Warships

Lord Jones of Birmingham Excerpts

Monday 11th April 2016 Lords Chamber

[Earl Howe]

My Lords, the capacity of British industry to service our warship building requirements will be very much centre stage in Sir John Parker’s work on the shipbuilding strategy. As regards Port Talbot, I am sure that the noble Lord will know that the Government are committed to doing all they can to work with Tata to explore how we can support the company to secure a buyer for the plant and put in train a turnaround plan. We are working with the Welsh Government to do that. There is good news today on Tata’s plant in Scunthorpe, where a deal has been secured, but I assure the noble Lord that we regard British steel manufacturing as of vital importance to this programme.

[Lord Jones of Birmingham (CB)]

Can the Minister please answer two points on the same issue? First, will the strategy review that Sir John Parker undertakes cover the question of productivity? Every country builds warships more cheaply for the taxpayer if there is a regular drumbeat on the strength of which you can invest your money, skill your people and buy your capital equipment. If you have peaks and troughs at the political whim of any part of the nation, people will tend not to invest in the industry or train the people. Secondly, will the strategy that Sir John Parker is to develop cover the fact that the UK’s steel industry can supply an awful lot with the brilliant speciality steels that it makes? It is not just about commodity steel.