Port Talbot Transition Project

Debate between Priti Patel and Jonathan Reynolds

Wednesday 11th September 2024 Commons Chamber

[Jonathan Reynolds]

I am grateful to my hon. Friend for his question and to you, Mr Speaker, for your very skilful introduction. He is right to talk about that wider business environment, and specifically asks about the carbon border adjustment mechanism. We have inherited this situation of the UK being out of line with the EU. Obviously, because our carbon prices are lower, there is a potential carbon barrier to UK exports to the single market. I can tell him that we are looking at that. The carbon border adjustment mechanism is a key part of a wider policy environment that must deliver decarbonisation, which is not deindustrialisation. We must recognise that the current policy environment is not doing that in the way that any of us would want.

[Priti Patel (Witham) (Con)]

I listened to the statement from the Secretary of State with interest. Will he specifically say, first, when the strategy will be published and brought to this House? Secondly, what level of Government investment will be behind the strategy? Thirdly, what assurances can he give to steelworkers across England—at Port Talbot and Scunthorpe in particular—that their jobs will not be put at risk because of steel being dumped in the UK from China?

[Jonathan Reynolds]

I am grateful to the right hon. Member for her questions. We will see the strategy in spring next year and the resources behind it, including the existing Government allocation for Port Talbot and the new money that the Government will put in. It is a £3 billion clean steel fund, so it is a significant investment. Obviously, I want a certain amount of return from that. I want to work with private sector partners. The kind of capital expenditure that is involved in the transition to green steel requires very significant partners who can deliver. It is not just a question of the Government doing this alone, and I think hon. Members recognise that. Steel safeguards are important. The right hon. Lady will know that steel is a significant part of the existing Trade Remedies Authority protections, many of which relate to China, but not exclusively so, and we keep them under regular review.