UK Steel Industry

Mark Tami Excerpts

Thursday 17th September 2015 Commons Chamber

[Anna Turley]

Thank you, Mr Speaker, for allowing Back Benchers time for this crucial debate. I also thank the Backbench Business Committee for granting me the opportunity to raise this issue on the Floor of the House. This is an issue of huge significance not only to my constituents, but to the economic security of the United Kingdom and its global position in manufacturing. I thank the Minister for attending the debate. I look forward to building on the constructive conversations that we have had recently on this issue.

I am grateful to the many hon. Members who supported me in securing this debate, including the hon. Members for Rutherglen and Hamilton West (Margaret Ferrier) and for Corby (Tom Pursglove), my hon. Friends the Members for Middlesbrough South and East Cleveland (Tom Blenkinsop) and for Cardiff South and Penarth (Stephen Doughty), and many others who I look forward to hearing from today. We are bringing the voice of our constituents around the country into this Chamber and I hope that the Government will hear their pleas.

I am grateful to my union, Community, which represents its members and the industry as a whole with great dedication and commitment, as do our colleagues from the GMB and Unite. I pay particular tribute to the Community union’s general secretary, Roy Rickhuss, and the senior trade union representative at the Redcar steelworks, Paul Warren, who are here with us today.

Most of all, I am grateful to the generations of workers who have kept steelmaking alive on Teesside for over a century—those who dug the iron ore and forged the steel that built Canary Wharf, the Sydney harbour bridge, Wembley stadium and the Freedom Tower at the World Trade Centre—and to those proud men and women of Teesside who stand ready to fight again for its future.

UK steel is at breaking point. This is a crisis for one of the most important foundation industries in the British economy. It employs 30,000 people across the country in highly skilled jobs, often in industrial heartlands with high unemployment. The UK steel industry supports the automotive, construction and aerospace sectors, as well as a raft of supply chains, and it is vital that there is a future for steelmaking at the heart of industry in this country.

The industry is in crisis because the price of steel has collapsed from £318 per tonne to £191 per tonne. Chinese imports are flooding the market. Between 2011 and 2015, the proportion of Chinese steel entering the market has quadrupled. The strength of the pound is increasing prices by 10% and crippling exports. I accept that there is little the Government can do about those global drivers, but that should never diminish their responsibility to do what they can.

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

My hon. Friend is right about the crisis facing the industry. Does she agree that energy prices are part of the problem and have been for a long time? They are certainly affecting plants such as Shotton in my seat.

[Anna Turley]

My hon. Friend is absolutely right that there has been an ongoing discussion about that issue for a long time. The Government have taken some steps, which I will mention in a moment, but there is much more that they can do and they have promised things that we are still waiting to see delivered.

I am glad to hear that the Minister is going to China next week to discuss the dumping of steel, which is affecting producers around the world. There are, however, several UK-specific issues that are having a detrimental effect on steel production in the UK and that it is within the Government’s power to resolve. Action by the Government today could give the British steel sector the chance to stay alive in this fiercely competitive global market.

Research that I have undertaken in partnership with UK Steel has shown that the steel industry in the UK is disadvantaged to the tune of £431 million a year compared with our global competitors as a result of the exchange rate, energy policy costs, air pollution targets and business rates. I am sure that the Minister would agree that we want the UK to be the place to do business and that we do not want to penalise our own manufacturers.