Prax Lindsey Oil Refinery

Melanie Onn Excerpts

Monday 30th June 2025 Commons Chamber

[Michael Shanks]

I think I got all the hon. Lady’s key points down. Importantly, I agree with many of them. First, I echo the point that she makes about this being shocking news for the workers, as it always is. Given how quickly it has happened, it has been as much a surprise to us, but for the workers it will be particularly shocking news.

I will reiterate two things that the hon. Lady said, just to be clear. She mentioned the upstream business west of Shetland. That is not filing for insolvency. The petrol forecourts will continue to operate as normal, and the administrators are exploring the prospect of a sale of those retail operations. There is no need for anyone to be concerned about any of that.

There is an argument that it is critical, whatever the outcome, that the company takes some responsibility for the actions it has taken up to this point and for the workers who were employed in its business and kept it running for a long time. I have been clear in my statement today, and we will continue to reiterate it, that we expect the owners to put their hands in their pockets and provide the support that those workers deserve.

Finally, I was in Aberdeen last week talking to people about a comprehensive plan, and I will continue to do that, because it is right that we put in place a comprehensive plan for the future of those working in oil and gas. There is a bright future for that workforce in oil and gas for many decades to come, but increasingly they will transition into new industries. We are determined that we will deliver those jobs. A plan is crucial, and I am working on it at pace.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

I thank the Minister for his statement, and he is right that this news has sent a shock reverberating around our local area. Back in April, I visited the Prax site, which sits in the constituency of my neighbour, the hon. Member for Brigg and Immingham (Martin Vickers). I spoke with the staff and trade union reps about the importance of their work, and I was impressed by their commitment to the company. There was absolutely no hint of the scale of difficulties—beyond how challenging it is in the refining sector anyway—or how deep and uncomfortable the company’s financial situation was. It is astonishing that the company could not answer basic questions about its finances when the Government asked for those details.

The decision taken by State Oil puts more than 400 local jobs at risk, with around 65% of those workers living in north-east Lincolnshire. I appreciate the efforts that the Government are making to support our workers, and I hope to work closely with the Government to help find a new buyer to preserve the jobs and support domestic fuel production as a strategically important asset. However, as things stand, I understand that State Oil is required only to make statutory redundancy payments to those workers. Does the Minister think that the billionaire owner of the refinery could do more to better support those workers in the event that they lose their jobs? Surely that is the least they could do, after what appears to be gross mismanagement.

[Michael Shanks]

I thank my hon. Friend for her questions. By talking of her recent visit to the refinery, she underlines the issues that have come to light in such an incredibly short space of time, although the truth is that in uncovering some of this, we have discovered that it goes back some time. That is why my right hon. Friend the Secretary of State has announced that he has asked for an inquiry into the decisions that have been made. We need to get to the bottom of this and learn any lessons that we can.

My hon. Friend is right that we have to do everything we can to support the workers. We will continue to do that, and we will look at what support we can provide for them. At the moment, these are jobs at risk rather than redundancies that have been announced. We are doing everything we can to see whether someone is interested in buying the refinery as a going concern, in which case the workers would be retained. We will do everything we can to support those workers should that not come to fruition.

My hon. Friend is right to point out that under the current process, those workers will be entitled to statutory redundancy only. It is clear that the business’s leadership have a responsibility to those workers, not only because it is right and prudent for all owners of businesses like this to take responsibility for the workforce, but because, particularly given how this business has ended, they should take responsibility for the workers and the local community. We call on them to do the right thing and support the workers through this incredibly difficult period.