Steel Industry
Debate between Andrew Gwynne and Stephen Crabb(9 years ago)
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Stephen Crabb
I do not accept that the European or the British steel industry will be “well gone”, to use the hon. Gentleman’s phrase, but I think he is right when he talks about the length of time it takes to get state-aid clearance on these issues. This is one aspect of the overall issue that we are pushing for. My right hon. Friend the Minister for Small Business, Industry and Enterprise has had some discussions about this herself. This is a matter on which we are determined to take action—and not with respect only to the issue of state-aid approval that we are seeking at the moment, because we are concerned about the overall process for speeding up state-aid applications generally.
My right hon. Friend the Prime Minister discussed this issue with President Xi of China during the important state visit last week. President Xi recognised the UK’s concerns and will be taking action to address Chinese overcapacity. The working group on international comparisons in the steel industry, chaired by the Minister for Small Business, Industry and Enterprise, met last week and is looking at how we can speed up cases within the EU by working with other member states facing similar issues and working with the industry to speed up its provision of evidence on dumping, which would mean that we could then take action.
Stephen Crabb
Secondly, we are addressing the impact on intensive energy users such as the steel industry of policies to reduce the negative impacts of climate change.
As I said a moment ago, we have already given more than £50 million of support to the steel industry. We were the first EU country to pay compensation for indirect costs of the EU emissions trading system to energy intensives in 2013, we started to pay compensation for the costs of the carbon price support mechanism as soon as the European Commission gave state clearance in 2014, and we exempted the metallurgical industry from the climate change levy in the same year. As my right hon. Friend the Prime Minister has announced, we will provide further compensation for climate change policies, with payments starting as soon as state aid is approved and continuing throughout the current Parliament.
Andrew Gwynne
We must remember that behind all this are communities, and individuals living in those communities, who are facing a very uncertain future. Will the Secretary of State take this opportunity to dissociate himself and the Government from the views of his noble Friend Lord Heseltine, who has said that now is as good a time as any to lose a job? Is it not time that he found himself a different job too?
Stephen Crabb
I have no idea what comments the hon. Gentleman is referring to, but I do know that the noble Lord whom he mentioned has a track record of regeneration, winning support for UK industries, selling UK plc around the world and driving up growth in some of the most deprived parts of the UK to which not a single Labour Member could aspire.
All energy-intensive industries will benefit from the compensation at the earliest opportunity, and we are working with the Commission to gain approval quickly for proposals to provide additional relief for the impact of indirect low-carbon energy policy costs. The Business Secretary spoke to the Commissioner last week, and, as I said, he is in Brussels again today to make the need for urgency clear to our colleagues there. Once they are in place, these measures will save energy-intensive industries such as the steel industry hundreds of millions of pounds over the next five years.
Thirdly, we are determined to drive up the number of public contracts won by UK steel manufacturers and their partners through fair and open competition. In the last Parliament, we successfully renegotiated EU procurement rules to allow wider social and economic considerations to be taken into account, and we were the first country to put those new rules into action in February 2015.
We have identified more than 500 infrastructure projects and programmes, valued at over £400 billion and listed in National Infrastructure Pipeline, to help the industry to plan for and win contracts. Those contracts include Crossrail, which we are building with more than 50,000 tonnes of British steel, and HMS Queen Elizabeth, for which Tata provided 40,000 tonnes. We are currently embarking on the biggest programme of investment in our railways since Victorian times. Network Rail’s £38 billion, five-year investment and replacement programme includes demand for British steel worth billions of pounds, and Network Rail sources 95% of its steel from the UK.