Oral Answers to Questions

Debate between Anna Turley and Anna Soubry

Tuesday 15th March 2016 Commons Chamber

[Anna Soubry]

We will always continue to fight for our steel industry. My right hon. Friend the Secretary of State and I understand the need to look at business rates and particularly plant and machinery, and we continue to put these important arguments forward. Whether or not we will be successful, we can only know tomorrow.

[Anna Turley (Redcar) (Lab/Co-op)]

T7. Last week, I met a large number of companies that are currently involved in securing and maintaining the former SSI site in my constituency. They expressed extreme and urgent concern about the environmental situation on the site, particularly in view of the hazardous waste, which they believe is affecting the environment. Will the Minister commit to an immediate and urgent environmental review of the site, ahead of the implementation of the mayoral development corporation?

[Anna Soubry]

I am always keen to make sure we do the right thing by the site. I shall be revisiting Redcar on 21 March, as I promised to do, six months on from the unfortunate closure. The hon. Lady makes a good point. I am keen to ensure that we have this mayoral development company, but it must not be a white elephant. If we need to take decisions now to secure a proper future for it, we will do that.

UK Steel Industry

Debate between Anna Turley and Anna Soubry

Monday 29th February 2016 Commons Chamber

[Anna Turley]

My hon. Friend makes an extremely important point. There is no greater testament to the lack of progress of the northern powerhouse so far than the devastating loss of steelmaking on Teesside. If the northern powerhouse means anything at all, it means jobs, industry and growth on Teesside, and on that count the Government have failed.

With the materials catapult for Teesside—the existing research and development hub, which is the materials processing industry in my constituency—the Government have the perfect opportunity to put right some of their wrongs and to help some kind of steel phoenix to rise from the ashes in Teesside. Teesside can build on its industrial strength and once more play a vital role in driving the UK’s industrial and high-tech economy of the future.

But we need a Government that will support us, a Government that will commit to an industrial strategy and a Government that, dare I say it, will invest. What we do not need are a Government that fail to play their role on the global stage, but that is what we have seen. The Chancellor has been out in China, and I can only imagine how grateful it is to him that his Government have actively blocked our European colleagues’ efforts to increase tariffs on Chinese steel in the EU by scrapping the lesser duty rule. I can only imagine how grateful it is to him that his Government are such cheerleaders for China in seeking market economy status, which would give the green light to Chinese steel flooding in. President Obama has pledged aggressive action through the trade Bill in Congress, and the US recently imposed duties of 236% on a particular grade of Chinese steel.

I, for one, am fed up with the Government and Government Members pretending that membership of the EU is the reason they cannot act. Instead, I want them to work with our European partners to impose tariffs and tackle dumping. I am frankly embarrassed that it is the UK that is leading a small group of nations in opposing higher tariffs on China because of the Tories’ ideological obsession with a market economy that sees jobs, communities and entire industries as a price worth paying for their kind of laissez-faire, unfettered global market.

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

You know that’s not true.

[Anna Turley]

We have heard it from the Government Benches tonight.

We will keep fighting and holding the Government’s feet to the fire. No more job losses, no more closures—we need the Government to act. We want the Government to stand up for Britain. We want the Government to save our steel.

Post-SSI Support Package: Redcar

Debate between Anna Turley and Anna Soubry

Tuesday 19th January 2016 Commons Chamber

[Anna Soubry]

I do not have time to deal with all those points because I want to respond to the specific points that were made by the hon. Member for Redcar, but there are lessons to be learned. It behoves any community, in the event of serious job losses, to act quickly and pull it all together. Many communities do so and that was critical in Redcar.

I pay tribute to the hon. Members for Redcar and for Middlesbrough South and East Cleveland (Tom Blenkinsop), and other hon. Members, for the way in which they have worked with the taskforce. I have paid tribute to Amanda Skelton and Paul Booth for the way in which they formed the taskforce almost before the dreadful news came on that Friday. As the hon. Gentleman said, at least 2,000 people were immediately put into redundancy, with all the consequences that that has for the supply chain, and many hundreds of them had not been paid for a considerable period. One reason why the taskforce was successful was that there were already good relationships between business, the council, Members of Parliament and all the other people one would expect to be there.

As a Government, we quickly put forward a financial package. In effect, there was £60 million. There was a headline figure of £80 million, but just under £30 million of that was used for redundancies, so the money that could be put into helping people get back into work was in the region of £50 million. I want to put it on the record that there was a £2.4 million safety net fund and that £1.7 million was eventually made available for apprentices. It took a bit of a fight, but we got there. There was £3 million for retraining courses, £2.6 million for a flexible support fund, £750,000 for business start-ups, a jobs and skills fund of £16.5 million, and £16 million of support for firms in the supply chain and the wider Tees valley area. There were also redundancy payments.

The hon. Lady is right to say that there is often a big problem in Whitehall. We said to those people, “We trust you to work out where the money needs to go.” However, the situation was, frankly, maddening and infuriating, and I only found out about it after she sent me a text. I do things differently, Mr Deputy Speaker. I give people my mobile phone number and say, “You contact me. You text me”, and they do! In a way it should not be like that, but it is good—we can exchange numbers later in private, Mr Deputy Speaker. The reason I do that is because of the situation that we found at Redcar. We had a group of people in the taskforce whom we trusted, and I pay tribute to all of them. They are not paid to do that, and they have worked incredibly hard. Amanda Skelton is paid to be the chief executive of the council, but she has worked like an absolute trooper and well beyond the hours for which she is paid—astonishing!

We trusted those people to put together a package and to have the funds, but we then had to go through the most bizarre set of hoops and all the rest of it, because they had to show that the package was value for money. As I put it to my otherwise excellent civil servants, this is a chief executive of a unitary authority who, on a daily basis, deals with large amounts of money and a huge budget. She is more than capable of looking at value for money, because unfortunately she has had to make lots of cuts, to reorganise and so on. In other words, I cannot think of many people who are more qualified to decide where the money should go, and who also have the responsibility to safeguard what is taxpayers’ money, but instead a system had to be followed—and Governments, of whichever colour, are blighted by too many systems and processes. We say that we will trust people, but too often we do not. However, we cut through that system—the instruction I always give is, “Get on with it. Trust these people and give them the money so that they can get on with it.”

There is no better example of the determination of those people involved in the taskforce—and beyond in the community—to do the right thing by all those who were made redundant at Redcar than what happened with the apprentices. There were 51 apprentices at SSI, and those jobs finished on that Friday. Some of those youngsters were on three-year apprenticeships, and it had all gone. This is a lot of money to ordinary folk, but we were talking about £1.7 million. It was astonishing. People such as Paul Booth went out there and found a place for every single one of those 51 apprentices within a week. That speaks volumes about their abilities, and about the reaction from the community and businesses. We then had to get the money—bit of a nightmare—but we got it, and all 51 apprentices can continue their apprenticeships.

[Anna Turley]

The right hon. Lady is right about the apprentices, but there were a few weeks between them losing their jobs and being reappointed. One apprentice came to my surgery and told me that he had been to Jobcentre Plus. Despite having done two and a half years of his engineering apprenticeship, he was told that he should get a job in a bar. It comes back to the point I made earlier: there are issues with the DWP’s systems, and that is one of the main points that I wanted to raise.

[Anna Soubry]

Again, that is a good point extremely well made. Such things are not acceptable. Of course I pay full credit to Jobcentre Plus. I know that Ministers stand here and say, “The taskforce has gone whizzing in.” From my experience in Nottinghamshire, when Thoresby colliery closed down, the taskforce went in and it all sounded great, marvellous and wonderful. In a way, it was great and marvellous. A lot of people put a lot of effort in. What matters, however, is the advice that somebody then receives.

There was another problem that the hon. Lady will remember: people being told that they could not sign up to HGV courses. The workforce in our steelworks is almost exclusively highly skilled. It is absolutely obvious that somebody who has been working in a place like SSI at Redcar may well want to change, enhance or add to their skills by training to be an HGV driver. What did we discover? That they could not have any money to do that. The stuff of madness! After a text from the hon. Lady, we got that one sorted out.

We then had some problems in making sure that the money was delivered to the colleges. When, unfortunately, 800 jobs were going in Scunthorpe, we put £9 million in because we had learnt from the experience in Redcar. That was replicated when Labour Members came to see me about the situation in Rotherham. They made a very good argument for a package of support. One of the things the Skills Minister and I did—by way of text, if I may say so again, Mr Deputy Speaker; it got the job done—was to release the money literally within 24 hours. No disrespect to our great civil servants, but we cut all the corners and cut out all the nonsense. The Minister gave a direction and said, “Get that skills money sorted out, so they can have it in Rotherham,” and we did the same in Scunthorpe. That was because of the lessons we learned from our experience in Redcar. However, the hon. Lady is right that there is more we can learn.

I think there is some good news. Over 400 former SSI workers have not yet made any benefit claim to date. We do not know why. I am hoping it is because they have got jobs, not because they have dropped out of the system.

The hon. Lady is also right about data. We always have to have people’s permission before we can share data. Nearly 700 former SSI supply chain workers are no longer claiming benefit. We hope that the majority are either in full-time work or in training. Some 166 people were employed as a direct result of the first jobs fair, which was held, as she said, very quickly in October. Nearly 900 people attended the second jobs and skills fair at the end of November at the Riverside Stadium, where more than 700 immediate vacancies were on offer.

I want to pay tribute to the noble Lord Heseltine. I know he can often be a controversial figure, but he is an astonishing person. He has the ability to bring all the people and all the organisations together. He has vision and drive. It was my idea, if there is anybody to blame—although I do not think anybody should be blamed, because he has been absolutely the right person for this. He has gone up there, and he has a vision and is knitting things together. I hope that in a short period of time we will be in a position to announce more about the future of the works at SSI and what we can do there.

I want to put it on record that 2,000 rapid response sessions have now been delivered, 2,969 people have received advice and help from the support hub, and 5,200 calls were made to the Jobcentre Plus helpline.

[Anna Turley]

Tonight has been about the people, but the site is extremely important too. I hope Lord Heseltine will not make any announcements without discussing with local people what they would like to see from that site, which is so important to the local economy and for local jobs.

[Anna Soubry]

Absolutely. One of the great joys of Lord Heseltine is that he is able to work with people. He brings people together. As I say, he has the right connections and the right vision.

It is great to have had this debate. There are lessons to be learned. We have already learned some of them. However, the ideal position to be in is never to have to set up a taskforce or to give out these sums of money in the first place. We do not want to see the redundancies that we saw in Redcar.

Steel Sector

Debate between Anna Turley and Anna Soubry

Monday 18th January 2016 Commons Chamber

[Anna Soubry]

Quite simply, I would not know but, again, I am more than happy to have that discussion with my hon. Friend because, if that is right, it is a very serious matter.

[Anna Turley (Redcar) (Lab/Co-op)]

The people of Redcar and Teesside are still dealing with the repercussions of the tragedy of the loss of our steel-making facilities and our 175-year history of steel making. They will send their solidarity and their thoughts to the people of Port Talbot, Llanwern and other areas that have lost their jobs in the past few days.

The Minister has again refused today to acknowledge the impact that market economy status for China will have—it will destroy the future of British steel making because, in a sense, it will facilitate Chinese dumping. She says she has sorted that and ticked the box, but that is not the case. I urge her to think again about market economy status for China.

[Anna Soubry]

I listen to the hon. Lady’s arguments and it is always good to have that debate with her. I am not saying, “It’s all sorted on dumping,”—[Hon. Members: “Yes, you did!”] Well, we have ticked the box in terms of getting on and doing something about it, but no doubt the steel industry will raise more concerns. The industry raises its concerns with the EU but, for the first time—this is rich coming from the Opposition—we have voted in favour of taking that action, not just once but twice; and now we have rebar, so we are making good progress.

Boulby Potash and Teesside Unemployment

Debate between Anna Turley and Anna Soubry

Wednesday 2nd December 2015 Westminster Hall

[Anna Soubry]

I will certainly look at that, and I am more than happy to discuss it with the hon. Gentleman afterwards. However, if I may, I will talk about the situation at Boulby, which is, of course, the subject of the debate.

The Government, unfortunately, cannot alter the level of potash reserves. We stand ready to provide support to the Cleveland Potash workers through the Jobcentre Plus rapid response service. Let me say to the hon. Member for Middlesbrough South and East Cleveland that, as the hon. Member for Redcar knows, when it comes to some of the rather peculiar decisions that are often made by jobcentres, saying, “You can’t have funding for this,” or, “You can’t do that,” I urge him to give me the examples—my door is always open to him and to other hon. Members—and I promise I will always do whatever I can to unglue some of the ridiculous rules that seem to exist. We cannot mess about. People are in danger of losing their jobs and we need to make sure that the support available for them is real support that delivers.

Our aim is to help all the workers who are affected, even though a final decision has not been made. However, I think we all know and understand where we are going in this unfortunate situation. I am told that the Department for Work and Pensions has already made contact with Cleveland Potash to see what can be done to limit the impact on staff, and officials in my Department are discussing how the company can provide the most effective support to the workers who will be affected.

I am pleased that the owners of Cleveland Potash have committed to the long-term future of the mine, particularly in developing their polysulphate product line. The commercial exploitation of that product is supported by the Government. In due course, as the product becomes more acceptable in worldwide agriculture, I hope that more jobs will come back to the mine.

This loss comes after significant job losses in the Tees valley, particularly with the liquidation of SSI, but also given what has happened with Caparo’s operation in Hartlepool and the pause—and it is a pause, we are told—in construction announced by Air Products in Cleveland. Let us hope it is just that—a pause—and that all then goes well. I know from my meetings with those directly impacted by the SSI closure how difficult a time it has been for everybody. That is not lost on me.

[Anna Turley (Redcar) (Lab/Co-op)]

I thank the Minister for her generous offer to me. I will not take up too much time, because I am conscious that there is not a lot left.

I want to echo the point that my hon. Friend the Member for Middlesbrough (Andy McDonald) made. A number of people have come to me who are still experiencing ongoing issues, including unpaid overtime. People who are unsecured creditors have been told that they will not be allowed any of the money that was owing to them from the official receiver. There are also agency workers—particularly those working for Jo Hand, which is a company that went into liquidation a few days before, then set up under another name—who have not been entitled to a penny, so we have a number of outstanding issues. If it is okay, I will take the Minister up on her kind offer and get in contact with her directly about those issues. I would appreciate her support in taking them forward.

[Anna Soubry]

Yes, I urge the hon. Lady to write or email me and I will make sure all those concerns are directly acted upon. If we can help and make a difference, we absolutely will.

I am conscious of the time, so for the record I want to make a few points quickly about Her Majesty’s Revenue and Customs, which a number of hon. Members have mentioned. In terms of that decision, 2018-19 is the time when the changes will be made. It is important to note that they are not happening overnight; there is a period of time.

On the comments by the Secretary of State for Department for Environment, Food and Rural Affairs, I will take that up—I cannot comment now because I genuinely do not know anything about that. I hear what the hon. Member for Middlesbrough South and East Cleveland said about CCS. May I also say that we have changed the procurement rules? This is really important. Our new directive—our new rules on procurement—basically say that there are now no excuses for not buying British. It really is a big shift, not in Government policy but in the whole attitude and approach. We are making sure that people really do not have any excuses when it comes to procurement—they should buy British.

I also mention the appointment of Lord Heseltine of Thenford, which I know was controversial. It was my idea—I put that absolutely clearly on the record—to bring him in, because he is somebody who gets stuff done, who can bring folk together and who can connect various bits of Government to make sure that Tees valley now gets the inward investment, for example through working with Lord Maude, who sits in my Department and is responsible for trade and all that UK Trade & Investment does. I thought, and continue to believe, that it was a very good idea to bring somebody in with the experience and clout, if I can put it that way, to lead in the Tees valley and bring all these different people, ideas and resources together, so that we get exactly the sort of way forward and future for this part of the country that it absolutely needs and deserves.

Let me also put it on record that I am really proud of the huge amount of work that the Government have done, because it is not all bad news for the Tees valley, even though it has been a really bad few months. There is no debate about that—it has been dreadful. I do not disagree about the job losses and the numbers—they speak volumes, of course. However, we must not forget the huge amount of investment in the Tees valley, with the devolution deal and all that that will bring to the area. The area has huge resources in its people, its skills and its colleges. Notwithstanding this unfortunate time, it still has a great story and a huge future.

[Anna Soubry]

I absolutely undertake to write to Lord Heseltine specifically on that point. For the record, the hon. Member for Middlesbrough South and East Cleveland does not only make speeches; he comes to me and makes his case to my face. I make no complaint about that, because he is doing his job. It would be great if more MPs took up such issues in the way that he does—apart from when we fall out, of course.

In all seriousness, however, I undertake to ensure that Lord Heseltine gets a copy of the debate. If the hon. Member for Stockton North (Alex Cunningham) or anyone attending or listening to the debate wishes to write something to me for forwarding, I will ensure that Lord Heseltine knows about people’s desires and dreams—what the hon. Gentleman would describe as things that can be realised as a reality and as a way forward, and that is important.

[Anna Turley]

Will the Minister give way?

[Anna Soubry]

I will give way—I have given up on the rest of my speech, so interventions are not a problem.

[Anna Turley]

As the Minister is aware, the SSI site is a crucial piece in the jigsaw of the future of Teesside. A number of people have contacted us locally with plans for and ideas about what to do with the site, but they have struggled to get any response from the official receiver—things have been very quiet on that front for the past couple of weeks. Will the Minister be able to give a poke to encourage a response?

Oral Answers to Questions

Debate between Anna Turley and Anna Soubry

Tuesday 10th November 2015 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

As has been well documented in this House, Ministers promised £80 million for retraining and economic development in Redcar. We know now that only £30 million of that will be saved for pension payments. Less than £10 million has been paid out already, and more than 90% of people have received their payments. Will the Minister promise the people of Redcar that what is not spent on redundancies and final salaries will stay in the region and go to the people of Redcar, not be sucked back up to the Treasury?

[Anna Soubry]

I can absolutely assure the hon. Lady, who rightly fights very hard for her constituents, that only today I met again with my officials and said that I wanted the remaining money to go in tranches to Redcar, so that people there can determine how it will be spent for the benefit of her constituents.

Redcar Steelworks

Debate between Anna Turley and Anna Soubry

Thursday 15th October 2015 Commons Chamber

[Anna Soubry]

Yes, I can give my hon. Friend that assurance. I pay tribute to him for the work he has done for the workers at Thoresby. May I put on record that this sum of money, which is new money, represents £44,000 and more of investment per worker—it is investment in them as individuals—so that they can get the skills and training they need to get new jobs?

[Anna Turley (Redcar) (Lab/Co-op)]

The Minister is overseeing the death of 170 years of steelmaking on Teesside. It does not have to be the end—the site is still viable. You’ve thrown the towel in. I have literally just got off the phone to people on the site. German companies are willing to buy foundry coke that we can produce in the coke ovens. That sells at £520 a tonne, compared to £190 for ordinary coke. The site is viable. We have companies willing to invest. We have companies willing to come in and supply the coke ovens to keep the plant running and to do the mothballing. You are not giving us time. You are just throwing the towel in. The official receiver has not done proper diligence. We can find buyers, we just need three months. Please, keep the plant alive. You hide behind the excuse that it is the Thai banks, the Swiss banks, the American banks, the British banks—this is British industry.

Redcar Coke Ovens

Debate between Anna Turley and Anna Soubry

Tuesday 13th October 2015 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

(Urgent Question:) To ask the Secretary of State for a statement on the closure announced yesterday of Redcar coke ovens, leading to the direct loss of 2,200 jobs and many thousands more in the supply chain in the local community.

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

Let me begin by saying that the significance of yesterday’s announcement is not lost on me or any member of this Government, because we know and understand the profound implications it will have for Teesside. The hon. Member for Redcar (Anna Turley) and I will not agree on this matter, but I pay tribute to her for fighting for her constituents, as every good MP should do. I also pay tribute to the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop), who I suspect will also fall out with me today, for the work that he has done on behalf of his constituents.

I say that the significance was not lost on me because it was an honour to go up to Redcar the other week to meet a number of people. We knew that SSI was in huge difficulty. To put the situation in context, it never made a profit, notwithstanding the undoubtedly outstanding workforce and a lot of good will, and the coke ovens were losing, on average, £2 million a month.

The official receiver was accordingly brought in that Friday, and in his capacity as liquidator of SSI he announced, following discussions with potential buyers, that he had received no viable offers for the coke ovens or the blast furnace and that he would therefore begin closing those facilities. The terminology is that this is a “hard closure”—it is a tough closure as well. This is not mothballing, so we have to be realistic about the implications.

This is hugely regrettable news for SSI workers, their families and the local economy more broadly. Only this morning I spoke to the chief executive of the local council, Amanda Skelton, who informed me that at least 50% of the people employed at the ovens and blast furnace live in Redcar, so we are under no illusions as to the significance of the situation for the town.

The Government remain absolutely focused on supporting those people who find themselves out of work as a result of SSI’s liquidation. Through a package of up to £80 million, we will continue to invest in them and the future of the Tees valley economy.

Safety, as Members might imagine, is a top priority. We will continue to ensure that the official receiver has all the funding and support necessary to deliver a safe and orderly closure of these assets, working with the Health and Safety Executive and Environment Agency. I thank the official receiver for what he has done. He was able, with Government assistance, to keep the coke ovens going until yesterday’s announcement, which is no mean achievement.

By way of example of the seriousness of the situation, when I was last in Redcar we discussed the possible sale of coke that might just have raised £800,000 that Friday morning and that might just have bought some sulphuric acid to keep the power plant going. That was the reality of the hand-to-mouth existence of SSI. That is a reflection not of the local management, which struggled under the most difficult of conditions, but, unfortunately, of the Thai owners, notwithstanding the welcome they properly received when they bought the plant and the great hope invested in them by the local community.

I place on record my thanks to everybody—including the Community trade union, which I had the great pleasure to meet, representatives from the local authorities, local Members of Parliament and other stakeholders—who has helped to operate SSI’s facilities safely during this particularly difficult period. They have done so much to try to ensure that there is a future for steel making in Redcar, but unfortunately all that good work has come to nothing.

[Anna Turley]

This Government have overseen a tragedy for the people of my constituency and the region. This is an act of industrial vandalism for British manufacturing. We are talking about potentially as many as 6,000 jobs in the local area, but this is about more than jobs and livelihoods: this is about people’s identity, their pride, their dignity and their respect in work, and it is about the heritage and the history of our local community, where people have been involved in steel making for generations. That has been torn away.

This is about more than our past: it is about our future. Fifty apprentices were due to start with SSI on the day it paused production. Steel underpins the entirety of the Teesside economy. The Government have turned their back on my constituents and on steel making in Teesside, and they have dealt a hammer blow to the UK industry.

Why did the Government refuse to intervene on environmental grounds to secure the site? Why have they hidden behind state aid rules when other countries in Europe have stepped in to protect national assets? Why are they claiming that money would go to the Thai banks when the official receiver works on behalf of the Crown and has a responsibility to maximise the value of an asset, not to close it down? How can the Government say, in just a few days, that there were no viable options or buyers, when I understand that there were at least 11 interested parties? Why did they pull the plug before they had properly explored the options for developing foundry coke for emerging markets in western Europe? Why have they included—this is absolutely disgraceful—statutory redundancy payments in the £80 million support package? The payments could be as much as £20 million to £30 million of that sum. They are misleading people and cheating them of the support promised to them. Finally, why have they allowed 170 years of great British steel making, which built the world from Sydney harbour bridge to Canary Wharf, just to fade away without so much as a whimper from this Government?

[Anna Soubry]

As I said, the hon. Lady and I are bound to fall out on these things. Let me just make this absolutely clear: this is not a decision that the Government have taken; this is a decision that the official receiver has taken. The official receiver is independent. It is his decision and, as I said, he has made it after more than a week of trying to forge an agreement with potential buyers, notably of the coke ovens. I do not believe that anybody has come forward to buy the blast furnace.

We know the reality. The reality is that there is an over-production of steel across the world and an under-consumption. We have not even got back to pre-crisis levels; in fact, we are 25% short. The price of slab made in Redcar has almost halved in 12 months. That is why the site has never turned a profit. That is why, unfortunately, it has made losses year on year. As I said, the coke ovens were making a loss of some £2 million a month. We have done everything we can.

In relation to the environment, we disagree. We are working with the Health and Safety Executive and the Environment Agency. The truth is that those discussions had been happening for some considerable time before the company went into liquidation, because such an outcome was always the fear, faced with the harsh reality of where we are with our steel industry not only in this country but across the whole world.

Nobody is hiding behind the state aid rules. Many stories are told about what other countries do, but when we dig deep into such stories, we find that they are actually the stuff of myth. Italy is a particular example of that. [Interruption.] I think somebody is shouting, “Outrageous!” I am more than happy to share with—

Oral Answers to Questions

Debate between Anna Turley and Anna Soubry

Tuesday 15th September 2015 Commons Chamber

[Anna Turley (Redcar) (Lab/Co-op)]

20. My hon. Friend the Member for Aberavon (Stephen Kinnock) is right: there is a crisis in UK steel making and 2,000 jobs in my constituency are at risk. I have secured a Backbench Business debate on Thursday, and I would be grateful if Ministers could come to pledge their support for UK steel making. We have to see action on energy prices and business rates. If we do not, UK steel will have no future. It is up to Ministers now to take action.

[Anna Soubry]

I am delighted that the hon. Lady has secured that debate on Thursday and I will be there. It follows on from the debate that we had in Westminster Hall. As we know, there is an over-production of steel across the world. The consumption of steel has fallen dramatically and that has meant, for example, that the price of slab has almost halved. People say we could do something about the price of energy—if only it were that simple. It is hugely complicated. We already have a compensation scheme and we are looking at how we can expand it, but we have to make it clear that if we begin to take the pressure off electricity-intensive industries, we have to shift it somewhere else. It is not as simple as it perhaps seems, but the hon. Lady can be assured that we are well aware of what is happening in SSI UK, which is why I met it last week.

UK Steel Industry

Debate between Anna Turley and Anna Soubry

Wednesday 15th July 2015 Westminster Hall

[Anna Soubry]

I think I have made my own views very clear. I am hugely aware of the difficulties that the problem causes, because it is undoubtedly the case that our electricity costs are some of the highest in the whole of Europe, if not the world, so we have to look at them. However, we cannot simply get rid of these things; everything comes with a cost, the burden of which may have to be borne by somebody else somewhere along the line. Nevertheless, we are actively looking at that issue.

[Anna Turley (Redcar) (Lab/Co-op)]

I really appreciate the Minister’s openness, her willingness to engage with us on this issue and her positivity towards the UK steel industry, but on the point that my colleague the hon. Member for Corby (Tom Pursglove) raised, one of the most immediate and positive solutions that the Government could adopt, which would send a good message to the steel industry, is to commit to implementing the outstanding parts of the energy-intensive industries compensation scheme. Can the Government confirm when they will deliver that compensation scheme, which has already been promised and announced, and will they consider bringing forward compensation for the renewables obligation?

[Anna Soubry]

As I say, we are having a debate between different Departments, as the hon. Lady might imagine. I thank her for her contribution and I hope that we can solve what is undoubtedly a problem, but even if we were to do the right thing with the cost of electricity, that would not solve all the problems for the steel industry; the cost of electricity is just one of the problems. I want people to come forward with solutions to help me in my job, to ensure that we do everything we can to help our steel industry and to grow it in certain areas, because, as I said, we do extremely well in many niche markets.

As I said earlier, yesterday I met Dr Karl Köhler, the chief executive officer of Tata Steel. I am looking forward to meeting Luis Sanz of Celsa, which is obviously another big player in this industry, and last month I had the pleasure of meeting Gareth Stace of UK Steel, who did not hold back in giving his assessment and some parts of his wish-list. As hon. Members know, and as I have already alluded to, EU state aid rules limit the direct help that can be offered to steel companies. Research and development, environmental protection and some training can be supported, but we cannot provide operational aid; I think that we are all aware of that. Nevertheless, we work within those strictures to provide all the support that we can reasonably provide to ensure a competitive future for the UK steel industry.

Mr Chope, we really ought to have 90 minutes to debate this issue. I will reiterate that I am more than happy to meet hon. Members and discuss it further, and I congratulate the hon. Member for Middlesbrough South and East Cleveland on securing this debate today, which he will now sum up, and let us hope that we get a longer debate on this issue next time.