British Steel: Negotiations

Martin Vickers Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

I had hoped that the Opposition Front Bench spokesperson would support our ongoing desire for negotiations, and that she would ask why the redundancy conversations are taking place while negotiations are ongoing.

On Liberty Steel, on 20 July 2021 the then Business Secretary set out in his evidence to the BEIS Committee that we did not have adequate assurances to be confident that money offered to Liberty Steel would remain solely available to UK operations. It is important to note that that approach was commended in the Committee’s November 2021 report. Of course, I was on the Committee then, but it is important to note that the Committee is made up of Members from both sides of the House, so that was obviously an agreed position of colleagues across the House.

The hon. Member talked about the level of support that we are providing to the sector to ensure that it can reduce its emissions and take on board new technology to go as green as it can. We have more than £1.5 billion of long-term, strategic and focused support in place to help it to go green, cut emissions and become more energy-efficient. There is more than £1 billion for the carbon capture and storage infrastructure fund, more than £240 million for the net zero hydrogen fund, more than £55 million for the industrial fuel switching fund, more than £20 million for industrial decarbonisation research, £289 million for the industrial energy transformation fund and up to £66 million as part of the industrial strategy challenge fund. That is substantial funding to help the sector to be strategic and have structures in place to help it to reduce emissions, invest in new technology and decarbonise.

The hon. Member spoke about Labour’s plan, or the budget it has in place to help steel become green. I am not sure how that has been costed or tested. As I said in my statement, what is important is that we are putting forward a generous package of support. I hope that she agrees that, because it is taxpayers’ money, we should also have certain assurances, whether on job security, or that new technology to decarbonise is adopted. That is a sensible, strategic way to go forward.

[Martin Vickers (Cleethorpes) (Con)]

The company has clearly acted in a most inappropriate and high-handed manner, and that affects not just the 800 workers directly employed at British Steel: my neighbouring constituency has many thousands of jobs dependent on the supply chain. Could the Minister assure us that the Government will give maximum support and recognise the importance of steel to the region as a whole?

[Ms Ghani]

My hon. Friend has always been a great advocate for all the jobs in his constituency, including those linked to the steel supply chain. That is why the sector is so important: the number of jobs that trickle through it is huge, and it is a foundation industry that supports every other manufacturing sector. We are negotiating as hard as we can to ensure that we get over the present hurdle and that we can go on and talk about other things, such as further procurement, which would be great news for the supply chain as well. Of course, if any decision is taken by the firm, it will be a commercial decision, and if any support is required for workers, across Whitehall, we will do everything we can to ensure that that support is available.