Steel Industry: Wales
Debate between Stephen Kinnock and Sarah Jones(2 months, 2 weeks ago)
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Sarah Jones
That is not my understanding—no. What we are trying to focus on in any conversations we have about any industry on steel is what the future is and where we go from here—that is the important question.
My advice to the Minister is to go to the hon. Member for Ashfield (Lee Anderson) and talk to him about when he worked down the mines, and what happened to his communities when the mines shut—the cliff edge, the redundancies, and the closure of all the community assets that went with it. That is what we risk doing in Port Talbot with the cliff edge that we face—nearly 3,000 jobs, as well as the huge knock-on impact of one job in the plant linked to three jobs in the community. Let us not lose 3,000 jobs in Port Talbot. Do not spend half a billion pounds on that. Let that not be the Government’s legacy.
It is not too late; there is an alternative that we could all work towards. The multi-union plan helps us to transition in a way that protects jobs. That is what the Government should be talking about to Tata. It is not too late for the Government to have a steel strategy, to spend taxpayers’ money in a way that works for the UK, our economy and our security, and to listen to their own work, if not Labour’s. The Government’s 2017 review, “Future capacities and capabilities of the UK steel industry”, identified the barriers to growth: supply chains, competitiveness, skills, and research and development capability. Has the Minister read that? What is the Government’s response to that review from 2017? It could do with an update now but the basics are there. The Harrington review is clear:
“The reality is that many of our competitors chase investments via their industrial strategies backed by substantial government support…The UK needs to respond.”
Has the Minister read the Harrington review and what is the response on steel? What is the Government’s steel strategy?
Ministers talk about how important scrap is going to be, and of course it is for electric arc furnaces, but how are they incentivising measures to keep our scrap here rather than exporting it, which is currently the case? Ministers talk about how we need new technology, but electric arc furnaces are not really the new technology any more—they are years old. What are we doing to take us towards a direct reduced iron facility in the UK using hydrogen? What is the plan? What is the plan to grow the steel industry and where is the ambition? What are the Government doing about carbon border adjustment mechanisms? The steel industry will be exposed to unfair competition, so what is the Minister going to do about that? What is the plan on skills, and what is the Government’s view of the multi-union plan for steel in Port Talbot?
Many of the manufacturing industries that I meet across different sectors are at a crossroads. Bills are high, there is no strategy to support them, they are reducing their output and they are struggling to find people to work with them. The steel industry in Wales is a case in point; the Government’s last-minute, chaotic deal was a masterclass in how not to run the transition. Members across the House are worried about the future of the UK steel industry. Members across the House do not want thousands of steel workers to lose their jobs.
Stephen Kinnock
My hon. Friend is summarising the discussion extremely well. I declare an interest as a member of the transition board. During the board’s discussions, we talked about what the vacancies looked like in the labour market in south-west and south-east Wales, and the vast majority of vacancies are in the retail and healthcare sectors. Those are really important sectors and really important parts of our economy, but does my hon. Friend agree that there is not really a connection between the skills and experience of the men and women who have worked in the blast furnaces, for example, and those required to fill the vacancies in the labour market outside those steelworks, and that that is extremely worrying?
Sarah Jones
My hon. Friend makes a really good point, which is why we keep coming back to this cliff-edge approach and saying that it is not the way to transition. If we think about south Wales and the Celtic sea, we think about the huge opportunities with an industrial strategy and industry working together with Government, including the jobs and growth that we could create, but do we have any of that under this Government? No, because they do not even have the starting point of a plan for steel.
Members across the House do not want to see this country becoming the first developed country in the world without the capacity to produce primary steel. Is the Minister concerned about our defence capabilities if we lose the capacity to make steel here from scratch? Does she think that the Government’s plan is really money well spent? Can she answer the question that was originally put today: what conditionality has been placed on this deal? We keep asking for the answer to that question, but we have yet to receive it.
Labour will have clarity of vision on steel. We will invest to unlock private sector investment and we will work hand in glove with the private sector. We will use our flagship policies—the national wealth fund, GB Energy becoming a clean energy superpower, grid reform and an industrial strategy—to make the UK a place to invest in, not a place to leave.
Once again I thank my hon. Friend the Member for Llanelli for making such a brilliant speech today and I also thank all the Members who have contributed to the debate. I hope that this debate serves to raise the Government’s game, but Labour stands ready to step in if it does not.
Protecting Steel in the UK
Debate between Stephen Kinnock and Sarah Jones(3 months, 2 weeks ago)
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Sarah Jones (Croydon Central) (Lab)
This has been a powerful debate, reflecting the huge strength of feeling in this place, but also the huge knowledge and ambition for our steel industry. I was disappointed that the Minister came to this place and said that this debate was performative, less than a week after Tata Steel announced nearly 3,000 job losses. I think we all would have expected better from her.
Like many others, this afternoon I met steelworkers and union officials not only from Port Talbot, but from all the other steel sectors and steel sites across the country. They have come because they know what this announcement means for them and their future. These actions will have consequences beyond last week’s announcement. The steelworkers here today, like many of us, are baffled by the Government’s approach. They know that steel is a foundation industry. They know how crucial it is to our economy. They know that the world is uncertain—for goodness’ sake, the Prime Minister was here only this afternoon talking about strikes on Houthis in Yemen—and that having our own supply of primary steel is crucial to our security. Our genuine question is: why are the Government so content to be spending half a billion pounds on a scheme that leads to thousands of job losses?
Stephen Kinnock
On jobs, my hon. Friend will have seen that every steel industry across the G20 and around the planet is going through massive change, but the only place where there is a threat of thousands of job losses is the United Kingdom. Why does she think that might be?
Sarah Jones
My hon. Friend is absolutely right. He made a brilliant speech earlier and has been a great defender of his constituents. The lack of any plan from the Government over the last 14 years is at the heart of the problems we see today.
As the shadow Secretary of State, my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), said in his opening speech, we also risk something much wider: that net zero becomes a zero-sum game for working people and we lose the public consent that we need for the transition. There is no getting away from the facts. The Government have pushed a plan that uses hundreds of millions of pounds to make thousands of people redundant. If Scunthorpe ends up going the same way—the hon. Member for Scunthorpe (Holly Mumby-Croft) made a powerful speech to the contrary—we will be unable to produce primary steel in the UK.
In the Port Talbot plan, the two blast furnaces will shut this year, with a cliff edge for jobs. For at least three years, steel will be completely imported from India and the Netherlands to feed Trostre and Llanwern in south Wales, but there is no guarantee that once the electric arc furnace is built, those jobs will stay. We know that there are huge questions about scrap steel and whether it will produce the steel we need. Many Members, including the Chair of the Business and Trade Committee, my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), asked questions to which the Government have so far provided no answers.