Chris McDonald MP: speeches 2025

Speeches

• 19 Nov 2025 · Specialist Manufacturing Sector: Regional Economies · Hansard source

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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. We can too easily think about manufacturing as being about household names and consumer products, but we have heard a lot today about manufacturing businesses in the supply chain that employ many more people and make a significant economic contribution, over and above the consumer products we can buy. As I know myself, manufacturing is about local businesses that have an impact locally on communities and prosperity, as well as on the growth of the country. The Government have a high ambition for our manufacturing industry. By 2035, we want to be the best place in the world to start, grow and invest in advanced manufacturing. We want to double the annual business investment entering the UK manufacturing sector from £21 billion a year to nearly £40 billion a year. That requires bold action, and in many of the measures I have set out we are looking to do more. The steps we have taken in setting out the industrial strategy and various sector plans this year, and the reforms we are making to skills, finance, innovation and regulation, will have a positive and lasting impact, not only for valve manufacturers in Calder Valley but for other specialist manufacturers around the UK.

• 18 Nov 2025 · Energy Costs: Support for Businesses · Hansard source

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  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.

• 18 Nov 2025 · Energy Costs: Support for Businesses · Hansard source

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  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.

• 18 Nov 2025 · Energy Costs: Support for Businesses · Hansard source

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  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.

• 18 Nov 2025 · Energy Costs: Support for Businesses · Hansard source

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  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.

• 18 Nov 2025 · Energy Costs: Support for Businesses · Hansard source

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  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.

• 18 Nov 2025 · Energy Costs: Support for Businesses · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · Clean Energy: Private Sector Investment · Hansard source

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  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.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  The right hon. Member speaks of 1,000 jobs a month being lost in the North sea oil and gas industry. That is not a figure I recognise, so I would be happy if he would share the source of that figure with me. However, I have some figures of my own to trade, if he wishes to know them. We are expecting 800,000 jobs to be created in the clean energy industries. We have attracted £52 billion of private sector investment since July 2024, and £5 billion per year of gross value added to the UK economy from carbon capture and storage alone by 2050.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  As I pointed out earlier, the business has suffered from a lack of competitiveness for the last five years, in part due to the relative lack of competitiveness of UK energy prices, and it is important to point out the things that we have done and are doing to address that. We have the energy-intensive industries support scheme and the supercharger scheme, which is providing up to 90% relief. We also have the British industrial competitiveness scheme, which will reduce prices for over 7,000 businesses by £40 per unit of power over a period of time. Of course, with this business, the energy input was gas. We are competitive on gas with Europe, but the issue has been the much cheaper gas prices in the US; the ethylene imports coming into Europe are primarily coming from the United States of America. On that basis, as an exporting business in the UK, the competitiveness issues are fundamentally why the business does not see a future in the plant.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  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.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  I am grateful for the opportunity that the hon. Lady has given me to clarify some words I said earlier. I did talk about 60,000 jobs by 2030, but it is actually 23,000 jobs in the industry by 2023, and new jobs are being created every day as a result of our investments in renewable clean energy. Beyond 2030 we can see that the clean energy industry is motoring ahead, but these few years are a really difficult transition and we need to work together. Jobs in the clean energy industry are being created every day, but a situation like Mossmorran obviously involves a significant number of jobs all at once. As I said earlier, we can see a way forward for 60% of the direct jobs at the site, and it is important to me that we also work with the other 40% to ensure that they are placed to get good jobs in the local economy.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  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. 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 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. 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.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  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.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  As I set out in my statement, we have managed to attract £250 billion of investment. That investment is coming to the UK because we have policy certainty around industry through our industrial strategy, and it is delivering jobs across the whole of the country.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  My hon. Friend is absolutely right. In our industrial strategy we point to the eight core sectors, including clean energy and defence—all areas in which Scotland is incredibly strong, and that are underpinned by our foundational industries. Our industry is a great strength of the UK—in Scotland, England, Wales and Northern Ireland—and one that for the first time in a generation is receiving a significant amount of attention from Government.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  I would be very happy to take the opportunity to educate the shadow Secretary on some of these issues.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  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. 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.

• 18 Nov 2025 · ExxonMobil: Mossmorran · Hansard source

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  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.