Labour leader Sir Keir Starmer has laid his party’s plans out for the future of steel, underlining how it is “hugely important” for Scunthorpe that the right strategy is in place.
Pledging to match-fund green investment by the industry, while labelling the government a “passive bystander” in tough economic times, he told how there was real concern for the future should the transition to cleaner operations not be made soon.
Flagging up the need for hydrogen and electric arc furnace technology “to secure this vital UK industry, rebuild our industrial strength, and turbocharge an expansion of skilled jobs” he said the steel-making process had to adapt.
Read more: Sir Keir Starmer pitches steel plan in Scunthorpe as Labour lays into lack of industrial strategy
Speaking at British Steel’s sprawling plant, Sir Keir said: “There is a big opportunity for the green jobs of the future, there is transition going on everywhere and at the steelworks the demand for steel is still there, and it is going to go up, but the model we are operating isn’t going to provide what we need, and that’s why we’re seeing take-overs and bail-outs.
“If we make the transition to green steel we will seize the opportunity for cheaper steel, for British steel, for secure steel where we are producing in this country.
“Anyone in these communities, working in steel, wants to see this transition, wants to talk to us about our plans, because of course it is their jobs that are concerning them.
“For young people living here and elsewhere, if we make this transition, we can get to the front of the queue when it comes to production of carbon-free steel and that will ensure not just the jobs of today, but the jobs of tomorrow.
“It is an opportunity we must seize and it is unforgivable that the government knows this transition needs to be made and is sitting it out as they always do.”
For Scunthorpe, Sir Keir - joined on his visit by Nic Dakin who is looking to re-take the seat he lost to Holly Mumby-Croft in 2019 and the man he hopes will lead implementation of such strategy, Shadow Energy Secretary Ed Miliband - said the pledges he wants to make policy were vital, with time of the essence.
“It is hugely important because so many people are vested in what happens with steel here,” he said. “This is highly skilled work, it is valued work, secure work, but there is a concern that if we don’t make the change that is needed, then it won’t be there in the future.”
Labour plans for cheap home-grown power, with a publicly owned GB Energy focused on clean generation, are also seen as key, driving long-term competitiveness as costs are driven down. While there he met with the owners to discuss the challenges faced.
Welcoming the launch, Mr Dakin, who in his time in Westminster chaired the All Party Parliamentary Group for Steel, said: “The industry is deep in the DNA of the community and as well as a steel past there has to be a steel future. Those green jobs are jobs that will help transform not only this area and give people good lives and the community good strength, but it will also contribute to the carbon reduction which is necessary globally. This is a win, win, win.”
Coke ovens are in the process of being closed to ease carbon costs, although a threatened 250 job losses were recently averted as positions were filled elsewhere on the sprawling Chinese-owned plant.
Negotiations on support continue with government, with further representations planned for Westminster later this month.
Following the visit, a British Steel spokesman said: “During its first three years of ownership, Jingye has invested £330 million in capital projects at British Steel and our shareholder outlined to Sir Keir its commitment to transforming our business with further planned investments providing the government can give assurances of a competitive landscape for energy and carbon in the UK.
“Our decarbonisation strategy is underpinned by our Low-Carbon Roadmap which will help secure low embedded carbon steelmaking in the UK. However, we need the UK to adopt the correct policies and frameworks now to back our drive to become a clean, green, and successful company. Governments in the countries where our major competitors operate have adopted such policies and the longer we wait for their implementation in the UK, the more impact this will have on our competitiveness and the country's ability to meet its carbon objectives.
“We remain in talks with the government and are committed to making the home-made steel Britain needs for generations to come.”
Multi-union site chair Paul McBean was also present. He said: "I think Sir Keir and Ed Miliband get the problems we are having, they are clearly listening. They ask questions and understand what we are dealing with."
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