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Question
Why did the Secretary of State not take steps to ensure that the blast furnace will not be closed before the new electric arc furnace opens? What are his plans for Scunthorpe steelworkers who may lose jobs by Christmas?
Minister reply
The minister emphasised that this deal represents a better destination and transition than what was inherited, but acknowledged it falls short of an ideal scenario. He did not provide specific reassurances or job projections for Scunthorpe workers.
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Question
How will the Secretary of State ensure that all the promises made in the announcement are fulfilled?
Minister reply
The minister committed to ensuring job guarantees and provided details on funding agreements that include clawback provisions if promised jobs do not materialise. He also mentioned ongoing discussions with industry experts for developing the steel strategy.
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Question
How will this deal affect Port Talbot’s local economy, particularly in terms of diversification and new job creation?
Minister reply
The minister highlighted the release of 385 acres of Tata Steel site for sale or transfer to attract new companies from various industries. He also mentioned potential new jobs during the construction phase of the electric arc furnace.
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Question
Why does this Government believe that it is better to support a private company with public money rather than enabling the market to work?
Minister reply
The minister emphasised the importance of ensuring secure, long-term jobs for workers and acknowledged the challenges inherited from previous decisions. He underlined the Government's commitment to supporting the industry through strategic investments.
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Question
What are the Government’s plans regarding direct reduced iron production, and how will this impact steel production in Port Talbot?
Minister reply
The minister stated that the Government would review the viability of technologies for primary steelmaking, including direct reduced iron, to improve UK capabilities and competitiveness in the sector.
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Question
How will this deal affect steelworkers outside Wales?
Minister reply
The minister acknowledged that while the statement focused on Port Talbot, they would continue to support other regions and industries affected by changes in the steel sector.
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Question
Smith criticised the Labour government for presiding over a decline in the steel sector, highlighting job losses and reduced production. He questioned the timeline of the new electric arc furnace project and its impact on jobs. Smith also challenged the minister about the Government's commitment to national security and virgin steel production, suggesting that without it, Britain would be reliant on higher-polluting countries for imports.
Minister reply
Reynolds responded by outlining his efforts in preventing the entire closure of Port Talbot works during polling week. He highlighted the better terms offered under the new deal and the challenges faced due to lack of action from previous governments. Reynolds also mentioned ongoing meetings with management about Scunthorpe, emphasising the difficulty of available options.
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Liam Byrne
Lab
Birmingham Hodge Hill and Solihull North
Question
Byrne welcomed the Secretary of State’s announcement and expressed hope for a cross-party consensus on the steel strategy. He asked for reassurance regarding how procurement and offshore wind industry development will drive demand to keep furnaces operational.
Minister reply
Reynolds agreed with Byrne, stating that they are looking at delivering new transition deals while improving the overall business environment for UK steel. He emphasised the importance of long-term investments for securing jobs.
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Question
Olney highlighted the strategic importance of steelsmaking and questioned whether the new strategy would align with a wider industrial strategy, aiming to balance infrastructure needs, national security, and net zero commitments.
Minister reply
Reynolds welcomed Olney's support for the steel strategy and confirmed that it will be aligned with the broader industrial strategy. He assured that the Government is willing to make substantial investments and committed to bringing the strategy to Parliament by spring next year.
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Question
Welcomes the Secretary of State's commitment to public procurement and asks about the carbon border adjustment mechanism, noting its disadvantage for UK producers due to later implementation compared to the EU.
Minister reply
Acknowledges the issue with the CBAM due to lower carbon prices in the UK and mentions that they are looking into it as part of a wider policy environment aimed at decarbonisation without deindustrialisation.
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Question
Asks for details on when the strategy will be published, the level of government investment, and assurances for steelworkers regarding jobs.
Minister reply
Announces that the strategy will be published in spring next year with a £3 billion clean steel fund to support Port Talbot and other areas. Emphasises the importance of private sector partnerships and mentions existing protections from steel dumping.
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Question
Compliments the announcement on its significance for green transition in south Wales.
Minister reply
Acknowledges the importance of the announcement and reassures that this is the maximum improvement possible within two months. Highlights steel's role in future growth, not decline.
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Question
Asks for plans to secure a long-term order book and use public procurement to support domestic steel while encouraging exports.
Minister reply
Agrees with the question, mentions high levels of UK content in domestic steel procurement. Emphasises the need for future demand analysis and new market entrants.
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Question
Asks if delays in negotiations have ended and seeks reassurance on construction at Port Talbot.
Minister reply
Reassures that the statement addresses ongoing concerns. The goal is to proceed with part of the plan while ensuring good, secure, long-term jobs.
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Question
Critiques the loss of virgin steel production in Wales and questions why the investment does not match that of Germany.
Minister reply
Explains the necessity for private sector partners due to high capital expenditure needs. Indicates ambition levels exceeding those of other European competitors.
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Question
Inquires about discussions with workforce and unions regarding improved deal.
Minister reply
Details extensive conversations including meetings with community representatives. Emphasises the importance of getting it right to avoid long-term damage.
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Question
Questions measures against electricity price rises and potential turn to China for steel supply.
Minister reply
Acknowledges the issue, mentions supercharger policy near end of previous government term. Notes more detail in upcoming budget and spending review.
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Question
Congratulates the Minister on securing an improved deal and inquires about procurement policies for British steel in green energy and defence projects, contrasting it with previous government's actions.
Minister reply
Thanked for support; addressed concerns by stating that while social value can be considered in procurement, any action will adhere to international trade rules. Emphasised the quality of UK-produced steel but noted that specific locations like Scunthorpe and Port Talbot may not have direct roles in defence contracts.
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Question
Claims net zero policies are responsible for the financial struggles of steel plants; asks if taxpayers' money will be returned if Tata fails to build electric arc furnaces as promised.
Minister reply
Denied mischaracterization, stating long-term losses due to operational issues; confirmed that contractual terms include clawback capacity and job guarantees.
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Luke Myer
Lab
Middlesbrough South and East Cleveland
Question
Welcomes the commitment to a new steel strategy and seeks clarity on discussions around investment in Teesside.
Minister reply
Acknowledged the importance of the industry; stated ongoing negotiations with British Steel, emphasising need for transition plans.
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Question
Supports industrial strategy but asks about protecting domestic manufacture and securing coking coal supply; inquires if loss of Scunthorpe capacity means no steel production for years.
Minister reply
Prefers to protect domestic manufacture but needs a business partner willing to invest; noted reliance on carbon capture and storage infrastructure previously cancelled by previous government.
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Question
Congratulates the Minister for announcing the steel strategy quickly and asks about plans for Llanwern plant in her constituency.
Minister reply
Emphasised future opportunities from renewables and automotive sectors; committed to protecting downstream functions at Llanwern.
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Question
Congratulates the Minister on prioritising steel sector, contrasts with previous lack of strategy, asks about safeguarding future of Llanwern plant.
Minister reply
Acknowledged hard times at Llanwern but committed to protecting its valuable downstream functions and ensuring a smooth transition.
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Question
Thanks the Minister for efforts in creating foundations for steel sector; asks about long-term energy sustainability, especially addressing affordable energy prices.
Minister reply
Acknowledged need for competitive environment; stated ongoing conversations with Cabinet to address short and long-term energy issues.
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Question
Congratulates the Minister on securing a deal better than previous government's and inquires about direct talks with Tata regarding future UK investments.
Minister reply
Acknowledged frustration of both workforce and Tata; detailed extensive conversations had during opposition period to build necessary relationships.