UK Steel Industry
Debate between Angela Smith and Tom Pursglove
Tom Pursglove
I am not going to give way, because I am very conscious of the time.
As well as getting the tariffs right—I think we should have another look at them—we should consider the market economy status argument that is being made, which is very important. I happen to take the view that if the Chinese are not going to play by the rules, they should simply not be allowed to have market economy status, and I hope that the European Union reaches that conclusion as well.
On energy costs, we have heard a lot in recent years about climate change. We need to be thinking constantly about the consequences of the policies we introduce and the agreements we sign up to. The Government must not act with a silo mentality in relation to these matters; they must be looking constantly at the implications of changes in energy policy. We must always bear that in mind. I welcome the energy compensation package to which I alluded a little while ago, but it did take months and months to approve. Yesterday the Secretary of State mentioned the package of measures that the Government are seeking to introduce in relation to exempting, and we heard about potential delays in that. I would be very interested to hear in his final remarks today exactly where we are with the exemption package, because I think it is an important step forward.
I happen to take the view that we ought to get much tougher on procurement. We have seen some really positive steps, but it is simply unacceptable for any public bodies in this country not to be using British steel at this time. We are seeing big procurement projects and fracking is coming on stream, so we ought to be exploring all the possibilities and ensuring that our procurement policy reflects exactly that. The integrity of the order book is very important, but so too is the integrity of supply chains. We need suppliers to keep on supplying, as well as buyers to keep on buying.
On business rates, at a time when we are trying to find somebody to buy the Corby site and the others that Tata owns in this country, it makes little sense that we are asking investors to step up to the mark and consider buying plant or the portfolio but then penalising them the moment that investment is made. It makes no sense whatsoever. I advocated a business rates holiday for the industry before the Budget, and I would like Ministers to have another look at that, because this is about trying to show signs of confidence that the Government are backing the industry and that we are all coming together to do just that. It is a bizarre anomaly.
In relation to trying to find a buyer for the Tata sites, I take the view that all options must be on the table. We should not rule anything out. I know that people will say, “But you are a free market Conservative,” and I am, but the fact is that our steel industry is not competing on a level playing field at the moment, and that requires action that does not necessarily go with the normal grain. We should therefore not rule anything out. If a short period of public ownership is required in order to find a buyer for the sites, I think that is exactly what we should do.
Tom Pursglove
That is absolutely right. I want to hear a little more to be able to ascertain exactly what Ministers are thinking about that. In trying to find a buyer, we must not let state aid rules get in the way. If they get in the way, we should simply ignore them and do what is right by our steel industry. That is the message that my constituents expect me to convey as their local Member of Parliament.