The Government has been accused of failing to show support for the UK steel industry, following its “lukewarm commitment” to using British suppliers for the HS2 high-speed rail project.
Responding to the recent announcement of the first wave of contracts for HS2, Labour has been pressing ministers for guarantees that at least 95% of the steel used in the scheme will be British-made.
The Government has since stated that it “expects” this target to be met in the rail part of the project, but it has stopped short of offering any further promises.
This situation has drawn heavy criticism from Gill Furniss, the shadow minister for steel, who described it as a sign of ministers’ “reluctance” to offer “much-needed backing” to the country’s steel sector.
MPs have long been pushing the Government to commit to using British manufacturers on HS2, with Scunthorpe MP Nic Dakin raising the issue of steel in the Commons back in November.
The unions have also been applying pressure, with TUC general secretary Frances O’Grady urging ministers to consider the “value” that sourcing domestically brings for communities and businesses across the country.
Contractors involved in public-sector projects have to abide by strict procurement rules when purchasing steel, taking into account factors like value for money and carbon footprint, as well as social and economic impacts.
However, the Transport Secretary Chris Grayling offered assurances to MPs as early as last year that the UK’s current record of sourcing 95% of the steel for rail projects from British suppliers would be maintained in the delivery of HS2.
Following the announcement of the phase-one HS2 contractors, Ms Furniss challenged the minister to repeat these assurances, and in a written question called on him to “make it his policy to ensure that 95% of the steel used in the construction of the project” is British-made.
Responding on Mr Grayling’s behalf, rail minister Paul Maynard said HS2 Ltd will ensure “a fair procurement process” that enables UK steel manufacturers to “compete on a level playing field”.
With regard to the 95% figure, Mr Maynard added that the “Secretary of State has said that he expects to match the existing record” on rail.
However, Ms Furniss said this response was “further evidence of the Government’s lukewarm commitment to the UK steel industry”, and she accused Mr Grayling of “backing away” from his previous claims.