Port Talbot Transition Project

Nick Timothy Excerpts

Wednesday 11th September 2024 Commons Chamber

[Jonathan Reynolds]

My hon. Friend is right to make that point. We cannot say enough that this is not a sunset industry; it should have a bright future. We can get this right. On the negotiations, my hon. Friend will know what I have already said about the conversations with British Steel. It is a very challenging issue. We have made it clear that the Government are there to play a part, and we obviously want that to be part of a transition. We have made that as clear as can be. As soon as I have further information, I will update the House.

[Nick Timothy (West Suffolk) (Con)]

I thank the Secretary of State for his statement. As a supporter of industrial strategy, I welcome the idea of a steel strategy in the future, but I will ask a couple of specific questions on the detail. First, is it the Government’s policy that the domestic manufacture of primary steel is a strategic industry that must be protected and guaranteed? What do the Government intend to do about the sourcing, either domestically or through the import of coking coal? Earlier, he seemed to suggest that he would not intervene to support British Steel in Scunthorpe. Can he confirm that, if we lose that capacity, we may go five, six or seven years without steel manufacture in this country?

[Jonathan Reynolds]

I welcome the hon. Gentleman’s support for industrial strategy. I have said many times that there should be, as there is in many countries, cross-party agreement—perhaps not on the detail, but on the premise and what we are trying to achieve. He asks about domestic manufacture and the blast furnaces remaining open. That is of course my preference, but I need a business partner—a company that is willing to do that. I do not think that it would be reasonable to spend the very considerable sum of money that we have pledged on subsidising short-term losses rather than on the ability to deliver new things. He also asks about coking coal. Obviously, that depends on the long-term future of the blast furnaces. That is what they need.

In relation to British Steel, I want a transition plan. My comments earlier were about my frustration that, for me, the ideal deal in a place like Scunthorpe would have been to build the future alongside operating what we currently have. That was available to the last Government; they did not proceed with it. The kind of infrastructure needed for the long-term future of operating blast furnaces would require carbon capture and storage. It was cancelled many times by the previous Government, and is not there. I am heavily constrained in my options, but I am still doing everything that I can to get a deal for the workforce, and to ensure that there is a business there that commands the support of its customers to transition in the future.

UK Steel Manufacturing

Nick Timothy Excerpts

Thursday 5th September 2024 Commons Chamber

[Sarah Jones]

I thank my hon. Friend for making those important points. Our energy-intensive industries are hammered by energy costs, which are at the heart of this. Although the previous Government provided relief, we need a longer-term solution. We need to bring down those energy costs. That is why we are pushing for clean energy by 2030, which will be cheaper, and why we want to produce more energy in this country so that we are not reliant on Putin or affected by international events.

I have talked about business rates, and my hon. Friend is absolutely right that we need to look at that. Government procurement is very important, so we are looking at our supply chains and all the levers of Government to see what we can do proactively to make sure that, where we can, we are making, building and using in the UK.

[Nick Timothy (West Suffolk) (Con)]

I do not think the Minister answered the question asked by the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), so let me repeat it. Do the Government consider the manufacture of primary steel to be a strategic domestic industry that must be protected, yes or no?

[Sarah Jones]

Well, the previous Government did not. We have a £2.5 billion fund and, as I said, we are looking at DRI to make virgin iron. To be clear, we are having to deal with a mess that we inherited. Virgin steel is important, and that is what we are looking at. I am not going to say to the hon. Gentleman right now that this is what we are spending our £2.5 billion investment on, because this is being worked on at pace. We will come back to the House as soon as we have something to announce.