Steel Industry

Debate between Tom Blenkinsop and Nick Thomas-Symonds

Wednesday 11th May 2016 Westminster Hall

[Tom Blenkinsop]

I thank my hon. Friend for bringing up that issue, because skills retention is key. There are historical precedents that the Government could look to—not very old ones, but from the previous Labour Government in 2010—for how to use facilities and Government finance in order to retain skills. I will get on to that a little later.

What could have been for the Teesside Cast Products site in Redcar, the second most efficient plant in Europe, if it had been given time and the Government had committed to step in and co-invest, instead of the miserable inaction of a Government paralysed by dogma? It was saved once, but the lessons of how that was achieved were ignored.

Our British steel industry is a world beater. Investors desire to own it. International market conditions are changing right now. Indeed, indicators regarding strip in the UK are far more positive. As world demand increases and Chinese steel sites are closed due to international pressure, we are well placed to capitalise on that, but only if we now rally hard behind our British steel industry.

[Nick Thomas-Symonds (Torfaen) (Lab)]

On the international situation, does my hon. Friend agree that a real acid test for the Government is their position on market economy status for China, which would be wholly illogical given the Chinese Government’s control over their native industry?

[Tom Blenkinsop]

My hon. Friend makes an excellent point; I want to come to that later. Indeed, I believe the European Parliament is voting tomorrow on whether or not to grant China MES. Ultimately, the European Commission will have its say later in the year, but the implications for energy-intensive industries—not only steel, but manufacturing per se—go way beyond what anyone has talked about in any depth. That has been ignored to a certain extent—or, rather, quietly allowed to go under the radar—but the consequences for British manufacturing are profound.

UK Steel Industry

Debate between Tom Blenkinsop and Nick Thomas-Symonds

Wednesday 15th July 2015 Westminster Hall

[Tom Blenkinsop]

I thank my hon. Friend for that question. He makes an excellent point. To encourage further investment, which we have seen in Port Talbot and across the steel industry in certain areas, we need a response from Government about business rates, so that there is no deterrent to further plant and infrastructure investment by the private sector.

Further integration into industrial policy and essential long-term national infrastructure subjects that are actually followed through would give companies the green light to invest. At present, too many infrastructure projects fail to incorporate British-made products into their design. Government can promote procurement strategies that support domestic manufacturers, encouraging innovation and job creation by signing up to the UK Steel charter for sustainable British steel.

My final points relate to the people involved in the UK steel industry. At the end of May, we stood on the brink of the first national strike in the steel industry for over 30 years. That action, which included a 24-hour stoppage, was threatened after Tata Steel decided to axe the final salary benefits of the British Steel pension scheme. It was only avoided following an 11th-hour deal between unions and Tata Steel after Government advisers and the Advisory, Conciliation and Arbitration Service were called in. Under the modified scheme, steelworkers who are given approval to retire at 60 instead of 65 years of age will receive new ex-gratia payments from October 2020. Today, the ballot of union members over whether to accept changes to their pension scheme closed, and employees at the Tata Steel works in Scunthorpe and other places are expected to deliver a massive vote of confidence for the proposed changes to the British Steel pension scheme. That demonstrates how constructive and positive industrial relations can be. We want to maintain that and we have maintained it for over three decades. I hope the Minister takes that point back to her ministerial colleagues, especially in light of today’s news.

[Nick Thomas-Symonds (Torfaen) (Lab)]

To reinforce the point that my hon. Friend makes extremely well about the history of pragmatism in the industry, is it not symbolic that we were on the verge of the first national steel strike since 1980 and the one before that was about half a century earlier? The industry has a good history of positive industrial relations that can be continued into the future.

[Tom Blenkinsop]

My hon. Friend is correct. The employees in the industry know that things could be shifted at any moment. In a globalised economy where capital can move in seconds, there is an understanding and a traditional trade union ability to get round the table and negotiate. Michael Leahy, the former general secretary of Community, always said that we believe in the force of argument not the argument of force. However, when an employer, or indeed a Government, tries to deny the democratic rights of employees in the workplace, it has to be taken into account. I hope the Minister will take that point back to her ministerial colleagues.

I mention pensions because when we are debating issues such as energy prices, productivity, emissions targets and so on, it is easy to forget that many of the communities we represent have been built from the hard work of steelworkers over generations. In the previous Parliament, I, alongside hon. Members here, pledged to stand up for steel, and that includes defending its workers, who have contributed a huge amount of their lives and expect a decent pension at the end. I do not think that is too much to ask.

The APPG members here have asked to meet the Secretary of State for Business, Innovation and Skills, and I believe that the vice-chair of the group, the hon. Member for Corby (Tom Pursglove), repeated that request in Business, Innovation and Skills questions. We would love to meet the Minister, if an audience with the APPG would be acceptable to her. We have also written to the Select Committees on Business, Innovation and Skills, which my hon. Friend the Member for Hartlepool (Mr Wright) chairs, and on Energy and Climate Change, as well as the Treasury Select Committee, asking them to investigate matters.