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Protecting Britain’s Steel Industry
21 June 2021
Lead MP
Emily Thornberry
Debate Type
General Debate
Tags
EconomyEmploymentForeign AffairsBusiness & Trade
Other Contributors: 32
At a Glance
Emily Thornberry raised concerns about protecting britain’s steel industry in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The motion before us disagrees with the recommendations of the Trade Remedies Authority to revoke half the current safeguards protecting our nation’s steel industry against potential floods of cheap imports. It requires the Government to bring forward emergency legislation, allowing them to reject those recommendations and extend all the current safeguards before they expire on 30 June.
Emily Thornberry
Lab
Islington South and Finsbury
The motion calls for the Government to take urgent action by legislating to allow Ministers to reject the Trade Remedies Authority’s recommendation and temporarily extend the current safeguards. It highlights that the TRA has failed to account for the interconnectedness of the British steel industry, nor the impact of safeguard tariffs being maintained in the US and EU when recommending the abolition of nine of the 19 existing safeguards on steel products.
Supports Thornberry's argument that it is the opposite of taking back control for the Secretary of State to be unable to amend the recommendations of the Trade Remedies Authority, which are determining Government policy.
Tewkesbury
The Government are supporting British industry and infrastructure by investing in steel production, securing trade agreements worth £744 billion last year with 68 countries around the world. They have provided £500 million in relief to the steel industry since 2013 and taken action against unfair practices such as state-subsidised steel from China. The Government are working on WTO reform to set new rules on industrial subsidies, and they use trade remedies to protect key industries like steel.
Lee Anderson
Reform
Ashfield
Under the previous Labour government, steel production in the country fell by almost 50% to its lowest level since 1934. He suggests that the current Labour party should look at their own record rather than criticising the current government.
Jim Shannon
DUP
Strangford
Asked if consideration has been given to ensuring every Government contract is carried out using only British-based steel, which would secure local jobs and send a message about supporting domestic industry.
Richard Fuller
Con
North Bedfordshire
Replied that the shadow Secretary of State was incorrect in stating that the TRA had not considered what the impact would be if restrictions were removed, as it is required to do so under regulations.
Marion Fellows
SNP
Motherwell and Wishaw
The steel industry faces significant challenges due to high electricity costs, trade barriers, and the removal of import safeguards. The UK lost approximately 20,000 steel jobs over recent years. A report from UK Steel indicates that British steelmakers pay an extra £54 million in energy costs compared with German steel producers annually, leading to a disparity of £254 million over five years. This hinders investment and competitiveness. The Government's decision to remove safeguards designed to protect domestic producers against cheap imports is seen as detrimental by the industry. There are concerns that this will damage the sector long-term.
Rosie Winterton
Lab
Rother Valley
Noted the rules for Back-Bench speeches and introduced Marion Fellows to speak on behalf of the SNP.
Peter Aldous
Con
Waveney
Emphasised the need to promote clean steel production, which can play a key role in economic recovery, levelling up efforts, and decarbonisation. Highlighted the demand for steel in East Anglia due to offshore wind farms, Sizewell C nuclear power station, and grid extension projects. Stressed that clean steel production must address environmental concerns as the industry contributes up to 7% of global CO2 emissions. Proposed a border carbon adjustment on imported goods based on their carbon content, setting clear targets for using clean steel in infrastructure projects by specific dates, promoting a demonstrator project, and ensuring a hydrogen strategy framework.
The Member acknowledges the importance of steel production in West Bromwich East and the Black Country's industrial heritage. She highlights employment cuts under Labour but notes a doubling of UK steel procurement within public projects since 2019. She supports Government initiatives like the steel procurement taskforce, re-establishing the UK Steel Council, and creating a £250 million clean steel fund to aid industry decarbonisation.
Supports motion for emergency legislation to reject TRA recommendations and extend all 19 steel safeguards. She emphasises the economic importance of steel, its role in various sectors, and the direct contribution it makes to GDP. Reiterates concerns about global oversupply, unfair trading practices from China, and lack of government support during the pandemic.
Acknowledges challenges faced by the steel industry pre-covid but points out historical issues like the decline in employment between 1997-2010. He criticises the opposition's proposals as they would breach WTO rules and open UK to legal retaliation. Supports decarbonisation efforts through clean steel fund, yet expresses concern about job losses due to new technology. Emphasises need for championing British industries in procurement.
Barry Gardiner
Lab
Brent West
The MP argues that the TRA's recommendations will leave half of steel products exposed to import surges, undermining domestic producers and causing confusion among trade unions and employers. He notes out-of-date data was used in the assessment which does not reflect current volumes or trends.
The MP acknowledges her opposition to the TRA's recommendations but recognises the limitations set by the Secretary of State regarding safeguard protections. She suggests that reform of the Trade Secretary’s powers is required for proactive solutions, and she seeks a meeting with the Prime Minister to discuss this issue.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
The MP supports emergency legislation to protect domestic steel producers from cheap imports. He emphasises that steel produced in his constituency is crucial for national infrastructure, defence projects, and clean production processes. Doughty criticises the TRA's decisions as absurd and dangerous for national sovereignty.
The speech criticises the Trade Remedies Authority (TRA) for its handling of trade protections. The speaker argues that the TRA's guidelines are inadequate and that other countries, such as the US and EU, are taking action to protect their domestic markets while the UK is not.
Richard Fuller
Con
North Bedfordshire
The speaker defends the Trade Remedies Authority's approach and argues against Labour’s call for urgent legislative action. He emphasises that protection should continue only where there is evidence of injury to producers, not just import surges. Richard Fuller also points out economic constraints preventing further support.
Mark Tami
Lab
Alyn and Deeside
The Labour MP argues for immediate legislative action to protect the steel industry from dumping and high energy costs, highlighting past failures of government policy. He emphasises the need for proactive procurement policies and support in modernising the sector.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Chi Onwurah advocates for fair trade that lifts countries out of poverty and promotes sustainable development. She criticises the Government's approach to free trade, suggesting it prioritises low wages, poor processes, environmental destruction, and human rights abuses. She argues that a sovereign steel capability is necessary for national interest and highlights the importance of worker representation in trade decisions.
Peter Gibson
Con
Darlington
Peter Gibson emphasises the role of steel in Darlington’s past and future, particularly in clean and green initiatives. He credits the current Government for supporting British steel through infrastructure investment and decarbonisation measures. He contrasts this with Labour's perceived failure to support production and jobs in the industry.
Stephen Kinnock
Lab
Aberafan Maesteg
Stephen Kinnock underscores the critical role of steel in national security, economy, and climate change mitigation. He argues for maintaining all UK steel safeguards to protect against unfair foreign competition and supports free trade with fair conditions. He criticises the Government’s handling of the TRA process as irresponsible and points out that lowering standards is not beneficial for UK business.
Paul Howell
Con
Sedgefield
Welcomed the opportunity to debate the importance of the British steel industry in post-Brexit Britain. He highlighted the significant role of the steel supply chain in his constituency and criticised Labour's lack of support for the industry during their time in government.
Liz Twist
Lab
Blaydon and Consett
Critiqued the current Trade Remedies Authority as not being suitable for regulating the steel industry, arguing it lacks necessary input from unions and actual industry representatives. She urged the Government to reflect on their approach and work with Labour to establish a revised trade remedies process.
Addressed three obstacles facing the UK steel industry: global competition and tariffs, UK procurement practices, and energy pricing. He supported the current government's commitment to protecting jobs in the steel sector while calling for more strategic investment in the future of British steel.
Jessica Morden
Lab
Newport East
UK Steel called the TRA’s recommendations a 'hammer blow to the UK steel sector' and these safeguards are vital for providing stability. The EU and USA maintain their old steel safeguards while slashing them would undermine our own industry, which employs 33,000 people directly. In my constituency, workers face challenges like sky-high industrial energy costs and inadequate procurement policies, as well as competition from bonded warehouses that undercut producers. I urge the Government to secure a long-term solution on safeguards.
We cannot allow cheap carbon-intensive steel from China to destroy our steel industry and planet. Since Kyoto, global emissions have increased by 60%, with China emitting more than the US and EU combined. British steel uses 50% less carbon. We need tariff safeguards against dirty Chinese steel and a border adjustment carbon tax for COP26. Let us build back greener and protect jobs in Wales, England and beyond.
Jerome Mayhew
Con
Broadland and Fakenham
The TRA’s role is to ensure fair competition, not protectionism. Labour wants to extend tariffs unjustified by data which will make UK steel more expensive and less competitive internationally. The Government support the steel industry with £500 million since 2013 but need to move towards a carbon border adjustment mechanism that can work within WTO rules.
Sarah Champion
Lab
Rotherham
The decision whether to extend safeguards is the first real test of UK’s independent trade policy and it shows Government failure. The TRA recommendation leaves 49% of all UK-produced steel production categories at risk from import surges, with devastating consequences across the industry. Liberty Steel's crisis in Rotherham places steel production in jeopardy; the loss would be a colossal blow to the local economy and identity.
Toby Perkins
Lab
Chesterfield
We have heard impassioned speeches on both side of the House from Members who represent steelmaking constituencies. I am really pleased that the motion from my hon. Friends also recognises the importance of those in the supply chain, because in Chesterfield, with our close proximity to Sheffield, we have a long-standing history of supply to the steel industry, and that is incredibly important. What is slightly missing from this debate is how crucial the steel industry is not just to those people employed directly in it or those supplying it, but to manufacturing in the UK more broadly.
I come from a family of Welsh industrial workers. My father and grandfather were coalminers and my other grandfather worked for the steel industry. The steel industry is a vital part of the Welsh economy. Along with the coal industry, it is part of our industrial heritage, and I want steel to be part of our future, too. It employs thousands in jobs in Wales, and many through the supply chain, and the median salary in the steel sector is around £34,000 a year.
Ed Miliband
Lab
Doncaster North
We have had an excellent debate with noteworthy contributions from all parts of the House. The heart of the debate is whether rhetoric about building back better matches reality, especially regarding the steel industry. Steel supports tens of thousands of high-skilled jobs and is essential for national manufacturing success and security. We need to support the industry through every available tool. UK Steel warns that removing protections would be 'a hammer blow' to the sector due to a global glut of production. The Government's decision ignores warnings from the steel industry and fails to learn past lessons. The EU retains its existing protections, making it extraordinary that we are arguing for weaker protections post-Brexit. We need emergency legislation to address this issue in nine days.
Blyth Valley
The Minister thanks colleagues for their contributions, acknowledges the challenges faced by UK steel producers and outlines the government's commitment to supporting the industry. She mentions ongoing work with trade unions and industry on a sustainable future for UK steel, including efforts to reduce costs through energy transformation funds and decarbonisation strategies. She also highlights the £250 million clean steel fund aimed at transitioning to low-carbon production technologies.
Government Response
The Government are committed to championing free and fair trade to benefit jobs in every corner of Britain. They have provided £500 million in relief to the steel industry since 2013, taken action against unfair practices such as state-subsidised steel from China, and worked on WTO reform to set new rules on industrial subsidies. The Minister outlines ongoing work with trade unions and industry on a sustainable future for UK steel, including efforts to reduce costs through energy transformation funds and decarbonisation strategies. She also highlights the £250 million clean steel fund aimed at transitioning to low-carbon production technologies.
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