British Steel: Negotiations

Scott Benton Excerpts
Thursday 2nd February 2023

(1 year, 3 months ago)

Commons Chamber
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Nusrat Ghani Portrait Ms Ghani
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I fear that the hon. Member would rather have coal imported and not worry about the cost or the emissions impact of that. The Secretary of State’s decision on the Cumbrian coalmine was made following a comprehensive planning inquiry that heard from over 40 different witnesses and considered matters such as demand for coking coal, climate change and the impact on the local economy. What is really important is that we have a resilient UK steel sector, and I will never apologise for that.

Scott Benton Portrait Scott Benton (Blackpool South) (Con)
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To safeguard our national strategic interest, it is imperative that this country maintains a capacity for steel production. The Minister has outlined the considerable package of support that the Government have already provided, not least the £800 million for energy costs over the last few years. Can she reassure the House that this Government will do everything they can to support this key industry?

Nusrat Ghani Portrait Ms Ghani
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Absolutely. That is why we are working so closely with the companies and the unions. I have met with the unions, most recently last week. Hopefully I am not divulging too much information, but they also claimed that they struggled to have good levels of communication with Jingye and British Steel, so it is not lost on all of us. We are very committed to the sector.

We have also been buying more British steel. In 2021-22, the Government procured £268 million of UK-produced steel for major projects, which was an increase of £160 million on the figure from the previous year—this is based on departmental reports. I have been the HS2 Minister, and I have always been concerned about why we could not procure more UK steel in our rail and road projects, and in all others, including those for shipping—I have also been maritime Minister. So there is even a greater future ahead. As I mentioned, the UK’s steel demand is going to rise by 20%; this is a good space to be in. We are just in a peculiar situation while we are having ongoing negotiations, and the decision was taken to have this meeting with the unions yesterday.