British Steel

Debate between Lord Coaker and Greg Clark

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.

GKN: Proposed Takeover by Melrose

Debate between Lord Coaker and Greg Clark

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

The decision in terms of the implications for national security has to be taken under advice. I think I have been clear to all Members that that is not a subjective decision. It has to be based on the formal advice that I take from the expert agencies involved. I set out in my letter to Melrose that I thought it was necessary for it to set out its intentions with regard to the period of ownership, specifically in relation to aerospace. Without that we would have been in the dark as to its intentions. It is helpful to know what that period is and for it to be legally enforceable. The suggestion is that only with the consent of the Government could it make any change before then.

[Vernon Coaker (Gedling) (Lab)]

May I press the Secretary of State? The F-35, F-18, Chinook and Black Hawk helicopters are all defence contracts with which GKN is involved. What assurances did he seek from Melrose in relation to those contracts? I think all of us in this House are worried about the implications for defence, were the bid to be successful.

[Greg Clark]

The hon. Gentleman, who served as a distinguished Defence Minister, knows that these are squarely in the field of national security, for which there are statutory powers on which I will be advised by the Ministry of Defence and the agencies. What I have been discussing today are areas that are outside that statutory regime. There is still a very profound public interest that Melrose should set out its intentions. That is what it has done and that is now in the public domain.

Budget Resolutions

Debate between Lord Coaker and Greg Clark

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend. That is a good illustration of how a strategy can bring forces together. That £5 million investment means that the infrastructure in and around Cambridge can be improved, and that will make the area even more attractive for companies and researchers to locate there, and it builds on the area’s strengths. The part of the world that she and the Economic Secretary to the Treasury, my hon. Friend the Member for North East Cambridgeshire (Stephen Barclay)—one of her close neighbours—represent has enjoyed great success, but I think they would both recognise the opportunity to extend that success to a larger area. That is exactly what we have in mind.

[Vernon Coaker (Gedling) (Lab)]

I agree with the Secretary of State about regional disparities and the way in which the industrial strategy tries to tackle them. The east midlands needs investment in capital to raise productivity, so I ask him to look into that. Will he also speak to the Transport Secretary and others about the Government’s failure to electrify the midland main line? As he knows, many of us have campaigned for that over a number of years, but the Government have now rowed back on it.

[Greg Clark]

I absolutely recognise that one of the big strengths of the east midlands is that it is connected to the rest of the country, and it is essential that those connections continue to improve. The hon. Gentleman will know that a fund was established in the Budget for cities and city regions to improve the connections in and around those cities. That is important, but it is in addition to the importance of connections to the rest of the country, so I will raise his point with the Transport Secretary.

Let me say something about ideas and the importance of innovation to our economy. We can be the world’s most innovative economy, given the strength of our science base and our researchers. Throughout our industries, we have some of the most creative people in the world.