Sheffield Forgemasters

Lord Udny-Lister Excerpts

Wednesday 8th September 2021 Lords Chamber

[Baroness Goldie (Con)]

As the noble Lord will be aware, the Government take a very keen interest in and keep a vigilant eye on security of defence supply. In relation to the specific issue that he mentions, the Government are closely monitoring the proposed acquisition of Meggitt by Parker-Hannifin. The Government have powers, as the noble Lord will be aware, under the Enterprise Act 2002, to intervene in transactions that raise national security concerns and will not hesitate to use those powers as appropriate if the UK’s national security interests are at risk.

[Lord Udny-Lister (Con)]

My Lords, like others today, I congratulate the Minister and the Government on taking control and purchasing Sheffield Forgemasters. It is a company with a long and very distinguished history—it goes back over 200 years—but, like the rest of the British steel industry, it is seriously undercapitalised. It needs financial investment. The £400 million is great news, but that can be only the beginning of the likely level of investment that is needed. It will also need investment in management, in skills training and in the workforce to make sure that it is one that is not ageing and that younger people want to join. Above all, it needs a long-term commitment; there has been far too much short-termism in the steel industry. Although I fully welcome this step, I would like the Minister’s assurance that the MoD will look at Sheffield Forgemasters in the long term.

[Baroness Goldie (Con)]

Yes, I am happy to give my noble friend that assurance. It is demonstrated by our commitment to provide up to £400 million of funding to the company over the next 10 years. Some of the defence programmes that Sheffield Forgemasters is a unique supplier to will in fact stretch beyond that period, so we have acted to ensure that the company continues to be able to meet these long-term requirements.