Steel Sector

Debate between Lord Callanan and Lord Udny-Lister

Monday 12th July 2021 Lords Chamber

[Lord Udny-Lister (Con)]

My Lords, the steel industry is badly undercapitalised and needs investment, both in labour and capital, so that it can modernise. This has already been asked but, first, will my noble friend agree to look again at energy costs? Even with the government subsidy, they are still way above those of our European—and certainly Far Eastern—competitors. Secondly, will he look seriously at putting a tax on scrap metal, which would ensure that it stayed in this country and was used in the newer electric arc furnaces, thereby making them viable?

[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.