Chris McDonald MP: speeches 2025

Speeches

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend makes the point incredibly well about the need to reindustrialise and create good industrial jobs. It is my mission as Industry Minister to release additional productive capacity in the UK that will increase our manufacturing output and improve our productivity and balance of trade. That is rare—it might be decades since a Government have had this level of ambition for our industrial and manufacturing sectors—but for us it is about not just ambition and words but delivering jobs on the ground.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I thank the hon. Member for recognising the importance of both the site and the Government’s intervention. She mentioned the £50 million grant. It is important that hon. Members look at that in the context of the total package: a grant and an investment from the owner of the business—and, as the owner of the business said today, an agreement in principle for a profit-sharing arrangement. That points to the hon. Member’s other question about the detail of the industrial strategy. This industrial strategy is a significant break with the past. It is not about last-minute interventions, which is what the previous Conservative Government did or did not do, depending on how the mood took them. It is about a serious partnership and engagement between Government and industry to ensure that we have sustainable industry in the UK. The hon. Member asked me about energy costs. I mentioned earlier the relative position on energy costs. Of course, we are doing more on that, and I intend to do much more. In answer to her question on whether it would have helped had the scheme been in place earlier, clearly it would have helped if there had been a Labour Government in place earlier. That would be my advice: always vote Labour.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I do agree with my hon. Friend. I am sure that with Anas Sarwar as the leader at Holyrood, we will be able to implement the Government’s work on Project Willow, which has identified Grangemouth as the ideal site for plastics recycling, biofuels and other projects that will maximise the local competitive advantage and the skills of the workforce.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  The hon. Gentleman mentions the refinery; as I said earlier, Ineos made the final decision to close the refinery in November 2023, having provided data for years to the Conservative Government in Westminster and the SNP in Holyrood, who said and did nothing. The hon. Gentleman talks about the scale of investment; I am really surprised, to be honest, that he has not raised that even more firmly. We are talking about a complete package of investment in Grangemouth, announced by this Government, that approaches half a billion pounds: £100 million in the summer, £200 million from the National Wealth Fund, £14.5 million in the Budget and £150 million in this package. That is only a rounding error shy of half a billion pounds for Grangemouth. I would have thought that the SNP would at least acknowledge that.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I certainly do agree with my hon. Friend. Given that he represents Edinburgh, he might like to learn an interesting Grangemouth fact: if the Government had not stepped in to support Ineos, the Grangemouth site would be flaring enough gas every day to power the entire city of Edinburgh, such is the scale and importance of the Grangemouth site.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I very much welcome the hon. Member’s question because it gives me an opportunity to talk about risk appetite in investment, which I certainly am interested in—if other Members are not, I apologise in advance. The National Wealth Fund is doing something special and different, but it is also worth looking at it alongside the other tools that the Government have: the British Business Bank and UK Export Finance. The hon. Member is right that the National Wealth Fund’s job is to crowd in, so it should not be at the easy end of the investment; otherwise, it would be crowding out. It has a target to produce a return on investment. Ultimately, the National Wealth Fund needs to take a portfolio approach that delivers that return. I know that in the past, industrial strategies in this country have suffered from casual approaches around things like “picking winners”—that sort of language is incredibly unhelpful. The point of taking a portfolio approach is that, of course, some businesses will succeed and some will not. Frankly, if every business the National Wealth Fund invests in succeeds, its risk appetite is in the wrong place. Some businesses will fail—we accept that; that is absolutely the point of the approach—but as a result of the National Wealth Fund’s investment partnering with industry in the commercial sector to de-risk projects, we will see some big successes, too.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend is right to mention the hard work of the Chief Whip and former Business Secretary, because deals like this with international businesses require a significant amount of discussion and engagement. That is precisely the point of our industrial strategy: it is a partnership in which the Government work closely together with businesses to secure investment for the long term. Investment like this hangs around for a generation and provides generational opportunities for employment in local areas. We know that the decisions that this Government are making will provide those employment opportunities for people in Grangemouth and across Scotland for generations to come.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I enjoyed the analogy about the self-licking ice cream, but it demonstrates a lack of understanding of what a real industrial strategy is on the Conservative side of the House. We all like to think that things are simple, but then we grow up. It is important to recognise that these industries are trading in international markets and need to abide by their rules. What we have done is to create a package that supports a sustainable business plan for that industry. The hon. Member mentions the lower energy prices in the USA—I acknowledge that the USA has lower energy prices, primarily due to its decision to introduce fracking. We have decided not to do that. Is he saying that he would like to do that? If he would, that is fine, but it is a point of difference between us—we will not do that. Our policy is to ensure that our industries remain competitive without that.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I thank my hon. Friend for his continued support for his constituents and the Grangemouth site. He welcomes the announcement and, quite rightly, he then presses me for more funding too. Further to the remarks that my right hon. Friend the Prime Minister made to the Liaison Committee earlier this week, on the £200 million committed earlier this year for projects through the National Wealth Fund, those projects are being examined and shortlisted. I hope that they will come forward soon. I also take this opportunity to commend Siobhan Paterson, councillor for Upper Braes on Falkirk council, who has supported my hon. Friend in this work. I hope that when voters go to the polls for the Scottish parliamentary elections in Falkirk East and Linlithgow, they will recognise that and vote Labour too.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I thank the right hon. Gentleman for mentioning my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman). I am sure that he would have liked to be here, but he was invited by the Secretary of State for Scotland to join him on the visit. He and I have spoken over the last few weeks. I assure the right hon. Member that I very much value my hon. Friend’s contributions, his relationship and his support, and I know that he is as pleased as I am by the announcement.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I thank my hon. Friend for the close attention he gives to this area through his chairmanship of the Energy Security and Net Zero Committee. He started his question by mentioning the 500 jobs at Grangemouth, which perhaps we have not discussed enough. I really do understand how this announcement from the Government will bring certainty to those workers at Grangemouth as well as their families and their local community. It is incredibly important that we acknowledge that. On energy costs, my benchmark is how competitive we are in Europe. I mentioned how our electricity costs—particularly our industrial electricity costs—are cheaper than those in some countries in Europe, such as Italy, the Netherlands and Spain, but more expensive than in France and Germany. The British industrial competitiveness scheme will take us a good way towards that, and we are already seeing the benefits of our investment in clean energy. As I have previously said at the Dispatch Box, from 2030 onwards we will see some significant reductions, particularly as we are bringing forward interconnectors that will connect not only the UK with other countries, but wind farm to wind farm—it is always windy somewhere in the North sea—which will help to release capacity and drive down costs. My hon. Friend will see that through both our policy measures and our investment in infrastructure.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  With your permission, Madam Deputy Speaker, I wish to make a statement on the agreement the Government have secured to protect vital chemical production and hundreds of jobs at the INEOS ethylene cracker in Grangemouth. Three quarters of Grangemouth’s ethylene production is consumed domestically by our key industries, and the plant is strategically important for those industries and for UK supply chains more broadly. Its ethylene is essential for critical national infrastructure, including medical-grade plastics used in the health service, and its chemical supply chains are used for water treatment. These materials are also vital to many of our industrial strategy priority sectors, including advanced manufacturing, life sciences and defence, which all depend on a ready supply of them. The plant also links to the Forties pipeline system, which is key for transporting our North sea oil and gas to onshore infrastructure. Despite the site’s strategic importance, we know that INEOS has faced a number of significant challenges that have had a severe impact on trading. The site, like many chemical complexes in the UK and the EU, has faced the risk of closure. Given the national importance of the plant and its unique contribution to the UK economy, the Government are clear that closure is not an outcome we are willing to accept. That is why I can confirm to the House today that we are stepping in and providing a support package to INEOS of over £120 million, which forms part of a wider £150 million investment with INEOS to help to ensure the site remains commercially viable and sustainable in the long term. This support package comprises a grant and a Government-backed loan to protect 500 jobs in Grangemouth and many hundreds more within critical supply chains. As part of the agreement, Ineos will continue operations and will invest at least £30 million into the site, on top of the hundreds of millions it has already invested in recent years. The agreement will therefore protect jobs and safeguard taxpayers’ money. The Government set a very high bar for interventions of this kind. We assess the viability of the business, the economic and social impacts of our investments, and the contributions of the private sector, including shareholders. Where we do intervene, we set clear and strict conditions on how those investments are used. In this case, our funding will secure ongoing operations. It will improve the site’s energy efficiency, decrease carbon emissions and increase productivity. Funding for this support will be covered by existing budgets that have been agreed as part of the departmental spending review settlements. Interventions of this kind are rare, but when workers’ livelihoods and our strategic interests are at risk, a Labour Government will never hesitate to take action to protect this nation’s assets and economic security. We will work with businesses to build a secure, prosperous future for our industrial heartlands and for the whole of the UK. We are taking bold action today to ensure that the chemicals sector in this country remains strong for the workers and communities who have depended on it for generations. We are also ensuring that this sector can play its part in making the UK a clean energy superpower by the end of the decade. The chemicals sector plays a fundamental role in the supply of parts for wind turbines, for carbon capture and storage, and for our nuclear powerplants. We cannot afford to see those domestic supply chains disrupted, and we will not. That is why, beyond this agreement, we will improve the business environment for British industries, including our chemicals sector. The industrial strategy is one of the ways we are doing that. Our gas prices remain competitive in Europe, but we are tackling long-standing problems with our high electricity prices. We have already pledged to increase the discount on electricity network charges from 60% to 90% for businesses in sectors such as steel, cement and chemicals. Some 550 of our most energy-intensive businesses will save up to £420 million a year on their electricity bills from next April thanks to that one change alone. Our new British industrial competitiveness scheme will reduce electricity costs for over 7,000 eligible businesses, including chemicals. We want to save them up to £40 per megawatt-hour, or 25%, from April 2027. Supporting a skilled workforce is also at the heart of the industrial strategy. We are providing an additional £1.2 billion of investment in the skills system by 2028-29. That is because we recognise that a strong economy must rest on strong foundations. That includes our defence capability, energy security and chemicals sector. I say that because hon. Members will know that Ineos is not the only business, and Grangemouth is not the only site, to have experienced challenges over the past few years. That is why we have a vision for Grangemouth’s long-term future that is energy efficient and sustainable. The agreement we have announced today shows that we will forge the right partnerships between industry, the UK Government and the Scottish Government to make it a reality. As part of those efforts, up to £200 million of investment from our national wealth fund will support new opportunities in Grangemouth. Several projects are already under active consideration. Backed by funding announced by the Chancellor at the Budget, the Scottish company MiAlgae has announced that it will deliver a new biotech project at the site, creating 400 well-paid green jobs. To support workers at the nearby ExxonMobil Mossmorran plant, which will close early next year, the UK Government and the Scottish Government, alongside Fife council, are setting up a dedicated taskforce. It will ensure that employees affected by that closure will be afforded every chance of securing valuable employment. As part of the agreement being announced today, Ineos Grangemouth has committed to giving those impacted workers a guaranteed interview for available roles at its site. The Grangemouth training guarantee will also be expanded to those employees who provided shared services for the refinery, ensuring that they have the skills and qualifications they need to succeed in the local labour market. All those measures complement the efforts being undertaken as part of the Grangemouth just transition. That is important, because the agreement we have announced today is not just about supporting a single site or a single company; it is about securing a stable industrial pipeline now and for many years to come. It is about having a clean break from the managed decline of the past and delivering the decade of national renewal that we promised for Grangemouth and for the whole UK. For those reasons, I commend this statement to the House.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I will try to do that, Madam Deputy Speaker. Grangemouth certainly has great potential for the manufacture of sustainable aviation fuel, along with our other clusters. My hon. Friend mentioned managed decline, but it was worse than that: it was complete indifference to industry and manufacturing in the UK.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend is right that this is an investment in our national security, our infrastructure, our industry, the workforce and the opportunities for young people in the Grangemouth area.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  Industrial sites like the one at Mossmorran are incredibly valuable to the UK. We mentioned the strategic sites accelerator in our industrial strategy, and I would be interested to explore whether Mossmorran could be a part of that. It is important that we do that and that we move fast, because I learned only today that prior to this, the SNP-led Scottish Government have not held a single meeting about planning transition for Mossmorran, so we will have to run fast to catch up.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  That is exactly the right question to ask about the Prax Lindsey oil refinery. One of the fundamental differences between the two is the Government’s ability to deal with the owner. The owner of the Prax Lindsey oil refinery left the business in a really terrible state. Of course, we all care very deeply for the workers there and for the families in Humberside; having worked in Humberside myself, I empathise greatly with them. We are now in the late stages of the process with the official receiver, who has confirmed some redundancies because the offers he has received do not see refinery production returning within the next few years. We hope that process will conclude in the new year. I believe the jobs are guaranteed until March, and the Government have provided significant transitional support to help the workers to move into other jobs in the local area.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend is quite right, and I would also like to thank her for her engagement on these subjects as well. She rightly pointed out what a vibrant industrial community there is around the Grangemouth area. Already we have companies, such as Babcock, that are keen to recruit people in that local area and that recognise the skills of the workers who will no longer be employed at Mossmorran from February onwards. With the support that the Government have put in place, including the taskforce led by Fife council, and with the Scottish Government and the UK Government working together in concert, I am confident that we will find new jobs for those people, recognising their very high skills. My hon. Friend mentions MiAlgae—£3 million of support was announced by the Chancellor of the Exchequer in the Budget. This great company will be operating on the Grangemouth site, directly in line with the strategy set out in Project Willow, which was commissioned by my right hon. Friend the Prime Minister and which he spoke about at the Liaison Committee earlier this week. That points directly to the bright future for Grangemouth.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend spoke powerfully about how Grangemouth matters to the local area. I was chairing a roundtable of the chemicals industry at the Wilton cluster in Teesside; those who, like me, have worked in the chemicals industry or work there now know that Grangemouth matters to all of us across the United Kingdom. The support of the workers and families in Grangemouth makes a big difference to all our lives. My hon. Friend mentioned jobs. I have talked about the jobs in the clean energy sector created in Scotland and the rest of the country. Last week, I saw that for myself when I attended a clean energy jobs fair at the port of Tyne. I spoke to apprentices excited about the new job opportunities that this Government are creating. The one thing that they know—they heard it from me and said it themselves—is that Reform are coming for their jobs. They know that firmly, and should certainly take it into account when they vote.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I thank the hon. Lady for her welcome for the announcement. I think that is something that we can share across the whole House. I would just reiterate the point that the Government recognise the importance of the oil and gas sector. Of course it is important to the UK, to the people who work in it and to local communities as well, but we also recognise that the North sea is a declining basin. We have taken the actions, through our clean energy jobs plan and our clean energy initiatives, to ensure that we secure the supply chains for those clean energy jobs here in the UK. Again, this is a marked contrast between this Government and the previous Conservative Government, who were proud to boast of the UK being the largest market for offshore wind but enabled those jobs to be located in Denmark and other countries around the North sea. We do not think that is acceptable. That is why we are bringing the jobs here and helping workers to transition into those industries.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I start by thanking the hon. Gentleman sincerely for welcoming the support for Grangemouth—it really must be the season of good will. On this occasion, I can assure him that he is correct: this is the last ethylene plant, so we can agree on that this time. The hon. Gentleman talked about the business environment for the chemicals industry. I thought I had set that out reasonably well in my statement, but perhaps not. I shall just say a bit more. On energy costs, we already have the energy-intensive industries scheme and, as I mentioned, we have increased the level of the supercharger. The British industrial competitiveness scheme will come in in 2027 with an additional 25% reduction. He may be interested to know that our electricity costs are already more competitive than many countries in Europe, but not France and Germany, which are the benchmark for me. That is why we are introducing the British industrial competitiveness scheme. On gas, after policy costs we are already competitive. These businesses trade internationally, and our success in striking international trade deals with the EU, the US and India, and with Korea just this week, means that there are more market opportunities all the time. The shadow Secretary of State made the contrast with ExxonMobil. I reiterate the point that this Government —the Government would always do this, as I am sure he would expect—are investing in a business with a viable and sustainable future where there is a viable business plan, primarily because the owner of the business has invested in the business over time. As I said a few weeks ago in my statement on Mossmorran, ExxonMobil had failed to invest in that plant, and that is why it said that there was a £1 billion investment gap. On jobs, in the clean energy sector we are creating 40,000 new jobs in Scotland alone and 800,000 jobs across the whole of the country. This is a transition that the Government are actively engaging in and managing. The shadow Secretary of State says that a Conservative Government would do something different from what they did last time, but they did not do anything last time. When Ineos announced in November 2023 that it was going to close its refinery, the Conservative Prime Minister at the time said, “That’s a commercial decision.” They did nothing about it—nothing at all. Investment in this area is very important, so I refer the shadow Secretary of State to an article that was published this morning by my noble Friend Lord Stockwood, the Minister for Investment. He talked very carefully about the international investment environment and the performance of the UK economy and lamented the fact that so many people in this country—so many Cassandras, such as the shadow Secretary of State—are constantly talking the economy down and frightening investors away. I think it is about time he recognised the success of our clean energy industries and the success of this Government’s industrial strategy and stopped talking Britain down.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend is right to point out that it is only this Labour Government who have made this decision. This is an appropriate time to identify that the intervention in Grangemouth has a significant impact on securing our ethylene pipeline, which runs across the whole of the UK, as well as on chemical plants in Runcorn and the Forties pipeline. That demonstrates that interventions like this and plants such as Grangemouth work well when we are all part of an integrated United Kingdom.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I sincerely thank the right hon. Gentleman for welcoming the announcement. The season of goodwill really is spreading right across the House. He asks a serious question about the transition. We have made no bones about this: oil and gas is an incredibly important industry for the UK and will be for decades to come; but as the oil and gas basin declines, it is important that there is a transition. Fundamentally, that is the difference between this and previous Governments and the point of our industrial strategy. The right hon. Gentleman mentions Robert Gordon University, which also identified that 90% of workers in the oil and gas sector have skills that are readily transferable into the 40,000 jobs that we are creating in Scotland in clean energy industries. That is in marked contrast with the SNP. In September, Professor Mariana Mazzucato—he may have heard of her because she was an adviser to the Scottish Government—said that the SNP Ministers in Scotland, on industrial strategy, talk the talk but do not walk the walk. This Government are walking the walk.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  My hon. Friend is correct that the Government’s decision here and their previous industrial strategy decisions have been in marked contrast to the decisions of the Scottish National party and the Conservatives previously. There is something astonishing about this. I know that the Conservatives are hidebound by their free market ideology, which means that they are prepared to let British businesses and jobs go to the wall, but surely they should stand up for things like defence and national security, for which these businesses are so vital? They support our defence supply chains, as well as health and water. It should be natural for the Conservatives to stand up for things like that. The past inaction of the Conservatives and the SNP on this issue has been astonishing. The big message to the voters of Scotland is: vote Labour in the spring.

• 17 Dec 2025 · INEOS Chemicals: Grangemouth · Hansard source

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  I do agree with my hon. Friend. It really is astonishing how the previous Conservative Government and the SNP Government in Scotland were prepared just to stand by and let the refinery at Grangemouth close after having been given data for years and deciding not to do anything about it at all. He rightly mentions the supply chains, and the multiplier of jobs in the supply chains is much greater. We recognise that this is a good investment for the taxpayer, not just to secure the vital product that we need in our chemicals and defence industries or because the ethylene plant is important in its own right, but to spread the economic benefits through the supply chains in Scotland and beyond.

• 11 Dec 2025 · Energy Costs · Hansard source

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  My hon. Friend, through his chairmanship of the Energy Security and Net Zero Committee, is working very hard to highlight the issues of business competitiveness and energy costs to businesses. I would draw his attention to the British industrial competitiveness scheme consultation, which I launched a couple of weeks ago, which is our commitment through the industrial strategy to reduce energy costs for over 7,000 manufacturing businesses by around £40 per megawatt-hour from 2027. I encourage all Members to ensure that manufacturing businesses in their constituencies respond to that consultation.