UK Steel Industry — House of Commons, 2016-04-12
Topic: Mixed Topics
Andrew Joseph McDonald (Labour, Centre-left): I am grateful to my hon. Friend the Member for Wallasey (Ms Eagle) for securing this hugely important debate We on Teesside are still reeling from the Government standing by and allowing steelmaking to die at the SSI plant at Redcar. People have very long memories, and it is a shame that it has taken another six months to discover the concept of co-investment, because that has come a little bit late. However, I very much welcome the securing of the long products division, and I congratulate the unions on their initiative in progressing the discussions to such a successful conclusion This is the most bizarre of circumstances: we are fearing the collapse of steel production in the UK, but we have the most superb industry, with a brilliantly skilled workforce and an excellent industrial relations history. It is therefore essential that we send out the message that we have a steel industry that is very much worth fighting for. We need to instil confidence in steel customers and suppliers alike that our steel operations are very much open for business. Steel has a bright future if we can get through these next few months On development, I am grateful to the mightily impressive Chris McDonald of the Materials Processing Institute for pointing this out: "Two-thirds of the steels in use today were not even invented 15 years ago, and steel remains a vital ‘economic enabler’ for UK economic growth without which our successful high-value manufacturing sector simply could not exist." The automotive, aerospace, defence, nuclear and rail sectors all need the development of new steels in the pursuit of ever improving productivity, and our leading companies undoubtedly benefit from research partnerships with domestic steel producers. He went on: "If the steel industry were to disappear altogether from the UK, reliance on overseas producers would not only mean the loss of thousands of jobs, but also slow the pace of development and risk the offshoring of the whole manufacturing supply chain" We should therefore grasp the opportunities presented by Tata Steel’s sale offering of its assets in the UK The debate is about more than just Port Talbot, but that is vital. There is an overwhelmingly strong case for the continuation of steelmaking at Port Talbot, with its advanced steelmaking equipment, its experienced workforce and its capability of making world-leading, high-quality steel for the most demanding applications. Labour Members are in no doubt that the plant can not only compete, but have a highly profitable future. In addition, there is a huge opportunity for new mini-mill operations based around electric arc furnaces, utilising 100% recycled raw materials and offering a step change improvement in carbon emissions I plead with Ministers to include all aspects of the future of UK steel in their thinking: the exploitation of, and commitment to, innovation and research and development will undoubtedly pay rich dividends. There is a research and development proposal on the table from the MPI, TWI Ltd and the Institute of Materials, Minerals and Mining. The proposal will leverage recent and secured future investments, which have been used to upgrade materials, research and support facilities in Rotherham, Port Talbot and Cambridge, as well as on the two sites in Tees valley. I urge Ministers to look closely at that proposal. The automotive industry has been turned round to become an enormous success, and we can do the same with the steel industry The timescale is crucial, but it is ridiculously tight. The kindest thing to say is that the seller is incredibly ambitious to think that such a process can be undertaken in such a short space of time. Crucially, in the final analysis, the state will indeed step in. Call it temporary nationalisation, public sector stewardship or whatever we like, but let the customers, suppliers and workers know that the UK steel industry will endure, and it will not only endure but thrive.