Tata Steel: Port Talbot

Debate between Nusrat Ghani and Kerry McCarthy

Monday 18th September 2023 Commons Chamber

[Ms Ghani]

The reality is that one of the furnaces in particular was coming to its end of life and the other was mature, so a decision had to be taken on whether the company would want to continue, considering the loss it was making every day in producing steel, or to transition to making cleaner steel. That was a commercial decision. It was important for us to ensure that steelmaking in Port Talbot would not disappear but continue, and this is the option that the company went for. It is the option that it has a supply chain for, and it was best that we supported it through this process and ensured that there were fewer job losses.

The reality is that any transition is going to impact jobs, which is why it is so important to ensure that support is available to enable people to skill up and transition. That is why the transition board has been set up with £100 million to help people on that journey. It is not fundamentally about achieving net zero; it is fundamentally about the age of the furnaces on the site, about the loss-making in the steel sector in the UK, particularly at this site, and about what decisions the company would take next. It was important for us to support the UK steel sector and provide it with £500 million—it has an overall envelope of £1.25 billion—to ensure that steelmaking continues in Port Talbot.

[Kerry McCarthy (Bristol East) (Lab)]

I would have hoped to hear a rather more robust defence from the Minister of the need to reach net zero and of the massive job opportunities that will come from pursuing a green agenda, as we have seen from what is happening with the Inflation Reduction Act in the States.

I visited Port Talbot last month during the recess, and I echo what the constituency MP, my hon. Friend the Member for Aberavon (Stephen Kinnock), said about the importance of the site and of continuing to support jobs there. Concerns were raised with me about the availability of scrap and how difficult it is to recycle and retrieve scrap metal. There does not seem to be any strategy from the Government for dealing with that. Can the Minister tell us what she intends to do, working with her colleagues in other Departments, to achieve that?

[Ms Ghani]

As I mentioned, just shy of 9 million tonnes of scrap could potentially be used at the site. Tata has put together a substantial package, which shows that it has thought through its supply chains. A huge amount of work will continue to take place to ensure that more information is put in the public domain. No doubt there will be more public tenders, too. The scrap does exist and we recognise that electric arc furnaces produce a particular kind of steel, which is why it is important to have a virgin steel sector here in the UK as well.

I have spoken about the environmental impact and how it helps us to reduce our emissions, but it is not only about that. This site was reaching the end of its life, and these negotiations have been taking place forever. It is important that we made sure that we had the certainty and support to move on to the next conversation on how we best exploit the new site to produce cleaner, greener steel and how we make sure the contracts are in place.

Oral Answers to Questions

Debate between Nusrat Ghani and Kerry McCarthy

Thursday 14th September 2023 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

Over the recess, I had the pleasure of visiting the historic Harland & Wolff shipyard in north Devon, where we talked about the potential for UK shipbuilding jobs linked to the offshore renewables sector. Given last week’s disappointing auction round, to put it mildly, what can the Minister say to convince the shipbuilding industry that there is a future for it in making those service vessels?

[Ms Ghani]

I was with Harland & Wolff just last night for London International Shipping Week, and the firm is really excited about the shipbuilding credit guarantee scheme, which provides Government-backed loans of up to £500 million to ensure that shipbuilding continues to thrive in the UK. That is a product for which the industry has been asking for many years, and we have been able to deliver it this year.

UK Car Industry

Debate between Nusrat Ghani and Kerry McCarthy

Wednesday 17th May 2023 Commons Chamber

[Ms Ghani]

If Madam Deputy Speaker allows, I will be more than happy to go over the allowed one minute in my response, but I do not want to lose favour with her. The constant requests for the strategy are peculiar because I can tell Members exactly what we are doing. The Chancellor identified five key growth sectors for the UK, which of course include advanced manufacturing, and the Government have announced £500 million per year for a package of support for 20,000 research and development-intensive businesses. We have 12 new investment zones and we are saving £1 billion yearly by cutting red tape that is burdensome for big employers.

But the point is this: there are a number of challenges around supply chains. We are looking at that issue with the Automotive Council, and also through the integrated review and the critical minerals refresh. There was a challenge internationally when it came to energy costs; we had the EBRS and now we have the supercharger. I am the co-chair of the Automotive Council. I am sure that, if the hon. Member for Warwick and Leamington (Matt Western) wanted to attend, he could write to the co-chair and ensure there could be time for him to be there as well. That work is done collaboratively with all the automotive CEOs, CFOs and leading managers across the UK. I do not determine who comes to that meeting and represents the automotive sector; that is for them to decide.

[Kerry McCarthy (Bristol East) (Lab)]

In the UK, we have the largest queue to connect to the grid of any country in Europe, which is affecting the car manufacturing industry, including when it sets up new plants. One manufacturer that wanted to put solar arrays on its plant was quoted 2031 for grid connection and a £9 million cost; another one was quoted 2037. That is clearly hindering our chances of securing a prosperous car industry in this country and attracting more investment. What conversations is the Minister having with her colleagues to ensure that grid connectivity is resolved?

[Ms Ghani]

I thank the hon. Member for that question, because it shows that we have to work across Whitehall. Access to the national grid is a major issue for any of the large manufacturers and of course, as their plans grow, they need to have greater access over a faster timetable than one would have previously thought National Grid would make available. Conversations are taking place, in particular with colleagues who were previously in the Department for Business, Energy and Industrial Strategy, who are now in the Department for Energy Security and Net Zero and are leading that relationship with National Grid. The issue comes up regularly in the meetings that we have with the manufacturing sector, and my priority is to support the advanced manufacturing sector, so the hon. Member can be assured that I am campaigning incredibly hard to make sure that all our advanced manufacturing sites—present or planned—get access to energy at a timetable that suits the business, not just National Grid.

Oral Answers to Questions

Debate between Nusrat Ghani and Kerry McCarthy

Thursday 9th February 2023 Commons Chamber

[Ms Ghani]

My hon. Friend has given a fantastic example of the opportunities that have been created. The UK is a highly attractive destination for FDI, and has been among the top recipients in Europe over the last decade. According to the Financial Times and the United Nations Conference on Trade and Development, the UK has the highest market share of greenfield FDI capital expenditure in Europe, at 20%—almost double that of Spain, which is in second place with 12%. It also has the highest levels of Food and Drug Administration stock in Europe, second only to the United States globally. It is remarkable how far we have progressed in such a short time.

[Kerry McCarthy (Bristol East) (Lab)]

The Biden Administration’s Inflation Reduction Act 2022 makes investing in the US very attractive, particularly for innovative green technology. How are we going to compete?

[Ms Ghani]

In my previous role I was dealing with the impacts of the Inflation Reduction Act, and I hope I will continue to do so, because so many business representatives whom I have met have raised it as a concern. The hon. Lady has referred to green technology. A great deal of work has already been done to promote all our expertise, especially in relation to hydrogen, but there is a huge amount of investment in the UK’s green technology sector and technology in general, and we are also a leading light when it comes to lithium. I was recently in Cape Town with our Green Lithium firm, which wanted to negotiate on how it could do more work in the United States. That is exactly what we are here to do—to facilitate collaboration of that kind.

British Steel: Negotiations

Debate between Nusrat Ghani and Kerry McCarthy

Thursday 2nd February 2023 Commons Chamber

[Kerry McCarthy]

Liberty Steel bosses have described the UK steel sector as being “on life support”. No other developed country faces losing its domestic steel sector. If that were to happen here, it would be a badge of shame for this Government. It is entirely avoidable. Will the Minister outline the steps the Government are taking to secure the future of the Liberty and British Steel sites? She talked about the economic impact, but it is about more than that. It is about the fact that those sites have been at the heart of their communities for generations.

Earlier this month, there were reports that the Secretary of State wrote to the Chancellor requesting a bail-out for British Steel. Will the Minister confirm whether that is the case and whether she and the Secretary of State are continuing to push for that? The last thing that the steel sector and the British taxpayer need is another blank cheque bail-out for a buyer, rather than a proper investor. We do not need more sticking plasters; we need a long-term plan.

The market wants green steel, so will the Government back Labour’s plan for green steel, invest in new technology over the coming decade, crowd in private investment and address the root of the problems, rather than play an ever more expensive game of whack-a-mole? Labour will always back our steel industry. It has a bright green future—something it will never get under the crisis management Conservatives.

[Ms Ghani]

I had hoped that the Opposition Front Bench spokesperson would support our ongoing desire for negotiations, and that she would ask why the redundancy conversations are taking place while negotiations are ongoing.

On Liberty Steel, on 20 July 2021 the then Business Secretary set out in his evidence to the BEIS Committee that we did not have adequate assurances to be confident that money offered to Liberty Steel would remain solely available to UK operations. It is important to note that that approach was commended in the Committee’s November 2021 report. Of course, I was on the Committee then, but it is important to note that the Committee is made up of Members from both sides of the House, so that was obviously an agreed position of colleagues across the House.

The hon. Member talked about the level of support that we are providing to the sector to ensure that it can reduce its emissions and take on board new technology to go as green as it can. We have more than £1.5 billion of long-term, strategic and focused support in place to help it to go green, cut emissions and become more energy-efficient. There is more than £1 billion for the carbon capture and storage infrastructure fund, more than £240 million for the net zero hydrogen fund, more than £55 million for the industrial fuel switching fund, more than £20 million for industrial decarbonisation research, £289 million for the industrial energy transformation fund and up to £66 million as part of the industrial strategy challenge fund. That is substantial funding to help the sector to be strategic and have structures in place to help it to reduce emissions, invest in new technology and decarbonise.

The hon. Member spoke about Labour’s plan, or the budget it has in place to help steel become green. I am not sure how that has been costed or tested. As I said in my statement, what is important is that we are putting forward a generous package of support. I hope that she agrees that, because it is taxpayers’ money, we should also have certain assurances, whether on job security, or that new technology to decarbonise is adopted. That is a sensible, strategic way to go forward.

Capital Infrastructure Projects: Bristol

Debate between Nusrat Ghani and Kerry McCarthy

Wednesday 14th October 2020 Westminster Hall

[Kerry McCarthy (Bristol East) (Lab)]

I beg to move,

That this House has considered support for capital infrastructure projects in Bristol.

It is a pleasure to see you in the Chair, Ms Ghani.

The Mayor of Bristol, Marvin Rees, is very keen to promote what he calls the “One City” approach. It is not the job of one organisation or one individual to deliver what Bristol needs; it is for the whole city to come together. In that spirit, rather than taking up my allotted 15 minutes today, I will share it with my colleagues —my hon. Friends the Members for Bristol North West (Darren Jones) and for Bristol South (Karin Smyth). We are even being extremely generous and allowing someone from over the border in south Gloucestershire to contribute—the right hon. Member for Kingswood (Chris Skidmore). My hon. Friend the Member for Bristol West (Thangam Debbonaire) cannot take part in the debate, as she is a member of the shadow Cabinet, but she is with us in spirit.

Bristol is generally seen as a really buzzing, thriving city. We are always being listed as one of the top 10 places to visit or to live. We are a net contributor to UK GDP, we have the highest number of net start-ups outside London and, as of September last year, we had the highest employment rate of the UK core cities. However, as with any city, there are challenges too. There are inequalities in income and opportunities. There is poor transport infrastructure and a desperate need for new affordable housing.

It was revealed at the weekend that the biggest increase in house prices in the whole UK over the last decade was in Easton ward, which was in my constituency but is now in Bristol West. Prices there went up 120%, from £129,000 to £283,000. The neighbouring Whitehall ward was eighth in the country; prices had gone up 102%. These are fairly modest houses. We need to build far more housing, and more affordable housing. We also need to build on our economic success by regenerating neglected parts of the city. The biggest scheme is the regeneration of Temple quarter, around Brunel’s historic Temple Meads station. This would mean 22,000 new jobs, at least 10,000 new homes and an economic boost of £1.6 billion per annum. The Secretary of State wrote to the Mayor last month saying Temple quarter showed a lot of promise and had impressive private sector backing.

There are two shovel-ready elements of the scheme. The first is the regeneration of Temple quarter and St Philip’s Marsh district. A business case has already been submitted to the Department and to Homes England. Bristol is asking for funding of £100 million. Secondly, the University of Bristol’s new Temple quarter enterprise campus is an innovation hub with a focus on digital quantum technology, engineering and green growth. The university is asking for £150 million from the Government, which will leverage £650 million of investment from the university and its partners.

It is estimated that this development would bring an estimated £626 million into the regional economy over the next decade and act as a catalyst for a further £2 billion of development on adjacent sites. In the short to medium term, this obviously means jobs in construction and in the long term many more employment opportunities will arise. I know the Government are very keen to support shovel-ready projects. In this case, a contractor is on board, planning permissions have been secured and construction could start in January 2021 with the campus opening in 2023. Because of covid, without Government support the project will be delayed by at least three to five years.

The other Temple quarter projects are the upgrading and renewal of Temple Meads station to support a doubling of passenger numbers to 22 million per year, increased rail capacity and faster trains. The last major upgrade to Temple Meads station was in 1936, and I think anyone who regularly uses the station will not be surprised to hear that. It is not a station that befits a city of Bristol’s standing and size and it desperately needs work.

We also need investment in flood resilience infrastructure to help future proof our city against climate change, to protect our heritage tourism and cultural sites, and improve cycling and walking routes. It would also unlock land for up to 4,500 homes, protect 12,000 existing homes and businesses from flooding and add £6.2 billion to the local economy.

This may sound like just a long list of asks, but all we ask for today is that the Government seriously consider the case Bristol and the West of England Combined Authority have made when it comes to bids where we might compete against other cities and towns for existing pots of money or future allocations. We were disappointed to be turned down for the housing infrastructure fund for the A4-A37 Temple Meads to Keynsham strategic growth corridor, which runs through my constituency. We already have huge pressures on the A4 and surrounding roads, yet thousands more homes could be built in the vicinity in the next few years, partly in Bristol, but also over the border in the neighbouring local authority of Bath and North East Somerset. The pressure will come on the Bristol roads, however, as people travel into the city to work and for leisure and shopping. Those homes are desperately needed, but the city will grind to a halt if we do not also invest in public transport. We also need to look at the pressure on schools, GPs and other local services.

I hope that if a successor to the housing infrastructure fund is announced in the spending review, any submission from Bristol will be looked on favourably. We hope too that the Department and Homes England will consider the business case for Temple quarter. We know that as a city we can deliver, but we need help to do so.

Before I hand over to my colleagues, I have three questions for the Minister. First, how will the Government support Bristol in seeking integrated investment to unlock its strategic development sites, including the shovel-ready projects in Temple quarter? Secondly, my colleagues will talk about transport issues in more detail, some of which concern the Department for Transport, but other Government Departments are involved too. Given the different funding streams and the role of different Departments, how can the Minister ensure that the strategic value of each of Temple quarter’s interconnected projects are realised and supported? Finally, will the Minister agree to visit Bristol or attend one of our forthcoming “One City” partnership meetings to hear how we are trying to lead the city out of a potential recession and how to support these key capital projects?

[Ms Nusrat Ghani (in the Chair)]

Before I ask other Members to respond, I alert Members that this debate will not go beyond 4.43 pm.