Scunthorpe MP Holly Mumby-Croft has set her stall out to protect virgin steelmaking in the town, raising an urgent question in Westminster calling for an update on government negotiations.
The Conservative backbencher praised the Speaker for allowing the intervention in the House of Commons, stating she has “3,500 of the world’s finest steelmakers in my constituency, and it is my privilege to come out and bat for them today”.
She took to her feet in the Chamber at the earliest opportunity following Monday’s announcement of a £1.25 billion proposal that could lead to significant job losses as blast furnaces are replaced with a clean electric arc process. While vital to decarbonise the industry, fears over the strategic loss of primary production have been voiced, against a backdrop of industry assurances over a continued ability to meet demand.
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Business and Trade Minister Nusrat Ghani appeared at the despatch box to field the question, with several MPs from around the Humber joining her, with cross party support stressed.
Mrs Mumby-Croft seeks to lock in an interim period of blast furnace production to explore green options to run them. It came just hours after Labour leader Sir Keir Starmer called for further clarity on a seamless transition in an exclusive Business Live interview.
Responding, Ms Ghani said: “Steel is vital to the UK economy. I fully recognise the importance of British Steel to local communities, particularly in my honourable friend’s constituency of Scunthorpe, where the company is a major contributor to local economic growth, and where she campaigns incredibly hard for steelworkers.
“Global conditions have been tough for steel companies around the world that is why we’ve changed the competitive pressive landscape for British Steel and other energy-intensive industries by announcing the British industry supercharger, a decisive package of measures to reduce the long-term electricity price gap that exists between UK energy-intensive Industries and competitive countries, and this support would mean that strategically significant UK Industries like steel are safeguarded against a high industrial electricity prices that they’re faced in too many years recently. We’ve also provided over £730 million in energy costs relief to the steel sectors in 2013, in addition to the Energy Bill Relief Scheme. Steel producers will continue to receive support until March 31, 2024 through the Energy Bills Discount Scheme.
“As my right honourable friend is aware, the Government made an extremely generous offer of support to British Steel earlier this year to help them invest in a decarbonised and sustainable future. We have continued to work intensively with British Steel since then and we will continue to do so, which she will also understand that the details of these conversations remain highly commercial, highly commercially confidential, and any public discussions risk undermining talks.
“I know that this must be a deeply concerning time for British Steel employees and others in Scunthorpe following the company’s announcement on Monday regarding its plans for its future operations.
“We will help affected workers and their families and we are committed to finding solutions to enable the ongoing, sustainable and decarbonised production of steel.”
Ms Ghani said virgin steelmaking did have a place in the mix, and reiterated several times in the ensuing debate that Monday’s announcement was only a proposal and that negotiations were ongoing. The package is around £300 million in support to go green and protect jobs.
Mrs Mumby-Croft, invited to respond, re-stated her position made clear on Monday. She added: “I stand absolutely, unapologetically with steelmakers and my community and I do not support these moves.
“British Steel is a private company and they can make business decisions as they see fit but I am clear, if they are seeking hundreds of millions of pounds of government money, then the government must leverage this money to protect steelworkers’ jobs and maintain our sovereign capability to make steel in the UK. Electric arc furnaces melt scrap to make virgin steel from scratch. We need blast furnaces.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
