British Steel

Debate between Richard Thomson and Nusrat Ghani

Wednesday 8th November 2023 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

May I begin by expressing my concerns on behalf of the 2,000 workers who are likely to be affected by this announcement? Also, I re-emphasise, as other contributors have, the importance of virgin steelmaking, not just in terms of security, but in meeting demand in the construction industry, where inflation is already racing ahead and our ability to build things will not be helped by being further away from the supply chain and reducing domestic capacity in steelmaking.

The Energy and Climate Intelligence Unit think-tank has said:

“Ageing blast furnaces need to be replaced and upgraded to produce greener steel…electric arc furnaces have a role in recycling steel”,

but

“failing to invest in modern hydrogen furnaces belies the government’s promises to invest for the longer term.”

Just as in the oil and gas sector, what plans do the UK Government have for a just transition for the steelmaking workforce? What support will the UK Government be giving to the development of hydrogen furnaces in the UK? What challenges will they put constructively to British Steel over these plans? Given the Government’s high-profile retreats on other climate measures, such as the date for banning the sale of internal combustion engine cars, how much faith can the industry have in any guarantees that the Government do make?

[Ms Ghani]

Negotiations are ongoing and nothing is concluded. The statement made by British Steel was a proposal, not a conclusion. The steel that comes out of electric arc furnaces can be used for a variety of things, including construction and military-grade steel—it is incredibly nimble—but I fully appreciate that different types of steel are produced out of different furnaces. The hon. Gentleman spoke about hydrogen, and the Government have a substantial hydrogen strategy that we launched in May 2022. The net zero hydrogen fund is worth up to £240 million of capital co-investment out to 2024-25. That will support upscaled hydrogen production projects, allowing companies, including steel producers, the potential to secure supplies of lower-cost hydrogen. Ultimately, decarbonisation pathways for specific sites are commercial decisions for individual companies based on their own operational circumstances. In the case of Port Talbot, it was about timing for using a technology that can be commercialised at scale. At the moment, for that part of the country, it is electric. Hydrogen may no doubt be the next stage of technology that is used.

Oral Answers to Questions

Debate between Richard Thomson and Nusrat Ghani

Thursday 14th September 2023 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

As if the future stoking of inflation through extra Brexit red tape was not bad enough, businesses are already having to cope with uncertainty, the lack of a level playing field and the threat to our own food safety and security through the failure to introduce checks of our own. Given that Ministers were saying as recently as April that those checks will begin on 31 March, can the Minister explain how businesses are expected to get to grips with all this turmoil in Government policy given their tendency to keep kicking the can down the road over border checks?

[Ms Ghani]

Food inflation is a global issue: it is not a problem just here in the UK. Many factors influence food prices globally, notably energy costs. Global wholesale food prices have been falling since March and sometimes that can take time to reach consumers. In July, UK food inflation was just over 14%, down from 17%. The hon. Gentleman did not specify which issue he was touching on, but if it was to do with sanitary and phytosanitary controls for goods from the EU, that will be introduced and in place by 31 January 2024.

[Richard Thomson]

The Government could stop making existing global problems even worse when they apply to the UK—I was following up on the question from my hon. Friend the Member for Glasgow North (Patrick Grady) about the cost of checks on imported food—but the only thing worse than bad border checks is no border checks at all. We are no longer imposing SPS checks on food coming in from the EU. Is the Minister proud that, under the guise of taking back control, she is part of a Government who have given away control instead?

[Ms Ghani]

I referenced in my previous response the SPS controls; they were not in place when we were in the EU so I am not sure exactly what the hon. Gentleman’s anxiety is.