Bill Esterson
MP for Sefton Central · Labour · United Kingdom
“As the Prime Minister said on Tuesday, our energy supply and our energy security are not a question of having either oil and gas, or renewables; they are about both. It is a great pity that proper process was not followed in 2022 or 2023. [ Interruption.”
“I warmly welcome my right hon. Friend’s commitment to continuing Britain’s global leadership on climate action, including by going to COP31. I also welcome his focus on breathing space for people and businesses, but, as he said, it will take a lot more than that to deliver the growth and reindustrialisation that he is so committed to.”
“Last week the Committee heard from Claire Dykta, the director of strategy and policy at NESO, who told us: “Operational decisions are taken by authorised, trained personnel only.” Her comments were confirmed by Alastair Martin, the chief strategy officer at Flexitricity, who, in the same session, said: “I do not think the idea that the he…”
“As the Minister has just said, new nuclear is essential for energy security. It is also essential as an alternative career for workers in oil and gas.”
“Paul and Susan Robinson each worked for the Health and Safety Executive for more than 40 years. They have not been able to plan for their retirement since finishing work last year; they have been living off their savings and the small loan that they have had. They are typical of the dozens of constituents who have contacted me.”
“Hudson primary school in my constituency does a brilliant job. It is a family hub, it specialises in support for children with SEND and autism, and it has a nursery, but its building, which is 80 years old, suffers from a high water table that brings damp, mould and structural problems for the building—as does occasional flooding.”
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“Then there is ULEMCo in my constituency—please look it up—which has pioneered the use of hydrogen as a drop-in fuel to existing internal combustion engines to cut emissions while full hydrogen options for combustion and fuel cells are being developed. Those, and many more, are examples of the amazing potential in this country. However, they are all examples in which uncertainty must be addressed to ensure that our automotive industry can thrive. The honest truth is that we are in danger of squandering the advantages that we have in vehicle manufacturing. UK motor vehicle production levels have fallen by 37% since the Conservatives came to office in 2010—one of the largest falls in vehicle production of any country. Eight in every 10 cars produced in the UK are exported, yet exports of cars manufactured in the UK fell by 14% in 2022.”
“That is what other countries are doing—other countries that are ahead of us in the low-carbon transport transition race. I mentioned my recent visits. I saw the pride of the Stellantis workers at Ellesmere Port, where they produce electric vans for Peugeot, Citroën and Fiat, as well as for Vauxhall, and where they want to expand production to be able to export, as they told my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) and me just a few weeks ago. I saw the ingenuity on display at the Jaguar Land Rover research and development facility at Gaydon, and JLR’s “Reimagine” project and commitment to all electric across a number of its brands.”
“Over the last few months, I have—high vis and hard hat at the ready—been blown away by the possibilities in our automotive industry, but I have also felt the force of the headwinds facing the sector, including EU rules of origin, high electricity prices in manufacturing, the slow roll-out of EV charge points, the shortage of gigafactory capacity, delays to the zero-emission vehicle mandate, and, of course, the continuing fallout from the way in which the Conservatives crashed the economy this time last year. The fact is that it is only through a partnership with Government that our vehicle manufacturers can achieve lasting success in a world where new technologies offer opportunity, and competition from new participants such as China is more of a challenge than ever.”
“The industry wants the roadblocks and the let-downs to be removed. I will leave the last word to Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, who just this morning wrote about the uncertainty around the ZEV mandate, charge points and gigafactory capacity. He said: “A comprehensive package of measures would encourage households across the UK to go electric now, boosting an industry slowly recovering from the pandemic and delivering benefits for the Exchequer, society and the global environment.” I could not agree more. With Labour’s industrial strategy, Labour’s green prosperity plan and Labour’s partnership with industry, our automotive sector will be turbocharged to deliver success.”
“Our plan to make the UK a clean-energy superpower by 2030, with net-zero carbon electricity, will deliver capacity and lower energy costs for UK manufacturing. Those costs, including electricity costs, which are 62% higher in the UK than in Germany, are a barrier to our competitiveness. The motor industry and motorists are being let down by this Government. They are being let down on the ZEV mandate; on rules of origin and local content; on the slow progress of gigafactories and EV charge points; and on energy prices. Above all, they have been let down because of the damage done by 13 years of Conservative mismanagement of the economy, which culminated in last year’s disastrous mini-Budget. All of that has led to the further let-down of high interest rates, which are higher than in competitor countries.”
“I will not, because Madam Deputy Speaker has, quite correctly, been very strict in the time she has allocated. Labour’s plan will lead to the creation of 80,000 jobs in our industrial heartlands. Our plan will power 2 million electric vehicles and add £30 billion to the UK’s economy. We will accelerate the roll-out of charging points and give motorists the confidence to make the switch. We will have binding targets for electric vehicle chargers that will, like carbon budgets, be binding on the Government. We will ensure that local areas have the support and investment that they need. Labour’s plans for energy generation are inextricably linked to the transition to low-carbon road transport.”
“The UK is the only major steel-producing nation where production is falling, but the Minister and her colleagues have been telling us for months that they cannot guarantee the use of UK-made steel in Government contracts, especially in the military. The thing is that the steel producers say that they can make whatever their customer asks by changing the production line. Will the Minister confirm that the reason we have a problem with steel in this country is the Government’s refusal to view it as a strategically important industry? The Conservatives’ sticking-plaster politics have failed steelworkers, as we have seen at Port Talbot.”
“T10. A loophole in the sanctions regime has seen Russian steel processed in Turkey and exported to the UK. The 43% increase in Russian steel exports to Turkey in the last year alone shows the extent of the problem. The Government have belatedly introduced a ban on imports of such steel, but without enforcement the ban will be meaningless. Can the Minister tell the House what the Government’s plans are to enforce the ban on imports of Russian steel processed in Turkey?”
“It is always fascinating to hear Ministers justifying their failure over the last 13 years. The Minister would do well to recognise that business investment is at a record low in this country. One way to address the record low in business investment is to listen to the professional services sector, which says that a mutual recognition agreement with the EU would increase that performance and contribution. Why have the Government made no progress on that mutual recognition agreement?”
“There are 23 clean steel projects across Europe, but none in the UK. Meanwhile, the UK is the only country in the G20 where steel production is falling. Other countries recognise the importance of their domestic steel industries, and they recognise the importance of investing in low-carbon steel. Why do this Government not support our steel?”
“The Minister said that she recognises the vital role that steel plays in this country, but the UK is the only country in the G20 where steel production is falling. It is also the only G7 country whose Government do not insist on using domestically produced steel in defence contracts. Meanwhile, UK steel producers pay 62% more than their German counterparts for electricity. Labour’s £3 billion green steel plan will give our industry the bright future that other countries are offering their steel sectors. Labour believes in our steel; why do this Government not?”
“On 13 March, the Defence Secretary told me that UK steel was not specified in defence procurement because “we do not manufacture the type of steel” —[ Official Report , 13 March 2023; Vol. 729, c. 529] required. But according to UK steel producers, this is not true as they adjust production lines to match the needs of each contract. Now he knows our steel producers can deliver, will he do what all other major countries do, for reasons of national security, and guarantee to use domestically produced steel in defence procurement?”
“The Chancellor is not going to get off with not answering that question. We are going to keep asking him again and again until he answers. Why is it that people are paying £800 less in Germany, £1,000 less in Ireland and Belgium, and £2,000 less in France than they are paying here? What is it that their Governments and their economies are doing differently—or is it just that they do not have the problem of 13 years of this Tory Government? What is behind it?”
“In contrast to what the Minister says, more than £600 million of apprenticeship levy funding has been returned to the Treasury in the last year alone, enough to have funded more than 60,000 new apprenticeships. Labour will reform the system to create a growth and skills levy that can be used on a much wider range of training that businesses say they need. Will the Government address the chronic shortage of skills, match Labour’s ambition and give tech businesses what they need to thrive?”
“The Inflation Reduction Act is attracting investment from the UK to the US, as industry groups across our economy are saying. Does the Minister agree that the refusal to publish an industrial strategy shows there will be no made in Britain plan in response to President Biden’s made in America agenda while this Conservative Government remain in office?”
“The Minister has just reminded us that the allocations are made by Government to integrated care boards. The problem is that, with a board the size of Cheshire and Merseyside, there are very many competing priorities. Sefton Council has secured more than £1 million from developers for a new health centre in East Sefton. The Health Secretary’s recent predecessors, of which there have been many, have agreed with me that a new health centre there is a priority. Will he and his colleagues match the priority accorded to this by their predecessors, match the ambition of my constituents and support the commitment by Sefton Council and award that additional funding, so that my constituents can get that much-needed health centre in East Sefton?”
“The UK is the only country in the G7 whose steel industry is currently in decline. Why will the Government not end their sticking-plaster approach, match Labour’s commitment to a £3 billion green steel fund, and invest in a long-term plan to decarbonise the vital steel sector in Wales?”
“British businesses pay among the highest energy bills anywhere in Europe, yet Make UK said the Government’s plan “does little to tackle the real and immediate threat manufacturers face with rocketing energy bills.” If the Government really wanted to support business, they would implement Labour’s plans, help small firms with energy efficiency, cut business rates and invest in renewable electricity generation for the long term.”
“People in Scunthorpe, Rotherham and Port Talbot know how important steel is for their communities. We Labour Members understand how important it is, for communities and for the green transition. The UK is the only G20 country in which steel production is falling, but when asked about the survival of this strategically important sector, the Business Secretary said: “Nothing is ever a given.” Is that because the British steel industry is not safe in her hands?”
“Many of my constituents are unfortunate enough to have to rely on Avanti. They thought the Secretary of State’s predecessor should not have extended the contract last time, let alone this time. I want to look at some of his claims about improved performance, because they do not stand up to scrutiny over any extended period of time. Everybody knows what is going on here, because they have experienced the service for themselves. The average number of cancellations between September 2022 and March 2023 was just as high as over the previous six months, and Avanti had the highest proportion of trains more than 15 minutes late on record. The travelling public know it, we know it, and I suspect he knows it too: Avanti should be stripped of its franchise.”
“The failure of the Government to take a strategic approach will continue to undermine our prospects and delay any recovery in living standards. That is what the OBR says. In the week of the Cheltenham Festival, I have two pieces of advice: first, come to the grand national in my constituency next month; it is, of course, the biggest horse race in the world. Secondly, after this sticking-plaster of a Budget, do not gamble at Cheltenham or Aintree—save your money for the sure bet of a general election and a Labour win.”
“They agree with our plans for eight gigafactories and the roll-out of EV charging points, with grants and low-interest loans for consumers being absolutely critical in the transition to electric, especially when new car sales are at a 70-year low. They agree with our plans because they have been drawn up in partnership with industry. Labour’s green prosperity plan is a response to the massive attraction of the Biden plan. Investors and businesses support us. It is the Labour party that recognises that the part of the worker has to be the party of business. That is why we will be partners of business and trade unions when we are in government. That is how modern industrialised economies thrive: partnership. No wonder John Allan, the chairman of Tesco and Barratt, says there is only one political team on the pitch: Labour.”
“Martin McTague of the Federation of Small Businesses has said that “today’s Budget will leave many feeling short-changed”, and that “the Government’s lack of support for small firms in critical areas is glaring.” Businesses want long-term help with their energy costs, the abolition of business rates, reform of the apprenticeship levy so that they can all use it for what they need, and greater access to procurement for businesses of all sizes. Labour is committed to all those as part of our industrial strategy. Businesses agree with our plans for self-sufficiency and renewable electricity generation to cut bills and guarantee supply, while playing our part in meeting our climate obligations, as well as the insulation of 19 million homes.”
“What of our international competitiveness, when the United States is attracting investment through the Inflation Reduction Act and the European Union is implementing its own equivalent plan? Let us look at what business says. Here is what Mike Hawes of the Society of Motor Manufacturers and Traders has said today: “There is little…that enables the UK to compete with the massive packages of support to power a green transition that are available elsewhere.” Make UK says that “this does little to tackle the real and immediate threat manufacturers face with rocketing energy bills.” That point was reiterated by the British Chambers of Commerce, which has also criticised the failure to reform business rates.”
“Low growth since 2010 has seen households £8,800 per year worse off on average when compared with average growth in the OECD, and a £40 billion gap in tax revenues. The party that has presided over low growth since 2010 and that crashed the economy was never going to have the answers to the deep-seated problems it has created, and so it was with the Budget the Chancellor has announced. Whatever today was, it was not a long-term plan for business. Investment is at a record low level. Firms such as AstraZeneca are moving overseas. Small businesses have been forced to close by high energy bills, high business rates, shortages of supplies and a lack of skilled workers.”
“Of the short-term giveaways to placate Conservative Back Benchers, a potholes hotline, after £400 million of cuts to highways budgets, is apparently their favourite in this sticking-plaster Budget after 13 years of failure. The bleak OBR analysis shows living standards 6% lower in two years’ time, and still below pre-pandemic levels by 2028. What was the Chancellor’s flagship announcement during a cost of living crisis? To prioritise those who are already the wealthiest. Other countries have recovered strongly since the pandemic, but not the UK, so how absurd that the Chancellor should crow about avoiding recession when the UK will still be the only country where GDP will not have recovered to pre-pandemic levels by the end of this year.”
“T9. A loophole in the sanctions regime means that Russian steel is rolled in countries such as Turkey and then imported to the UK. The Foreign Secretary will know that the UK is the only country in the G20 where steel production is declining, and our domestic steel production is essential to our support for Ukraine. Will he follow the lead of the EU, which is closing the loophole in the regime, and tell us when the UK will also close the loophole?”
“Defence procurement is essential to the success of a domestic steel industry, but, as the Secretary of State will know, the UK is currently the only country in the G20 in which steel production is declining. Given that steel is a vital industry of national security importance, will the Secretary of State ensure that we do not see a repetition of what happened with the fleet solid support contract, under which an overseas lead contractor had no obligation to use UK steel in the construction of UK Navy ships?”
“We were insulating 10 times as many homes in 2010 as this Government are doing now. Everyone knows what has happened since the Secretary of State’s Government decided to get rid of the “green crap”. Will he adopt Labour’s plan to insulate 19 million homes over the next 10 years? It has the support of the Construction Leadership Council, the Federation of Master Builders and the building trade as a whole. It will create new jobs, cut bills and play its part in reducing carbon emissions. Will he do it?”
“The Minister knows that there is a backlog and that hotels are having to be used because of it. He might not want to admit it from the Dispatch Box, but that is the reality. My constituency is about 10 minutes away from where this incident in Merseyside happened and the Minister mentioned the asylum accommodation providers; may I urge him to work closely with them to ensure that wherever they are placing asylum seekers, they are working closely with the communities, the local authorities and the police there now, and they are ensuring that the accommodation that people are being placed in is able to handle and support them?”
“They are committed to low-carbon steel production.”
“The Government did not intervene, and by the time Ministers became increasingly involved, talking to the steel industry and unions in 2016, it was too late. I know that the Minister has met the steel unions, but I hope she will impress on her boss, the Business Secretary, the importance of talking to the trade unions in the steel industry. As this is a strategically important industry, there should be interest at Cabinet level, as well as at the Minister of State level. I hope I am right in thinking that she is the Minister of State; otherwise, I have just promoted her.”
“The impact on the workers, the families and the communities is a point that my hon. Friend made extremely strongly. My hon. Friend the Member for Llanelli (Dame Nia Griffith) reminded us about the last-minute U-turn—it was so late that I think it was a last-second U-turn—on tariffs last summer. I am afraid that that U-turn is typical of what we have seen over 13 years of this Government when it comes to the steel industry. It is typical of their approach to many other aspects of the economy as well. That is not the only late response we have seen. We saw it with SSI and the blast furnace in Redcar, which at that time was one of the leading examples of carbon capture, utilisation and storage in the steel industry anywhere in the world.”
“Throughout the debate, a number of Members have made the case that it is dangerous to rely on imports, as well as for the importance of demonstrating confidence in the steel industry and a long-term commitment to it, the key role it has in the transition to low carbon, and its importance to regional economic success, jobs and communities. My hon. Friend the Member for Rotherham (Sarah Champion) rightly spoke about the 185 workers whose jobs are at risk in her constituency alone, out of 440 redundancies at Liberty. Can we honestly see a future for this country where steel for civil aircraft made by Boeing and Airbus is not being produced by Liberty Steel? This issue is strategically important for our domestic supply chains, and Liberty is producing that steel for incredibly important customers.”
“As always, Mr Pritchard, it is a pleasure to see you in the Chair. My hon. Friend the Member for Newport East (Jessica Morden) has set out a fantastically well-crafted case for the UK steel industry. The sense of the whole debate has been about the strategically important role that steel has to play in the UK—it is probably fair to say that everybody who has spoken has accepted that point, and indeed made that point. I dare say that in a few minutes’ time, the Minister will do so as well. The economic and national security value of steel made in the UK is incredibly important. We have seen in recent times why it is so important that we have strong domestic supply chains in our core industries—that has been underlined by Putin’s invasion—and steel is at the forefront of the issue.”
“The Government can and must do more on procurement. Environmental, social and labour clauses are at the heart of Labour’s plan for procurement. It is beyond belief that this country is the only major country that would even dream of giving a contract for warships to an overseas company. There is no guarantee that the Spanish consortium awarded that £1.6 billion contract will use UK-made steel in producing those fleet solid support ships. Other countries take a more strategic approach. The United States has the Inflation Reduction Act, with strong commitments to the transition to low-carbon steel production at its heart. Such a commitment has also been made by other countries whose investments are years ahead of what is going on in this country, including Canada, Spain, Belgium and Germany.”
“Indeed, she was one of the Members who made the point about this country being the only one of the top 10 steel-producing nations where the industry is in decline. The question is: what are we going to do about it? We have to address the challenge of our energy prices. The prediction for this year’s energy prices is that in Germany, steel-producing companies will pay £107 per kWh for electricity and in this country it will be £174. This cannot continue. The Government must take action on the emissions trading scheme. Members have explained the significant cost to the industry—£120 million amounts to 60% of capital investment in the steel industry. These are the challenges the Government must take on in a strategic way, not by using yet another sticking-plaster approach to a problem in the economy.”
“Of course, this is at a time when China and India have dramatically increased their steel production and every other steel-producing nation has experienced decline—it is just that the decline has been higher in this country over the past 13 years. As Members have pointed out, of the top 10 steel-producing countries, we are the only country currently in decline. We have to address that. We can and should go through the history, as long as we learn from it. As long as we apply the lessons from history, we will be in the right place. My hon. Friend the Member for Neath (Christina Rees) made a heartfelt contribution about the value to communities of the steel industry, using her own family history to make the point about how vital it is to the Welsh economy.”
“But I do hope that the press reports come to fruition. When she was Prime Minister, the right hon. Member for Maidenhead (Mrs May) promised £250 million for a green steel fund, but that did not happen. I am afraid that our memory of what Government have previously promised the steel industry is still strong. I gently say to Government Back Benchers that what sounds like blaming the last Labour Government for 13 years of Conservative policy does not wash with people. The figures show that steel industry production in this country has declined by half since the global financial crisis. Thirteen of those 15 years have been under a Conservative or coalition Government. We have fallen from 17th to 25th in the world for steel production since this Government came to office.”
“The Minister says from a sedentary position that I am making out that her role is not important enough. I am not doing that at all—I think it is a very important role. It is important that steel Ministers have longevity in the role, but it is also important that there is a strategic role at Cabinet level. That was the point I was making; it was certainly not my intention to undermine the Minister. I hope she will take back to the Secretary of State the points made in writing by the trade unions. Returning to the Government’s late response, I hope it is not as a result of the announcements at Liberty that we are suddenly seeing press reports of hundreds of millions of pounds potentially being available. I know that the Minister will not be able to confirm that today, because of ongoing negotiations.”
“That is the kind of strategic long-term commitment that will deliver the confidence and certainty to the industry that is needed. We have a plan. We have proposed a billion-pound fund for energy-intensive industries and it could help right now. The Government can adopt our plan if they want to. It is there in writing in the public domain. They can adopt that plan or come up with their own, but it has to be at a strategic level—no more sticking plasters. We need a strategic long-term answer for the future of this vital strategic industry.”
“The hon. Gentleman is absolutely right that we need to sort out the Northern Ireland protocol. That is a slightly longer and wider debate, but it is an important point for him to raise as a Northern Ireland MP. I want to remind the Minister about the problem with Russian steel, which my hon. Friend the Member for Newport East mentioned. It cannot be right that melted and poured Russian steel can be diverted via a third country and then imported into this country. Sanctions have to apply to all Russian-produced steel. We have had the Government announcements, media reports and lots of talk over the past 13 years from 12 Ministers. What we need is a proper strategic approach. Labour is putting forward an industrial strategy and plans for a green steel fund of £3 billion.”
“2. What assessment he has made of the potential impact of changes in the level of (a) interest rates and (b) inflation on regional inequality.”
“Happy new year, Mr Speaker. According to the Department, construction of major projects has stalled because industry prices are well above the headline rates of inflation. As the Minister knows, UK inflation is projected to be the highest in the G7 this year, as it was last year. In the north-west, the Government have cut £206 million from the much-needed shared prosperity fund, so will the Minister confirm that her Department will make up the shortfall in the funds to help the construction industry play its part in rebuilding the economy and communities across the country?”
“The Minister says that he is here to talk about a modern procurement system for the UK, but The Guardian is saying today that a Conservative peer who advised the Government during the pandemic helped a company to secure a £50-million contract after being introduced to the firm by another peer with financial interests in that company. Can the Minister tell us exactly which clause in the Bill he is putting forward today would have prevented that extreme example of cronyism from happening?”
“The Minister put it very well: this is a proportionate way of enabling MSPs, alongside Westminster MPs, to act as prescribed persons and recognising our distinctive role as elected representatives, which means that we might be approached by constituents who need to whistleblow. I am happy to support these minor amendments and I hope that they will help workers to whistleblow when they need to.”
“That is a disgrace—questions should be asked in the House. Anyway, it is a pleasure to serve with you in the Chair. The draft regulations have complete support on both sides of the House, as the Minister will know from the brief debate in the Lords. He set out extremely well the importance of whistleblowers having the confidence to report on issues in the workplace. Today, we are agreeing—I am pre-empting the Committee’s decision—to give MSPs the same exemption from reporting requirements that we enjoy as Westminster MPs and that is already enjoyed by Scottish and Welsh Ministers.”
“On 16 November, the Government awarded the contract for the new fleet solid support ships to a Spanish state-led consortium. Around £700 million of that contract will go to overseas industry when our steel and shipbuilding sectors are crying out for support. Also on 16 November, the Minister for Industry and Investment Security wrote to me to say that the future of UK steel companies was a commercial decision. Will this Minister explain why the UK Government did not take the commercial decision to deliver £700 million of work to UK steelmakers and shipyards?”
“Of course, if the whole contract was coming to UK yards, the investment would be more than £77 million. Now that the Minister has confirmed that the consortium is indeed Spanish-led, I remind him that no other G7 country offshores its warship production. Will he tell us how many jobs are going to Spain that would have come to this country as a result of this reckless decision by his Government?”
“I welcome the Minister’s commitment, and I congratulate my hon. Friend the Member for Stockton North on bringing forward an incredibly important and powerful piece of legislation. I hope with all sincerity that he is successful in short order, and that the Minister is able to fulfil his promises. I welcome the Minister to his role as Science Minister, which he assured us earlier in the week he definitely is, and I believe it has now been confirmed.”