Welsh Affairs
Debate between Stephen Kinnock and Mark Tami(1 year, 8 months ago)
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Stephen Kinnock (Aberavon) (Lab)
I wish everyone a belated happy St David’s day if I did not wish it to them yesterday. I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) not only on her wonderful, poetic opening speech, but on the Everyone Deserves a Christmas, Summer and Easter campaign. It seems to be an all-year-round campaign this year. I have had the pleasure of taking part in that initiative, which does a huge amount to tackle holiday hunger by providing hampers to families who are struggling at Christmas. I am proud to say that those hampers provided 447 children and their families across Neath Port Talbot with a lovely Christmas dinner with all the trimmings, plus lots of other treats. It was a great pleasure to be part of the hamper packing process, which also enabled us to hang out with some of our heroes from the Ospreys, the Aberavon Wizards and the Swans—even though I say that as a Bluebird.
That achievement was possible only thanks to the generosity of businesses and individuals across Aberavon and the whole area covered by the Everyone Deserves campaign, whose donations helped pay for the hampers. It also reflects the fact that many of my constituents, and I am sure those of all of our colleagues assembled here, are struggling with the rocketing cost of living. Record energy prices, soaring costs of household essentials, falling wages and the highest interest rates for 40 years are really biting. Real wages in Aberavon have plummeted since 2010, leaving my constituents £1,123 per year worse off on average. Incomes are simply not keeping pace with rising costs, and they no longer cover the essentials. Many talk of a cost of existing crisis rather than a cost of living crisis. Constituents are not putting the heating on or are cutting back on essential groceries. They are worried sick about whether they can pay their energy bills or afford their rent or mortgage payments. The numbers of people turning up to food banks is up, up, up.
In December, more than 33,000 people in Wales experienced financial hardship to the extent of accessing £2.36 million from the Welsh Government’s discretionary assistance fund. The Welsh Government have since pledged £18.8 million to the fund to protect people who are facing financial hardship. Despite having fewer economic levers at their disposal compared with the UK Government, the Welsh Government have stepped up to the plate by providing a £51 million household support fund targeted at those who need it most. They have doubled the winter fuel support payment to £200 to help those on low incomes with their energy bills, and have provided £1.1 million to support food banks, community food partnerships and community hubs.
The Welsh Labour Government are doing their level best to shield Wales from the worst of the crisis, but the reality is that energy bills will go up by £900 in April. Hard-working families are feeling the pinch, while oil and gas giants are celebrating record profits and laughing all the way to the bank. On behalf of my Aberavon constituents, I urge the UK Government to step up and help them and others across the country by closing the loopholes and bringing in a proper one-off windfall tax on energy giants. The money raised could be spent on a package of support for energy bills, passing savings on to households immediately, and stopping the energy price cap going up in April. An end must be put to the scandalous penalties imposed on prepayment meter customers, who should not be paying more than those who pay by direct debit. There also needs to be a three-month moratorium on the forced installation of prepayment meters.
Learning the lessons of the energy crisis is essential to prevent it from happening again. If our country is to better protect itself, we must become more resilient and less exposed to fluctuating global energy prices. That brings me on to a topic that the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) mentioned: floating offshore wind. FLOW will be hugely important in allowing our country to stand more firmly on our own two feet. It will also be essential in helping us reach net zero.
Port Talbot, along with the right hon. Gentleman’s constituency, has the potential to be at the heart of this 21st-century green industrial revolution. Our deep-sea harbour, our land for development, our excellent transport links, our world-class steelworks and our existing manufacturing supply chains and skills base make us well placed to deliver 24 GW of FLOW in the Celtic sea, a quarter of the UK’s total target.
Mark Tami (Alyn and Deeside) (Lab)
My hon. Friend hits the nail on the head. If we are to go down that road, we have to do it on a scale that will make a real change. The problem with our energy policy has been that we have tended to dabble in things without putting investment in. These things are not going to happen by themselves. We need to put investment in, and we need to put it in now.
Stephen Kinnock
My right hon. Friend is absolutely right. I think we can agree that energy policy across the UK has tended to ebb and flow. It has not given investors the clarity or the long-term stability and certainty that they need. These are big investments that require confidence in the Government that things will not shift from one thing to another. Stability, strategic purpose and mission-driven government are what we need.
FLOW is a genuine game changer for the south Wales economy and the labour market, creating thousands of high-quality, high-skill local jobs. It is a once-in-a-generation opportunity to transform Aberavon and south Wales and turn us into a green power superpower, and what makes it even more exciting is that it can support green steel making. The steel industry has been crying out for years for UK Government support to mitigate crippling energy costs. UK steel producers pay an estimated 63% more than their German counterparts. They need to be able to compete internationally on a level playing field. Tata Steel estimates that producing 60 floating substructures and turbines a year for FLOW would require 6 million tonnes of steel. The real win-win is that the green, clean energy produced through FLOW can help to produce the green steel that Tata plans to make in its future electric arc furnaces, which will replace the current blast furnace technology, at a lower cost per unit than is possible with the sky-high electricity prices that are currently holding our steelworkers back.
There are two key decisions that the UK Government, working in very close collaboration with the Welsh Government, need to make to kick-start this hugely exciting opportunity. The first is on the freeport bid. Delivering FLOW at the necessary scale and speed will require support. Backing the Celtic freeport bid can unlock £5.5 billion of new investment and 16,000 jobs. It will also provide the launchpad for accelerating the development of FLOW and bring household energy bills down. This is not a transactional opportunity; it is a transformational opportunity.
The second decision is on the floating offshore wind manufacturing investment scheme. FLOWMIS is another vital building block of this game changer for renewable energy. The Welsh Government have already stepped up to the mark and provided a £1 million grant to help the transformation of Port Talbot dock, with a dry dock and other facilities necessary to provide the manufacturing capability for FLOW. It is time the UK Government followed their lead and urgently launched the FLOWMIS programme. FLOWMIS co-funding would demonstrate the UK Government’s clear long-term commitment to developing the ports and the sector, giving confidence to investors and other funding providers to back the project and unlocking sizeable private sector investment potential. I really hope that the Secretary of State will say something about FLOWMIS at the Dispatch Box today.
For much of the 19th and 20th centuries, Welsh coal, slate, copper and steel were known around the world. In the 21st century, if the opportunity is seized, Wales could just as well be known for FLOW. The prize is clear: the creation of a new long-term industry whose high-value manufacturing has “Made in Wales” firmly embossed on the tin. Wales was the cradle of the first industrial revolution; now let us make it the cradle of the green industrial revolution.
It is not just FLOW that could be embossed with “Made in Wales”. Universities in Wales have been at the forefront of innovative ideas that could change the way we live, thanks to the £370 million of EU structural funds that have been invested in university-led projects in Wales. SPECIFIC—the sustainable product engineering centre for innovative functional industrial coatings—is a Swansea University project based in Aberavon. It has been doing wonderful work on creating buildings that store and release heat and electricity from solar energy, but no replacement funds offer the parity of support that is needed for that research and innovation work. More than 60 projects across Wales, including SPECIFIC, now face a very uncertain future. Approximately 1,000 jobs are at risk. Will the Secretary of State give a commitment today to speak with colleagues about bridging funding to enable these important projects to continue, to prevent Wales from losing this talent and to avoid the cliff edge that exists under the shared prosperity fund?
My Aberavon constituents and the people of Wales need something better. They need a UK Labour Government working in tandem with a Welsh Labour Government to deliver for Wales and deliver for our entire United Kingdom.
Shotton Steelworks: 125th Anniversary
Debate between Stephen Kinnock and Mark Tami(2 years, 11 months ago)
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Mark Tami
Really.
After John Summers’ death in 1876, the business began to expand under the leadership of his son Harry, who joined forces with three of his brothers, grew the business and opened the Hawarden iron works on the banks of the River Dee in 1896. With a 250-strong workforce and the installation of eight steam-driven rolling mills, galvanising pots, annealing furnaces and corrugating equipment, that was the beginning of the Shotton Steel plant that we know today.
Workers travelled from all over the country, such was the production demand, and by 1902 Harry Summers had turned the plant’s attention to steel production, with the site in Shotton being recognised as a leading steel manufacturer by 1909. John Summers and Sons was now the largest manufacturer of galvanised steel in the country, with a site covering 60 acres and employing 3,000 workers.
One of only two strikes in the works’ history caused major disruption to production between 1909 and 1910. The dispute concerned the contract system, whereby at each mill one person—the contractor—employed ten others on a piecework system. It was common for workers to be paid according to favouritism, rather than the hours they actually worked or their productivity.
Mark Tami
I can only agree with my hon. Friend.
Believe it or not, there was even the idea that some received payment in the local pub by way of a pint or two of beer. As a result, many joined the Steel Smelters Union in protest, and to avoid industrial action the Summers family drew up a deal with the disgruntled workers. However, the deal failed to avoid industrial action, as the contractors protested against it, with daily picketing at the factory gates. The dispute came to end in December 1910, following a mass address to the workforce by Harry, who agreed to replace the ad hoc contract system with the direct payment of wages—progress, indeed.
Following this period of uncertainty, Shotton focused its efforts on the first world war, producing thousands of steel sheets for the trenches, Nissen huts and shell making. Despite jobs in production remaining strictly for men, many women entered the site for the first time to carry out clerical work. In the immediate post-war years, Shotton Steel maintained its success, with the workforce rising to some 5,800. The period between the two world wars saw considerable change in both production techniques and global demand, with a general decline in demand for black and galvanised sheets, which at one time accounted for 98% of Shotton’s production. Disruption continued during the great depression following the Wall Street crash and Black Friday, when two thirds of Shotton’s workers lost their jobs and the plant closed its doors, not to open again until 1933.
During the second world war, Shotton Works operated at full capacity, producing 2.2 million tons of black and galvanised sheets for various uses. Most notably, as I am sure people will remember—I do not know whether they will remember at first hand—there were the Anderson air raid shelters, which saved many lives during the blitz. Unlike in the first world war, women were now employed in the labs, packing departments and cranes, making up about 1,000 of the workforce. Harry Summers died shortly before the end of the war, but he has always been remembered fondly:
“A more fearless, a more honest and more straightforward man it would be hard to name”,
as Richard Summers wrote in his obituary of Harry.
His Royal Highness Prince Philip, the Duke of Edinburgh, officially opened the first phase of the plant’s post-war development scheme in 1953, giving the plant additional space. At that time, steel consumption by the UK car industry had increased by 88%, creating a dramatic rise in demand. Under Harold Wilson’s Labour Government, Shotton moved to public ownership under the British Steel Corporation, employing 12,000 people out of the 270,000 British Steel Corporation employees nationwide. That figure, if we think of the workforce today, shows the dramatic change.
While this marked the end of the Summers’ ownership, for generations after the family name remained synonymous with Shotton. The Summers family had guided the company to become a world leader in steelmaking, putting Deeside on the global stage. I know that many people, even now, still refer to it as Summers’s—the name has lived on.
The 1970s were dominated by disputes over plans to phase out iron and steelmaking at Shotton, as part of the Government’s deep-seated review of the British Steel Corporation. Following several protests and backroom negotiations, led by the workers action committee, in May 1977 the British Steel Corporation removed proposals for the termination of iron and steelmaking at Shotton. With trading prospects looking brighter, the review was put on hold until 1982.
Sadly, rising oil prices and declining demand for strip mill products brought the review forward to 1979, resulting in a plan to end iron and steelmaking at the plant by 1981. Around 6,400 jobs were to be phased out following an agreement between the British Steel Corporation and trade unions. No community in living memory had faced the prospects of such a substantial and rapid loss of jobs—I think it was the place where the largest number of jobs were lost on a single day in a single plant anywhere in western Europe. As a result of only the second period of industrial action in its history, some 7,000 workers clocked off in December 1979, never to return other than for counselling. The heavy end closure was eventually complete in 1981.
The workers action committee, which had fought hard for the retention of iron and steelmaking at the works since 1972, formally disbanded its campaign, which was probably the longest in British industrial history. It had been successful to the extent that Government decisions were reversed on two occasions, with the British Steel Corporation withdrawing its closure proposal totally at one time. Despite the eventual loss of jobs, the Shotton campaign is regarded by many in this place, trade unionists and others as a model of collective resistance. By peaceful demonstration, reasoned argument and persuasion, the men and women of Shotton won support and sympathy at the highest level of Government. I put on record my thanks and, I am sure, that of everyone at Shotton, to Lord Jones, now in the other place, who led delegations and campaigns and spoke many times in this place and the other place, and continues to do so, in support of Shotton and how vital it is to the area.
Towards the close of the century, Shotton’s productivity saw strong growth, with modern equipment and processes, an increasing product range, and high-quality performance. Shotton was the centre of Britain’s coated steel production once again. By the time the Corus Group was formed to run the Shotton plant in 1999, productivity had tripled compared with 1986 levels. Corus was acquired by the Tata Steel group in 2007, and despite global financial challenges, the works remained profitable and forward thinking. With a focus on high-value products, the works achieved a record level of profitability within 10 years. Today, Shotton’s primary markets are construction and consumer products, supplying global brands such as Airbus, Jaguar Land Rover, IKEA and Wickes. As I said, it employs around 800 people.
In its 125-year history, Shotton has remained resolute, and it is still one of the largest employers in Alyn and Deeside, fostering hundreds of livelihoods. We can reflect on the history, but we should not dwell on it, because the next 125 years are just as important as the first, if not more important. This Government must step up their support for the UK steel industry, which continues to face critical challenges. A decade of Government indifference and failure to take action has caused the UK steel industry to nosedive by a fifth—a £1 billion hit to our economy. Since 2010, UK steel production has plummeted by 21.5%, which is 20 times the average among other European countries.
We are all experiencing the dramatic rise in gas prices, which hits Shotton hard because it relies mainly on gas for its energy. When we compare our gas and electricity prices with those in other countries—they are 60% cheaper in Germany and 51% cheaper in France—it is a miracle that we have a steel industry at all.
Stephen Kinnock
As my hon. Friend the Member for Newport East (Jessica Morden) rightly pointed out, there is a family of steelmaking plants in Wales, Port Talbot obviously being the hub, and we send birthday greetings to Shotton. The integrated nature of the steelmaking process means that the energy costs for Port Talbot, which are the highest in Wales, are crucial for the entire steelmaking process in Wales. As my right hon. Friend the Member for Alyn and Deeside (Mark Tami) has rightly pointed out, we are trying to compete with one hand tied behind our back, because the Government’s inaction is leaving us with massively higher energy costs than our European partners and neighbours.
I hope the Minister does not say, “Well, we pay the energy intensive industries compensation fund,” because these energy price disparities exist after that fund has been provided. Let us please not hear that line again from the Government. Does my right hon. Friend agree that this is the No. 1 priority? We are just asking for a level playing field. We have talked about the past, but the present and the future are so much more important. Unless we get this sorted, we are going to be uncompetitive for another year, two years or even 125 years.
Mark Tami
Once again, I agree. I am also very concerned that the Government only ever seem interested in the steel industry when we are in crisis. When there is a crisis, suddenly the Government are all over the steel industry, and the moment it drops out of the headlines, so does the Government’s interest in it. That is just not acceptable. As my hon. Friends have said, the danger is that, at some point, the industry—or significant parts of it—will fall over. My hon. Friend the Member for Aberavon (Stephen Kinnock) made the point that without Port Talbot, there is a danger that there would not be a Shotton either. That is a point that the Government really need to grasp.
There is no mention of steel in the Government’s latest Budget or their so-called plan for growth, and their industrial strategy has effectively been scrapped. There has been a total failure to support environmental targets with investment that could boost decarbonisation in the industry. Funding from the clean steel fund has been delayed until 2023 and, as I have said, the issue of high energy prices has been completely ignored. All we ever get is, “Oh, it’s nothing to do with us. Have a look at Ofgem; maybe they can do something.” That is not acceptable.
Labour’s analysis shows that 24p of every pound spent on steel for Government infrastructure projects was spent outside the UK in 2017-18, meaning that Shotton and other plants throughout the UK have been left behind. The Government are making an utter mockery of their pledge to “level up” with such actions, which leave behind steel areas completely. Stronger “buy British” steel targets could create and safeguard around 50,000 jobs, and boost the economy by £4.4 billion. Vitally, it would also lower the environmental damage of steel imports. True levelling up would consist of more than just rhetoric. It is clear that we need decisive action and decisive planning. We heard only a couple of days ago in the other place that steel for our warships and our submarines is being imported, with the argument being, “We don’t have it in this country.” We do not have it in this country because we were not told soon enough that the plants could start producing what was needed. The end result is that we are importing steel to build warships and submarines. That is how stark the position is and how stark the Government’s failure is.
As well as taking action to secure the next 125 years of production at Shotton, we must also reflect on the role Shotton is taking in the fight against the climate and ecological crises we face—a point raised earlier. We need a green plan for steel and we need it to be supported by the Government. I want Shotton steelworks to become the first carbon-neutral plant in the UK. Shotton has been central to much progress in UK steelmaking for more than a century, so it would be fitting for the plant to lead the country’s decarbonisation efforts. Fortunately for us in Wales, the Welsh Labour Government are already taking the first vital steps to support Shotton’s path to becoming carbon neutral. The manufacturing action plan for Wales, a collaborative effort made between Industry Wales, trade unions and representatives from the manufacturing sector, is central to that progress. First Minister Mark Drakeford is stepping in to take action in pursuit of a prosperous, green and equal economy.
The Tata Steel group has been clear that decarbonisation and securing a green approach to steelmaking are top priorities. Shotton is already playing a key role in the fight against climate change through the application of its products in the construction of “active” buildings, which produce more energy through renewables than they consume. There is scope for more progress, and we must support and encourage Tata with that. Many critics argue that decarbonisation and economic growth in the steel industry are mutually exclusive, but with the right financial backing and strategic approach, Shotton can lead the UK steel industry to being carbon neutral and continue to support jobs in north Wales.
We hear a lot from the Government that hydrogen is the future. It may well be the future, but it is not currently the present and it will not be the future unless we invest in it. It is not going to happen by accident that one day we wake up and the steel industry and other industries suddenly have plentiful supplies of hydrogen, it works and everything is fine. We need to be ploughing investment into research now, otherwise we will fall further behind and we are already falling behind our European neighbours.
The steel industry in Alyn and Deeside is the very fabric of our area.
Stephen Kinnock
The point on hydrogen relates to the discussion we were having about energy costs. An electric arc furnace approach or a hydrogen-based approach takes even more energy, power and electricity than the current gas-fired approach. If we do not get the energy costs issue sorted, it will completely hamstring our efforts towards decarbonisation.
British Steel Industry
Debate between Stephen Kinnock and Mark Tami(4 years, 8 months ago)
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Stephen Kinnock
My hon. Friend is absolutely right. We need a patriotic procurement policy. We need procurement that gives the right weighting to local value. Let us look at big opportunities such as HS2—2 million tonnes of steel. How much of that steel will be British? Let us ensure that every single Government Department and HS2 are signed up to the steel charter.
The UK economy cannot stand up without a backbone made of steel. It certainly will not be able to level up if is not able to stand up. Steel underpins our everyday lives, from the houses we live in to the offices we work in; the trains, buses and cars we travel in; and the major infrastructure projects, such as HS2 and the possible Heathrow expansion. It is crucial for our defence industry and to our national security. I hear people say that steel is a sunset industry. Nothing could be further from the truth. It is not a sunset industry; it is an industry of the present and of the future. It underpins our entire manufacturing base, from automotive to construction, aerospace and so much more.
Mark Tami (Alyn and Deeside) (Lab)
My hon. Friend is making a powerful case. Does he agree that we cannot just carry on managing decline and that we must invest for the long term? Once a plant goes, it is gone; very rarely do they come back into operation.
Stephen Kinnock
My right hon. Friend is absolutely right. Of course, we saw the tragedy of Redcar: once the blast furnace is turned off, that is it. In my opinion, that was an act of industrial vandalism. We must ensure that we take into account the cost of doing nothing. The cost to the Government and the British taxpayer of closing these businesses down is astronomical, so let us have a proactive industrial policy based on investment, and let us use tomorrow’s Budget to deliver that.
Stephen Kinnock
My hon. Friend is absolutely right. This is about having a policy environment that is conducive to driving investment. Businesses are looking for a partnership with the Government. As she rightly says, the cost of energy in this country compared with what the French and the Germans pay means that our steelworkers are competing with one hand tied behind their back. They need a British Government who are on their side.
Let us not forget the tremendous value that the steel industry generates for the British economy. It produces 7.3 million tonnes of steel a year, which is around 65% of the UK’s annual requirement. It employs 32,600 people directly in the UK and supports a further 41,000 through the supply chain. It makes a £2.8 billion direct contribution to UK GDP and supports a further £3.6 billion through the supply chain, and it makes a £2.5 billion direct contribution to our balance of trade. Steel is also integral to the greening of our economy. It is used in wind turbines, tidal lagoons and electric vehicles, and of course it is far cleaner to make our own steel here than to import it from places such as China, where steel production is much dirtier and the carbon footprint of transportation is huge.
Although we can be immensely proud of the contribution that our industry and its workers make, we must reflect on the sector’s recent struggles. UK manufacturing has been in decline, dropping from 30% of GDP in the 1970s to just 9% today, and the UK’s shift towards a city-centric, service-based economy means it is now the most geographically unequal country in northern Europe. We have the richest area in the whole of northern Europe—London—but also the five least prosperous, with west Wales and the valleys the poorest of all.
Let us not forget that steel jobs are good jobs, paying an average salary of £36,000, which is 36% higher than the regional average in Wales. Port Talbot provides 4,000 such jobs. The wider supply chain benefits are even greater, and the sense of local pride that our community feels in providing the very backbone of the UK economy is immeasurable. However, since 2010 our steel industry has been abandoned by the UK Government, leaving us trying to compete with one hand tied behind our back. After 10 years of Tory austerity, our community has also been left to fend for itself as a result of the money that has been taken out of our local economy.
The lowest ebb for our local steelworks in Port Talbot came in 2016, which marked the height of the steel crisis. A number of market forces combined to set the hares running: the UK had some of the highest electricity prices in Europe, which have gone on to cost the sector £200 million since 2016; business rates were through the roof, five to 10 times higher than in France, Germany and the Netherlands; and there was increased Chinese dumping in European markets to undercut European steelworkers. At one point, the UK Government blocked the EU from taking stricter action against the Chinese.
With such little support from the Government, all that came to a head. Leading the march for steelworkers as they always do, Community and other steel unions flew a delegation to Mumbai, which I was fortunate enough to be part of. In the midst of a crisis that nearly led to the loss of 4,000 jobs in Port Talbot, our community fought tooth and nail to make Tata Steel recognise that these were real people with real families to look after, not just numbers on a spreadsheet.
Mark Tami
There is an important point here: these are not workers who have refused to change; in fact, they are quite the reverse. They have been at the cutting edge. They want to do everything to make the plants as efficient as possible, but with all these other factors counting against them, there has to be a point where something changes.
Stephen Kinnock
I fully agree. British steelmakers make the best steel that money can buy; of that, there is no doubt whatsoever. Look at the flexibility they showed over the divestment of the pension scheme, when many steelworkers thought not about themselves but about their families—their sons and daughters, and their grandsons and granddaughters. That shows the passion and commitment of our steelworkers and their willingness to be flexible. I pay tribute to the steel unions, and to Roy Rickhuss and Community for their leadership in making that happen.
Our endeavour at the time paid off. Tata Steel decided against closing or selling the business, and in exchange the workforce showed incredible sacrifice by voting for the divestment of the pension scheme. In return, Tata Steel put forward a substantial investment plan and promised that there would not be a single compulsory redundancy in the coming years.
Fast-forward four years and we are stuck at square one. While electricity prices and business rates continue to be a thorn in the side of our steel sector, Brexit and Donald Trump’s section 232 steel tariffs are combining to create a hostile policy and market environment once again. Some 70% of UK steel exports go to the EU, and a basic trade agreement with the EU could cost the industry £70 million a year through additional border checks. Although Trump’s tariffs were aimed at punishing China for illegal dumping, they ended up severely damaging the UK’s US exports, which have dropped by 30%. Exports of long products such as rods, bars, rails and construction materials were hit particularly hard, falling by as much as 60%. I am sure the hon. Member for Scunthorpe (Holly Mumby-Croft) will wish to say something about that.
These are tough times. It is important for steelworkers in my constituency and across the country that Tata Steel keeps its part of the bargain by continuing to invest in the long-term future of UK steel making. Our steelworkers, who make the best steel that money can buy, are crying out for UK Government support. It is time the Government put their money where their mouth is and backed this essential British industry. We need a Budget for steel—a Budget that really does level up.
First, the Government must take specific action to reduce UK industrial energy prices in order to move the steel sector’s costs in line with its European competitors. The Government’s energy intensive compensation scheme barely touches the surface; it deals with the symptoms but not the cause of the problem. UK steelmakers still pay 80% more for energy than their French counterparts, and 62% more than German companies.
Will the Minister commit to studying and delivering on the nine recommendations in UK Steel’s “The Energy Price Gap” report? They include providing 100% compensation for the indirect costs of the carbon price support mechanism, enabling energy-intensive industries to buy energy collectively, and providing an exemption from capacity market costs. It is worth noting that any savings on electricity prices would be reinvested in the recently announced clean steel fund and would deliver £750 million of investment in the sector over the next decade.
Secondly, the Government must back business rates reform to drive capital investment in industry. Will the Minister commit to removing plant and machinery from rates calculations? Thirdly, the Government must maximise opportunities for UK steel in major infrastructure projects by introducing measures to increase the amount of UK steel purchased by those projects. Will the Minister back calls for HS2 to sign UK Steel’s steel charter, and will he recognise the potential for the Government’s steel pipeline to support 6,000 new steelworker jobs and contribute £3.3 billion to the economy if every Government project used British steel?
Fourthly, will the Minister commit to using the estimated £200 million in returned moneys from the EU research fund for coal and steel post Brexit to boost UK steel sector innovation? Fifthly, will the Minister commit to removing Donald Trump’s section 232 tariffs from day one of the UK-US trade negotiations? Finally, will the Minister commit to delivering on a sector deal for steel? Aerospace, automotive and construction all have sector deals, yet the industry that underpins our entire manufacturing base—the steel industry—does not. That really is a travesty.
Steel is very much a 21st century industry that forms the backbone of the British economy. That fact must be reflected in tomorrow’s Budget. The Community union is set to launch a new campaign called “Britain, we need our steel”, because Community knows that the UK relies on UK steel every bit as much as its members and the steelworkers in my constituency do.
My constituents and their families, and steelworkers and their families across the length and breadth of our country, are not asking for charity; they are asking for a fair crack of the whip. They are men and women of steel who want the opportunity to compete without one hand tied behind their back and a chance to continue to serve their country by producing more of the best steel around for generations to come. I truly hope that the UK Government share that vision and will stand up for steel in the Budget tomorrow.