😟 Scunthorpe Steelworks

• Urgent Question on Scunthorpe Steelworks: Martin Vickers asked the Secretary of State for Business and Trade about actions to prevent the closure of Scunthorpe’s steelworks.

• Government Response: Minister Sarah Jones expressed disappointment over British Steel’s decision to close assets and consult on redundancies. She mentioned that government contingency plans are in place, with support from the Departments for Work and Pensions and Education for affected workers.

• Negotiations with British Steel: The government made a £500 million offer to British Steel, which was rejected. However, negotiations continue, with meetings held with Jingye, the owner of British Steel, and more planned. The government is committed to securing a long-term future for the steelworks.

• Nationalisation Consideration: There was discussion about nationalisation as a potential solution to keep the furnaces running. While the government’s preference is for a commercial solution with private investment and government support, no options are ruled out.

• Industrial Strategy and Steel Plan: The need for a robust industrial strategy and a specific plan for steel was highlighted. The government is working on a £2.5 billion plan for steel to reverse the decline in steel manufacturing.

• Energy Prices and Competitiveness: High energy prices in the UK were noted as a challenge for the steel industry. The government is aware of this issue and is working to address it.

• Support for Workers and Communities: The government is engaging with steelworkers and their unions to understand their concerns and provide support. The impact on communities and national security was also discussed.

• Primary Steel Production: The importance of maintaining primary steel production capacity in the UK was emphasized, with a review underway to assess future needs.

• Cross-Party Consensus: There was a call for cross-party cooperation to address the steel industry’s challenges, with a focus on ensuring the UK can produce virgin steel.

• Urgency of Action: Concerns were raised about the immediate need to order raw materials to keep the blast furnaces operational, with a deadline approaching in mid-May.

The session on Scunthorpe Steelworks displays a moderate level of disagreement, warranting a rating of 3 out of 5. The disagreements primarily revolve around the approach to saving the steelworks, the role of government intervention, and the broader industrial strategy concerning steel production in the UK. Here are the key points of disagreement and examples from the transcript:

1. Approach to Saving Scunthorpe Steelworks: There is a clear divide on whether the government should nationalize the steelworks temporarily or continue to negotiate with the private owner, Jingye. Martin Vickers (Con) and Richard Tice (Reform) advocate for nationalization, with Vickers stating, “The majority opinion in the area and among leading politicians is that nationalisation on a temporary basis is the only solution to keep the furnaces burning.” In contrast, Sarah Jones (Minister for Industry) repeatedly emphasizes that the government’s preference is for a commercial solution with government support, although she does not rule out any options, saying, “Our preference is for a commercial solution, with Government providing support, but all options remain on the table.”

2. Government Intervention and Support: There is disagreement on the effectiveness and extent of government intervention. Kevin Hollinrake (Con) criticizes the government’s approach, suggesting that they are not doing enough to support the industry, stating, “Despite repeatedly promising to protect and support virgin steelmaking capacity when in opposition, the Labour party is potentially presiding over its total demise.” Sarah Jones responds by highlighting the government’s efforts and the previous government’s failures, saying, “The hon. Gentleman talks about the number of good steel jobs that have gone forever or are at risk, but that happened because the previous Government failed to intervene to support our steel industry.”

3. Industrial Strategy and Energy Prices: There is contention over the need for a robust industrial strategy and the impact of high energy prices on the steel industry. Matt Western (Lab) and Sarah Gibson (LD) stress the urgency of establishing a steel plan and an industrial strategy, with Western stating, “The Minister will be aware that an area where we have failed as a country over the last six years or so is not having an industrial strategy.” John Cooper (Con) criticizes the government’s energy policy, suggesting it is driving up costs unsustainably, saying, “The dogmatic pursuit of net zero is driving up energy bills in this country to a level that is simply not sustainable for industry.” Sarah Jones acknowledges the issue of high energy costs but emphasizes the government’s ongoing efforts to address it.

4. National Security and Virgin Steel Production: There is disagreement on the necessity of virgin steel production for national security. Sir Julian Lewis (Con) and Sir Bernard Jenkin (Con) argue strongly for maintaining virgin steel production, with Lewis stating, “We must have a quantity of virgin steel, even if we add other things to it, to embark on the process of making essential defence products.” Sarah Jones responds by explaining the complexities of steel production for defense and the ongoing review of primary steel needs, indicating a more nuanced approach.

These disagreements are significant but are expressed in a manner that is mostly respectful and focused on policy and strategy rather than personal attacks. The session shows a clear division in opinions but also a willingness to engage in dialogue and consider various options, which is why the disagreement level is rated as moderate.