UK Steel Industry

Margaret Ferrier Excerpts

Monday 29th February 2016 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

I would like to thank Labour Members who are responsible for the allocated Opposition debate time being used to bring this issue to the forefront again. It was with an incredibly heavy heart that I learned of the planned closure of the Clydebridge steel treatment mill in my constituency. Although the site employs far fewer people than the rolling mill in the constituency of my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows), or sites represented by other Members in the Chamber today, the closure and the associated jobs losses are just as devastating. The work of the trade unions on the ground in my constituency is to be commended, and I am sure that sentiment will be echoed across the UK.

The human cost is sometimes secondary to the loss of industry in media coverage, and it would serve us all well to remember that thousands of jobs have already been lost and many more are at risk. Each one of those jobs represents mortgage and rent payments, food on the table, electricity and other utility bills, clothing, council tax, and all the other outgoings that steelworkers and their families face. The crisis facing the industry is causing crises in the homes of steelworkers the length and breadth of Britain. Every job loss holds its own unique story and its own heartbreaking strain on families. Every job loss is a hammer blow to local economies and communities, and it puts more jobs at risk along the supply chain.

I have heard Government Ministers say too often that they are taking action to protect jobs, but reality betrays that assertion. The industry is haemorrhaging jobs. It is an industry on life support. I make no apology for saying that the Government have simply not acted swiftly or decisively enough. The Tory manifesto claimed that they are “the party of working people”. Rhetoric is all well and good, but the steelworkers in Clydebridge are some of the hardest-working people I know, and they deserve to be supported properly.

First Minister Nicola Sturgeon moved swiftly to establish the Scottish steel taskforce. As a member, I have been impressed by how much that multi-agency body has achieved. Its approach has resulted in real interest from alternative operators, with the possibility remaining that both mills can be kept operational by a new owner. If that is the case—I hope it is—the new operator will be able to resume production swiftly owing to the Scottish Government’s steelworkers retention plan.

Action has been taken on business rates, in addition to new public procurement guidance on steel. A new action plan, “A Manufacturing Future for Scotland”, specifically singles out the steel industry as a vital strategic asset in the Scottish economy, while acknowledging the particular pressures it faces. It also details further specific measures to help steel and other energy-intensive industries, such as a new expert advice and support service, which will work with operators to develop feasible and cost-effective business plans to implement energy saving opportunities.

The measures taken by the Scottish Government are bold and forward-thinking. We need to see some of that from the UK Government. I welcome the measures taken thus far and appreciate that the Government have listened and taken some action, but they need to keep going, as there is more to be done. The crisis facing the steel industry still exists, and we need to face it down.

It is nothing short of a disgrace that the UK Government are blocking proposals to raise tariffs on Chinese steel. The lesser duty rule must be lifted, and the Government must act to support that. That is the kind of bold action that is needed in order to start levelling the playing field. Excuses for not doing so have been incredibly flimsy and sufficiently lacking in backbone to be classified almost as invertebrate. The scales are currently weighted against us—tipped unfairly by massive amounts of subsidised Chinese product. Unless we force a rebalancing, the situation will not change. I do not see that happening; indeed, the opposite seems to be true, as we move towards a situation where China will gain market economy status, as advocated by our ever willing Chancellor.

In short, an already dire situation looks set to get worse. In years to come, I do not want to be in the position of saying, “I told you so.” I want the UK to act like the superpower whose image the Government are so desperate to project to the rest of the world. We will do that by ensuring that this vital strategic asset is protected, not by making absurd concessions to make friends, and certainly not through utter intransigence.

Who will respect us if we hand our centuries-old industry to our bigger, cheaper rivals? We owe it to our rich history, to our steel towns and cities, and most importantly to our hard-working steelworkers throughout the UK to stand up now and take the bold action that is so desperately needed.