Steel Industry

Debate between Angela Eagle and Julie Elliott

Wednesday 28th October 2015 Commons Chamber

[Ms Eagle]

In this Parliament, we always have to remember the issue of tackling climate change, but we have to balance that with the cost that that puts on our energy-intensive industries. We have to ensure that we get the balance right.

[Julie Elliott (Sunderland Central) (Lab)]

Will my hon. Friend give way?

[Ms Eagle]

I will give way to my hon. Friend and then I really will want to get on with the rest of my speech.

[Julie Elliott]

Does my hon. Friend agree that the carbon price floor was a tax introduced by the previous Conservative-led Government, and that it is an entirely revenue raising tax that does absolutely nothing to contribute to combating climate change?

[Ms Eagle]

Yes, I do.

Rather than hiding behind the European Commission, why do the Government not take action first on energy-intensive industry payments and get retrospective approval later? That is what Germany did with its Renewable Energy Act 2012. It provided support to producers of renewable energy from January 2012. It did not submit the Act for prior state scrutiny. It let the Commission investigate and then state aid approval was received in November 2014, two years after it had first provided support. Why can our Government not look after the interests of UK steel in the same way? It is hard to avoid the conclusion that the Government have been so slow to act because they have an ideological aversion to any Government intervention. We have a Secretary of State who will not let the phrase “industrial strategy” cross his lips.

We on the Labour Benches support international trade, but free trade must also be fair. China is currently responsible for a tsunami of cheap steel, which is being dumped on European markets. The UK should be at the forefront of demanding rapid and effective action to stop it.