Steel Industry

Lindsay Hoyle Excerpts

Wednesday 28th October 2015 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am dropping the time limit to two minutes. I call Stephen Doughty.

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[Neil Gray (Airdrie and Shotts) (SNP)]

My heart goes out to steelworkers, and their families, who are at risk of losing their jobs at Tata Steel, both north and south of the border, as well as to those whose associated jobs are also at risk. This is a huge blow to Lanarkshire, and we now learn that as well as the threat to steel jobs in Dalzell and Clydebridge, North Lanarkshire Council is consulting on shedding up to 1,100 jobs thanks to public sector cuts from this UK Government. This is a very worrying time in my area.

Yesterday, Fergus Ewing MSP, Minister for Business, Energy and Tourism, delivered a statement to the Scottish Parliament about the crisis, so let me contrast the approach taken by the two Governments so far. The Scottish Government took the first opportunity after the recess to go to the Chamber and make a statement; the UK Government had to be dragged to the Chamber by an urgent question and now an Opposition day debate.

In his statement Mr Ewing said:

“let me be clear from the outset that we will leave no stone unturned in our efforts to save the steel industry in Scotland. Our top priority is to secure an alternative operator to continue with commercial production. We are aware that that task is not an easy one and that there are significant challenges facing the continued production of steel in Scotland, but we are determined, as a Government, to use all our resources and, as ministers, to devote our individual time and attention, as required, to do absolutely everything that we can do to prevent the loss of steel making in Scotland.”

The Scottish Government had asked to be part of EU talks on the steel crisis, but this Government refused as they continue to abandon their so-called and short-lived respect agenda—an agenda that has been further abandoned by the revelation that the Prime Minister shamefully refused to meet my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows). I sincerely hope that a buyer can be found for the Tata sites, and that the steel industry can continue. For that to happen, the Scottish Government must work through the taskforce—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order.

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[Marion Fellows]

Does my hon. Friend agree that the trade unions, especially Community, have been fundamental in keeping the two Scottish plants going this far, and that this has been recognised by the Scottish Government, unlike by the Conservative party, which seeks—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. That intervention is far too long. We want short interventions. We should be on to the vote by now. We have been very generous and it has been abused.

[Margaret Ferrier]

I thank my hon. Friend for intervening.

I welcome yesterday’s announcement from Scottish business Minister, Fergus Ewing, that Transport Scotland is reviewing all its infrastructure projects, looking at how public procurement might be utilised to help to stimulate the industry.

Steel is used to create more than 80% of the components required to build a typical wind turbine, and plate steel from Tata’s Scunthorpe and Dalzell mills is used in the fabrication of these renewables. UK Government policy on the removal of support for renewables will have an adverse impact along the supply chain, particularly on the steel industry. Plans to cut support for renewables need to be dropped now. The UK has the highest carbon tax in the world. More than half the UK power price is made up of this tax. Steel needs to be given the recognition it deserves in helping to grow the renewables sector, thus reducing carbon emissions in the long term.

I welcome today’s announcement that the Government will refund energy intensive industries for the full amount of the policy costs they face as soon as the state aid judgment comes from Brussels. The Chancellor, however, must take lessons from our European neighbours who have taken matters into their own hands to support their industries, and then obtained state aid clearance retrospectively. A bold move like that could almost certainly facilitate the process of finding a buyer for the sites in Scotland.

Chinese overproduction is leading to steel being sold below market price, and this is being achieved only through Government subsidy in China. Approximately 70% of the Chinese steel industry is thought to be unprofitable. If this were the UK, the industry would have collapsed by now. In short, the European steel market is fighting with one hand tied behind its back. We have both hands bound and the playing field urgently needs to be levelled.

We need a real long-term strategy for steel. We owe it to the thousands of steelworkers across the UK and their families to support them and ensure a sustainability and security of employment. I will work with anyone to help to secure a future for the industry and the jobs of steelworkers in my constituency and right across the UK.

Saving British steel will not be easy, but we must now rise to the challenge and explore every possible option, so we can reach what should be a shared aim for all in this place. We must never give up on the steel industry and the highly skilled workers in their hour of need.

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[Andy McDonald]

On a point of order, Mr Deputy Speaker. We hear from the Minister that no people were coming forward to discuss projects to take over at SSI. She needs to correct that position, because there were consortiums of—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. That is not a point of order, but a point of debate. I understand that emotions are running very high.

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That this House is concerned by the impact that recent redundancies in the steel sector could have on local communities and welcomes Government support for affected people in those communities; recognises the unprecedented global challenges currently facing the UK steel industry and agrees that all parties, including Government, opposition parties and the industry need to work together to secure a sustainable future for UK steel; and notes that the Government is in regular dialogue with the industry, including hosting a recent Steel Summit, and is taking urgent action to address both the industry's short-term and long-term concerns, including energy costs, unfair trade, the Industrial Emissions Directive and long-term procurement opportunities for the industry so as to ensure that the UK steel industry has a sustainable future.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I now have to announce the result of a deferred Division on the question relating to Joint Committee on Human Rights. The Ayes were 485 and the Noes were 61, so the question was agreed to.

[The Division list is published at the end of today’s debates.]