British Steel

Lord Coaker Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

I get the hon. Gentleman’s gist; I know what he requires. He is right to call attention to the fact that, notwithstanding the intentions that everyone in the House has expressed, today is a day that no one in Scunthorpe, in Skinningrove or on Teesside wanted to see. It is a very worrying day; people will go to bed tonight very concerned about their future. We cannot resolve this overnight, but we can resolve to do everything we practically can to make a good future possible. I am grateful for the support and commitments from across the House that we will all do precisely that.

[Vernon Coaker (Gedling) (Lab)]

May I join others in welcoming the Secretary of State’s commitment to do all he can to prevent the demise of one of our great strategic industries? In the light of that, will he explain something to the House? In his statement, he said:

“The Government have provided an indemnity to the official receiver, who is now responsible for the operations.”

Will he explain a little more about what that actually means, how long that will last and whether it will give the time for the official receiver to find another owner for the steelworks? Some clarity on that would be really helpful.

[Greg Clark]

If I am legally permitted, and I do not see why I should not be, I will put the letter of indemnity in the Library of the House. If I am not permitted to do so, I will find a way to share it, perhaps through the Select Committee. It reflects the fact that an industrial facility such as a steelworks is a hazardous environment, with a lot of risk. Given that the official receiver is legally responsible for that site, he should be fully indemnified. So the indemnities arise, for example, through liabilities that might arise from carrying out the proper performance of his duties as liquidator in maintaining, securing and funding the ongoing operation of the company’s undertakings and distributing its assets. So it is the work that the official receiver is engaged in that has the backing of this indemnity from the Treasury from the outset—from this morning, when the letter was sent.