Update on the UK Steel Industry Debate

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Lord Hain

Main Page: Lord Hain (Labour - Life peer)

Update on the UK Steel Industry

Lord Hain Excerpts
Monday 11th April 2016

(8 years, 3 months ago)

Lords Chamber
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Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe
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My noble friend is a great expert in this area and I hesitate to make assertions. It is clear that we have been moving latterly to change our approach to make sure that our climate change obligations are met and that we help the energy-intensive industries, especially steel, which is such a strategic industry, at the same time. I shall certainly look into the points that he has raised and perhaps talk to him further.

Lord Hain Portrait Lord Hain (Lab)
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My Lords, I do not question the diligence or sincerity of the noble Baroness. However, I must report to her bluntly a view that I share after talking to voters from Neath, Port Talbot, Swansea and Llanelli these past few days. They treat with absolute derision her statement that the Government have done everything they could. Five years ago, as the Member of Parliament for Neath, I wrote to the Government informing them that the chief executive of Tata Steel Europe, Karl Köhler, had said that unless energy costs were massively cut for Tata Steel and procurement was actively pursued by the Government to get British steel into capital investment contracts, Tata Steel would close its Port Talbot plant. He said that five years ago. I wrote to the Secretary of State but nothing was done. Why can Sweden, Spain, Germany, France and the Netherlands have successful steel industries and we cannot? It is because the Government do not have an industrial strategy.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe
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I cannot agree with that. We have done a lot to change the rules on procurement and on emissions, as we have already discussed. The last Labour Government did nothing other than reduce the number of jobs in the steel industry under their stewardship. There are deep-seated forces at work here. Chinese surplus capacity is several times EU output at 35% of global production. Of course the points mentioned by the noble Lord matter, but so do these big global factors. That is why we are trying to do all we can for Port Talbot, day and night.