Former Steelworks Site in Redcar

Debate between Simon Clarke and Paul Williams

Wednesday 14th November 2018 Westminster Hall

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

It is a pleasure to see you in your place, Mrs Moon.

I congratulate the hon. Member for Redcar (Anna Turley) on securing today’s debate. It is on a very important issue—one that goes to the heart of what is happening on Teesside at the moment—and I join her in celebrating the achievements of so many local businesses, large and small, which we get to see week in, week out. They are brilliant and inspirational. I never cease to be amazed at the sheer range, scope and skill of the industrial base of the Tees Valley. It is remarkable; indeed, it is a national asset of the first order.

The hon. Lady’s constituency and mine lie at the heart of the project to deliver growth, jobs and prosperity in Redcar and Cleveland, which centres on the former steelworks site. There is no downplaying the social and economic magnitude of the closure of the steelworks in 2015. Everyone on Teesside felt the consequences, and everyone on Teesside was devastated for the workforce and their families. The closure was not their fault; the truth is that the headwinds confronting steelmaking at Redcar were strong and kept blowing in.

The mothballing of the site was announced in 2009, and after SSI reopened it in 2011 it made a loss in every subsequent year of operation. Amid the desolation that followed liquidation in October 2015, the Government made a promise, which I am proud to say is being honoured. That promise was that a new beginning would be made on this iconic site, underpinned by huge Government support to secure and remediate the land, and anchored in private sector-led growth and investment.

A vast amount of taxpayers’ money has been pledged, with £137 million awarded to the site in the 17 months that I have been a Member of this House. A further £74 million for transport improvements across the Tees Valley has been pledged, which the hon. Member for Middlesbrough (Andy McDonald) will know well, as he is the shadow Secretary of State for Business, Energy and Industrial Strategy.

This funding is being directed through true local devolution, in the form of the Tees Valley mayoralty. The Tees Valley Mayor has a set of powers that are the most extensive of any devolved region of England outside London, backed by the personal commitment of the Secretary of State for Business, Energy and Industrial Strategy, who grew up in South Bank, and supported by the Prime Minister, who came up in person in August 2017 to launch the South Tees Development Corporation, which covers the steelworks site. Over the past year, the Secretary of State and the Prime Minister have been joined by a whole series of ministerial colleagues, all of whom came away from the area with renewed understanding of, and enthusiasm for, the scale of the opportunity represented by the largest brownfield regeneration project in Europe.

The development corporation’s master plan is to create 20,000 skilled jobs on the site over the next 25 years. We are just into the second year of that plan. Surveys of the 2,200 acres of developable land are now 90% complete and 1,500 exploratory holes have been drilled and analysed—the land proving much cleaner than had originally been anticipated.

The first new staff are currently being recruited for MGT’s £650 million biomass plant, which is located at the development corporation. It is the world’s largest biomass plant and is nearing completion; it is now looking for around 50 local workers. Likewise, a £250 million energy from waste plant, run by PMAC Energy, has been announced on the Redcar bulk terminal land, 50% of which is owned by SSI in receivership.

I completely agree with the hon. Member for Redcar that clean energy must lie at the heart of our local economy in future, and it would be remiss not to say a word to the Minister about carbon capture, utilisation and storage. We are entering a pivotal month for CCUS and I really hope that when the Government make their announcement they will back the idea of two dedicated clusters to develop roll-out of the technology; if they do so, I think all of us here today would join together in making the case—already so ably made by the hon. Member for Stockton North (Alex Cunningham), who chairs the all-party parliamentary group on carbon capture and storage—that one of those clusters should be located in the Tees Valley. That would be a fantastic opportunity for both our local economy and the UK’s green credentials, and indeed it would be the only realistic way of delivering on our Paris climate commitments.

I return to the issue of the steelworks site. The combined authority in the area has now received more than 100 serious inquiries about investment on the site, with a first-phase pipeline worth upwards of £10 billion. That is being complemented by other enormous economic ventures. I am delighted to see my right hon. Friend the Member for Scarborough and Whitby (Mr Goodwill) present in Westminster Hall today. The £3.2 billion Woodsmith polyhalite mine, just outside Whitby, is a transformative economic venture; it will add roughly a sixth to the entire value of the Tees Valley economy, and the mineral that it produces will be shipped underneath East Cleveland and taken through to Teesport for distribution across the world. It is incredibly exciting. I visited the site in the summer; it is truly extraordinary and what is being achieved there will be of national significance.

We also have the prospect of a freeport; I was delighted that the hon. Member for Hartlepool (Mike Hill) mentioned that prospect. However, we need to be very clear that it will simply not be possible for us to achieve the type of freeport to which we are right to aspire, if we do not leave the European Union, if we do not leave the customs union and if we do not break free to some degree from the EU state aid rules, which would make it very hard to deliver the freedoms that we want and need to see.

At the heart of all this work, all of which I hope comes off, is Ben Houchen. The leadership that Ben has shown has been transformational. As a colleague, I can testify that he works to the point of exhaustion and displays unceasing commitment to engaging with businesses, foreign investors and the Government, to stand up for Teesside.

[Dr Paul Williams (Stockton South) (Lab)]

The hon. Gentleman has acknowledged the role that Ben Houchen has played. Will he also acknowledge that the Tees Valley Combined Authority is actually made up of the five leaders of the local authorities and the directly elected Mayor, and that together they are contributing to this plan and this development?

[Mr Simon Clarke]

I absolutely will. It is hugely important that this work draws together the six figures who make up the board. Ben provides exemplary leadership in his role as the first directly elected Mayor of the area, but he would be the first to say that it would be impossible to achieve anything without buy-in from Hartlepool, Darlington, Stockton, Redcar and Cleveland, and Middlesbrough. It is a team effort. The project transcends party politics. It must; otherwise it will fail.

The hon. Gentleman interrupted my thread about Ben’s role. Let me pick it up by saying that Ben led the Tees Valley’s first trade mission to the far east earlier this year. He led a delegation of local representatives in discussions with the three Thai banks that hold an interest in the former SSI land on the development corporation site. An agreement in principle was reached, which expires in February 2019, to transfer that land and its assets to the local public sector. In parallel, compulsory purchase proceedings have begun, to ensure that the land is back under local control as soon as possible. Separately, there is good reason to believe that a good deal to release the half of the site that is owned by Tata can be achieved in short order.

--- Later in debate ---

[Mr Clarke]

The entire development corporation project and the Mayor’s office are funded publicly, in a manner that is completely open to public scrutiny. As with all devolved administrations across the country, the Mayor’s Office is there to champion the interests of the local area. It requires a certain amount of staffing to do that, but I think that the leadership that is being shown from that office is absolutely integral to our hopes as an area of standing up on the stage alongside big cities such as Newcastle and Leeds, which have traditionally had a much louder voice than areas such as the Tees valley. With the disparate cluster of local authorities, we have not been able to speak with one voice. What has been achieved through devolution has astonished me. I was a sceptic about the devolution model; I thought it might just add another tier of intermediate, ineffective and bureaucratic government. It has done the opposite: it has leveraged an extraordinary amount of localised control and, more than that, has created a platform for Teesside to speak out nationally and internationally. That is a wonderful thing.

[Dr Paul Williams]

I thank the hon. Gentleman for giving way so generously. Does he acknowledge that it was the five Labour leaders of the local authorities who took that bold step in order to achieve the devolution deal, at a time when others were very sceptical about it, and that it is Labour that is making a really good contribution to the future of the Teesside economy?

[Mr Clarke]

I welcome the fact that Labour bought into this achievement. It took real vision; the Tees Valley has shown much greater foresight on this issue than Newcastle and Sunderland, which have proven much more sceptical and have accordingly lost time in the move towards devolution. Of course, it would be very remiss not to pay tribute to the hon. Gentleman’s predecessor as Member for Stockton South, James Wharton, who was the relevant Minister at the time. It was his deal that the local authorities signed up to, and it was only thanks to him that powers of such breadth have been devolved and are there to be enjoyed by the people of our area.