I have not seen the article, but it sounds extremely interesting. I think we have made it clear that we are very keen to work with the Welsh Government on sensible options. We have already shown our readiness to get proposals through and ensure that the state aid rules are not a bar to that.
My Lords, this is a very sad day for Port Talbot. When I first became its MP, 16,000 workers went through its gates every day. There has been huge investment in the harbour, which I had the privilege of opening, and continuous casting. While I welcome the state aid approach of compensation for about 30% of electricity bills, could not the long-standing grievance of an unlevel playing field have been dealt with some years ago?
I also welcome the new guidance on procuring steel for major contracts, but is this another example of trying to bolt the stable door much too late? In short, could not the long-standing problems of the steel industry that we have been talking and reading about have been anticipated many years ago?
This has indeed been a very long-standing issue. As far as I am concerned, I am always “glass half full” and I think we have to look forward to action that we can take together in the EU. We have to look forward to the work that has been suggested by the industrial strategy groups that have been set up on steel, and to the work that the Welsh Government, supported by our Government, can do in Port Talbot in particular.
(9 years, 2 months ago)
Lords ChamberMy Lords, the energy policies to which my noble friend refers date back to the Labour years and the coalition. We are where we are now; we have paid out £50 million to the steel industry through the special energy provisions that exist. One of the groups—the one on competitiveness and productivity being chaired by my noble friend Lord O’Neill—will look at energy and environmental costs, other regulatory costs, and what action industry could take to drive up productivity and competitiveness, in the light of the playing field that my noble friend has described.
The Prime Minister is talking to the Chinese about this issue; obviously I am not able to share the detail with noble Lords today. However, I will add that we have been active at the European Union level, as I explained last week in answer to an earlier Statement. The Secretary of State will go to Brussels next week to talk to the relevant Commissioners in the various areas, and obviously the issue of Chinese imports, anti-dumping and the marketplace that I have described will be at the absolute top of the agenda.
The European Union can be difficult on state aid. Would the mothballing of a plant or part of a plant fall foul of European Union state aid provisions? Those of us who have represented steel constituencies know that closure is final. Mothballing would give some hope to a community.
There are two questions there. On the first, as I explained last week on mothballing at Redcar, on the business case that was given, the Government did not have realistic confidence that a proposal for taxpayers’ support could be produced. As I am sure the noble and learned Lord knows, individual state aid claims are very complicated. You have to put the proposal together and then go and engage with the European Union. It is difficult to give a clear answer on that one.
(9 years, 7 months ago)
Lords ChamberMy Lords, I very much agree with the noble Baroness’s point about the power and importance of the creative industries, and of course the BBC plays a huge part in that, not least around the world because of the respect that it is accorded.
My Lords, are there plans to consult on the BBC’s partial funding of the Welsh television channel S4C?
My Lords, the Government are committed to strong Welsh language broadcasting, although the funding arrangements for the future are clearly for the charter review. I am sure they will be looked at in that context. It is really important to safeguard Welsh language broadcasting. When I was on maternity leave, I was a big fan of “Pobol y Cwm”, which you can get in the south-west, where I was spending some time.