Steel Industry (Special Measures) Bill

Stephen Flynn Excerpts

2nd reading
Saturday 12th April 2025 Commons Chamber

[Jonathan Reynolds]

I know there is huge interest, but I will make a little more progress and that might deal with some of the matters Members want to raise.

This is what it means to be a Government unashamedly on the side of working people—one that will never hesitate to take action to protect this nation’s assets and economic security. I understand that some have asked about precedent or referred to other troubled industrial situations. To be clear again, this is an exceptional and unique situation. The question for all Members is whether we as a country want to continue to possess a steel industry. Do we want to make the construction steel and rail we need here in the UK, or do we want to be dependent on overseas imports? As a Government, we are not passive in any way about the future of British industry.

[Stephen Flynn (Aberdeen South) (SNP)]

The Secretary of State has said this is “unique” and “exceptional” and made reference to energy transitions and thousands of jobs. In the Scottish context, many minds right now will be focused on the situation in Grangemouth, where we know that hundreds of jobs will be lost directly, as well as thousands in the supply chain. Were I, or perhaps even the local Member, the hon. Member for Alloa and Grangemouth (Brian Leishman), to bring forward a similar Bill to save Scotland’s only oil refinery and give the Secretary of State the executive power to do as he pleases—as he is doing with British Steel—would the Labour party back it as it is backing this Bill today?

[Jonathan Reynolds]

I am pleased for the chance to address this issue. The importance of Grangemouth is why this Labour Government have pledged £200 million to secure its long-term future. It is an important asset, but it is not the only remaining refinery; it is one of three crackers in the United Kingdom—that is important. Specifically, it is not a comparable situation, and the behaviour of the company is not comparable to the case of British Steel.

I also say to the right hon. Member, and indeed to all Members, that this is why we fought and fought again to secure the future of British shipbuilding by saving all four of the Harland and Wolff sites in England, Scotland and Northern Ireland. The right hon. Member will know that the commercial interest was not in the Scottish yards, but we held them together precisely because of our commitment to Scotland and the Union. It is also why within weeks of taking office we secured a better deal for the workers at Port Talbot. We have repeatedly acted, and we will continue to act no matter how hard the circumstances.

--- Later in debate ---

[Stephen Flynn (Aberdeen South) (SNP)]

It is a privilege to follow such an impressive speech from the hon. Member for Stockton North (Chris McDonald). I am sure his constituents will be incredibly impressed at his knowledge of this issue. I want to be kind not just to him but to the Secretary of State, once again. That is becoming a habit that I want to break, but certainly his sincerity today cannot be doubted. If there is one person who could be afforded the executive powers in this Bill with an element of trust, it is probably him.

There are some topics that have not been touched on in a huge amount of detail today and I will touch on them briefly now. Whether it is tariffs, competition or energy prices, we must not forget the fundamentals of why the steel industry faces such a challenging position. There is one other hugely important issue that has not been discussed at any length in the Chamber today, notwithstanding the future contribution that I imagine will be made by the hon. Member for Alloa and Grangemouth (Brian Leishman)—it will not pass the lips of any other Members—which is the situation in Grangemouth. I say “the situation in Grangemouth” with an element of despair, because we all know that there are hundreds of people who are on the brink of losing their jobs.

The similarities are astounding. We have PetroChina on the one hand and a Chinese company in Scunthorpe on the other. We have a Chinese company in Scunthorpe saying that there are losses of around £700,000 and we have a Chinese company at Grangemouth saying that there are losses of around £500,000. We have a cracker in Grangemouth that has been deemed not useful anymore and we have blast furnaces in Scunthorpe that are categorised in the same manner. We all need to be conscious of those comparisons.

I say that on the basis that while the Secretary of State is right to say that this is important for jobs in Scunthorpe, this is right for the communities in Scunthorpe and this is right for Westminster’s national, UK-wide interest, is it not the case that it is important to the workers in Grangemouth? Is it not the case that it is important to the communities in Grangemouth? And is it not the case that it is in Scotland’s national interest that Grangemouth is protected?

[Alan Gemmell]

rose—

[Dr Zubir Ahmed (Glasgow South West) (Lab)]

rose—

[Stephen Flynn]

I am afraid that I will not give way because we are all constrained by time, in the same way that Labour Members will not take interventions either.

The Secretary of State’s answer to me earlier was that £200 million has been put forward through the National Wealth Fund. Each and every one of us knows that that is not in the gift of the Prime Minister or the Secretary of State to dictate. It ultimately relies on the private sector coming forward with a proposal. Indeed, in evidence given to the Scottish Affairs Committee just last week by EY, which has done the Project Willow report, it was quite clear in its observations that there will be no progress until 2030 at the earliest. That is simply not good enough, because while the Government mobilise every effort to save British Steel, they allow Grangemouth to fall on the back burner.

The hon. Member for Central Ayrshire (Alan Gemmell) referred to industrial strategies. He seems to forget in that context that energy is a reserved matter for this United Kingdom Government—something the Secretary of State is all too familiar with, given our previous roles in this here House.

The final thought I will leave with Labour Members is that they should remember the fact that the Bill they are supporting extends solely to England and Wales.

[Liz Saville Roberts]

It does not apply to Wales.

[Stephen Flynn]

The right hon. Member from Plaid Cymru corrects me to clarify the fact that the Bill applies only to England. The important consideration is: why is this not being extended to Scotland? Why is Grangemouth not being included, why is the smelter up at Lochaber not being included and why are the Dalzell steelworks not being included? The answer to why they are not being included is that Westminster is only interested in Westminster; it is not interested in Scotland. [Interruption.] I will not be shouted down by Labour Members, because they need to hear the truth. Scotland’s interests matter, and the people of Scotland are watching.