British Steel: Negotiations

Mark Pawsey Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

Because we have invested so much in renewables, we know that there will be better energy costs coming down the line, but we have had £800 million for the steel sector since 2013. We know that policy is being reviewed, and we are going to make sure that support is just as substantial going forward. The UK offers a great place to have a steel sector, and we know that there are opportunities for growth. We know there is going to be a 20% increase in UK contracts, we are looking at procurement and we have a fantastic skilled workforce. There is support to help decarbonise and take away some of the costs of emissions, too. Support has been available—up to £800 million—and support will continue to be available.

[Mark Pawsey (Rugby) (Con)]

In the BEIS Committee report the Minister referred to, we recognised that the ability to produce steel is fundamental to the existence of UK manufacturing, and it was good to hear the Minister’s commitments. We know that, in part, the future will be about making more use of recycling of previously used steel in electric arc furnaces, but could she say a bit more about the discussions that have taken place with the broader industry to secure its future here in the UK?

[Ms Ghani]

My hon. Friend was my neighbour when I was on the BEIS Committee: we sat next to each other every Tuesday morning for two years, so I saw more of him than I did of my husband. I take care of manufacturing and advanced manufacturing too, so conversations are taking place across the sector. My attention since being in post has fundamentally been on steel, on ensuring that we can get these negotiations over the line, and on how we can take the sector forward and ensure it is as competitive as it can be, in particular by looking at procurement and ensuring that the £1.5 billion fund is actually used by the steel sector, that it comes forward and tries to get hold of as much of that money as possible.