raised precisely those concerns in the inaugural review of free trade zones in 2015. It noted that

“the same characteristics that make FTZs attractive to legitimate business also attract abuse by illicit actors”.

The Financial Action Task Force also noted that FTZs have been used in the transport and production of weapons of mass destruction.

[Lee Rowley]

I am grateful to the hon. Lady for outlining all the potential issues, but does that mean we should not have freeports because those things may happen?

[Judith Cummins]

I said at the beginning of my speech that this is a timely debate, because these things need to be said. However, until we get the deal we cannot rule anything in or out, because the devil is always in the detail.

The United Kingdom must not be allowed to become a bargain basement tax haven off the coast of Europe. That includes not allowing any schemes that would allow the abuse of workers’ rights, financial checks, export licencing regimes or money laundering checks. Although we recognise the various calls for a freeport review from industry groups, from the Key Cities group to the British Ports Association and the British Hospitality Association, we must note that it is only one aspect of their much larger call for coastal communities to have a strategy to ensure that investment and growth are facilitated across the UK. That includes investing in transport and infrastructure and improving port connectivity.

Today’s debate must not be used to mask failures by this Government: a failure to bring forward any coherent proposal for our future trading relationship with the EU; a failure to give our exporters any clarity about what their future trade environment looks like; a failure to adequately prepare for Brexit at our ports; a failure to properly invest in transport infrastructure; and a failure to develop any coherent plan to support economic growth and investment in our coastal communities.

I look forward to the Minister’s response to the points that other hon. Members and I have raised. My hon. Friend the Member for Redcar (Anna Turley) spoke eloquently of her local community; she shared her ambition for a freeport to unleash the economic potential in her area. All Members spoke about the importance of defining what we mean when we speak about freeports and the importance of rebalancing our economy. Crucially, I urge the Minister to commit today to consult properly with all Members of Parliament who represent potentially affected areas, because they deserve to be heard.