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.

Energy Security Strategy

Martin Vickers Excerpts

Tuesday 19th April 2022 Commons Chamber

[Kwasi Kwarteng]

As I said in my statement, we are fully aware of the pressure on people’s household bills: it is a really, really extreme issue and we want to deal with it. I also said that my right hon. Friend the Chancellor will look at the matter again in October and see whether measures are appropriate. The hon. Lady will know that the price cap is set in August, so there is still a long period before we can work out what it is. It is a matter for Ofgem, and we are waiting to see what level it is set at in August.

[Martin Vickers (Cleethorpes) (Con)]

My right hon. Friend is well aware of the expertise and expansion in offshore renewables, hydrogen and carbon capture in northern Lincolnshire and the wider region. Does he agree that we could focus on exporting? We have great skill in financial management, planning and construction. Is he working with the Department for International Trade to expand our exports?

[Kwasi Kwarteng]

My hon. Friend makes a remarkable and interesting point. He will remember that just over two years ago, I visited Grimsby and saw him and many other local MPs, and we talked about the investment and the opportunities. I am very pleased that two and a half years later we have realised a lot of those ambitions. There is still a long way to go, but it is absolutely right to think of exporting our expertise, our talent and our sheer manufacturing ingenuity around the world. I am delighted to support him in that.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 29th March 2022 Commons Chamber

[Kwasi Kwarteng]

They do. I was very pleased to take up my office as Minister of State for Energy a month after the net zero legislation was passed, and for the last three years we have been resolutely focused on living up to the letter of the law, fulfilling our bargain and making sure we reach net zero in 2050.

[Martin Vickers (Cleethorpes) (Con)]

The Secretary of State is well aware of the opportunities for further developing the renewables sector in my Cleethorpes constituency and the wider Humber region. However, as he is also aware, there have been one or two setbacks of late. Will he meet me and neighbouring colleagues to discuss how we can move forward and maximise such opportunities?

[Kwasi Kwarteng]

I would be very happy to meet my hon. Friend. I am very excited about what is going on in his constituency and the wider Humber area, and I look forward to talking to him about decarbonisation.

Sub-Postmasters: Compensation

Martin Vickers Excerpts

Tuesday 22nd March 2022 Commons Chamber

[Paul Scully]

Please send my condolences to Myra and the family. Within any scheme there will always be hard edges, but please let me know if particular people are falling through the gaps and let me see what further we can do to support them through this difficult time.

[Martin Vickers (Cleethorpes) (Con)]

I add my tribute to the Minister, who came after a long line of Ministers who did not grasp this issue, but he certainly has. Following other points that have been made, may I seek clarity on those who have died? Will their estates benefit?

[Paul Scully]

Yes. In the same way as with the HSS, we can work with the estates to ensure that compensation is paid through them. That is my understanding.

Post Office: Horizon Compensation Arrangements

Martin Vickers Excerpts

Thursday 24th February 2022 Commons Chamber

[Paul Scully]

I agree with everything the hon. Gentleman said. What he says about individual MPs doing amazing work goes to the heart of the early part of the problem, when all the sub-postmasters thought that it was just them. They did not realise that so many people—hundreds across the country—were suffering the same issue because of a faulty bit of software. It was only when they came together, when pressure built, when there was coverage in the media and when other champions raised the issue in this place and elsewhere that it burst open with the 555. Now we need to make sure that we bring it to a proper conclusion.

[Martin Vickers (Cleethorpes) (Con)]

I welcome what the Minister has said today. To be honest, previous Ministers have failed miserably to grasp the situation; I welcome the fact that since his appointment we have made rapid progress. I had a couple in my surgery who were elated a few months ago because they thought that real progress was being made, but were deflated when they came a few weeks ago. They are an elderly couple. When convictions are quashed, surely compensation can follow pretty quickly—a quashed conviction is clear evidence to all that they are innocent. They should get at least an interim payment. What can the Minister do to assist in those circumstances?

[Paul Scully]

As I say, we have made good progress on interim payments. If my hon. Friend’s constituents have not applied for or received their interim compensation of up to £100,000, will he please let me know? I will certainly look into it, because that is exactly why those payments are there: as a stepping stone to the final sums.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 21st September 2021 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

Northern Lincolnshire and the wider Humber region are playing a major part in our reaching zero emissions targets in the next few years. The Minister will have been made aware of a number of projects that the Department has supported. Will he assure us that that support will continue? May I urge him to build into his schedule a visit to the region as quickly as possible?

[Greg Hands]

I look forward to a visit to Yorkshire and the Humber region as quickly as possible. My hon. Friend will know how Yorkshire has delivered incredibly for the UK as a whole, particularly in respect of offshore wind. The world’s largest operational offshore wind farm, Hornsea One, spans 400 sq km off the Yorkshire coast and generates enough power for 1 million UK homes.

Budget Resolutions and Economic Situation

Martin Vickers Excerpts

Tuesday 9th March 2021 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

It is a pleasure to participate in this debate. My main reason for wanting to take part is to celebrate and praise the Government for this Budget. It has done a great deal to contribute to the levelling-up agenda and to overcome the north-south divide, which was a major plank of our 2019 election manifesto. In the past, cities and city regions have had much of the Government’s resources, and that policy was not necessarily wrong, but provincial towns such as Cleethorpes, neighbouring Grimsby and others in northern Lincolnshire could not benefit in the slightest from it because they have no immediate cities from which there could be a trickle-down effect. So it was right that we moved to focus on provincial towns.

I am delighted that the town deal, which has so far generated more than £100 million of investment into the area, has received another £21 million in the Budget. The town deal for greater Grimsby was actually the first; it was established in 2014 and involved a relationship between North East Lincolnshire Council and the private sector, led by local entrepreneur David Ross. That has moved forward, and it was acknowledged in the Government’s industrial strategy when it was published in, I think, 2017, when the then Secretary of State, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), used the greater Grimsby deal as a platform for others that have followed.

I am delighted that the Humber ports have been given freeport status. When my right hon. Friend the Chancellor published his report some years ago advocating freeports, I spoke to local businesses and to the port operator, Associated British Ports. I foresaw the advantages of freeports, so this is splendid. It is also important to acknowledge that the area is a major centre for the renewables sector, and I am delighted that the Government have invested more than £70 million in the Able marine energy park—something that the chairman of Able said would not have gone ahead without Government support. There has been criticism from the Opposition that the money is going to the wrong places. Take the Humber: I do not think there were any complaints from this side of the House when Hull got the Siemens investment. Now there has been an evening up. These are major moves forward, all of which I welcome. My thanks to the Chancellor.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 22nd October 2019 Commons Chamber

[Nadhim Zahawi]

The hon. Gentleman makes a powerful point, although his colleague, the hon. Member for Manchester Central (Lucy Powell), was shaking her head, so there is clearly division on the benefits of HS2. That is why we have an independent review to tell us which way we should proceed.

[Martin Vickers (Cleethorpes) (Con)]

One of the businesses in northern Lincolnshire that will be a crucial part of the supply chain for HS2 is British Steel in Scunthorpe. I urge the Minister, when he is in discussion with the Department for Transport, to consider the effect on the supply chain and the impact on local economies.

[Nadhim Zahawi]

That is certainly a consideration for the review.

Oral Answers to Questions

Martin Vickers Excerpts

Tuesday 16th July 2019 Commons Chamber

[Andrew Stephenson]

I am proud that we remain one of the most attractive destinations in the world for foreign direct investment. UK unemployment has now fallen below 3.8% for the first time since 1974, average wages are growing twice as fast as inflation and by the fastest rate in over a decade, and all while we borrow half as much as Labour did in the five years before the crash.

[Martin Vickers (Cleethorpes) (Con)]

Can the Minister give an update on negotiations in reference to Scunthorpe steelworks?

[Andrew Stephenson]

I thank my hon. Friend for that question. As he will know, that is in the hands of the official receiver. I am seeking to keep him and other local Members of Parliament updated regularly with what is going on, but I know that my right hon. Friend the Secretary of State has left no stone unturned and is meeting with various bidders and other people to secure the long-term future of steelmaking in his region.

UK Steel Industry

Martin Vickers Excerpts

Tuesday 9th July 2019 Westminster Hall

[Andrew Percy (Brigg and Goole) (Con)]

It pains me to disagree slightly with the hon. Member for Rotherham (Sarah Champion)—for whom I have a high regard and whom I consider a friend—but it is simply not the case that the Government have done nothing. It is also a little rich to take lectures from Labour, under whose last tenure in government the number of people working in the steel industry halved and UK steel production fell.

It is not the case that the Government have done nothing. This Government have acted to defend the steel industry in a number of ways, whether by creating the scheme that enables the company to be reimbursed for its high energy costs, by restructuring business rates, which have a direct beneficial impact on the site in Scunthorpe, through the millions of pounds that they made available shortly before the liquidation of British Steel to cover the EU carbon credits, or through the tens of millions of pounds that the Government were prepared to put in but could not do so because an arrangement on a commercial basis, as required by UK and EU state aid laws, could not be achieved. The Government have a strong record of supporting the sector and supporting steel workers in Scunthorpe.

It was the UK Government in the EU that led demands to change procurement rules within the European Union, just a few years ago, to make it easier for us to procure UK steel. Of course, those procurement rules are still a challenge for us. The Government cannot just turn around, as some people think, and say, “We are going to use UK steel in all Government contracts.” That would be illegal under UK and EU law, and—for those who think that a no-deal Brexit is the answer to all this—it would even be illegal under World Trade Organisation rules.

Having used half my speech to slightly disagree with my friend the hon. Member for Rotherham, I will say why we need the Government to act now and set out some things they need to do.

As the hon. Member for Scunthorpe (Nic Dakin) outlined, our area relies strongly on the steel industry. Scunthorpe is a steel town; north Lincolnshire is, in many ways, a steel district. Most of the workers—the lion’s share, probably—live in my constituency. We cannot underestimate the impact of steel workers on our local economy, because these are some of the best paid and most skilled jobs we have in our area. I am not prone to hyperbole—well I am, but let us pretend I am not—but to lose them would be devastating on our local economy.

[Martin Vickers (Cleethorpes) (Con)]

Will my hon. Friend give way?

[Andrew Percy]

Of course I will give way to my neighbour.

[Martin Vickers]

My hon. Friend is, as always, erudite—that is the word I was looking for. His point about the northern Lincolnshire economy is well made, as it was by the hon. Member for Scunthorpe (Nic Dakin). Would he also acknowledge that this issue spreads far and wide? Some 150 people are employed at the port of Immingham, either by Associated British Ports or British Steel directly. Speaking as chairman of the all-party parliamentary group on rail, I can say that there are impacts not just on the supply of steel but on the movement of raw materials.

[Andrew Percy]

Absolutely. I do not need to repeat what my hon. Friend said; all that is true and demonstrates how important the industry is not just to our sub-region or region, but to the whole UK economy.

Where are we now? I thank the Minister and the Secretary of State for the positive way in which they have engaged with local stakeholders, unions, the councils and local Members of Parliament. I genuinely believe that this Government are trying to do everything they can to secure a future for the site. This is an independent procedure through the official receiver, but locally we do not want to see a partitioning off or a selling off of different parts of the business. We want to see the business sold in its entirety. For the reasons stated by the hon. Member for Scunthorpe in relation to the strategic importance of the industry, we have to continue producing steel in Scunthorpe.

The Government must stand ready to do all they can financially to support the industry. There are tens of millions of pounds that were available before the liquidation, which we have been assured remain available for any new partner on a commercial basis, as required by law. Can the Minister reconfirm that today? That would be appreciated.

We have to be honest about the situation if a buyer cannot be found. We know that we are down to a shortlist —it is good that there are number of buyers who are realistic prospects to purchase the business—but as I and other colleagues have repeatedly said, we must not be close-minded about any particular structure moving forward. Nationalisation does not get us over the problems of investment having to be on a commercial basis. That might or might not be an answer in and of itself, but it does not mean we should simply rule that option out, or the option of a public-private partnership. Every option should be considered by Government to ensure that the whole business can continue to operate.

We do not want the crumbs off the plate, as it were, and just a few hundred jobs saved if part of the business were sold separately. We want it to continue in its current form because it is so strategically important to UK plc.