Protecting Steel in the UK

Debate between Nusrat Ghani and Mark Tami

Tuesday 23rd January 2024 Commons Chamber

[The Minister for Industry and Economic Security (Ms Nusrat Ghani)]

First, I want to express my sympathies for the employees of Tata Steel during what is undoubtedly a difficult, tumultuous time. I recognise that Tata Steel’s recent announcement means significant uncertainty and upheaval, not just for them but for their families, the people of Port Talbot and other impacted sites.

Port Talbot is built on steel, and the community is proud of its industry and its workforce. After the news from Tata Steel on Friday, the people of Port Talbot are looking to the Government to provide some much-needed stability and as much certainty as possible. My focus, and that of my Secretary of State, my Government and the Secretary of State for Wales, has been to ensure that steelmaking continues at Port Talbot. I want to assure the House that the Government are committed to that, working very closely with Tata Steel—the decision maker—and the Welsh Government to support those affected as much as possible.

The hon. Member for Stalybridge and Hyde (Jonathan Reynolds) talked about a plan, but there was no plan. He talked about honesty, but the honest truth is that the motion is fundamentally performative politics and a major disappointment. The risk was losing steelmaking at Port Talbot, or helping it to transition to cleaner, greener steel.

[Mark Tami]

Shotton can use imported steel from India, but that is not a long-term alternative. Importing steel from halfway around the world, rolling it, taking it up to north Wales and then exporting it to Europe does not have a green footprint. Does the Minister accept that? How long will it be before the arc furnace is actually built?

British Steel

Debate between Nusrat Ghani and Mark Tami

Wednesday 8th November 2023 Commons Chamber

[Ms Ghani]

First of all, negotiations are ongoing, but I fully appreciate that the statements from British Steel will be incredibly unsettling for my hon. Friend’s constituents. Let me explain the way that we worked on Port Talbot. We were keen to ensure that any support we provided continued to guarantee jobs, in consultation with local stakeholders and the unions. We set aside a fund of around £100 million to ensure that people were reskilled and redeployed. That work will continue if circumstances require it. We are anxious about jobs. These are highly skilled workers, recognised internationally, and these are well-paid jobs. That is why negotiations are sensitive and continue at pace. If we provide support, we want to get the best deal for UK steelworkers.

[Mark Tami (Alyn and Deeside) (Lab)]

The Minister will know that Shotton steelworks rely on steel from Port Talbot. What assurances can she give on the supply of steel between the closure of the blast furnaces and the installation of new electric arc furnaces?

[Ms Ghani]

While negotiations were ongoing and support was being provided, we had a conversation to ensure that the supply chain continues to be resilient. A taskforce has been set up to ensure that supply chains continue to get support, working with the unions, Tata and the local community. We have been assured that supply chains will continue to secure the contracts that have been in place.

Automotive Industry

Debate between Nusrat Ghani and Mark Tami

Wednesday 12th July 2023 Commons Chamber

[Ms Ghani]

I want to state for the record—and for the hon. Lady, who was obviously sitting there while I was speaking—that that was not optimism. Those were the facts and figures promoted not by Government, but by industry representatives. I had a meeting with Stellantis recently. We know that a number of challenges are reflected globally, not just in the UK, such as being able to recruit into the sector. The hon. Member for Stalybridge and Hyde missed another opportunity to talk about the fantastic jobs that are available. Of course, on rules of origin, that is an issue not just in the UK; it is an issue for lots of other countries that want to export and import, too.

[Mark Tami]

The Minister talked about the importance of the Toyota factory. In my constituency, I have the engine plant, which produces quality hybrid engines. Why are this Government opposed to hybrid engines?

British Steel: Negotiations

Debate between Nusrat Ghani and Mark Tami

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

My hon. Friend was my neighbour when I was on the BEIS Committee: we sat next to each other every Tuesday morning for two years, so I saw more of him than I did of my husband. I take care of manufacturing and advanced manufacturing too, so conversations are taking place across the sector. My attention since being in post has fundamentally been on steel, on ensuring that we can get these negotiations over the line, and on how we can take the sector forward and ensure it is as competitive as it can be, in particular by looking at procurement and ensuring that the £1.5 billion fund is actually used by the steel sector, that it comes forward and tries to get hold of as much of that money as possible.

[Mark Tami (Alyn and Deeside) (Lab)]

This crisis is facing British Steel today, but the rest of the UK steel industry may not be far behind. The Minister will know that I and other Opposition Members have raised on many occasions the cost of energy, which was a problem before Ukraine and covid—it has been going on for years and years, and this Government have done absolutely nothing about it. We need a long-term solution to the cost of energy for steel, not just these little pots of money that she keeps talking about.

[Ms Ghani]

We have had many meetings, and normally they are very respectful, but I must object to “little pots of money”. There has been £800 million of energy cost relief since 2013, with more money to come down the line, and £1.5 billion to help decarbonise. These are not little pots of money. Energy costs for the steel sector are an issue worldwide. We have a strategy and a fund in place, and this debate is about ongoing negotiations and the action that has been taken by this particular firm.