British Steel: Negotiations

Wera Hobhouse Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

“Ransom” is not my word, but it is an interesting way to explain what is going on. Of course, my hon. Friend the Member for Scunthorpe is the leading champion of steel across the industry. I was at a Westminster Hall debate last week, and I pointed out that I cannot turn around any corridor without her cornering me on steel. That is why the sector is so well represented in the UK and why we have put together support that has been valued at over £1.5 billion of grants to help it decarbonise, with £800 million to cover energy costs.

Negotiations are ongoing. My officials will be speaking to British Steel and Jingye today. It was interesting to hear what meetings took place yesterday. When we are talking about hundreds of millions of pounds of support for a firm, while it is in negotiations with Government, for it to have this sort of conversation is not the way that we tend to do business in the UK.

[Wera Hobhouse (Bath) (LD)]

Steel is vital to help us move to net zero by, for example, extending our railways or building net zero homes, but the industry is also a major contributor to carbon emissions, and we know that the industry will only survive long term if it becomes sustainable. The Government recently gave the green light to the Cumbria coalmine, supposedly to support the steel industry. How does that sit with the Government’s claim that they are supporting the steel industry to go green?

[Ms Ghani]

I fear that the hon. Member would rather have coal imported and not worry about the cost or the emissions impact of that. The Secretary of State’s decision on the Cumbrian coalmine was made following a comprehensive planning inquiry that heard from over 40 different witnesses and considered matters such as demand for coking coal, climate change and the impact on the local economy. What is really important is that we have a resilient UK steel sector, and I will never apologise for that.