Steel Industry (Nationalisation) Bill
1/1Consideration of Lords amendments
Clause 3
Sunset for exercise of principal transfer powers
I can inform the House that nothing in the Lords amendments engages Commons financial privilege.
I beg to move, That this House agrees with Lords amendment 1.
With this it will be convenient to discuss Lords amendments 2 to 18.
It is a pleasure to be back in the House today to see through the final stages of this Bill. The Government support all the Lords amendments before us. I wish to pay tribute to my colleague Minister Leong for so expertly guiding the Bill through its passage in the other place. I also wish to place on the record my thanks for the constructive approach taken by peers to the scrutiny of the Bill during its passage through the upper House, including the constructive and careful consideration from His Majesty’s official Opposition, Liberal Democrat peers and Cross-Bench peers. I thank them for their contribution. We have a responsibility to act now to secure the future of the UK steel industry. This Bill will assist in that by ensuring that steel production is secured, helping to restore domestic production to sustainable levels and supporting the Government’s economic growth plans where the public interest test is met. The Lords amendments before us strengthen the Bill in several ways. Amendment 1 ensures that the sunset power in the Bill may be extended only by increments of two years. This means that the Government would have to seek parliamentary approval at regular intervals to keep the principal transfer powers on the statute book. Lords amendments 2 and 3 place a duty on the Secretary of State to consider the costs that are likely to be associated with the exercise of the principal transfer powers, ensuring that such costs are considered in any decision making over the use of these powers. Lords amendments 4 and 5 upgrade the parliamentary procedure relating to continuity obligations and enforcement, ensuring that Parliament has increased scrutiny of these matters. Lords amendments 6 to 18 all relate to the appointment and role of an independent valuer and ensure that key considerations around environmental and health and safety liabilities are taken into account during any valuation exercise. A final decision on the use of the powers in the Bill has not been taken. Any decision to exercise the powers in the Bill will be subject to satisfaction of the public interest test, based on the relevant facts at the time of the decision. Steel has shaped our nation’s history, and this Bill is an opportunity to ensure its long-term success. The Bill enables decisive action for a strategically vital industry, defending our national security and supporting our critical national infrastructure, our economy and our national interest. I therefore ask right hon. and hon. Members to support the Lords amendments before us today.
I call the shadow Secretary of State.
I am grateful to their lordships for their work on the Bill. We support the amendments before the House. Let me be plain from the outset: our objection has never been to steelmaking, or to the men and women who make steel; it is to a Government who have crashed around and used blunt instruments without ever having a detailed plan. Hope is not a strategy, and a blank cheque is not a plan. Nationalisation is a bad idea, and nothing that has yet been said at that Dispatch Box has told the House where the spending stops. The Government are taking us down a fast and expensive road with no idea where the exit lies. Even members of the Government concede in private that they rushed into something that they now repent at leisure. Let us look at what we have learnt over the passage of the Bill. The Government and their Lib Dem little helpers in the Lords voted against a Conservative amendment in the name of the noble Lord Hunt to limit support to £2.5 billion over three years. That is almost £2.3 million every single day. The cap was not plucked from thin air—that £2.5 billion was the Government’s own figure. In their refusal to accept a cap, the Government concede that the figure is likely to be more. That could have been 35,000 new police officers, eight brand-new hospitals or more than double what the Chancellor raised over the course of this Parliament by destroying the livelihoods of British farmers.
We support Lords amendment 1, which limits by two years the power for Ministers to bring further steel businesses into public ownership without coming back to this House. Powers this sweeping should never have been handed to Ministers without limit. We support Lords amendments 2 and 3, tabled by the Liberal Democrats, which would require the Secretary of State to weigh the likely costs before making share transfer or property transfer regulations. That is a modest ask, and it is hugely damning that it had to be forced on the Government.
We support Lords amendments 4 and 5, which were laid on a cross-party basis. They shift the regulations governing continuity obligations and their enforcement from the negative procedure to the affirmative. If Ministers wish to bind steel undertakings and their suppliers, let them do so in daylight, with the consent of this House—not by regulations that slip through unseen without the scrutiny of Parliament.
We welcome the Government’s Lords amendments 6 to 18, which would require, rather than merely permit, the compensation scheme to provide for an independent valuer and would set out plainly the role that the valuer must perform. When the Government listen and act sensibly, we support them—and we have. It is a pity that the Government did not extend this House the same courtesy on the one amendment that mattered the most: the cap on an otherwise unlimited bill for the taxpayer.
For all the hours we have now spent debating the future of steelmaking in the UK, the Government still refuse to confront the real issue—they know what it is, but they refuse to confront it. It is the Secretary of State for Energy and his addiction to ruinously high energy prices. It is not me who says that but Unite the union’s general secretary, who described this as a “noose around the neck” of job creation.
There is no path to profitable steelmaking of any kind in the UK while energy prices here are four times higher than in many of our competitor nations. There is no tariff damaging enough to manufacturers and steel users to compensate for that, even though the Government’s botched attempts are clearly already causing manufacturing jobs to shift offshore.
The Government will talk about their British industrial competitiveness scheme, which is welcome, but it is just a sticking plaster on a gaping wound—and the Minister knows it. It is nonsense to claim that their strategy is one of security of supply when the same Government refused to open a coking coal mine, meaning that every furnace is reliant on imports, without which they would close in a matter of hours.
Only the Conservatives have a plan to get Britain drilling and reduce energy costs. We will remove legal obstacles blocking new oil and gas projects like Rosebank and Jackdaw and scrap the energy profits levy to make them viable. We will increase private investment in oil and gas extraction, and we will scrap the carbon taxes and industrial levies that expensively subsidise intermittent renewables that do not generate when the wind does not blow or the sun does not shine.
We will not stand in the way of these amendments. Many of them are ours, and the rest improve a flawed Bill, but let no one mistake improvement for endorsement. The amendments warrant our support, but the so-called plan and the botched decisions behind them do not.
We have a duty to stand by the steel sector, especially as it navigates unprecedented challenges, including President Trump’s unfair steel tariffs, China’s anti-competitive state aid practices, and the transition to environmentally sustainable production methods. If we are going to foster a thriving steel industry, we cannot allow more producers to collapse, more jobs to be lost, or the risk of our last blast furnaces going cold. That is why the Liberal Democrats broadly welcome this legislation as a temporary emergency and targeted step aimed specifically at turning around British Steel before it can be returned to the private sector. I am particularly glad that the Government have accepted Liberal Democrat amendments that will require the Secretary of State to have regard to the costs of nationalisation before they table regulations to nationalise a company, as well as amendments that would ensure the consideration of environmental liabilities. Those Liberal Democrat amendments will strengthen the legislation, ensuring that these measures—and indeed the Government’s broader steel strategy—move us in the right direction to set the industry on a truly sustainable footing for the long term, while providing taxpayers with real value for money. Lords amendments 2 and 3 ensure that if the Secretary of State is to exercise the principal transfer power, the Government must consider the expected cost to the taxpayer. That is important not only for business and industry to have certainty over the nationalisation process, but for taxpayers, who need to know that their money is not being wasted or paid to foreign owners who will leave our industries high and dry. I am glad that the Government have also agreed to Liberal Democrat amendments that will strengthen the treatment of environmental liabilities in relation to the steel undertaking and ensure that they are explicitly identified and accounted for before compensation payments are made. On top of those legislative concessions, we are glad that the Government accepted other Liberal Democrat calls, including holding a debate in each House within 12 months of Royal Assent and requiring any future chair of a nationalised company to appear before the Business and Trade Committee. Those significant improvements to the legislation promote parliamentary scrutiny and accountability. We also welcome the Government’s having listened to Liberal Democrat peers and introduction of written ministerial statements on the day of acquisition, which will be repeated every three months until we reach a year from nationalisation. Again, that change boosts transparency, enabling Parliament to scrutinise the measures’ impact on local communities and jobs. Lastly, we are glad that the Government adopted Liberal Democrat proposals to strengthen the UK Steel Council and its role in facilitating nationalisation within the context of the steel strategy. Steel is a vital sector, bringing far-reaching benefits across the UK. It provides key materials for our national infrastructure from defence to renewable energy, and creates thousands of good jobs across the UK. The Liberal Democrats welcome the action that the Government are taking to protect British steel, backing a key plank of our critical national infrastructure. I am glad that the Government have worked constructively with the Liberal Democrats and that Ministers have adopted many of our proposals to improve transparency and accountability around the financial and environmental costs of any forthcoming measures. We will continue to constructively scrutinise the Government as they put these new measures in force to ensure that steel producers, local jobs and British taxpayers are properly supported and treated fairly.
I welcome the Government’s acceptance of the Lords amendments. As hon. Members will know, part of my constituency takes in the Scunthorpe steelworks, and hundreds of my constituents work there. My aim throughout the rather tortuous and long saga about the future of the steelworks has been to ensure that their jobs are retained. As the shadow Secretary of State outlined, the Bill could have been further improved, but I am delighted that we have at least reached a conclusion. There will be a sigh of relief among my many constituents who rely on the steelworks for their employment. I look forward to engaging with the Minister as we move forward on the future of the steelworks—because, as I think he is well aware, if energy costs in particular stay as they are, there are future disasters ahead. We must do something on energy costs if we are to maintain any sort of a steel industry and heavy industry in the UK. I thank the Minister for getting us to this point and look forward to working with him in the future.
I have listened carefully to the shadow Secretary of State’s remarks and those from the shadow Minister, and I will address them in a moment. I am grateful for the support of the Vice-Chamberlain of His Majesty’s Household, my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin), and of the Minister without Portfolio, my right hon. Friend the Member for Redcar (Anna Turley), both of whom are unable to speak in the debate as a result of their positions elsewhere in the House. I opened by remarking on the constructive and careful consideration that the Bill has had in the other place; it is disappointing to see that the shadow Secretary of State is not taking the same approach. I will pick up a couple of the issues he raised. I am acutely aware of the position in which the previous Government left us, with uncompetitive energy prices for industry. If he had been attentive in some of the debates we have been involved in, he would be aware of some of the measures that I have taken to address that. Those include our energy-intensive scheme, increased relief on our supercharger scheme and our British industrial competitiveness scheme. I am determined to do more. On tariffs, I am not saying that making the decision on tariffs was easy, but the shadow Secretary of State would clearly throw British industry to the mercy of dumped steel on the global market. We will not make that decision. He mentions coal for coking ovens. He may be unaware that there are no coking ovens in Scunthorpe. They were closed on his watch. This Government are acting decisively and with purpose in the national interest, but the shadow Secretary of State is blinded by his ideological position on nationalisation. We believe that a steel industry, where necessary run by the Government and owned by the people, at least gives the opportunity to attract private sector investment. If the public interest test is met, that is the right thing to do. But if that does not convince the shadow Secretary of State, perhaps I can appeal to his sense of patriotism. I said on Second Reading that the England men’s football team had only ever won the world cup in a year when we had nationalised the steel industry. If he has any sense of duty towards our team and wishes them well, he should support nationalisation this time as well. Lords amendment 1 agreed to. Lords amendments 2 to 18 agreed to.