The following are the excerpts of the proceedings in the House of Commons on the agreement with Tata Steel to invest in a project for moving towards low-carbon steelmaking in Port Talbot
The electric option was a commercial decision for Tata, but it was the only way to ensure certainty to continue. Another Member talked about supply chains and making sure that production continues, so that Tata can deliver the contracts it has in place. The only way to do that is with electric, and that is the way we are going forward
Holly Mumby-Croft (Con)
TATA in Port Talbot and British Steel in Scunthorpe are the last two steelworks in this country that have blast furnaces. There is a place for electric arc furnaces, but we need to remember that they melt scrap; they cannot make brandnew virgin steel from scratch; a blast furnace is needed to do that. My hon. Friend made the comment about steel being a strategic industry, and she is right. Does she agree that, for national security reasons alone, we must ensure that we retain the capability to make virgin steel in this country?
Ms Nusrat Ghani
My hon. Friend is absolutely right on the importance of virgin steel production. She is the best champion for her constituency and her steel plant, which is now uniquely positioned as the blast furnace to make virgin steel. That will be important in line with our mantra of “continuity, certainty and security.” Conversations have been taking place with British Steel, the details of which are commercially confidential. My hon. Friend campaigns incredibly hard for the steel sector both in the constituency and across the UK. Those meetings will continue. She is right that, obviously, we need a place for virgin steel, and that is in her constituency.
Stephen Kinnock (Lab)
When all is said and done, the purpose of the deal should have been to protect the current order book and to prepare us for the opportunities of the future. All investment is welcome— I do thank the Minister for her work in this area—but I am afraid that the deal will fail to keep us competitive and to deliver a just transition for the thousands of my constituents whose dedication to our proud steel industry is second to none.
Could the Minister kindly address the following questions? Why have the Government put all their eggs into the electric arc furnace basket? Where is the investment in hydrogen, direct reduced iron and carbon capture technology so that we can continue to produce virgin steel, as the hon. Member for Scunthorpe (Holly Mumby-Croft) pointed out? Why were the steel unions not consulted in advance of the announcement? There are literally dozens of hydrogen-based steel projects ongoing across Europe.
They are not necessarily ready to make steel but at least they are out of the traps, whereas we are still in the changing room putting our trainers on. Why have the Government not actually entered the hydrogen race?
Ms Ghani
The hon. Gentleman, who worked with me incredibly well as chair of the all-party parliamentary group for steel and metal related industries, answers his own question when he speaks about hydrogen. He knows very well the age of the blast furnaces in his constituency and the fact that we needed a transition that enabled certainty to continue. There is no option other than electric to scale up within the time required. [Interruption.]
My right hon. Friend the Member for Wokingham (John Redwood) knows that. We have spoken about this many times, so it is disappointing to see the hon. Member for Aberavon being so political about it now. The electric option was a commercial decision for Tata, but it was the only way to ensure certainty to continue. Another Member talked about supply chains and making sure that production continues, so that Tata can deliver the contracts it has in place. The only way to do that is with electric, and that is the way we are going forward.
Commercially sensitive conversations can take place in a much tighter circle, but the hon. Gentleman will know that discussions have been going on for years and years. There is now a transition board, and there will be a huge amount of consultation. The focus is on ensuring that the people impacted are provided with the support they need to transition into the jobs that they should. The fact is that we are securing the future of the steel sector in the hon. Gentleman’s constituency. Without this funding all 8,000 jobs would have been lost, along with 12,000 in the supply chain, and we are not seeing that. We are backing steel in his patch.
