Steel Sector

Viscount Hanworth Excerpts

Monday 12th July 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a very good point about the high energy costs. We have provided more than £550 million in relief to the steel sector since 2013 to make electricity costs more competitive. Of course, we continue to keep the matter under review and to have discussions with the sector.

[Viscount Hanworth (Lab)]

If Britain is to have an industrial future, it needs a domestic steel industry. It needs a low-carbon industry to replace one that is a large emitter of carbon dioxide—as are the foreign industries from which we have been importing increasing quantities of steel. To create a low-carbon industry which employs electric arc furnaces and uses hydrogen as a reducing agent requires considerable investment. It also requires protection from foreign competition by a stringent carbon tax. Are the Government prepared to overcome their usual reluctance by providing funds for this investment? Are they prepared to impose such a carbon tax on imported steel?

[Lord Callanan (Con)]

We have supported the steel sector extensively over the years and I outlined some of the money that we have spent. The noble Viscount will know that decisions on taxes are of course a matter for the Chancellor. I am sure that if there are any actions, he will hear of them directly from the Chancellor.