(8 months, 1 week ago)
Lords ChamberIf I may, I will come back to that at the end of the speech, because I want first to try to explain what we are doing with the devolved Administrations. The noble Baroness, Lady Randerson, said that the WTO already places non-discrimination requirements on public authorities. Although this is the case, these obligations do not cover all countries and territories and apply only to procurement decisions, not investment decisions.
To return to the subject of legislative consent, I think it is fair to say that we are disappointed that the Senedd and the Scottish Parliament have refused to give their consent to apply the ban to their Ministers and the respective departments and agencies. It is always the Government’s intention to legislate with the support of the devolved Administrations and, where relevant, the consent of the devolved legislatures. We will therefore continue to ensure that the interests of the devolved Administrations, including the devolved assemblies, are fully taken into account. Contrary to the noble Baroness’s suggestion, we do engage with the devolved Governments. I was in Northern Ireland last week, I visited the Welsh Government relatively recently, and my office has contacted the offices of the relevant Ministers in the Scottish and Welsh Governments. I hope to meet with them in the coming weeks to discuss further how we can gain their support for the Bill.
I will be brief, given the hour. What advice would the Minister give to Welsh local authorities if they refuse to procure or encourage any local companies to do business with Xinjiang province in China because of its oppression of the Uighur Muslims? China, unlike Russia and Belarus, is not listed in the Bill in that way.
(8 months, 1 week ago)
Lords ChamberI understand the question. Of course, we now have government sanctions against Russia, so the question is wider. The suggestion made by the noble Lord, Lord Stevens, is a good one, which would perhaps help us to move forward. I have already said that I will look carefully at the questions raised by the noble Baroness, Lady Chapman. The example of the noble Lord, Lord Boateng, is of a slightly different kind, asking rather the same question. Perhaps I can come back on that at the same time.
May I also ask a question? I am very grateful to the Minister, who has indeed been generous in responding, even if she has been unable to offer the Committee further clarification. Virtually all training in this country is privately provided, by private organisations, but publicly funded. Where do they fit into all this? They receive public money—from the DWP, say. I remember, as the former Secretary of State, visiting a lot of private providers. Where do they fit in? Do they come under the contractual relationship to which the Minister referred, or are they caught by the Bill?
It depends, and it also depends on case law under the Human Rights Act, which I have undertaken to look at and come back to noble Lords.
(10 months ago)
Lords ChamberI am sorry to detain the House. Not only do I endorse everything that my noble friend Boateng said, but the American Government under President Reagan also opposed boycott action. It was only the Black Caucus in Congress forcing through the loan sanctions in the late 1980s that accelerated the decline of apartheid. Virtually every Government in Europe and right across the world, including white Commonwealth countries, opposed boycott action in every respect. If the Minister’s officials are feeding her this nonsense, she should not simply repeat it.
I am grateful for the comments of the noble Lord, Lord Hain. I will certainly look into this further and perhaps we can come back to it on another occasion.
Perhaps me could move on, in the interests of time, to climate change. I would like to clarify that the Bill will ban only considerations that are country-specific. It will therefore not prevent public local authorities divesting from fossil fuels or other campaigns that are not country-specific.
The Bill will not prevent public authorities accounting for social value in their procurement decisions, the reform mentioned by the noble Lord, Lord Collins— of course, we worked together on moving to most advantageous tenders; that is a change that has come about. For example, authorities might structure their procurement so as to give more weight to bids that create jobs or promote animal welfare. Moreover, the Bill contains an exception to the ban for considerations that relate to environmental misconduct, as I think the noble Baroness, Lady Bennett, mentioned.
To answer the question from the noble Lord, Lord Collins, there was official-level engagement with the devolved Administrations on the Bill’s provisions before it was introduced to the other place through the common frameworks working groups process. Senior official engagement on the Bill dates back to April 2022. The Minister for this Bill in the other place, who I saw witnessing our proceedings earlier this evening, has also engaged with responsible Ministers in Scotland and Wales. We intend to engage with Ministers in Northern Ireland now that power has been restored.
The Government have never set out to legislate without consent. We formally sought consent from all the devolved legislatures. Where the legislative consent process is engaged, we always tend to legislate with the support of the devolved Administrations and the consent of the devolved Parliaments. However, as the noble Lord, Lord Stevens of Birmingham, highlighted, boycotts and divestments against foreign countries or territories are a matter of foreign policy. This Bill relates to foreign affairs and international relations, which are reserved matters, but I am sure we will come back to this point in Committee.
I turn to the Bill’s enforcement powers. I start by clarifying that the Bill does not create any new criminal offences, as suggested by the noble Baroness, Lady Janke. They are not criminal offences. Moreover, these enforcement powers are not unprecedented: the regime is based on existing enforcement regimes, such as the powers given to the Office for Students in the Higher Education and Research Act 2017. Clause 7 is a necessary addition to the Bill to ensure that enforcement authorities have the necessary information to assess whether there has been a breach of the ban. It would not make sense to implement a ban with a toothless enforcement regime but, again, I am sure that we will discuss enforcement further in Committee.
The noble Baroness, Lady Chapman of Darlington, and the noble Lords, Lord Wallace of Saltaire, Lord Willetts, Lord Hannay of Chiswick and Lord Johnson of Marylebone, questioned why the ban needs to apply to universities. This ban will ensure that any public authority, including universities in scope of the Bill performing public functions, can maintain their focus on their core purpose rather than taking partisan stances that undermine community cohesion.
It is not appropriate for those institutions to have a corporate view on a matter of foreign policy in the context of their public investment and procurement functions. That risks stifling the academic freedom of individual members of staff to take positions on foreign policy. However, I note the comments made by the noble Lords, Lord Johnson, Lord Willetts, Lord Shipley, and others on the ONS reclassification of universities. I will come back to noble Lords on this issue in Committee, once I have consulted other Ministers.
(10 months, 2 weeks ago)
Lords ChamberI am not sure what sort of competence the noble Lord is talking about. Devolved competence is, of course, clearly set out in various bits of legislation. I note what he says about the investigation, which I was not aware of.
My Lords, does the Minister understand that in Wales the problem is the reverse? The Government sought to indulge in a power grab, particularly following Brexit, of competences that were already devolved, and in addition threatened to spend on road projects, for example, that the Welsh Government had specifically rejected. This works both ways.
I do not entirely agree with the noble Lord, but he may be pleased to hear that I am going to Wales to give evidence on the new border arrangements this week.
(2 years, 1 month ago)
Lords ChamberTo ask His Majesty’s Government what discussions they have had with the government of the United States of America about the suspension of United Kingdom government contracts with Bain & Company.
Before I answer the Question, I should say that it was a privilege to hear the South African President addressing Parliament yesterday. I hope I speak for others when I say that I found the Lord Speaker’s vote of thanks very warm and well judged.
His Majesty’s Government have not suspended any contracts with Bain & Company; however, following careful consideration in the light of South Africa’s Zondo commission, Bain & Company and its affiliates have been excluded from bidding for procurements for the award of new Cabinet Office contracts for a period of three years. Other departments were advised that exclusion should also be considered for their procurements. I am not aware of any specific UK government engagement with the Government of the United States of America on this issue.
My Lords, first, I thank the noble Lord, Lord True, and Jacob Rees-Mogg—I never thought I would say that—for suspending Bain & Company from obtaining UK government contracts for three years. No company should act illegally abroad—as the South African judicial commission found Bain to have done in deliberately disabling the country’s tax-collecting agency, on the direct instruction of the corrupt former President to protect his cronies and his family—and get government contracts at home. The Government’s action sets an important precedent for other global corporates—that they must act legally and ethically abroad or be barred from taxpayer-funded public contracts at home. Bain is Boston-headquartered and I urge the Prime Minister to press President Biden to follow Britain’s lead.
My Lords, our understanding is that Bain & Company currently does no work for the US federal Government or US federal government agencies and has done no such work since early 2013, but the UK Government are confident that our key ally, the United States, will undertake the necessary due diligence to investigate such matters.
I agree that the noble Lord, Lord Hain, has been a great campaigner on this issue and I thank the noble Lord, Lord Collins, for repeating that. It is very important that we fight corruption at every level, in every way we can. It erodes trust and undermines public confidence, and it does that internationally. I think we have a good record in recent years, under this Government, in raising corruption internationally. I come back to my point that individual countries have to take their own action on exclusion and debarment.
Since I have the opportunity to come back, I would like to say that I am very grateful to the Minister for her response. The US is a key ally of ours, as are other countries in the G7 and the G20; all of them do business with Bain. Surely Britain having provided a lead opens the door for the Government to lobby their colleagues and friends to follow the same policy. Companies which act illegally—in disabling a tax agency in this case—should surely pay the penalty.
On the subject of US relations, I can say that the Prime Minister met US President Biden at the G20 in Indonesia, and they agreed on the national and international importance of the UK-US relationship given the challenging economic times and all the difficulties we face together. The US Government have a suspension and debarment regime to which they devote a lot of resources, and contractors found not to be responsible are suspended or debarred, and the US will no doubt study very seriously the Zondo commission and the steps we have taken in the UK to lead the way on this matter.
(4 years, 5 months ago)
Lords ChamberMy Lords, it is always a pleasure to follow the noble Lord, Lord Kennedy, particularly when he is in grateful mode. I will speak only to Amendment 80, which is a probing amendment and links to the other amendments in this group only to the extent that the Bill contains temporary measures suitable for the medical and economic emergency imposed upon us by Covid-19.
As I said at Second Reading, I want to understand the sunsetting provisions in the Bill on which, in principle, I congratulate the Minister. Will all the provisions in the Bill lapse, and when? If not, why not? Why is there a disturbing provision in Clause 25 to,
“make transitional, transitory or saving provision in connection with the expiry of any provision of this Act”?
This seems extremely open-ended for an emergency Bill. How do we ensure that the various measures in the Bill are not extended when they have been subject to a relatively low degree of scrutiny?
My Lords, I too welcome the eloquence of the noble Baroness, Lady McIntosh, in speaking to her amendments. Like my noble friend Lord Kennedy, I welcome the concession that the Minister gave. I will speak briefly to Amendment 61, which intends to ensure that developers do not delay implementing planning consents.
Clause 17 is another example of lack of ambition in the Bill. It proposes extending the time limits for planning permissions where development has not yet started. There is a horrendous shortage of homes for people, the worst since World War II. Yet there are over 400,000 houses waiting to be built in England and Wales where planning consent has been given but not yet implemented. Developers are dragging their feet to manipulate local property markets. They build up land banks—stocks of sites on which planning consent has been given—but go slow when it comes to completing development, expecting land values and property prices to rise in the meantime.
The Government could have explored applying council tax to sites where planning consent has been given but development has not gone ahead. They could even have considered rendering planning consent liable to forfeit if development is not complete within a reasonable time, perhaps five years as this amendment provides. Instead, the Bill sidesteps the scandal of developers with planning consent leaving construction sites idle for years. This amendment seeks to address that and get the millions of affordable houses we desperately need built after this Government’s terrible record of promising great numbers and delivering pathetically low ones. I therefore hope that the Minister will respond positively.
(4 years, 6 months ago)
Lords ChamberMy Lords, I was very happy to add my name to Amendment 15, which has been spoken to so eloquently and with unrivalled expertise and authority on this matter by the noble Baroness, Lady Altmann. I am very concerned about the threat to the Pension Protection Fund. I am proud to say that it started life under the last Labour Government in 2005, and I was subsequently Secretary of State for Work and Pensions. It is an important lifeboat, but it could be threatened if the consequences of insolvency, particularly with defined benefits, rebound into the PPF.
Although I welcome the concessions and responses that the Minister has made through these amendments, and what he has said as a result of the arguments put by the noble Baronesses, Lady Altmann and Lady Bowles, and others, including my noble friends Lady Drake and Lady Warwick, I still think there is a real risk involved. I hope that today, he will give greater recognition to that fact and that he and the Secretary of State will be vigilant in ensuring that the Government are fully cognisant of their concerns about the future viability of the vital Pension Protection Fund.
My Lords, I come to this from a slightly different point of view, and I rise to express some concern at the scale of amendments on pensions in this already finely balanced Bill. They may make life difficult for investors, creditors and the forces of enterprise that we need if our economy is ever going to recover from the dreadful coronavirus crisis. While understanding and accepting the government amendments and agreeing on the need for vigilance— in the words of the noble Lord, Lord Hain—I urge the Minister to go no further and not to accept Amendment 15. It gives too much power to the Pension Protection Fund and could have the perverse consequences of delay, burden and cost to pension funds and to businesses that are in trouble but have a sustainable future.
(5 years, 10 months ago)
Lords ChamberI will come on to talk about tariffs in the event of no deal. Obviously, I was referring to the point that has been made about the apparent change in the Irish position in recent days, which others have already referred to. My understanding is—
I apologise for interrupting because I know that time is pressing, and I am grateful to the noble Baroness. Is it not the truth that the Irish Government are acting with integrity, as we should be, in supporting the backstop as an insurance policy to keep that border open and keep the Good Friday agreement alive and peace in progress? They are acting responsibly. I am very surprised, as someone who has a great deal of respect for the noble Baroness, that she is criticising the Irish Government for defending what everyone says they agree with.
I am saying that they have overplayed their hand. I believe, and I think the noble Lord will agree with me, that the EU is about compromise and consensus-building. I know from my own experience in the Council of Ministers that unfair outcomes, often promoted in silken terms by the French and their supporters, sometimes have to be moderated. Other member states to which I have spoken recently are concerned about the damage from no deal and are increasingly seeing the problem. So the climate is gradually improving, and if we returned to Brussels with unity and resolve, we could prevail.
There is also a question as to whether the backstop is really needed. I believe that the Good Friday agreement, which has widespread support everywhere, is a natural backstop, and that it will be taken into account in the future relationship, deal or no deal. An open border is no bar to the enforcement of different arrangements, as I know from operating right across Ireland in my time in retail. We had enforcement of different rates on alcohol and of VAT and other taxes and regulations. My noble friend Lord Howell of Guildford has already made this important point.
A major change to the deal is necessary, in my view, to secure support in the Commons.
(8 years, 1 month ago)
Lords ChamberMy Lords, since the great bulk of Nissan Sunderland’s production is exported to the European market and the typical life cycle of a new model is five to 10 years, can we assume that Nissan has been promised either tariff-free access to the single market or a transitional access of that kind over a 10-year period?
I have made it quite clear that there is no special sweetheart deal. I outlined in the Statement the broad ingredients of what we have agreed with Nissan, and it has endorsed this with a clear statement to that effect. Of course, we need to look ahead over 10 years. We need to tool our industry and ensure that it is skilled and that we have the right sort of investment and innovation. That can include things Nissan is expert in such as electric cars and, no doubt in due course, the move to autonomous vehicles. We can do all that together. Nissan is a very competitive company that likes Britain. There is plenty of opportunity. We do not need to be so pessimistic about the future.
(8 years, 8 months ago)
Lords ChamberMy Lords, we have had a relatively lengthy discussion, both in Committee and this evening, about the territorial reach of the Bill. We have thought about Wales, the home of my grandfather—although I do not think that that is quite a declaration of interest. I hope that we have made it clear today, clause by clause, that we are listening carefully to concerns raised by noble Lords. I heard what the noble Baroness, Lady Morgan, said about the helpfulness of the changes on facility time and check-off relating to the concerns about Wales. I congratulate her on the launch of her manifesto today—a good reason for speaking.
I am sorry to disappoint the noble Baroness as we never comment on leaked letters, but we had a discussion in Committee about the point raised by the noble Lord, Lord Hain, and about the Supreme Court judgment in the Agricultural Sector (Wales) Bill, which considered the competence of the Welsh Government where multiple subjects were at play. Of course, the court held that the Welsh Assembly had competence as the case concerned a situation where the devolved matter of agriculture was specifically in play. By contrast, this Bill is concerned with industrial relations, which is solely a reserved matter.
There are other cases that I will not go into at this moment, but the key point is that we cannot ignore the fundamental and well-established principle that there should be a unified system of law for certain matters. Employment and industrial relations law is one important example that has to apply consistently across Great Britain. Devolution of these matters, which is the effect of this penultimate amendment we are looking at, could lead to the differential treatment of workers and the development of a two-tier system, making it more difficult for workers to move freely within the labour market. That, of course, is why employment law is reserved in Scotland, and not conferred in Wales. The importance of having this single regime has been reconfirmed in the context of the Scotland Act which received Royal Assent recently.
The noble Lord, Lord Hain, sought, in our earlier discussion on the Enterprise Bill to look at the devolution of exit payments and suggested that our treatment of those was inconsistent with our treatment of the Trade Union Bill, to which we have now turned our attention. This is not correct. The Government of Wales Act 2006, which I referred to earlier, gives legislative competence to the Welsh Government for pensions and compensation payments to specific employers and for specific purposes. This is why the Welsh Assembly has regulation-making powers in relation to exit payments in the Enterprise Bill. In contrast, the Trade Union Bill is about employment and industrial relations law, which is not conferred on the Welsh Government—it is a wholly reserved matter, as I have said. The benefits it will bring should apply across the whole of Great Britain.
I appreciate that not all noble Lords share my assessment—hence this amendment—but I cannot accept that the way forward is to exclude certain public bodies outside England from specific provisions of the Bill. That would extend devolution by the back door and undermine discussions in the context of the Scotland Act and the draft Wales Bill. Parliament has put in place provisions for revising the devolution settlements. It would not be appropriate for this Bill, or others unrelated to constitutional devolution matters, to determine the boundaries of devolution in isolation. We are here today not to debate and amend the devolution settlements but to deliver our manifesto commitment for industrial relations and employment law.
In response to the noble Baroness, Lady Randerson, we do treat devolution with respect, as noble Lords can see, in many different ways, but I cannot agree with her or with the noble Lord, Lord Murphy, about the way forward on this amendment. Can we just consider the hugely significant impact of the amendment on the Bill? Under the amendment, none of the Bill’s provisions would apply to any public body in Wales, regardless of whether the public body were devolved. That would mean that neither the 50% turnout threshold nor the 40% support threshold for important public services would apply to industrial action ballots in Welsh schools or Welsh hospitals. The threshold provisions in the Bill ensure that strike action only happens where there is a strong and positive mandate. That is as important, it seems to me, in Cardiff and Wrexham as it is in London or Glasgow.
This amendment would also mean that ballot papers for industrial action in the DVLA or the Border Force in Wales would not be required to contain a summary of the matters in dispute, despite the fact that both bodies are responsible for matters that are solely reserved. Not only would this amendment therefore undermine the devolution settlement with Wales, and the principle that employment matters should be reserved, but there could also be unintended consequences, as I have highlighted. Where bodies have premises in Wales, there would have to be two different sets of rules for different workers by virtue of where they were located.
If the House were to approve the amendment today, it would set a precedent that future employment and industrial relations legislation would not apply to public bodies in Wales. We could anticipate a time when individual rights, such as protections from unfair dismissal, would not affect public bodies in Wales. I am sure that that is not what anybody wants, but we have to look at the implications of making a change in an area which is clearly reserved. Of course, we will continue to talk about the delivery of devolution in the weeks and months ahead, but I hope that I have explained our position clearly this evening.
The Minister has been very generous this afternoon, but I fear that her generosity is now straying into dangerous territory. I am very concerned. May I point out that when Welsh Ministers start to read the text of the Minister’s reply, they will find that she is digging herself into a deeper hole in this matter? Some of what she has said is very contentious on the interpretation of the devolution settlement for which I was largely responsible in the Government of Wales Act 2006, as Secretary of State. I am very concerned, if I may so, in the gentlest way possible, that she is reading from a civil servant’s script that is seeking to get back some of the powers and responsibilities that have already been devolved.
I thank the noble Lord. I am certainly not seeking to make any changes. I said in response to a point made by a colleague that it was important to respect the devolution settlement. I am trying to explain that this is a reserved area and that if you change that there are implications of the kind that I outlined. That is why we feel strongly that this needs to be a national measure. It fits in well with the unified system that is needed for certain matters and takes account of the fact that employment and industrial relations law is reserved. Of course, as we discussed earlier in relation to the Enterprise Bill, there are particular detailed provisions—apprenticeships are a good example—where I completely understand that the Welsh Government create their own rules. What I am trying to do on this Bill is to make sure that we do not move into constitutional areas which are not appropriate for today’s debate. I have also tried to explain that there is a risk of things being unworkable. I consider that the amendment has far-ranging implications which I cannot accept. I ask the noble Baroness to withdraw her amendment.
My Lords, I think that we are now on the homeward path. These amendments relate to public sector exit pay. A number of noble Lords have spoken on this subject. However, the amendments made in the other place that we are discussing today relate only to further regulation-making powers for Welsh Ministers in devolved areas. Specifically, the amendments enable Welsh Ministers to make regulations in respect of exit payments where they have devolved legislative competence for exit payments under the Government of Wales Act 2006. The amendments have been improved by the Welsh Assembly and I hope that noble Lords will also approve them. I beg to move.
My Lords, I welcome what the Minister has just said in respect of Wales. I point out to her that that is exactly the argument that I and my noble friend Lady Morgan put forward on the Trade Union Bill when we said that these were devolved matters covering devolved public services and that it was a breach of the devolution settlement that the Trade Union Bill transgressed that. So I am very glad that she has conceded that principle in this Bill.
My Lords, I am grateful for the response and for the support for these amendments. Similar to the Scottish Government, the Welsh Government can now determine how they want to take forward arrangements in relation to devolved bodies and workforces. The devolved Administrations will be responsible for putting forward their own regulations and listing relevant bodies in scope. As I made clear in introducing the amendments, they will enable Welsh Ministers to make regulations in respect of exit payments where they have devolved legislative competence for exit payments under the Government of Wales Act 2006. Therefore, the situation is different from those issues, which we will no doubt come on to debate later this afternoon.
The noble Lord, Lord Mendelsohn, asked about the Nuclear Decommissioning Authority—a point that we have touched on before. Interestingly, as we discussed in relation to the previous amendment, the ONS is involved. It determines whether a body falls within the public sector by reference to objective criteria, based on whether the governance, funding, ownership and function of these bodies demonstrate that they are controlled by government. Organisations within the Nuclear Decommissioning Authority carry out important public work, acting as agents of and under the direction of the NDA and operating only through a licence issued by the Office for Nuclear Regulation.
The majority of funding provided to the NDA comes from the Exchequer and amounts to about £2 billion a year. Regulations, not the Bill itself, will set out who is within the scope of the cap, and I can reassure the noble Lord that the Treasury will release both the guidance and regulations in the summer in order to consult with stakeholders. We expect the regulations to come before this House later this year and to be in force from October 2016 at the earliest. NDA employees due to exit before this date will not be affected. From the point when the regulations have been made, Ministers will be able to relax the cap and may wish to consider whether exceptionally it should be relaxed for certain individuals or even organisations.
To conclude, as I said earlier, the Bill supports the UK’s position as the best place in Europe to start and grow a business. The amendments made in the other place make a series of changes to further support our aim, adding measures on apprenticeships, Sunday working, Wales, tidying up the pubs and on the Green Investment Bank, and making a number of technical changes. I thank all noble Lords who have spoken in the debates in this House and of course in the other place.
I apologise to the Minister and my own Front Bench, but I cannot accept the distinction she is making between Bills here. The Minister is saying that the principle that devolved public services should be run by the Welsh Government is accepted by Her Majesty’s Government in this House in respect of this Bill but not in respect of the Trade Union Bill. That gives rise to a major question which the Welsh Government will want to revisit.
I thank the noble Lord. My understanding is that the situation is different but we will no doubt have a debate later today—as I have already indicated. I do not think that we can spend further time in relation to this provision, which is clear cut and fully supported. I finish by thanking all those who worked tirelessly behind the scenes to facilitate the Bill’s passage through this House, including the House’s authorities, the Lord Speaker and the Bill team, who have worked so hard to get us to this place.
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.
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.
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.
The work we are going to do with the Welsh Government, who lead on these issues for Port Talbot, is incredibly important. In other areas, task forces have come together from all stakeholders and have spent the available money really well, which obviously has to include looking after the people who are made redundant.
My Lords, will the Minister accept the deep frustration that many of us feel—in my case, as a former MP for Neath—who have had close associations with the steel industry and with the Port Talbot plant in particular? We gave warnings many years ago about sky-high energy costs, about Chinese dumping of steel more recently, and about the failure of this Government and their immediate predecessor to tackle the deficit through investment in growth rather than austerity. As a result, there has not been sufficient demand in terms of Government and private capital investment these last six years for British steel, including from Port Talbot. To that extent, the Government are responsible for the catastrophic impact on the local communities of Neath and Port Talbot in particular.
My Lords, I do not think I can accept that, although I know all that the noble Lord did when he was Secretary of State for Wales. There actually was a decline in the steel industry for many years. We have helped to get viable steel operations on their feet. We are dealing sensitively and carefully with the current issues that have arisen partly because of global changes. Consumption of steel, as the House will know, has declined radically and at the same time China has been increasing its production hugely. This causes a unique storm and we are trying to find a way forward in these very difficult circumstances. I think that the Secretary of State and the steel Minister, Anna Soubry, are doing an excellent job in very difficult circumstances.