Andy McDonald
Main Page: Andy McDonald (Labour - Middlesbrough and Thornaby East)(9 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
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Anna Soubry
That was a large number of questions and time precludes me from answering them all. I undertake to ensure that any questions that are not answered in what I say receive a written response.
It is not true that there is no new money. There is an £80-million package, £30 million of which is an estimated figure. We discussed all that during the urgent question on Tuesday. Indeed, the hon. Member for Redcar said that the estimate was between £20 million and £30 million. In any event, there is at least £50 million of new money. I have answered the question on FE colleges. That £50 million of new money is there to support the workers and the supply chain, so that there is reskilling, retraining and—[Interruption.] I am sorry, but I cannot hear what the hon. Member for North Durham (Mr Jones) is saying. If he wants to ask a question, he is more than capable of doing so, and I will answer it.
The reason why we are in this situation in Redcar is that, unfortunately, month on month, year after year, SSI lost money. It never made money at the Redcar steelworks. The coke ovens, as I said on Tuesday, were losing £2 million month on month. That is the harsh reality. The hon. Member for Middlesbrough South and East Cleveland knows the situation. Of course he feels huge passion about it because he has put a long-seated investment of his own life and skills into the plant. He knows the devastating effect that its closure will have on the local community, but the Government have done all they can and now we have to look to the future.
Anna Soubry
They absolutely have. The hon. Gentleman who shouts at me from a sedentary position knows what Government officials and I have done on numerous occasions in the face of the most peculiar and appalling practices from the Thai owners. He knows that on one occasion, for example, the employers liability insurance had not been paid. We found out at 4.20 in the afternoon. I was making calls at 9 o’clock at night to make sure that the workers still had their insurance cover at least up to Monday. We literally scrabbled around looking for money. We made sure that the workers were paid their wages. He knows that that was done on the specific direction of myself and the Secretary of State, who said, “Get the money together to make sure the workers are paid.” Those are the sorts of things that the Secretary of State and I have done.
Now we have to look to the future to ensure that there is a future for the workers, their children and their grandchildren. That is what this package delivers.
Anna Soubry
My hon. Friend is right. What happened on 1 October, when we were looking at ways of support, is that we suddenly discovered—literally on a website, on a tweet—that the parent company in Thailand had effectively gone into administration and had registered so in Thailand. That changed things completely. The Secretary of State and I sat in Redcar at 9 o’clock that morning and we knew and understood that any money we put in would go straight into Thailand and into the pockets of three Thai banks. There are no procedures and no devices in those circumstances to ensure that the money would, in any event, have gone to Redcar—never mind the state aid rules.
Andy McDonald (Middlesbrough) (Lab)
Why is the Minister not listening to the two consortia that have come forward with bids at the last minute? They should be given the opportunity to formulate those bids and the Government should be keeping it going. It is no good doing the Pontius Pilate act and just washing your hands of the responsibility. Why are Ministers privately supporting mothballing, yet not getting that support from the Secretary of State and the Prime Minister? If you can’t answer this, what are you there for? What’s your purpose if you don’t step up?
Anna Soubry
The hon. Gentleman is right, but I am afraid he is, in this instance, absolutely wrong. The situation is that, yes, there have been expressions—[Interruption.] No, let me answer. He is right that there have been expressions of interest very late in the day, after the official receiver said on Monday that no deals had been forthcoming that were workable. The official receiver then went back to those consortia and said, in effect, “Put your money where your mouth is,” and they refused—[Interruption.]
Mr Speaker
Order. Mr McDonald, I absolutely understand and empathise with your incredibly strong feeling on this subject—and I mean that—but we cannot have a situation in which people yell at a Minister who is giving an answer. You might not like the answer, but, forgive me, the answer must be heard. The Minister is capable of looking after herself, but the answer must be heard. Please. I will always give people a chance, but the Minister must be heard.
Anna Soubry
The hon. Gentleman can sit there and say, “You can”, until he is blue and red in the face, but the state aid rules are incredibly clear.
Anna Soubry
The hon. Gentleman forgets that the last time Redcar was mothballed, it was mothballed by Tata, and it did so because those were the state aid rules. If there was a viable offer and anyone looked, as they have, at the situation at Redcar, they would say, “Those ovens are losing £2 million month on month”. The steel was losing half a billion pounds. In reality—and the official receiver has said the same—who will want to invest in something that was losing money hand over fist?