Chris McDonald
MP for Stockton North · Labour · United Kingdom
“This Bill will assist in that by ensuring that steel production is secured, helping to restore domestic production to sustainable levels and supporting the Government’s economic growth plans where the public interest test is met. The Lords amendments before us strengthen the Bill in several ways.”
“This Government are acting decisively and with purpose in the national interest, but the shadow Secretary of State is blinded by his ideological position on nationalisation. We believe that a steel industry, where necessary run by the Government and owned by the people, at least gives the opportunity to attract private sector investment.”
“I am acutely aware of the position in which the previous Government left us, with uncompetitive energy prices for industry. If he had been attentive in some of the debates we have been involved in, he would be aware of some of the measures that I have taken to address that.”
“Lords amendments 4 and 5 upgrade the parliamentary procedure relating to continuity obligations and enforcement, ensuring that Parliament has increased scrutiny of these matters.”
“I have listened carefully to the shadow Secretary of State’s remarks and those from the shadow Minister, and I will address them in a moment. I am grateful for the support of the Vice-Chamberlain of His Majesty’s Household, my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin), and of the Minister without Portfolio, my right hon.”
“It is a pleasure to be back in the House today to see through the final stages of this Bill. The Government support all the Lords amendments before us. I wish to pay tribute to my colleague Minister Leong for so expertly guiding the Bill through its passage in the other place.”
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“This comes back exactly to my point about regulation. Through our work with the EU, we are endeavouring to ensure that we have maximum access to the market. Where regulatory burdens are restricting export activity, I am keen to hear about them. I encourage businesses to come forward and support the questionnaire we have released on business regulation. The industrial strategy places an emphasis on growth and frontier industries, but it also gives a clear focus to city regions and clusters with the highest potential to support our growth sectors. It is important to us that we grow the manufacturing sector across the country and also businesses, small and large, in supply chains, as well as well-known household names. I reaffirm that the Government have an ongoing commitment to UK manufacturing.”
“I know from my time in industry that what business and industry need in order to invest is certainty, and this Government have provided that certainty. Over £52 billion of private sector investment has been won into clean power, thanks to the certainty of our clean power mission. That is why the Conservatives’ decision to trash our reputation as climate leaders was roundly rejected by business groups and the energy industry. We are delivering jobs and growth; they would put all of that at risk.”
“The Government recognise the important role of the public sector and private sector working together to unlock these benefits, such as in critical minerals, as my hon. Friend mentioned. I thank him for his invitation to visit some of the companies that he mentioned in Cornwall, and I look forward to taking up that opportunity for a visit very soon.”
“Of course, my thoughts and those of the Government are very much with the workers and their families at what I know from personal experience is a very difficult time. We must recognise that the company has taken a commercial decision. Although we have explored every reasonable avenue of support, the firm faces significant global challenges. The Government stand ready to provide support through the Department for Work and Pensions rapid response service, and I and other Ministers would be very happy to meet the right hon. Member to discuss what more we can do.”
“As my hon. Friend mentions, this is a difficult time for the workers and their families both at Mossmorran, after this morning’s announcement, and across Grangemouth. In both areas, the Government have been and remain in regular contact with the companies, but we must recognise that significant global challenges have faced Exxon—the company involved in this morning’s announcement—which has already closed another chemicals plant in France.”
“Many companies want to invest in the UK because of our clean energy mission. Any decision that the Government take will never compromise our national security. If the hon. Gentleman wants to talk about China, let us compare this Government’s record with that of the previous Conservative Government. The Conservatives built a nuclear power station that relied on the Chinese Government. We are building new nuclear at Sizewell, and it will be financed by the British Government.”
“The hon. Gentleman is indeed right that the skills of the North sea oil and gas workers are essential for the green transition. We will come forward with our North sea plan shortly. I am sure that he will want to take this opportunity to welcome our clean energy jobs plan, which highlights not only the many thousands of jobs across Scotland that the clean energy industries are creating, but the support that the Government are giving people in those industries to transfer across to new green energy industries.”
“The Government have been clear that North sea oil and gas has a future for decades to come, but let us be clear that the closures in that and other industrial sectors are a result not of this Government’s policies but of the poor, uncompetitive business environment created over 14 years and a lack of investment in British industry by the previous Government. That has been reversed under this Government, with £50 billion of investment in new clean energy industries and investors wishing to continue investing in those industries in the UK.”
“This Government recognise the importance of reducing energy costs to boost UK manufacturing competitiveness. Under the modern industrial strategy, the British industrial competitiveness scheme will reduce electricity costs by up to £40 per megawatt-hour for over 7,000 manufacturing businesses. We will also increase support for our most energy-intensive industries under the British industry supercharger, uplifting the network charging compensation scheme from 60% to 90%. These measures are supported by the connections accelerator service.”
“I acknowledge the work the hon. Member does in Parliament on energy-related issues and her Adjournment debate on high street businesses; that theme clearly runs through a lot of her work. She is right to point out the fundamental weakness we have that, when it comes to our investment in renewable energy, the price is ultimately set by gas. We want to address that through our clean power mission.”
“I do understand just how important the hospitality sector is to the hon. Member and her constituents, as a major part of the local economy. The Government’s clean power mission—investing in renewable energy, lifting the onshore wind ban and investing in offshore wind at pace—is bringing down energy costs and will bring down energy costs from 2030 onwards. The crucial challenge is how we help businesses to manage the transition between now and 2030. Measures such as the British industrial competitiveness scheme, which was announced in our industrial strategy, will support over 7,000 businesses across the country.”
“I thank my hon. Friend for raising the issue of Llanwern; it is a site that I know very well and have worked on in the past. She is right to raise the competitiveness of energy-intensive industries. In my earlier answer, I talked through a number of measures we are taking to reduce levies and energy costs for those industries, but she can rest assured that I continue to look at whether anything more can be done.”
“I was pleased to meet my hon. Friend recently to discuss Armitage Shanks. I am concerned about the ceramics businesses in his constituency and across the region. We want those businesses to be competitive, and while much of our earlier discussion was about electricity prices, for ceramics and many other energy-intensive industries, the issue is gas. After policy costs, the UK is competitive with many European countries on gas, but I understand that there are competitive pressures from outside the EU, and I will continue to engage with him and the ceramics sector to look at these issues.”
“I must admit that, as a regular tourist to Cumbria myself, I absolutely appreciate the joys of a countryside pub in the hon. Member’s constituency, and I understand the pressures that they are under. I will leave any commentary on the Budget to the Chancellor at the appropriate time, but rest assured that every day in this job I am making the case for increased competitiveness in British industry.”
“I recognise what my hon. Friend says about the importance of port infrastructure in the north-east. We made a manifesto commitment to support investment in our ports through the National Wealth Fund, and I would be happy to discuss with her how the north-east in particular could benefit from that.”
“In response to earlier questions, I outlined the British industrial competitiveness scheme, which we announced in our industrial strategy. That will extend support to a wider range of businesses. We recognise the issues that businesses are facing with high energy prices, primarily as a consequence of the previous Government’s policies not to invest in renewable energy. We are changing that by investing in British home-grown renewable energy.”
“As my constituency neighbour has said, the green energy industry in his constituency is delivering thousands of jobs. On this issue, certainly, I am very happy to be stuck in the middle with him.”
“They should be proud of what they have accomplished in the last 40 years. As Industry Minister, I personally thank the employees at Mossmorran and the Fife community for their contribution to the UK industrial economy and, through decades of ethylene exports, to our balance of trade for over 40 years. This is not the end of Fife’s industrial story. As Exxon gradually decommissions and remediates the site, the Government are committed to working with the local authority and the Scottish Government to promote the benefits of this location for future industrial investment. This Government are committed to supporting the workforce and the community over the coming weeks and months, during what I know will be a difficult and painful transition. I commend this statement to the House.”
“Our focus now is on helping the workforce through this troubling period, and ensuring that responsible next steps are taken for the decommissioning and remediation of the site. Long term, we are ensuring that UK manufacturing at large benefits from this Government’s growth mission. We want to create the right conditions for British manufacturers to properly compete in the global economy and win. Over the coming days, my Department will update the House on the progress that we are making, not least on energy costs. Before I conclude, Exxon chair Paul Greenwood asked me to reiterate a message that he has given to all the employees at Mossmorran. It is a message that I am sure all Members of the House will agree with: the closure of this site is no reflection on them, their efforts, or their work.”
“Let me assure the House that the Government stand ready to provide support through the Department for Work and Pensions rapid response service and its involvement in PACE—partnership action for continuing employment. The Secretary of State is meeting Unite tomorrow as part of a wider visit, during which he will discuss options for more support for the affected employees. I also met Unite earlier today, and I will meet GMB colleagues tomorrow. I have been assured by the company directly that Exxon, as a responsible employer, will ensure that it properly supports its staff in finding alternative work, including at its Fawley site at Southampton, and will support those employees in their relocation.”
“Our modern industrial strategy lays out a raft of policy interventions to ensure that British industry remains a world leader that is hugely innovative and investable—a strategy to cut red tape, lower energy bills and get spades in the ground. The fact that we have seen £250 billion of investment committed and over 45,000 jobs supported since July is testament to the strategy’s success so far. The closure of the Fife plant is a commercial decision made by ExxonMobil, but of course it has a very human cost. There are 179 direct employees and 250 contractors employed, and there are more people in the supply chain. I know Members from across the House will be primarily worried about these individuals and the communities impacted.”
“Members know, this Government have shown that we are prepared to step in and support industry when it is feasible to do so. We have stepped in to support businesses in the steel, shipbuilding and chemicals industries, protecting jobs and vital capability across the UK, including Scotland, but in all cases there was a fundamentally sound business proposition underpinning our investment. Sadly, here that was not the case. I want to stress that, as disappointing and concerning as the closure of the Mossmorran site is, it is not symptomatic of UK industry as a whole. Our commitment to supporting UK industry is clear in the many steps that we have taken since coming into government last year.”
“In those circumstances, the support from the Government that Exxon would need to change those calculations was beyond acceptable levels. Exxon was aware of this, and it has acknowledged that, even with support, the commercial circumstances were simply too stark, and the costs would have been too great. So despite tireless, inventive and determined work from both Government officials and Exxon, the challenges facing the site were ultimately insurmountable. The decision that the Government would not provide financial or bespoke policy support was communicated to Exxon by my right hon. Friend the Business and Trade Secretary, but we have of course retained an open dialogue with the company throughout. This is not a decision that either the company or the Government have taken lightly. As hon.”
“The company estimates that it would have cost close to $1 billion in capital investment to bring the site to a point where it would be profitable. That fact, combined with a challenging petrochemicals market, including a sharp decline in ethane supply in the North sea, meant that the investment was likely to outweigh the return. ExxonMobil has already closed similar assets in Europe, and is divesting from activities where there is no short-term path to profitability. It explored alternative use cases for the site, but none offered a viable route to sustainable operations. As the site has been significantly loss-making for the last five years, and as it would take a further five years for the investment to reach its potential, Exxon decided against continuing operations.”
“The Government and ExxonMobil have been discussing the operating environment of the plant since April, and my officials have endeavoured to meet Exxon every week since August. Ministers also met Exxon regularly this year, underlining our commitment to exploring every possible opportunity to retain the site’s operations. This afternoon, I spoke with Paul Greenwood, the chair of ExxonMobil. He assured me that Exxon is not suggesting that this closure was due to a lack of action or will on the Government’s part. It was a commercial decision made when the numbers simply did not add up. He reiterated to me that the site is 40 years old, inefficient and in dire need of modernisation to be commercially viable for the future.”
“With your permission, Madam Deputy Speaker, I wish to make a statement on the closure of the ExxonMobil Fife ethylene plant at Mossmorran in Scotland. I thank Mr Speaker for accommodating this statement today. Like many Members of this House, I am saddened to learn of Exxon’s plans to close its Fife ethylene plant. This decision is of course extremely worrying news for those employed by Exxon, as well as for contractors who work at the plant, those employed by the companies who supply the site with gas, and those at the adjacent natural gas liquids plant operated by Shell. While this is no solace to those impacted at Exxon, Shell has confirmed that it does not see its workforce or operations being affected by this closure.”
“Gentleman’s comments demonstrate that not only does he not understand this plant, but he does not understand the chemicals industry. I really wonder whether he cares for the workers at Mossmorran at all.”
“I would have thought the shadow Secretary of State would have realised that. Perhaps he did not realise this, but none of the ethylene produced at Mossmorran was used in the UK anyway; 100% of it was exported to the EU. That was why I thanked the workers for their contribution to the UK’s balance of trade over so many decades. Finally, the shadow Minister can debate the nuances of carbon taxes if he wants to, but this plant exports all its product to the EU. To do that, the plant needs to ensure that the product aligns with the market in which it finds itself, which obviously has the EU emissions trading system. If it received relief in the UK, it would have to pay that tax to the EU. Does the hon. Gentleman prefer that that money comes to the UK Government or that it goes to the EU? The hon.”
“Could it be because of our high energy prices, resulting from the previous Government’s decision to tie us to international gas prices and put us at the mercy of Vladimir Putin? The shadow Secretary of State talks about a transition. I know what a terrible transition is like, because I lived through one in the coalfield of County Durham. The Government are ensuring, in Scotland and throughout the UK, that the workforce in these industries have the benefit of a proper transition. That is why we have an industrial strategy, and why we have intervened in industry in the areas that I have mentioned. Now we come to the point of education. Sometimes it is best to get our knowledge of industry, and industry in Scotland, from somewhere other than Twitter, because we do in fact still have ethylene production in the UK, at Grangemouth.”
“No; it is real. He will realise that soon. I was genuinely upset when the shadow Secretary of State described my words as cold; they were not. They were sincere and heartfelt, because I have been in this position myself. I really wish that the shadow Secretary of State and his colleagues had shown similar vigour when the steel industry in Teesside was collapsing around us, and my colleagues and I were at risk of redundancy. The Conservatives stood by, and left 10 days for a buyer to be found for the most efficient steel plant in the country before it closed. I take the shadow Secretary of State’s comments about the uncompetitive business environment in the UK with a pinch of salt, because the plant has been significantly loss-making for five years. I wonder why that is.”
“My hon. Friend is absolutely right that we need to focus on the workforce. Earlier today, I sought and was given reassurances by the company on the support that it will give to the workforce. Its expectation is that, of the 179 permanent employees, 50 of those will remain in employment until at least 2027-28 to support the safe decommissioning of the plant, and a further 50 will be offered relocation to its Fawley plant. I have also made inquiries about apprentices. On her specific request for a taskforce, that would be usual in this situation. I absolutely support it, and I think a new and distinctive taskforce is required for this plant to address the very specific areas, not only for the plant but for the Fife community.”
“It is my expectation that, as these new jobs are created, people will transition across. As I have said, I lived through a terrible transition in the past. The mission of this Government is to ensure that we have a supportive transition for workers and communities in Scotland and around the UK.”
“I understand that the other plant is a very long way away, and that relocation will not be suitable for everyone—perhaps people do not want to uproot their families or they are embedded in their local communities—but if some workers want to take up that opportunity, I am pleased that it is there. With the offer of relocation for 50 employees and 50 employees being retained, we can see a way forward for about 60% of the permanent employees at the moment. Clearly, I would expect the taskforce to provide support for the other 40%, and the UK Government are working with the Scottish Government and the local authority on that. We must not ignore the jobs that are being created every day and every week in Scotland in our new clean energy industries, with up to 60,000 jobs by 2030. Fundamentally, this is about supporting that transition.”
“Of course businesses require some certainty in order to invest; I made that point at Energy questions this morning. The certainty provided by our industrial strategy—in particular, this Government’s commitment to renewable energy technologies—is allowing investment to come in. I agree with the hon. Member that our focus absolutely needs to be on the employees. I understand that no employees have been offered relocation yet, but it is the company’s view that 50 such posts are available and it is inviting expressions of interest from employees at this stage.”
“I agree with the hon. Member that at its crux there has been a failure of long-term planning in industry. We can see that when we contrast the two ethylene plants in Scotland. The plant at Grangemouth imports a lot of its ethylene from the US, which is in plentiful supply and comes at a much lower cost. That required a significant investment in the port infrastructure at that plant. ExxonMobil was aware that, in order to ensure that Mossmorran was sustainable, it would need to make a similar investment. It would have been possible for it to have made that investment some years ago, but at this stage, an investment of about $1 billion that would not come to fruition within the next five years is judged by the company not to be sustainable.”
“I was pleased to meet my hon. Friend earlier to discuss some of these issues in detail, and I am pleased that he has raised the issue of apprentices. I raised that personally with the chairman of the company earlier today, and I have established that there are approximately six apprentices involved. It would be usual in this situation for those apprentices to be found positions in local industry, and that will certainly be a priority. With only six apprentices, I do not think it will be a problem. Local industry tends to respond very rapidly in these situations, and of course it is a priority for us to ensure that those apprentices can continue their apprenticeships.”
“I am aware that that is what was reported in the press, but I actually spoke to the chairman of Exxon earlier and asked him specifically whether he could confirm that. He told me that there were a few issues, including the availability and cost of feedstock and the efficiency of the plant. He also said that without the $1 billion investment, he could not see a future for the plant in those circumstances.”
“Ensuring that young people can access high-quality jobs in the clean energy industries in Fife must be a priority for the taskforce.”
“I, too, was particularly disappointed that the announcement was made so close to Christmas. Anyone making such announcements should take that into account. My hon. Friend mentions opportunities for young people, and he is absolutely right to do so. Our clean energy jobs plan was launched just a couple of weeks ago. It highlights the opportunity to create five new regional centres of excellence for clean energy jobs. I know that there will be great demand for the skills of young people in Fife and across Scotland and the UK in those clean energy industries. We have set out the jobs and skills, and the methodology by which we will enable people to access them. The Prime Minister was very clear about that in his speech to the Labour party conference: opportunity for young people is a mission of this Government.”
“Maybe it would be helpful if I reiterated the direct quote from the chair of Exxon, who said that the closure was not due to a lack of action or will on the part of the Government. He was clear about the condition of the plant. As I said in my opening remarks, the Government have intervened in the past where there has been a fundamentally sound business proposition. The right hon. Member failed to mention—maybe he has forgotten it—the £200 million commitment that the Government have made to Grangemouth, and the 100 projects that are lining up behind it to support the people there. Obviously he did not want to welcome that. He talks about a strategy for industry. Well, I have not seen the SNP industrial strategy. Perhaps I missed it.”
“I spoke to Unite representatives today and heard directly from the workforce of their experiences. ExxonMobil tried, prior to announcing its closure, to effect a sale of the plant, but it was not able to find any interest. I have been informed this afternoon that, as a result of the announcement of the closure, there may be some interest in the plant. Of course, we will explore every possible avenue for that and to ensure that the employees receive support, but if there are interested companies, we would be very happy to explore that, in working with the Scottish Government and the local council.”
“As I said, the industrial story of Fife is not over. There is excellent opportunity to bring new investment to that site in the future, and that sort of industrial regeneration is exactly what I want to see.”
“The hon. Lady points out that the plant is not in her constituency, but clearly the effects run far wider than the individual constituency concerned, particularly for a plant of this size, and we need to think carefully about the impact on the supply chain. I apologise for the fact that the Scottish Government are mentioned towards the end of the statement. That is in no way intended to imply that the Scottish Government have not been or are not involved. There have been meetings at the highest level in the Scottish Government. In fact, the Secretary of State for Scotland has also been involved in discussions with ExxonMobil, as we have tried to find any possible measure to avoid this decision. Ultimately, it was a decision for the business, and our focus now is on how we can move forward for the workforce and for the future of Fife.”
“It was actually to ensure that all workers on the site—either direct employees or contract workers through their contract managers—could be briefed at the same time on the issue. Contract workers were then allowed to return home or to resume work, recognising that not all of them would want to stay on the site at that time, having received such shocking news. Hopefully, that helps to explain the situation. Of course, I will ensure that I continue to ask these questions of the company and engage closely with both Unite and GMB on these issues.”
“I thank my hon. Friend for raising those two issues. I raised the issue of redundancy packages with the company earlier, and it assured me that such packages had been made available. I then raised the same question with Unite the union, and it has undertaken to go away and confirm that for me—I want to do my own due diligence and make sure that is true. I am particularly pleased that my hon. Friend raised the issue of contract workers. It was reported that they were locked out of the site, but the actual situation is slightly more complex. Contract workers had their permits revoked this morning, which I realise sounds rather dramatic, but for a COMAH—control of major accident hazards—site, that is a normal procedure in certain circumstances. In fact, the workers themselves believed it was due to weather conditions this morning.”
“The issue here is fundamentally the cost of gas in the USA, which is considerably cheaper, and we all understand why that is. The CBAM issue is a bit more complex, because 100% of the material goes into the EU, so there is an issue around EU market alignment. Again, we could talk through that in more detail, but it means it is not quite as straightforward as if a domestic producer were asking for some relief from measures.”
“I am committed to looking at the entire business environment for our-energy intensive industries—our heavy industry—because I want to improve the competitiveness. Perhaps I have an ally across the House who might help to point out areas that we could look at; I would certainly welcome that in the future. I can perhaps provide a bit more detail on the two issues the hon. Gentleman raised: energy costs and the CBAM. On electricity costs, which are not the major factor for this site, the Government have introduced a range of measures to try to improve the cost competitiveness of the UK versus Europe, and we could talk about those in more detail at some other point. On gas, the UK is competitive with Europe; it is certainly cheaper than Germany and the Czech Republic, and it is slightly more expensive than Italy and Spain.”
“That is why we need to look forward to how the workforce, in Fife and elsewhere, can transition into our new green economy.”
“I wholeheartedly reject the implication that there is some sort of anti-Scottish bias in this Government. I stand at the Dispatch Box as a McDonald, flanked by three Scottish Ministers. We all think very keenly about these issues in Scotland. My hon. Friend made a point about British Steel at Scunthorpe. I mentioned the steel and shipbuilding industries, as well as other aspects of the chemicals industry, in my statement. The fundamental point was about having a sound business proposition. In this case, there was not a sound business proposition. The amount of money being asked for by the company, and the fundamental lack of profitability of the business over such a long period of time, meant that it was not a viable opportunity.”
“I thank the hon. Member for his question, but it is a shame that he did not attend Energy questions this morning. If he had, he would have heard the Minister for Energy express those exact concerns for the community around Mossmorran. I also think it is slightly bizarre that the hon. Member would say that this closure is a result of Labour Government policy. The plant has been loss-making for five years, so unless he thinks that the Labour Government have invented a time machine, then clearly it is not our responsibility. What I was most startled at was the implication that it is now SNP policy to abolish the emissions trading scheme—is that the case?”