Queen’s Speech

Baroness Neville-Rolfe Excerpts

Wednesday 19th May 2021 Lords Chamber

[Baroness Neville-Rolfe (Con)]

I first offer my warm congratulations on a moving, forward-looking and excellent maiden speech by my noble friend Lord Udny-Lister and thank my noble friend Lady Goldie for her excellent introduction. The new programme takes the country forward, building on the Government’s strong electoral showing and the success of the vaccination rollout. Frankly, that makes one proud to be British.

I declare my interests as in the register, first as chair of Crown Agents, a not-for-profit British development company. We have been much involved in the delivery of vaccines, notably to our overseas territories, with Gibraltar now prominent on the green list. Crown Agents has also helped Ukraine to secure non-Russian Covid vaccines and to improve its healthcare system over the last five years. This partnership has led to $60 million of savings in health expenditure and fewer deaths. I believe it is a model that we could replicate elsewhere. To answer the previous speaker, we work with Gavi to deliver vaccines in some of the hardest-to-reach places on earth, bringing to that vital task our knowledge of the chill chain for medicines.

I welcome the creation of the Foreign, Commonwealth and Development Office. It brings together our international efforts, integrating diplomacy and development to achieve greater impact—for example, to address the links between poverty and climate change and to promote English and our cultural heritage across the world, from Shakespeare to the music industry. The cut in development spending is disappointing, but it makes the work of our high commissions and embassies, and the pursuit of value for money, even more important. The Prime Minister’s trade envoys have been given more support by DIT, including my helpful and noble friends Lady Meyer, for Ukraine, Lady Nicholson, for Iraq, Lord Bates, for Ethiopia, Lord Risby, for Lebanon, and many others.

I also support the FCDO and DIT tilt to the Indo-Pacific region. As chair of the UK-ASEAN Business Council, I have been particularly glad to support HMG’s successful efforts to secure post-Brexit dialogue status with ASEAN. It is a region and a trade zone with huge growth potential. Two-way trade was at a peak of £42 billion in 2019. Vietnam, which presided last year, has already attracted much western investment. Brunei is now in the hot seat, and we have been working with it on building back after Covid, with infrastructure, health, energy transition, climate change and a revival of tourism all areas of focus for the 10 ASEAN countries.

That brings me on to trade. For those of us who have studied economics, the theory of comparative advantage is a key tenet. Trade should be encouraged because it benefits both consumers and producers who are productive, creative and effective. It helps developing countries, whose products get squeezed by protectionism. I am a fan of the post-World War II trading system, now in the hands of the WTO, but it struggles to move forward. It is disappointing that the last really significant step forward multilaterally was in 1992, when agriculture was brought properly within the system.

It is regrettable that protectionist forces are found in democracies, which really should know better. Examples can help to bring that home. The former MEP John Longworth was right to call out India; it is a good friend to Britain, but it has failed to abide by tribunal decisions and its treatment of the British telecoms firm Vodafone left much to be desired. The US—which I love, as a home to several family members—failed under President Trump to agree to the appointment of arbitrators at the WTO. Worse, the US has been very slow to agree to export vaccines, even to poor countries desperately in need and even of the AstraZeneca vaccine, mysteriously still not approved by the US regulator. We all know that a US trade agreement will be hard, so it makes sense to start negotiations elsewhere first.

I strongly support the efforts of our Trade Secretary, the energetic Liz Truss, as we move on from Brexit, particularly her efforts on Australia and on CPTPP. Of course, these agreements must bring benefits in exchange for any concessions offered, for example on data and services, and the abolition of discriminatory protectionism on products such as whisky. I hope that the G7 summit in Cornwall will give a new boost to trade.

I have run out of time, but in closing I would like to mention one other troubling example: the apparent US support for a TRIPS waiver on intellectual property rights for Covid vaccines. This proposal has a great number of problems and would really hurt industry. AstraZeneca has been an example to the world in forgoing much of the profit from the production of its Covid vaccine. It is puzzling to suggest that they should be treated so badly.

Steel Industry

Baroness Neville-Rolfe Excerpts

Tuesday 20th October 2015 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)]

My Lords, with the leave of the House, I shall repeat in the form of a Statement an Answer given earlier today by my right honourable friend the Secretary of State for Business, Innovation and Skills in another place. The Statement is as follows.

“Mr Speaker, the steel industry across Europe and around the world is facing challenges on a scale unprecedented in recent history. Today we have had further devastating news of redundancies, this time at Tata. So let me begin by saying this to the people of Scunthorpe, Redcar and anyone living in a community where the local economy is built on steel. I know that the current situation is unbearably difficult, and that you are deeply worried about your future, and the future of your families, but let me assure you that the Government are doing and will continue to do everything within our power to support you in the weeks, months and years ahead.

For decades the United Kingdom has prospered on the back of your industry. We will not abandon you now, in your time of greatest need. There is no straightforward solution to any of the complex issues involved, but this Government have no intention of simply standing by. We have already announced a package worth up to £80 million to support people who have lost their jobs as a result of SSI’s liquidation and to mitigate the impacts on the local economy. We have asked Amanda Skelton, chief executive of Redcar & Cleveland Council, to chair a local task force; we have ensured that money reaches workers’ pockets quickly via the redundancy payments service; we have brought workers and opportunities together at a jobs fair, at which more than 1,000 vacancies were showcased by more than 50 local employers; we have provided additional flexibilities to local FE colleges to allow people to take up training to enhance their future job prospects; and we have set aside money to fund those proposals from the task force, which will make an immediate and lasting impact on the local economy.

We will do what we can to soften the blow of any further redundancies among steelworkers, including those at Scunthorpe, of course. Jobcentre Plus and Rapid Response Service support will naturally be available, and we are also setting up a task force that Liz Redfern of North Lincolnshire Council has agreed to chair. I will consider carefully what the task force proposes by way of additional support that may be necessary.

Alongside our immediate help for individuals who are laid off, we are also taking steps to ensure there is a future for Britain’s steel industry in what is an exceptionally difficult market. Excess capacity in global steel is enormous—more than 570 million tonnes last year, almost 50 times the UK’s annual production. The price of steel slab has halved in the past year alone, and in the three years since SSI restarted production at Redcar, the plant has lost more than £600 million. There are limits to what the Government can do in response; no Government can change the price of steel in the global market, no Government can dictate foreign exchange rates, and no Government can simply disregard international regulations on free trade and state aid, regulations that are regularly used to protect British workers and British industry.

To identify where progress can be made, on Friday I hosted a top-level summit with key players from the UK steel industry. Bringing together industry leaders, trade unions, Members of Parliament and senior figures from government, the summit created a framework for action that will help us to support steelworkers now and in the future. First, we will drive up the number of public procurement contracts won by UK steel manufacturers and their partners through fair and open competition. This Government are committed to a major programme of infrastructure spending. I am determined that the UK steel industry should play a central role in its delivery. The new public contracts regulations give us more scope to offer greater flexibility around how we include social and environmental considerations in our procurement activities. We intend to help other departments and business take full advantage of these flexibilities, building on what was learnt from projects such as Crossrail.

Secondly, we will consider what lessons can be learnt from other countries in the EU and beyond. This will include the resilience of the steel sector in competitor countries and the market penetration of national manufacturers. Thirdly, we will look at what government can do to boost productivity and cut production costs. This includes addressing energy and environmental costs, regulation, skills and training. An extensive review of business rates is already under way, and the Government will look very closely at all proposals.

These steps will come on top of action we have already taken. For example, we have paid out more than £50 million in compensation to energy-intensive industries in the steel sector. We also plan to offer further compensation in respect of feed-in tariffs and the renewables obligation. This constitutes state aid, which must be approved by the European Commission. The approval process is under way, but it is taking longer than anticipated, and longer than I would like. My department is working closely with the Commission to answer its concerns and impress upon it the importance of prompt approval. I also plan to meet Commissioners next week to reinforce our concerns about unfair trade issues and gain their support for urgent action. We have already voted to support extensions of duties on wire rod. We will demand action wherever there is evidence of unfair trade.

Since Victorian times, British steel has helped to make Britain great. In 2015 it is vital that all of Britain comes together to forge a stronger future for the men and women to whom this country owes so much”.

[Lord Mendelsohn (Lab)]

My Lords, the steel industry is of vital strategic importance to this country and the Government need to safeguard its future. The hard closure of Redcar, the announcement from Tata and the announcement from Caparo reveal how serious the problems are, with the expected loss of more than 5,000 direct jobs and many more indirect jobs. This is a crisis for the employees, families, communities, supply chain and local industries.

We are very conscious that there are issues in the market of price and overcapacity, but there have been long-term concerns about the structure of the UK steel industry. We are keen that the Government support key strategic industries in this country and make sure that highly skilled jobs are not lost. I hope that these events will trigger a reconsideration of the Government’s hostility to an industrial policy and strategy. We hope that the Government will get to grips with this crisis. It would be a tragedy for the steel industry if they did not, not only for those who have lost livelihoods but for those of us who wish to make the case for modern economic progress. What can we say about globalisation and trade to a newly redundant 50 year-old steelworker if the Government do not muster all their resources to deal with this challenge?

I have some questions for the Minister. First, when did the Government know about the problems facing Caparo and when did they first know that Tata Steel was planning to cut 1,200 jobs across the UK? What did the Government do to support these job losses and address these issues? What level of production do the Government think is the right size for the UK to ensure a strategic supply of steel in this country? What are the Government doing to ensure that this level of production is maintained? Will the Government accelerate action to support energy-intensive industries to alleviate the excess costs facing the industry? In that context, what will they do in short order to ensure that business rates reflect the current crisis in this industry?

Have the Government raised the issue of Chinese dumping during the course of President Xi’s visit? Have the Prime Minister and the Secretary of State taken all the opportunities afforded by such a large delegation to raise our concerns? Also, within the context of some of the businesses that have fallen behind, does this not offer some reason why we should have broader debtor-in-possession provisions; and why we should consider a different way in which we could muster more time and resources for restructuring? Have the Government considered using the Industrial Development Act? Given that we are potentially amending that in the Enterprise Bill, would the Government consider amending it further in order to do so? It is a measure that we would support.

Will the Government also consider using all the resources of their start-up business loans and other sorts of facilities to create special provision to support those particular areas? Finally, in the case of SSI and Redcar, there are some outstanding issues about pensions. Can we have an assurance from the Government that we will not be picking up the tab for the non-payment of pensions by the restructured industry?

[Baroness Neville-Rolfe]

My Lords, this is a worrying time for communities that rely on jobs in the steel sector. That is across all the UK, including—I should add—in Lanarkshire, Scotland. Our hearts go out to the families and businesses involved. We have obviously been in discussion with Tata on an ongoing basis. It is a major business operator in the UK. The derogations that are mentioned in the Statement about industrial emissions are extremely important to it and to its future in the different steel communities in which it operates in the UK.

In terms of strategy, not only was there a summit last Friday—which set up three working groups in absolutely key areas that I mentioned in the Statement—but Anna Soubry launched a metals strategy this week which will work with metals industries right across the board, and that will, of course, include steel.

On the subject of China, the Prime Minister is indeed talking to the Chinese on the subject of steel and the necessary restructuring. Of course, it is not only a matter for bilateral discussion, because anti-dumping is a matter for the EU: 28 countries together can do more. We have actually taken EU action thanks to the UK on rebar anti-dumping, which is an issue between the UK and China. We have a number of groups; we have local task forces now in the affected communities, and I am grateful to the noble Lord for his suggestions.

[Lord Lawson of Blaby (Con)]

My Lords, the Statement quite rightly referred to energy costs, which are of the first importance in steel making. Is the Minister aware, however, that it is entirely a result of the misguided energy policy of this Government, which they inherited unchanged from the previous coalition Government, that energy costs for British steel makers are significantly higher than they are for steel makers in the rest of the European Union, and very substantially higher than energy costs in China? In the light of the disastrous news of which we are all aware, will she urgently ask her colleagues in Government to review the suicidal energy policy being pursued at the present time?

[Baroness Neville-Rolfe]

My Lords, the energy policies to which my noble friend refers date back to the Labour years and the coalition. We are where we are now; we have paid out £50 million to the steel industry through the special energy provisions that exist. One of the groups—the one on competitiveness and productivity being chaired by my noble friend Lord O’Neill—will look at energy and environmental costs, other regulatory costs, and what action industry could take to drive up productivity and competitiveness, in the light of the playing field that my noble friend has described.

[Lord Morris of Aberavon (Lab)]

My Lords—

--- Later in debate ---

[Lord Stoneham of Droxford]

My Lords, Tata’s statement today says that China’s imports of plate steel into the EU have increased by a factor of four over the last two years. Is the Prime Minister raising evidence of dumping with President Xi during his visit today, and, given that the Government’s Statement says that no Government can act alone in this matter, what precise action are the Government seeking from the EU to use the strength of its marketplace to put pressure on the Chinese?

[Baroness Neville-Rolfe]

The Prime Minister is talking to the Chinese about this issue; obviously I am not able to share the detail with noble Lords today. However, I will add that we have been active at the European Union level, as I explained last week in answer to an earlier Statement. The Secretary of State will go to Brussels next week to talk to the relevant Commissioners in the various areas, and obviously the issue of Chinese imports, anti-dumping and the marketplace that I have described will be at the absolute top of the agenda.

[Lord Morris of Aberavon]

The European Union can be difficult on state aid. Would the mothballing of a plant or part of a plant fall foul of European Union state aid provisions? Those of us who have represented steel constituencies know that closure is final. Mothballing would give some hope to a community.

[Baroness Neville-Rolfe]

There are two questions there. On the first, as I explained last week on mothballing at Redcar, on the business case that was given, the Government did not have realistic confidence that a proposal for taxpayers’ support could be produced. As I am sure the noble and learned Lord knows, individual state aid claims are very complicated. You have to put the proposal together and then go and engage with the European Union. It is difficult to give a clear answer on that one.

[The Lord Bishop of Durham]

My Lords, in the north-east there is also particular concern around young people who are in apprenticeships at Redcar, Hartlepool and elsewhere, and their deep concern that after three or three and a half years they will now have to go back to the beginning. Can the Minister give us an assurance that some of the £80 million will go to assist them to complete their apprenticeships without having to return to the beginning?

[Baroness Neville-Rolfe]

Indeed. About 50 holders of apprenticeships are among those made unemployed in Redcar; the task force is trying to make sure that they are transferred elsewhere, and they have already obtained some places. That is exactly the sort of thing that the task force should be helping with at a local level, which is why we are so keen to have this local endeavour in these very difficult circumstances.