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The Budget

I agree that a balance must be struck. There is no sense in losing steelmaking in the UK and then having to import steel from other countries that produce the same amount of emissions. There is a real threat to investment and to jobs in the UK. Steel is a crucial industry in Wales, where it employs approximately 7,500 people and is the largest private business. A couple of weeks ago, I visited Llanwern and was pleased to see the work force back up to 700, with many more employed in support roles. Half of UK steel is now exported—we are now a net exporter. The Government need to listen to companies such as Tata, so that we do not end up putting that at risk. When I go to Llanwern, I see an industry that supports plans to make the transition to the low-carbon economy and is trying to be part of a solution to reduce CO2 emissions. For Tata, that might mean developing projects or new innovations; for example, the £60 million investment in the BOS gas recovery investment in Port Talbot, or, as my hon. Friend the Member for Vale of Clwyd mentioned, the photovoltaic project at Shotton. It is always worth remembering that steel will be in very high demand to build low-carbon energy sources, improve energy efficiency and drive low-carbon construction. It may be high carbon in production, but it is essentially a product for the low-carbon economy. Surely, we all want the UK’s low-carbon economy to be built with steel that is produced in Wales and the UK, not with steel that is imported from China, Russia and Ukraine. I urge the Government to consult more and to listen to industry. A balance needs to be struck. If we are not careful, the result will be carbon leakage, with manufacturers choosing to go to parts of the world where the environmental regulations are less stringent. We would then end up in the ludicrous position of importing steel from countries who produce the same amount of emissions, and we will have lost the industry. Will the Minister consider that and encourage the Government to conduct a proper impact assessment, so that a compromise can be found? UK Steel wants to be part of the solution to climate change but needs to work on a level playing field. Finally, I should like to return to the issue of the Newport passport office. I urge the Minister and Secretary of State to increase the pressure on the Home Office to reverse this ludicrous decision. During the consultation, we heard a whole raft of evidence that shows how devastating the decision will be for Newport. The only people who are really welded to the decision are the chief executive of the Identity and Passport Service and the Minister responsible. It will hurt the city centre, which is already reeling from the loss of major retailers such as Marks and Spencer, Monsoon and Next. The city has been cited in the Centre for Cities report as one of those most struggling to recover from the recession. The lack of an economic impact assessment was astonishing, and the Welsh Affairs Committee report picked up on that. What is clear after this long process—the consultation was extended—is that it will not actually save anybody any money at all. I have met the owner of the building that is used by the passport office, and the IPS will have to spend millions to buy itself out of the office contract, while the skilled and dedicated staff lose their jobs. I walk past the passport office every week, sometimes twice a week, and there are queues and queues of people. The demand for the service in Wales is there. Finally, to add insult to injury, we had the Government’s equality impact assessment, which said, basically, that giving people redundancy payments could boost the local economy in some way. The vision of people running out and spending their redundancy payment in local shops really beggars belief and is deeply insulting to those who risk losing their jobs. In conclusion, the Budget will do nothing for those passport workers in Newport. It also risks harming industry and private sector jobs, as I explained, through the carbon floor price, and I ask the Minister to do all that he can to try to affect the outcome.