UK Steel Industry

Debate between Angela Eagle and Tom Blenkinsop

Monday 29th February 2016 Commons Chamber

[Ms Eagle]

I certainly agree with my hon. Friend’s observations and share his surprise that Swedish steel is being used in Ministry of Defence contracts in quite that way. I note that it appears to be a Conservative donor company that was doing that work. I join him in commending the Daily Mirror for its fantastic Save Our Steel campaign, which has highlighted the very real effects of the current crisis on steel communities up and down the country. Long may it continue to help us campaign to save this vital industry.

In the light of all that, why has the Government’s response to the steel crisis been so complacent and ineffective to date? Perhaps it is because we have a Business Secretary who is ideologically indisposed to taking any worthwhile action as he does not actually believe in the concept of Government action at all. Perhaps it is because we have a Business Secretary who has read far too much Ayn Rand and thinks that markets should somehow just be left to look after themselves. Perhaps it is because we have a Business Secretary who will not let the phrase “industrial strategy” even pass his lips.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Is my hon. Friend concerned that the Business Secretary will write letters supporting the need to deal with dumping and to increase tariffs, but, when it comes to reality rather than rhetoric, is part of a Government who are one of the ring leaders in the EU Council preventing any increase in tariffs?

[Ms Eagle]

I thank my hon. Friend for that observation. I think that in this debate Opposition Members will want to explore the gap between the Government’s rhetoric and the reality of their actions, because all too often we find that the gap is far too wide.

--- Later in debate ---

[Ms Eagle]

I was trying to make it very clear that we are talking about unfair trade—dumping. We are not talking about fair trade.

[Tom Blenkinsop]

My hon. Friend is absolutely right. The point is that this is not an example of free trade. China is in breach of World Trade Organisation rules, and it is exploiting export subsidies to such an extent that the Americans are looking at tariffs of more than 200% on Chinese steel. That is not unprecedented: back in 2004, the Bush Administration brought in similar tariffs of about 25% on European steel.

[Ms Eagle]

My hon. Friend is exactly right: we have to distinguish between free trade, fair trade and unfair trade, and what we face with Chinese steel imports is clearly unfair. Dumping is unfair, and it is threatening the very existence of the UK steel industry. Everyone in the House knows that once steel facilities have gone, they cannot easily be put back. We have to protect our industry’s capacity to exist, and perhaps to do better in future, when world conditions have changed. If we do not bear that in mind, we will lose the lot, and we will regret it.

Steel Industry

Debate between Angela Eagle and Tom Blenkinsop

Wednesday 28th October 2015 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

The EU emissions trading system has already been compensated—that is an EU-wide market taxation system—and we are talking about the carbon price floor, which was introduced by the Chancellor. He did not consult industry or talk to the European Union, and he had to go to Brussels—well, we do not know whether anyone has gone there yet; we presume the Business Secretary is there today—to get compensation for a tax that this Government introduced unilaterally and without any consultation with industry. That is the issue. We are talking about a compensation package for a British tax.

[Ms Eagle]

My hon. Friend represents many constituents directly affected by the closure in Redcar, as does my hon. Friend the Member for Redcar (Anna Turley), and he demonstrates his knowledge of the problems faced by the British steel industry. It is a pity the Chancellor of the Exchequer did not acknowledge those problems when he came up with that policy.

--- Later in debate ---

[Ms Eagle]

My hon. Friend speaks with much passion because he has been through this process with the coal community. It is easy for the Minister to dismiss the searing experiences that our coal communities went through following decisions taken by the last Tory Government, but I do not think she should.

[Tom Blenkinsop]

We have to talk about the £80 million. We now know that the statutory redundancy was part of it, so that brings it down to £50 million. The northern powerhouse Minister wrote to one of his constituents informing them that the last month’s payroll would be paid out of that money as well, so it is now less than £50 million. To date, I have not seen evidence of more than £3 million—for the 50 apprentices—of the money promised. At the Steel House meeting, on the same day as the liquidation, we were informed, in front of other agencies and the press, that the vast majority of the £80 million would be new money. I know, other Opposition Members know and the Minister knows that less than £50 million of that is potentially new money. I would like to see evidence of what money, where, for who and when.

[Ms Eagle]

We would all like to see that. The Government do their cause no good by attempting artificially to inflate how much money they are giving to help a steel community that they refused to save by intervening in the hard closure.