Australia and New Zealand Trade Deals

Debate between Nick Thomas-Symonds and Stephen Kinnock

Monday 14th November 2022 Commons Chamber

[Nick Thomas-Symonds]

I completely agree with my right hon. Friend that we do not need a single template, but we could do with a core trade policy and a core set of objectives from the Government.

I turn to the issue of scrutiny, because for those in this House who follow trade matters closely, it will not have gone without being noticed that this debate brings a distinct change of focus from Ministers at the Department for International Trade. Ministers—I would say they are new Ministers, but I think the Minister for Trade Policy, the right hon. Member for Chelsea and Fulham (Greg Hands), is competing with Frank Sinatra in the comeback stakes—will I am sure be aware of stinging rebukes from the cross-party International Trade Committee, which has regularly and strongly raised the need for better scrutiny structures around trade deals. It called in its recent report for

“the Government to accept specific recommendations to enable better scrutiny of any FTAs”.

That is very much a cross-party matter—the hon. Member for Totnes (Anthony Mangnall) has regularly made the case to me as the shadow Secretary of State as well as to the various Secretaries of State and I hope that those criticisms and recommendations are having an impact. I hope that those recommendations, which come from right across the House, are being heard. Perhaps that is why we have at least ended up with today’s debate, although the irony is not lost on us that parliamentary time has now been allocated to agreements that were long ago signed and agreed.

[Stephen Kinnock]

My right hon. Friend is being generous in giving way. On this point about scrutiny, he is a Welsh MP like me, so does he agree that these deals have a huge impact on, for example, the Welsh farming industry? Does he share my regret that the Government have not published an impact assessment for the devolved nations, and that they have ridden roughshod over any conventions on consulting properly with the devolved nations, whose Governments are such important stakeholders in this process?

[Nick Thomas-Symonds]

I entirely share my hon. Friend’s concern about the lack of specific impact assessments. I also share his disappointment that there is not a specific set of structures in place where the devolved Administrations can make their voices heard at a far earlier stage in the process. That would be extremely helpful.

British Steel Industry

Debate between Nick Thomas-Symonds and Stephen Kinnock

Tuesday 10th March 2020 Westminster Hall

[Stephen Kinnock (Aberavon) (Lab)]

I beg to move,

That this House has considered the future of the British steel industry.

It is a pleasure to serve under your chairmanship, Sir Charles. I am pleased to have secured this debate, particularly ahead of the Budget tomorrow, and at what feels like a critical juncture for our industry, and for the entire manufacturing sector that our industry underpins. The Budget is the first major fiscal event since 2018 and the first test of the Government’s promises to the British people, particularly to all their new voters from industrial areas. Today we will make the case to the Government that now is the moment to offer that long-overdue commitment to the steel industry, in order for that 21st century foundation industry to continue delivering for Britain.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing this debate. Does he agree that what is required is long-term planning? Following the mothballing of Orb in December, we are in a situation where an electrical steel producer is not producing steel that would be ideal for the green industrial revolution?

[Stephen Kinnock]

My hon. Friend is absolutely right; it is completely absurd to have a Government who on the one hand are committed to decarbonising our economy, but who on the other hand are failing to support Orb, which could play a major role in electric vehicles, which play a major role in decarbonising our economy. It seems that the left hand does not know what the right hand is doing.

The Government must recognise the strategic importance of steel to our country’s future. They must also recognise that steel must be front and centre of their so-called levelling-up agenda if they are at all serious about tackling regional inequalities.

Salisbury Incident

Debate between Nick Thomas-Symonds and Stephen Kinnock

Wednesday 12th September 2018 Commons Chamber

[Nick Thomas-Symonds]

Well, that is the position. I have read out the position pretty clearly. It is the second time I have done so. I say to the Security Minister: we worked in a consensual way on the Counter-Terrorism and Border Security Bill and I hope that we can continue to do that in our response to this terrible incident and send out a very clear message that we are united in the measures that need to be taken to keep our country safe.

The expulsion of the diplomats has already been mentioned in the discussion in this House. They were identified by the Prime Minister as undeclared intelligence officers. This also led to the amendment of the Sanctions and Anti-Money Laundering Bill that—

[Stephen Kinnock]

rose—

[Nick Thomas-Symonds]

I give way to my hon. Friend.

[Stephen Kinnock]

Continue, Sir. You are just gearing up.

[Nick Thomas-Symonds]

I am grateful to my hon. Friend. I will continue the point.

There are increasing checks on private flights, customs and freight, and the development of new legislation to tackle hostile state activity. The Security Minister will be aware that we have been discussing that throughout the passage of the Counter-Terrorism and Border Security Bill. Indeed, I and the shadow Home Secretary both voted in favour of the Bill on Third Reading last night. As the Security Minister well knows, we of course have reservations about a number of things—some of them we have resolved, and some I hope to resolve before the Bill appears in the other place—but both I and the shadow Home Secretary voted in favour of the principle of updating our laws and of providing protections against hostile state activity. I will come back to some of those measures.

[Stephen Kinnock]

rose—

[Nick Thomas-Symonds]

I give way to my hon. Friend.

[Stephen Kinnock]

If my hon. Friend is not going to say more about the Magnitsky amendment—[Interruption.] As he will be saying more about it, I will allow him to continue.

[Nick Thomas-Symonds]

The suspense as I wait for my hon. Friend’s intervention is starting to overwhelm me, but I will continue.

The Opposition are of course pleased with the solidarity that has been forthcoming from the international community and with the action taken in support of the UK position. I again make it clear that we on these Benches will back any further reasonable and effective action—whether against Russia as a state or the GRU as an organisation. I now turn to those actions.

Following the poisoning of the Skripals, the Prime Minister promised in March to develop new legislative powers to harden defences against hostile state activity. The amendments, clauses and schedules to the Counter-Terrorism and Border Security Bill make particular provision on that. The Opposition believe in strong powers and strong safeguards, and we have sought to ensure that they are included during the passage of the Bill. The powers are now there. I hope and trust that they will go through the other place, come back to this House and get on to the statute book later in the year so that they can be used to deal with these types of situations.

In her September statement, the Prime Minister confirmed that, in addition to those border powers, the G7 have agreed to share intelligence pertaining to hostile state activity via a rapid response mechanism; that the EU has agreed a package to tackle hybrid threats; and that NATO has strengthened its collective deterrence via a new cyber-operations centre.

Cyber is obviously an important part of how we deal with this issue. I have visited GCHQ and seen some of the work that goes on. The Opposition will continue to make the case for that work to be appropriately funded and that the capacity must be there to act as we need to. America has also announced additional sanctions against Russia in the light of the Salisbury attack, and, as I said a moment ago, support from the international community to back UK action is welcome on both sides of the House.

I turn to the Magnitsky amendment and other issues. In March, the shadow Chancellor talked about the need to tackle the “global laundromat” operation, in which immense sums of money obtained from criminal activity are laundered here. The Security Minister made the point, which I totally accept, that the money may well have been cleaned before it arrives on these shores. None the less, we have to do all we can to implement the measures that have been identified. We are pleased that the Government accepted the Magnitsky amendment; it is important to have the powers to seize assets when we believe that there is a situation with a corrupt foreign official or other matters that require action.

The Security Minister also spoke, on the radio earlier this week, about unexplained wealth orders, which are an important part of our weaponry. He is indefatigable and will be here to wind up as well as having opened this debate. Will he clarify how many unexplained wealth orders have been used so far, whether they have been used specifically in respect of Russian nationals and the extent to which he intends to press their use in future?

[Stephen Kinnock]

The action being taken on money laundering is, of course, very important. However, the Magnitsky amendment relates specifically to violations of human rights. I urge my hon. Friend to take this opportunity to ask the Minister to accept, during his winding-up speech—on the record, from the Dispatch Box—that there is no reason whatever why the United Kingdom cannot take unilateral national action on the basis of the Magnitsky amendment.

Clearly, we would like action to be taken at an EU-wide level, but the fact that Latvia, Lithuania and Estonia have all taken unilateral action, implementing their Magnitsky legislation, clearly demonstrates that there is no reason why the United Kingdom cannot do the same. Could we have an explanation of why EU membership has been used as an excuse for total inaction—it is now four months since the Magnitsky amendment was passed? The Government could simply take the list of Russian citizens who have been sanctioned by those other countries under their Magnitsky legislation and use that as a starting point.

Sector Deal for Steel

Debate between Nick Thomas-Symonds and Stephen Kinnock

Tuesday 19th December 2017 Westminster Hall

[Stephen Kinnock]

My right hon. Friend is right. That was an important milestone, but there have been so many false dawns, and warm words matched by frozen actions.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing the debate and on the great work that he has done over a significant period to stand up for the steel industry. On the subject of broken promises, does he agree that investment in research and development is another big issue? Across the UK generally it remains stubbornly below the OECD average. The whole sector is now asking for increased R and D investment in steel, and the Government should deliver that.

[Stephen Kinnock]

My hon. Friend makes an important point. I think that in the minds of some Ministers, and others in the House, steel is seen as metal bashing and an almost primitive industry, but in fact it is at the cutting edge of many innovations that we desperately need to drive our economy forward. If we are serious about getting a broad-based manufacturing renaissance, it must start with investment in the steel industry.

It was clear that Tata’s initial preference was to close the business down rather than sell it, but thankfully we managed to persuade the company to shift its position from closure to sale. Thanks to the magnificent professionalism and dedication of the workforce and steel unions, the turnaround plan began to kick in. The performance of the business dramatically improved, and from a fire sale we got the slow burn that eventually morphed into Tata’s decision to remain. However, that happened only after the workforce, facing the prospect of either the closure of the Port Talbot works or the closure of their pension scheme, voted for pension restructuring. They put the future of their industry, livelihoods and communities before all else. Steelworkers and steel communities are like no others. If my hon. Friend the Member for Redcar (Anna Turley) were well enough to be here today, she would have told us of the incredible strength and resilience of her community, which has stood firm, united and resilient, just as she has fought tooth and nail for it since the closure of the works.

There have been many ups and downs in the British steel industry in the past few years, but three things remain constant. The first is the relentless passion and commitment of steelworkers and their communities, exemplified by the delivery of the turnaround plan and the vote on the restructuring of their pension scheme. The second is the Government’s indifferent and incompetent attitude, and the third is the key policy asks of the industry—business and workforce—which have remained fundamentally unchanged for well over two years. We have discussed those policy asks many times, but it would be remiss not to take the Minister through them, as this is her first time attending such a debate.

To take trade defence first, we asked the Government to stop blocking reform of the lesser duty rule, which means tariffs that we can impose on illegally dumped steel are capped at 16%, while the Americans can impose far higher duties. The Trade Bill is set to transfer the lesser duty rule to UK legislation after Brexit. We asked for meaningful action against illegal Chinese dumping, with proper trade defence instruments. However, as steelworkers were being shown the back door, No. 10 was rolling out the red carpet for Beijing. What was the result? We can now add the challenge of illegally dumped Russian and Turkish steel to that of Chinese steel.

Secondly, on business rates, there have been five Budgets in the past two years, and not one has acknowledged the industry’s concerns about the way business rates inhibit investment and hold us back from investing in plant and machinery; so of course no remedy has been proposed.

Thirdly, on the question of procurement, which I have been working on extensively with my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), the Government have utterly failed to translate their rhetoric into reality. The public interest test that they introduced proved inadequate. Our calls for a longer lead-in time for central Government contracts have fallen on deaf ears. The Government have resisted transparency, dumping the idea of mandatory reporting and refusing even to gather and hold the relevant data, let alone provide it to us whenever we have asked. Foreign steel has continued to be used on iconic projects such as the repair of Big Ben, the new Firth of Forth bridge, the new Type 26 frigates and all sorts of smaller refurbishment and development projects around the country.

On the most vital of issues, energy prices, there has been some tinkering at the edges but no attempt at all to tackle the root causes of our ludicrously uncompetitive energy costs. The Government found a chaotic resolution to the EU emissions trading threat—something that would have cost the steel companies tens of millions of pounds, owing to the mishandling of Brexit—but they have singularly failed to clear changes to the feed-in tariff and renewables obligation opt-out. On the central issue of energy pricing, which means that UK producers’ energy costs are more than 50% higher than those of our European competitors, nothing has been done, and it appears nothing will be done.

That brings me to the very matter that we are here to discuss: the sector deal for steel, which hinges on the issue of energy pricing. After publishing the industrial strategy White Paper, the Government asked all industries to present their sector deals—comprehensive packages about how their industry would work within a national industrial strategy. The steel industry did just that, by presenting a sector deal to Ministers that met all the requisite criteria back on 7 September.

That deal would see a 50% increase in investment, from £200 million to £300 million per year—an additional £1.5 billion of investment over the next five years. It would increase production capacity by 40%, from 10 million tonnes to 14 million tonnes a year. It would create 2,000 jobs, and would see 200 more apprentices trained every year. It would develop a low-carbon roadmap, and help to deliver a more efficient electrical system, almost doubling the industry’s demand-side response. It would see the industry pump an extra £30 million investment a year into R and D, which is an area, as my hon. Friend the Member for Torfaen (Nick Thomas-Symonds) pointed out, in which the UK is traditionally weaker than our rivals.

In return for all that value, all the steel industry asks is that the Government match the R and D funding, helping to establish the future steel challenge fund, which would bring together the steel value chain, from automotive to aerospace and from renewables to construction, to work in partnership towards a cohesive industrial strategy and a new kind of growth, unlocking exciting innovation and new opportunities. The deal asks for Government help in facilitating investment by providing access to commercially competitive loans, providing capital investment grants or innovative tax discounts linked to investment. Essentially, that would help the industry to unlock the monopoly on investment held by property speculators and quash the myth that investing in industry is risky.

Crucially, the linchpin on which all this untapped potential rests is energy prices. Our steel producers have to pay 55% more than their German competitors and 51% more than the French, which adds up to an additional cost of almost £50 million a year. As the sector deal makes clear, if the steel industry gets the help it needs, it will put every penny and more of that £50 million back into the industry, creating jobs, increasing capacity, innovating and creating new opportunities and value.

[Nick Thomas-Symonds]

Does my hon. Friend agree that there is wide support for the sector deal right across the steel sector? It makes sensible and innovative proposals. Why do the Government not simply adopt it?

[Stephen Kinnock]

I agree with my hon. Friend. The sector deal has been submitted under the umbrella of UK Steel and EEF, but with the full participation and support of Tata Steel, British Steel, Liberty Steel, Celsa Steel and a number of other key players in the sector. The steel industry really speaks with one voice on this.

Without a cost-competitive energy environment, steel companies cannot invest in the future, and the industry can survive only when it has the potential to thrive. Steel is too important a product for our economy, our security, our communities and our standing as a nation for us to have to rely on others for it.

Palestinian Communities: Israeli Demolitions

Debate between Nick Thomas-Symonds and Stephen Kinnock

Wednesday 6th December 2017 Westminster Hall

[Stephen Kinnock (Aberavon) (Lab)]

I beg to move,

That this House has considered the effect of Israeli demolitions on Palestinian communities.

It is a pleasure to serve under your chairmanship, Mr Pritchard. Before beginning the debate in earnest, I will make clear a couple of things, which I hope will ensure that this and subsequent debates can proceed in a constructive manner.

First, nothing that I or, I hope, others will say is about religion or ethnicity. This is not an issue of Arab, Muslim or Jewish people. It is about upholding our basic values of justice and human rights, and it is about holding to account those states, Governments and duty bearers that violate those principles and laws. While the debate will, of course, discuss Israeli Government policies, with regard to the demolitions, this is not about being pro-Israel or pro-Palestine; it is about being pro-justice and pro-human rights. At a time when there seems to be a growing number of countries facing conflict, upheaval and political uncertainty, it is not a question of which is more important to talk about—they are all important.

Palestine has been in a perpetual—some would say declining—state of all of the above for more than 50 years. Indeed, the Israel-Palestine conflict is one of the most protracted in the world.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing the debate. On the issue of decline, does he agree that, in the three years since that particular aspect of the conflict ended, conditions are actually getting worse in the Gaza strip? Many constituents have contacted me about that declining humanitarian situation. We need to redouble our efforts internationally to tackle it.

[Stephen Kinnock]

I agree, and I point to a recent UN report, which declared that Gaza will be “unliveable” by 2020 due to the degrading infrastructure there, which is degrading for reasons that we know well. My hon. Friend is absolutely right on that point.

Welsh Affairs

Debate between Nick Thomas-Symonds and Stephen Kinnock

Thursday 2nd March 2017 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

I thank my hon. Friend the Member for Ynys Môn (Albert Owen) for securing this debate.

On 23 June 2016, the UK, Wales and indeed my constituency of Aberavon voted to leave the EU. I accept and respect that result, but not unconditionally. Brexit must be made to work for Wales. That means fighting tooth and nail against a crippling Brexit on WTO terms. The tariff barriers alone would cost £6 billion a year, destroying the automotive sector and crippling our steel industry.

Indeed, just yesterday, as my hon. Friend the Member for Bridgend (Mrs Moon) said, we heard about the job threats at Ford in my neighbouring constituency of Bridgend. This means that the UK Government must protect funding for Wales, so I call on the Government to commit to securing funds through to 2030, on a pound-for-pound match basis, based on current EU structural funding. The current guarantee up to 2020—the year after we are due to have left the EU—is simply not good enough.

The challenges facing my Aberavon constituency serve to demonstrate why the stakes could not be higher, and how desperately the United Kingdom needs a project of national renewal. Such a project must be rooted in the steel industry, because each steel job supports three others in the local community and the country; because each steel job supports a family and the community; and because each steel job supports a way of life and a way of being.

That is why, two weeks ago, the men and women of Tata Steel swallowed a bitter pill to secure the future of their industry, guaranteeing steel production at Port Talbot and across Tata’s operations for the foreseeable future. The vote to close the British Steel pension scheme, transferring it to a defined contribution scheme alternative, was a hard decision, but it was one for the workforce themselves alone. That is why Plaid Cymru’s crude attempt to score cheap political points, manufacturing conflict between the workforce and the unions with a view to securing votes in May’s local elections, was such a shameful spectacle. There can be no excuse for such political opportunism, and I deeply regret Plaid Cymru’s attempts to play politics with steelworkers’ livelihoods. Thankfully, our steelworkers are far too smart to fall for Plaid Cymru’s crass grandstanding and mind games, and they chose to ignore that ill-founded advice.

The workforce have shown their willingness to make real sacrifices to save their industry; Tata has made commitments to secure the industry; and the Welsh Assembly Government have offered £60 million in support and created an enterprise zone to help with business rates, but the Westminster Government have done nothing. They have done nothing on Chinese dumping, energy prices, procurement or skills retention or training, and nothing to help to secure the deal between Tata and the unions. I therefore ask the Government to commit unequivocally today to heed the cross-party “Steel 2020” report—amazingly, I have a copy here—and to a sector deal for steel.

[Nick Thomas-Symonds]

My hon. Friend is talking about the Westminster Government’s inaction, but is the position not slightly worse than he suggests, in that when there were calls to reform the lesser duty rule, far from doing nothing, the Government were at the head of a blocking minority, which prevented that reform?

[Stephen Kinnock]

My hon. Friend is right. The British Government are notorious for being the ringleader of a group of member states that consistently blocked the European Commission’s attempts to give the anti-dumping regime more teeth. That is a matter of great regret, which reflects the “China first” policy, rather than a “Wales first” policy, that the Government have pursued.

A thriving steel industry must also be a catalyst for the regeneration and development that will happen if the Government get on and approve a city deal for the Swansea Bay area. That will help to regenerate and manage the impact of de-industrialisation. It also makes sense for the Government to give the green light to the Swansea Bay tidal lagoon, an idea whose time has clearly come. The lagoon would create and sustain thousands of jobs and meet 11% of Welsh energy needs with a clean, green, reliable source of sustainable energy.

The Government’s parliamentary boundary review has rather less support in Wales than elsewhere. It disrespects local communities. It proposes to slice Port Talbot town centre in two, leaving the high street and adjacent shopping centre in different constituencies. It is absurd. The review disregards the 2 million people who registered to vote in the referendum campaign and seeks to stifle the voice of Wales by removing more than a quarter of Welsh seats. All that is taking place while the UK Government seem intent on using Brexit to turn the UK into a European version of the Cayman Islands.

Leaving the EU: Wales

Debate between Nick Thomas-Symonds and Stephen Kinnock

Tuesday 25th October 2016 Westminster Hall

[Stephen Kinnock]

The way in which the Government have interpreted EU procurement rules has been completely wrong-headed for many years. There are ways to build in local content clauses in procurement, to ensure that the use of British steel in British projects is maximised. Unfortunately, the Government, because of their laissez-faire attitude, have hidden behind EU state aid rules. As a result, they have failed to use those rules in a way that could have benefited the steel industry, which is one of the industry’s five major asks. We have seen some improvements, but we need a proper industrial strategy in this country that clearly sets out how procurement can be used to promote British industry.

[Nick Thomas-Symonds (Torfaen) (Lab)]

rose—

--- Later in debate ---

[Nick Thomas-Symonds]

Does my hon. Friend agree that the real worry for steel outside the European Union is that the Government will simply put no trade defence mechanism in place?

[Stephen Kinnock]

That is a major concern. The British Government have been the ringleader of a set of countries trying to roll out the red carpet for China, to allow it to dump untold amounts of its unfairly subsidised steel on the EU and British markets. As we know, the Secretary of State for International Trade has said that he has no plans to support the steel industry with trade defence instruments. When combined with all the other uncertainty that Brexit has caused, that is a major concern for our industry.

Workways+ is a project that helps long-term unemployed people and people with complex needs to develop the skills and qualifications that will help them into paid positions. The Cynnydd Project works to help young people avoid the unemployment trap. BEACON is helping Swansea University to work with industry to pioneer renewable chemicals, fuels and other materials, bringing another key future industry to the area. Those are just three EU-funded projects already under way, and many others are in the pipeline. Each one makes the lives of our constituents better.

In reality, the situation in Port Talbot, Aberavon and across Wales calls for far more investment to accelerate our recovery from decades of under-investment in the face of the impact of globalisation and deindustrialisation. Yet all that funding and all that progress is at risk after the referendum vote to leave the European Union. While the leave campaign made promises that all EU funding would continue to flow to Wales at the same levels, I think we know that those promises are about as valid as what could be printed on the side of a bus.