British Steel: Negotiations

Richard Graham Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

I appreciate that this is a very tricky moment for the sector, as it is worldwide. We have spoken about this previously, and it is incredibly important for us to get it right. We have been focused on the present real-time negotiations. Let me put it on record that we are, as always, available to continue those discussions and we are hoping that they will continue regardless of the announcement of the discussions that took place yesterday. I cannot stress enough the long-term and strategic benefit of having a £1.5 billion fund in place to help us decarbonise—that is providing a huge amount of support.

We have spoken previously about procurement, and when I moved away from BEIS Committee after, I realised how life comes at you fast when you are a Minister and you cannot commit to the recommendations you made in your report. However, we are working hard on procurement, too. We want to make sure that there is more British steel in our defence projects. Let me put it on record that the Ministry of Defence purchased £4.3 million of UK-produced steel through its contracts in 2020-21, which is an increase of 42%, from £3 million in 2019-20. There is a huge market here, which is why we are so committed to ensuring not only that we negotiate well, because this is about British taxpayers’ money, but that we have the right resources and infrastructure in place for a long-term future for British steel.

[Richard Graham (Gloucester) (Con)]

The announcement and news will be frustrating for my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft), who has worked so hard, and for neighbouring constituencies such as that of my hon. Friend the Member for Cleethorpes (Martin Vickers), who has worked with the supply chain. We are all conscious of the strategic importance of steel, the need to modernise the industry and the impact of energy costs on the profitability of the business. As the Minister says, there is a positive future demand for steel. So will she confirm from the Dispatch Box that there is direct ministerial contact with British Steel’s owners, Jingye, and perhaps also with the China Chamber of Commerce in the UK, so that the importance of this partnership is stressed and the need for a successful outcome to the negotiations is made very clear?

[Ms Ghani]

Not only are my hon. Friends the Members for Cleethorpes and for Scunthorpe huge champions for steel, but they have good relationships with Ministers, unions and workers locally. I could not be better supported, which is why I am committed to ensuring that I deliver the best package for the steel sector that I can.

My hon. Friend the Member for Gloucester (Richard Graham) talked about ministerial engagement with Jingye; I do not have all the dates in front of me, but there is engagement from the Secretary of State downwards, and of course I have meetings as well. Officials will be holding meetings with British Steel and others, too, so meetings do take place regularly. I will do my best to put together some more dates and write to him so that he knows the exact number of meetings taking place and at what level.