UK Parliament / Open data

UK Steel Industry

Proceeding contribution from Marion Fellows (Scottish National Party) in the House of Commons on Thursday, 21 January 2016. It occurred during Backbench debate on UK Steel Industry.

Thank you, Mr Rosindell, for calling me to speak, and I also thank Mr Walker, our previous Chair.

I could stand here and individually thank all the Members who have contributed so much to this debate, but I will refrain from doing that. I will just thank them collectively, and then thank one or two of them especially. First, I thank the hon. Member for Aberavon (Stephen Kinnock) for securing the debate with the backing of fellow colleagues on the all-party group on steel and metal related industries.

Ravenscraig, which is in my constituency of Motherwell and Wishaw, was once the beating heart of the European steel industry and on closure much of the plant was sold to China. The Ravenscraig site is still mostly a barren wasteland, which is an issue we continue to deal with on a daily basis. All that remains of our steelworks is the Dalzell plant, which is only minutes from my office, and the Clydebridge works, which is in the constituency of my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier).

As well as providing jobs to the communities across Lanarkshire directly and indirectly for generations, our steelworks are a source of pride. Some of the finest steel in the world was produced in Motherwell and it was still being produced until recently. For people in Lanarkshire, our steelworks are iconic and represent the decades of industry that are the foundations of our community. Our legacy is now in danger and so, too, is the legacy of towns in both England and Wales that also have a proud industrial past.

The reaction of the UK Government to the crisis that we face will determine whether or not steel will merely be a memory in our towns and villages or an industry that can remain for generations to come. The Scottish Government have some of this responsibility as well. However, I believe that both Governments starkly contrast with one another in their reaction to the steel crisis.

The Scottish Government reacted within four days of the announcement of the closure of Dalzell and Clydebridge. They set up a steel taskforce, which I am a member of, to find a buyer for the plants, emphasising our commitment not only to strengthening and building our steel industry but to the wider manufacturing sector. Working with the community, Unite, GMB, Tata Steel, Skills Development Scotland, Scottish Enterprise, Transport Scotland, the Scottish Environment Protection Agency, the UK Government, North and South Lanarkshire Councils, the Scottish Trades Union Congress and others, the Scottish Government have vowed to leave no stone unturned in finding a new owner for our steelworks. They have invested £195,000 in a support package to retain and upskill key staff, to ensure that plants can reopen quickly as and when production resumes. Working with Skills Development Scotland, those workers will

also be upskilled. The training will provide them with a mix of skills in varying fields, including management and new processes.

For workers who have unfortunately worked their last shift at Dalzell and Clydebridge, the Scottish Government have created a project to get ex-steelworkers back into work through the Partnership Action for Continuing Employment scheme. The Scottish Government have agreed with the business rates assessor to ensure that the state of the business will be taken into account in the 2017 revaluation. The Lanarkshire Valuation Joint Board is open to agreeing and pre-agreeing the 2017 valuation with any new operator, to save the plants hundreds of thousands of pounds.

The Scottish Government have also looked at the efforts of other steelworks to reduce energy costs by using renewable energy and investing in energy-efficient furnaces. Scottish Enterprise has been invaluable in that process. It has been working with Tata since before the plants’ closure in an effort to bring down energy costs.

Holyrood has almost exhausted the powers available to it to aid our steel industry. Already, two potential buyers have expressed an interest in our Lanarkshire plants, which is surely testament to the hard work of the Scottish Government’s steel taskforce. We recognise that it is essential that our domestic economy is diverse, so that it can provide employment to those with differing skill sets and aspirations, and not just to those with the skills for the service sector.

Steel in particular is an essential, strategic resource required for a range of purposes, and I thank the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) for referring to both Scottish plants and the contribution they make in that regard. However, the importance of steel in realising those interests is continuously ignored by the UK Government. Time and time again, they fail to take the urgent action that is required, putting further steelworks at risk, as per Port Talbot, Redcar and other plants that are extremely vulnerable and that have suffered great losses.

The Scottish Government have made tremendous efforts to find a new owner for the Dalzell and Clydebridge works, but the powers to resolve the underlying problems facing our steel industry do not lie in Edinburgh; they lie here in London. For years, trade unions and the steel sector have warned both this Government and the previous one about the fragility of the steel sector and the challenges affecting it, but those warnings fell on deaf ears. The dumping of inferior Chinese steel on the markets and extortionate energy prices have crippled the steel industry.

Even now, the British Government merely respond with too little, too late, to aid our steelworkers. They have finally gained EU approval for rebates under the energy-intensive industries compensation scheme, but where is the cash? I remind the House that there was no such delay in intervening to save the lavish lifestyles of London bankers. There is no urgency to save the livelihoods of steelworkers in Lanarkshire and across the rest of the UK.

Last year, the Prime Minister welcomed the Chinese President to the UK to seek ever-closer ties and to discuss trade as our steelworks went into meltdown. He gave only the promise that he would raise the issue of Chinese steel being dumped in Europe and gave

no indication as to how strongly he would defend our steelworks. We should not seek to open our markets further to China or allow China to gain market economy status, as alluded to—

Type
Proceeding contribution
Reference
604 cc681-3WH 
Session
2015-16
Chamber / Committee
Westminster Hall
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