Shotton Steelworks: 125th Anniversary

Matt Western Excerpts

Wednesday 1st December 2021 Commons Chamber

[Mark Tami]

I absolutely agree with my hon. Friend. We have to look at the whole picture, not just part of it.

[Matt Western (Warwick and Leamington) (Lab)]

I listened closely to what my right hon. Friend said about energy. On the point about costs, the Labour party’s proposal to introduce a total review of business rates is critical to the industry. As we know, comparison of business rates in this country with their equivalent in Europe shows a disadvantage for the UK of something like 70%.

[Mark Tami]

My hon. Friend makes a very good point. Every which way the industry turns, it seems to be at a disadvantage to its neighbours.

I implore the Government: instead of turning their back, will they turn towards the people they serve, provide a proper industrial strategy for the industry and the workers, support the industry to decarbonise, and put stronger targets in place to buy British? It is our duty and our place to stand up and represent the industries and businesses providing a livelihood for the people we represent, which are the lifeblood of our areas, while taking steps to secure a green and sustainable environmental future for us all.

Shotton has provided communities in Alyn and Deeside with secure employment since its inception, has supported the local and global economy and has provided vital quality products for infrastructure developments. The Government must recognise and support the Tata Steel group in its effort to transform into a green steel producer. I will continue, as I am sure hon. Friends will, to demand that funding is properly directed to that area. Above all, I will continue to stand with the workers of Shotton Steel, the trade unions and the management, for it is their skill and dedication that maintain production and innovation. It is they who keep Shotton at the heart of the community, and it is they who will be central to the next 125 years of steel making in Alyn and Deeside.

--- Later in debate ---

[Lee Rowley]

I know that the right hon. Gentleman will not expect me to accept that point. We accept that there is a challenge with energy prices at the moment, and we understand that that is a cause for concern for a number of energy-intensive industries, including steel, ceramics—which I debated with a number of colleagues in this Chamber and beyond in another place last week—glass and paper. We are keen to understand the detail, and it is important that we recognise that there is nuance in this debate and that different strategies are being employed by different companies.

There are also different contexts in which these energy prices are applied. A diverse group of industries are impacted by gas prices. Efficiencies are being pursued in some places, and there are hedging strategies in others. I accept the right hon. Gentleman’s challenge that energy prices are high, albeit volatile and variable, but I hope he will also acknowledge that we are really trying to work with the industry and the sectors to understand the different challenges presented by high gas prices, and that we will continue to do so over the coming weeks and months.

[Matt Western]

I applaud the Minister’s ambition in seeking to address energy costs in the energy-intensive industries that he has just identified. Would he welcome and support a move towards a greater number of onshore wind turbines, which would be one of the best providers of low-cost energy to this country?

[Lee Rowley]

If the hon. Gentleman will forgive me, I will not set out our energy strategy on wind turbines today. That would be a matter for one of my colleagues in the Department. The broader point that he makes, however, is that over the coming decades we need to decarbonise our electricity supply. We have had some success in doing that over the previous decades. By doing that, through whichever process we can achieve it, we will ensure that we have clean and green energy to support industries such as we are talking about today.

I just want to touch on a couple more points before I close. The right hon. Member for Alyn and Deeside highlighted his concern that the Government do not focus on steel. I would not accept that point. In the 10 or so weeks that I have been the Industry Minister, I have already visited two steel mills and had regular conversations with the companies involved. I have met them on a number of roundtables and will continue to do that. On a broader level, we had the announcement at COP26 and the Glasgow breakthroughs, and we will be working with a number of countries around the world to ensure that we can decarbonise the industries that are more challenging to decarbonise. That indicates a desire to find ways through difficult challenges where there are no easy answers, and the Government and communities are trying to work through how to do that.

One way is through hydrogen, as the right hon. Gentleman highlighted extensively in his speech. He was somewhat sceptical about the UK Government’s activities in this space, but I want to place on record for completeness that there has been significant movement on hydrogen in recent months. We had the publication of the hydrogen strategy in August, the hydrogen business model is being consulted on, and the net zero hydrogen fund stands at nearly £0.25 billion. We also have the UK low carbon hydrogen standard. Of course there is much more to do on that, which is why we are putting in place the frameworks for that to happen, but I hope that that demonstrates an intent from the Government to explore the possibilities around hydrogen.

Finally, I want to touch on procurement, because I know that that was an important part of the right hon. Gentleman’s speech.