UK Steel Industry Debate

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Tuesday 12th April 2016

(8 years, 6 months ago)

Commons Chamber
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Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
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I congratulate the hon. Member for Wallasey (Ms Eagle) on securing this debate; I appreciate your discretion in permitting it under Standing Order No. 24, Mr Speaker. I will speak briefly from the SNP Front Bench, to allow colleagues from steel communities both in Scotland and in England and Wales to contribute to this short debate.

Yesterday, the Business Secretary tried to dig himself out of the hole he had dug by claiming credit for the news that Tata may have found a buyer for the Scunthorpe plant. He told us that this Government had done everything they could for the steel industry and that workers in England and Wales, with their jobs on the line, should be grateful to the Tories. It is welcome news that Tata appears to have found a buyer for its operations in Scunthorpe, and I hope that buyers can be found for Port Talbot and other sites. If the Government have been involved in the deal, I commend that, but I am concerned at reports of a possible erosion of workers’ terms and conditions as part of the deal. Is the Business Secretary aware of that? If he had discussions with Greybull Capital, did the changes come up? Will he now make representations to it on that matter?

I am also keen to probe a bit further the Business Secretary’s apparent flirtation with direct UK Government investment and the potential co-ownership of steel sites, including Port Talbot. He described it as co-investment in “commercial terms”. Perhaps he could clarify that, because it was as clear as mud yesterday and left more questions than answers. Indeed, it appears that this morning No. 10 was briefing against his flirtation, saying that nationalisation is not the answer. How unco-ordinated and shambolic!

Tom Blenkinsop Portrait Tom Blenkinsop
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On what the hon. Gentleman said about terms and conditions, that ends up going to ballot, after being negotiated with lay reps on site, including those at Skinningrove in my constituency. The reductions in terms and conditions and the pension contributions are for 12 months only. In collective bargaining that is usually called a short-term working agreement, and I have negotiated those many times in order to save sites. It is also an industrial matter; it is not really a political matter for this place to discuss.

Neil Gray Portrait Neil Gray
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I take the hon. Gentleman’s intervention in the spirit in which it was clearly given.

As I said yesterday, the fact that the Business Secretary was literally on the other side of the world at the height of this crisis two weeks ago when Tata made the announcement is a perfect metaphor for the Tory approach to the steel industry. Yesterday, I believe, was the first time this Government have proactively engaged with the House on the steel issue, and even that was after a shambolic recess, when there were calls for a recall of Parliament. On every other occasion I have been involved in discussions—certainly on the vast majority of occasions when steel has been discussed in this House—it has been because the Government have been dragged here by Opposition parties, as they have been again today. It is clear that the Government have been comfortably behind the curve on the steel crisis.

Mark Pawsey Portrait Mark Pawsey (Rugby) (Con)
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We had a statement yesterday!

Neil Gray Portrait Neil Gray
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I have already said that yesterday was the first time the Government had proactively done this, and that was after a shambolic recess. They have clearly been comfortably behind the curve on the steel crisis; we have seen poor, defensive reactions, rather than proactive and practical support. That is in stark contrast with the proactive, professional and diligent way the Scottish Government approached the crisis facing the Scottish plants at Clydebridge and Dalzell. Nicola Sturgeon said her Government would leave no stone unturned in saving a crucial industry, and that is exactly what happened.

The Scottish steel taskforce was quickly assembled, and I am delighted to say that my hon. Friends the Members for Motherwell and Wishaw (Marion Fellows) and for Rutherglen and Hamilton West (Margaret Ferrier) contributed to that, and that Liberty House has now bought these sites, to maintain a crucial industry in Scotland.

Yesterday, the Business Secretary was noble enough to commend the Scottish Government for their actions and efforts, and I thank him for that, but the mask slipped later on in the exchanges when my hon. Friend the Member for Rutherglen and Hamilton West asked whether the UK Government had learned anything from the approach taken in Scotland. He said the only reason why Scottish steel has a bright future is the strength of the UK economy. That was utterly complacent, arrogant and ignorant of the facts.

SNP Members now stand in solidarity with the steelworkers of England and Wales as they struggle and fight for their jobs and their industry, alongside their union representatives. We now hope the UK Government can work more co-operatively with EU colleagues on anti-dumping measures, energy costs and the other issues facing this industry, so there can be a long-term future for a crucial part of the manufacturing sector.

There needs to be a credible strategy for manufacturing and heavy industry in the UK, as the shadow Business Secretary said. This Government are facing a massive, record-breaking trade imbalance. The only way of rectifying that is if we start making things and if this Government start supporting those areas of the economy, rather than relying so heavily on other areas. Imagine what could have been achieved had the Prime Minister spent the last year touring European capitals pressing for action on steel, rather than testing the patience of European colleagues on his EU referendum gamble.

Yesterday, I asked the Business Secretary a simple question and he dodged it. He now has the opportunity to hear it again and perhaps he will take the opportunity to answer it. Will he publish details of all the meetings, phone calls and correspondence with the EU and with international and trade counterparts that he, the Prime Minister, the Chancellor and other members of the Cabinet have made in respect of the steel industry, and any such visits they have made? If he has done the work he claims to have done and if he has indeed strained every sinew for the steel industry, he can have nothing to hide. Indeed, publishing would help to show if he really had the grip on this issue he claims to have had.

I suspect that the Secretary of State dodged that issue and question yesterday because the reputation he has gained for himself in steel communities across these isles is ringing true. What we needed to hear, today and yesterday, was the commitment of this Government to save this crucial industry, not just for the workers—saving their jobs, and their skills and livelihoods—but for the wider economy. I wonder whether we will ever hear that commitment from this Government.

None Portrait Several hon. Members rose—
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