Protecting Britain’s Steel Industry

Barry Gardiner Excerpts

Monday 21st June 2021 Commons Chamber

[Barry Gardiner (Brent North) (Lab) [V]]

One of the reasons that I spent so many hours in Committee opposing the Trade Bill in the previous Parliament was to avoid precisely the sort of nonsense that we are discussing today. The recommendation by the TRA to remove safeguards on nine out of 19 product categories takes us back five years to the crisis that we experienced in 2016. It will leave half of steel products exposed to a flood of imports. We know this because prior to the introduction of the current steel safeguards, UK imports of steel increased by 25% between 2013 and 2017, severely undermining our own industry.

The Government failed to ensure that the TRA would protect and defend British producers. They engineered the membership of the body such that not only does the Secretary of State maintain full control of who is appointed and what its remit will be, but no voice can even be raised to temper the Government’s dogmatic fixation on what their own warped vision of free trade happens to be.

Labour tabled a series of amendments to ensure a level playing field for British industry. The Government voted down every single one of those amendments—and now where are we? We are left with a whole industry that is rightly angry and confused: confused as to why trade unions and employers were not consulted at any stage in respect of the TRA recommendations; confused as to why the TRA has shown such a lack of understanding about the interconnectedness of the industry, as assessment of product categories separately cannot provide an accurate picture of the threat of an increase in imports, nor the damage that it would cause; confused as to why out-of-date data was used that does not include volumes of smaller imports, where there was an increase in 17 of the 19 product categories that the TRA has simply not accounted for; and confused as to why, at a time when the EU and US are maintaining their safeguards, we are stripping ours away.

This decision will leave our market open to import surges just as the sector recovers from covid-19, and at a time when our exports to the EU and US will still be subject to tariffs and quotas. It is reported that the EU and the US are in bilateral negotiations to end tariffs on steel products with a deadline of the end of the year. So, well done to the Secretary of State—it looks as if she has engineered a situation where our steel exporters will not only be undermined in their own domestic market by cheap subsidised steel from China and the far east; they will also face a 25% tariff to enter the US, just as their EU competitors will face no barriers at all. The incompetence is staggering.

The sector employs 33,000 people. It is a sector that communities and towns are built around. It is a sector that is highly innovative and has continually bounced back from crisis after crisis—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I thank the hon. Gentleman for his speech. We must move on because I need to get as many people in as possible.