Sheffield Forgemasters

Debate between Mark Prisk and Liam Byrne

Wednesday 21st July 2010 Commons Chamber

[Mr Prisk]

There are difficult decisions in this issue, and we have taken the view that the project is unaffordable. That is the challenge that we have had to deal with.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

rose—

[Mr Prisk]

No, I will not give way. The right hon. Gentleman can shout and scream all he wants. I will try to answer the constituency Member’s questions.

Having quoted the company chairman, I want to point out the position from the Government’s point of view. Yesterday, the Secretary of State, on receiving a note from the company, said:

“I will keep the situation under review and reconvene the meeting of experts with the Sheffield Forgemasters Board when they are ready, to review the investment potential with the company.”

On that basis—

[Mr Byrne]

I appreciate the argument that the Minister is rehearsing this evening. As the Chief Secretary to the Treasury at the time, I was involved in negotiations about this loan. I insisted on certain conditions and certain restructuring, including the issue of equity warrants. Is he aware of advice to me from Her Majesty’s Treasury officials that recommended acceptance of the loan on the grounds that it was indeed value for money?

[Mr Prisk]

When it was the right hon. Gentleman who told us in a letter that there was no money left, it is a little rich to be lectured by him on financial prudence. I am more concerned with making sure that we move on so that this company can do its job and stop the Labour party from playing party politics. It is bad for local jobs and it is bad for the company.

[Mr Byrne]

I appreciate the partisan point that the Minister is trying to rehearse. My question was much simpler. Was he aware of Her Majesty’s Treasury officials’ advice to me that this loan should have been accepted and was, in their judgment, value for money? Yes or no?

[Mr Prisk]

The right hon. Gentleman knows perfectly well that Ministers receive a wide range of different advice. He knows that perfectly well. The issue, as I have said time and time again, is affordability. That is what I am dealing with.

Let me move on from the machinations of the Labour party and deal with the economic issues, which I think are the crucial ones. There has been some good news for Sheffield Forgemasters in the last few days. It has recently signed a £30 million trade agreement to oversee the development of power generation forgings with the Indian state-run power equipment maker, Bharat Heavy Electricals Ltd. It is important here to bear in mind—I know that the local Members will be concerned about this—that the venture will be operated as a technology transfer agreement, and it will see BHEL buy both the technology rights and share Sheffield Forgemasters’ specialist engineering knowledge. That is an important issue. It is a 10-year agreement and it will help to strengthen and protect future markets for Sheffield Forgemasters in the Indian subcontinent. Also important is that the agreement will mainly serve India’s rapidly growing domestic market for turbine and power generation products, including the nuclear power plants.

Forgemasters specialist forging skills are in demand in markets around the world, and that will continue to be so. It will continue to play a part in the emerging UK nuclear supply chain, not least through the Nuclear Advanced Manufacturing Research Centre, which the Government continue to support.