Richard Tice claims ‘obsession’ with net-zero targets is ‘killing’ UK steel jobs

The MP for Boston and Skegness was joined by DUP MP Sammy Wilson who lambasted both Labour and the Conservatives for commitments to clean energy.

According to UK Steel, more than 33,000 people are currently employed by Britain’s steel industry, with a further 42,000 supported in the supply chain, contributing £1.8 billion to the overall economy.

In its election manifesto Labour committed £2.5 billion to rebuild the UK’s steel industry, alongside net zero and decarbonisation targets.

During an urgent question on steel in the House of Commons, Mr Tice said: “The hypocrisy of this debate is utterly extraordinary.

“Everybody agrees that steel is of strategic national importance, and yet it is both main parties, led by the Conservatives over there, whose obsession with net zero is leading to the removal of our blast furnaces, by both British Steel and by Tata.

“That obsession is killing our steel industry. It’s killing our steel jobs, and it’s leading to the inability to produce primary steel.

“Now over 75% of all new steel generating capacity in the world is in Asia, and over 90% of that is blast furnaces.”

He added: “If you are obsessed with net zero, will you guarantee that if you subsidise Tata Steel with £500 million plus to produce new electric arc furnaces that that money will be linked to the construction?”

Energy minister Sarah Jones said the Government has to “go with the market”.

She said: “The market is now saying to us, we want to buy green steel. If you talk to big construction companies, if you talk to big companies, they say, we want green steel.

“That is what they are demanding. That is what we will produce and if we don’t then we will not be selling it on the same basis.”

Mr Tice could be heard shouting “because they have to”, as Ms Jones discussed industry requests for sustainably produced steel.

Mr Wilson alleged “tens of thousands” of jobs were lost in steel under the previous Conservative government due to its “obsession” with decarbonisation and net zero.

He said: “But the unfortunate thing is, I don’t think we’re going to see any different approach by this Government.

“Given that she’s promised an industrial strategy can she assure us that in that steel will have and there will be provision for steel to have a supply of coking coal produced in this country?

“And also that the decarbonisation requirements, which are damaging and expensive, will not further have detriment to the steel industry?”

Ms Jones said: “If we do not take the measures to decarbonise and tackle the climate crisis, the cost to this country will be infinitely higher. This is not a choice that we have.”

She added that the Government will aim to support industry during the transition to clean energy.

Conservative former education secretary Sir Gavin Williamson also pressed the Government on the provision of coking coal, a key ingredient in the steel-making process.

Sir Gavin said: “In most of the plants in the United Kingdom, in order to make virgin steel, they need to be able to bring in coking coal.

“The Labour Government’s policy is to ban bringing in coking coal, which means that hundreds and thousands of jobs are going to be lost. What’s the minister going to do to reverse that decision so that jobs can be saved?”

Ms Jones said the Government is looking at “other ways of making virgin steel” to which Sir Gavin protested “they’re aren’t any”.

Ms Jones continued: “I’m happy to have further conversations with the minister rather than shout across the house at each other, but I am happy to have conversations about how we can make sure we retain the virgin steel production and we also adhere to our climate commitments.”