Oral Answers to Questions

Stephen Kinnock Excerpts

Thursday 2nd May 2024 Commons Chamber

[Kemi Badenoch]

Yes, my right hon. Friend is quite right: our exports need to be about the future, not just about the traditional industries, such as Scottish whisky, which are the pride of Scotland and of the UK. Electric vehicles are one way that we will hit our net zero target, and this is an area that the Department for Energy Security and Net Zero is focused on and that I support in Business and Trade. If there is anything specific that we can look into for his constituency, we would be very happy to help.

[Stephen Kinnock (Aberavon) (Lab)]

8. What steps she is taking to support jobs in steel supply chains.

[The Parliamentary Under-Secretary of State for Business and Trade (Alan Mak)]

The UK Government’s £500 million grant will safeguard steelmaking in Port Talbot, 5,000 jobs in the company and thousands more in supply chains across the UK that would otherwise have been under serious threat. The transition board, with a further £100 million of funding—£80 million from the UK Government and £20 million from Tata—will also support those affected. That funding will help supply chain businesses to strengthen and diversify their customer base, creating sustainable jobs and business opportunities in Port Talbot and the wider region.

[Stephen Kinnock]

When it is finally introduced, the carbon border adjustment mechanism will provide a vital tool to ensure that British steelworkers have a level playing field so that they can compete against heavily polluting steel industries in other parts of the world, but recent media reports have indicated that India is lobbying No. 10 for an exemption from the UK CBAM. Does the Minister recognise that CBAMs work only if they are comprehensive across all countries and sectors, and if we start giving exemptions here or there the entire policy will unravel? That is particularly important given that Tata’s plan for Port Talbot is based on importing millions of tonnes of semi-finished product steel from India, a country that produces its steel with significantly higher carbon intensity. Will the Minister confirm that under no circumstances will India be given an exemption from the UK carbon border adjustment mechanism? A yes or no answer will suffice.

[Alan Mak]

I was pleased to visit the hon. Gentleman’s constituency as part of my first round of visits in this new role. I look forward to meeting him again later this month. He is right that the Government are committed to ensuring that UK decarbonisation efforts lead to a true reduction in global emissions. The CBAM policy is still being designed. The consultation is ongoing, and I recommend that he contributes to it.

--- Later in debate ---

[Kemi Badenoch]

My hon. Friend will know how committed this Government are to the steel industry, but at the moment it is going through a transition. We care about having primary steel-making capacity in this country—that is something we want to do and to keep, but as she knows, even now we still import ore. I know she is concerned about British Steel and its future. I will be visiting her constituency in Scunthorpe and we will be able to discuss those matters further.

[Stephen Kinnock (Aberavon) (Lab)]

T3. Yesterday, the BBC reported on expert analysis that has been submitted to the transition board, indicating that cutting 2,800 directly employed Tata Steel employees could lead to up to 9,500 additional job losses, due to the huge number of contractors and sub-contractors who are indirectly employed by Tata. When the Government handed £500 million of taxpayers’ money to Tata to do that deal, had they made a full assessment of the job losses: not just those directly employed by Tata who would lose their jobs, but the vast number of jobs that will be lost through the supply chains and contractors?

[Alan Mak]

The hon. Gentleman and I both sit on the Tata transition board, which has a dedicated group to look at the welfare of contractors and supply chain partners. We will ensure that we support those people as much as the direct employees of Tata.