Steel Sector

Baroness Wheatcroft Excerpts

Monday 12th July 2021 Lords Chamber

[Lord Callanan (Con)]

My noble friend is right to point to the problems for the sector. I mentioned in an earlier answer that we have provided more than £550 million in relief to the steel sector for its electricity costs but, of course, we keep these matters under constant review. We are aware of the problems that high electricity prices cause for the sector. On his question on scrap, we want to ensure that the metals recycling market continues to work effectively for all stakeholders, whether that is for metals recycled by steel producers or the cast metal sector.

[Baroness Wheatcroft (CB)]

My Lords, the UK steel industry has shrunk drastically over the last quarter of a century. In 2019, we produced just 7 million tonnes, which put us eighth in the league of EU producers. Does the Minister have in mind a figure for what the UK steel industry should be able to produce in order to fulfil the plan for growth? Will he also say whether in providing subsidies for automobile manufacturers in the UK, there is a stipulation that they should buy their steel in the UK?

[Lord Callanan (Con)]

I understand the points that the noble Baroness makes. My noble friend Lord Grimstone is looking forward to considering the outputs of the procurement task force. However, we should recognise the importance of continuing to treat suppliers equally and fairly through open competition. Keeping our procurement market open to international competition ensures better value for taxpayers and for UK industry.