Protecting Britain’s Steel Industry

Mark Tami Excerpts

Monday 21st June 2021 Commons Chamber

[Mark Tami (Alyn and Deeside) (Lab)]

In recent years, the UK steel industry has lurched from one crisis to another, with a Government who have used every excuse in the book not to step in. For years, we were told that European rules and regulation prevented us from supporting our domestic industry and procuring UK steel. Despite the fact that that was not true—we saw our European partners use their steel in infrastructure projects time and again—in the UK, we had project after project using imported steel, despite alternatives being available.

UK steel makes up only about 10% of UK public sector demand. That is pathetic, but it will not change unless the Government work with UK steel well in advance of major procurements to maximise UK input. Too often, it is an afterthought, or left to the companies delivering the projects, with Government turning a blind eye. The Government are right that the industry needs to modernise and invest in new technologies to meet the challenges of the future, but that is not simply going to happen by some sort of magic. It is no good just saying to an industry that relies on coal and high-energy usage that it needs to change and decarbonise overnight. This industry pays 86% more for its electricity than in Germany and 62% more than in France, and that imbalance is set to get worse rather than better. It is no good saying that hydrogen is the solution to every problem going when we do not have a single facility in the UK, unlike in other countries. The industry will need help and support to meet these challenges and not just warm words and no action, which is what we have seen up until now.

As with energy prices, where the Government refuse to help and just say that it is an issue for Ofgem rather than for them, we now face the major challenge of the TRA judgment making it open season to dump products on the UK. We have seen the results of that dumping for many years. How is our domestic industry expected to survive, let alone compete, in these circumstances? Again we hear from the Minister tonight, “There’s nothing we can do.” Well, that is not good enough. We need to legislate now if we are going to make sure that we can maintain these safeguards and save our industry. Time is not with us and failure to act would be disastrous. Shotton steelworks celebrates 125 years of production this year. Let us hope and trust that there are many more years to come.