Prax Lindsey Oil Refinery

Debate between Michael Shanks and Martin Vickers

Tuesday 22nd July 2025 Commons Chamber

[Michael Shanks]

My hon. Friend is right, and it is deeply frustrating that we inherited many of these issues, which were unresolved for such a long time. These are not problems that arrived in the past 12 months. Bringing in the refinery sector for talks with Government about the challenges would have been a fairly obvious thing to do at least once in the past 13 years. Clearly, that did not occur to the previous Government, and we have inherited challenges.

My hon. Friend is right to say that consultations will take time, unfortunately. It is right that we conduct a proper consultation to make sure that there are not any unintended consequences. The Minister for Industry, who is a Minister in both the Department for Energy Security and Net Zero and the Department for Business and Trade, is looking at how we can do that as quickly as possible. I am happy to follow that up with her. My hon. Friend is also right that nobody wants to be talking about redundancies in any part of our economy, and we are doing everything we can to bring down prices to prevent redundancies.

[Martin Vickers (Brigg and Immingham) (Con)]

This is a massive blow to my Brigg and Immingham constituency—most particularly to those directly employed by the refinery, but also to the wider economy of the sub-region. Will the Minister reconsider what he just said about statutory redundancy? I want the maximum support given to those workers.

I will raise two other points. First, North Lincolnshire council published a green growth zone document last year about the future of the regional economy. As we discussed yesterday, I urge the Minister to consider an urgent meeting, at which all involved are brought in for a roundtable discussion. Secondly, if he is not doing so already, may I urge him to speak to his colleagues who are local government Ministers? North Lincolnshire council will lose £2.6 million in business rates. Needless to say, that is a massive blow that would affect the delivery of services.

[Michael Shanks]

I thank the hon. Gentleman for his questions, and for meeting me to discuss the matter yesterday. I appreciate the impact that the closure will have, not just on those refinery workers who are directly impacted, but on the wider economy. We absolutely appreciate that there are ripple effects from a closure like this.

On the statutory redundancy point, we have looked at this, and have pushed to see if there is more action that the Government can take to change or give additional payments. It is not possible for Government to do that, not least because the Insolvency Service has to follow specific rules on creditors and how they operate in the event of an insolvency. However, the owners of the company have profited from this business, and they should do the right thing by the workforce that delivered that for them.

I have agreed to hold a roundtable discussion, and I previously met the two council leaders to talk about this. I am happy to arrange that discussion, and to have it with whoever is useful and wants to participate, because the hon. Gentleman is right about the opportunities. I am happy to engage on the point about North Lincolnshire and business rates. Although the refinery will not continue to be a going concern, we are assessing bids from those who are interested in the site; we hope those bids will deliver jobs and economic benefit, and that business rates income will come from new industries on the site. That is not as good as retaining the refinery in its current form, but we hope we can make some progress.

Prax Lindsey Oil Refinery

Debate between Michael Shanks and Martin Vickers

Monday 30th June 2025 Commons Chamber

[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.

[Martin Vickers (Brigg and Immingham) (Con)]

I thank the Minister for his statement and for the briefing he gave me earlier today. It is disturbing that when the Government reached out to the company for additional information, it was not forthcoming. The shadow Minister, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) asked some pertinent questions, one of which was how long the Government are prepared to support the workers and the refinery. It would be reassuring for many of my constituents who work there if the Minister could give some indication that there will be support at least in the medium term.

[Michael Shanks]

I am grateful to the hon. Gentleman for his time earlier today. This will be a distressing issue in his constituency, so it was good to have the chance to speak to him about it. He is right. With this decision having been made last night in the courts and made public this morning, we have not had much time to fully work through the timeline of what will happen in the coming weeks. The Government are funding the official receiver to continue the safe operations of the refinery. The first priority will be to make sure that safe operations proceed, but then we will see whether a buyer is interested in the site. We will then move as quickly as possible, if that is not possible, to see what alternatives there are for the site.

I cannot give the hon. Gentleman assurances on exact timescales at this point, but he can be assured that the Government are determined to do the right thing, and we will do whatever we can to get either a buyer or a sustainable future for the site. I reiterate to the House that this is a difficult set of circumstances with little time to prepare, and the refinery has been loss-making since it was taken over from Total some years ago. It is a difficult position, but we will do everything we can.

Biomass Generation

Debate between Michael Shanks and Martin Vickers

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

I am tempted to say that we will have to ask the Conservatives that question, but they are under new management, so they do not know why the previous Government that they were all Ministers in made the decisions that they did. The truth is that for far too long—under, I think, eight different Conservative Energy Ministers—they signed off deal after deal with Drax with uncapped profits and nowhere near the sustainability criteria that they should have had, letting Drax do whatever it wanted with that power station. We have put a stop to that. Let us be really clear: we have halved the subsidy, taking £6 off every single bill in this country every single year, we have increased sustainability to 100%, and we are delivering the energy security this country needs, but we should not have been in the position on coming into office where there were nowhere near enough long-term plans for the future of our energy system.

[Martin Vickers (Brigg and Immingham) (Con)]

I think I detected one item of agreement between the Minister and his shadow, which was that there needs to be a long-term solution and this is not a short-term fix. Surprisingly, there seems to be little support from the Government Benches for Drax, which plays a major part in the regional economy. In my own constituency, Associated British Ports invested £150 million in the facility to import the biomass, and a significant number of my constituents will be involved in the supply chain. Can the Minister give an assurance that he will bear in mind the impact on the local economy as we move forward to a longer-term solution?

[Michael Shanks]

The hon. Gentleman makes an important point, although I would gently point out that the shadow Minister and I agree on a lot more than he likes to pretend—or I like to pretend, perhaps. The hon. Gentleman is right to say that we are aware of the importance of the jobs at this particular power station and in the supply chain, and we will be working with Drax on what that looks like. We are of course changing the role that Drax will use the power station in Selby for, and I will ensure that I have those conversations about the supply chain. I would be happy to speak to him more about that in due course.