EU Referendum: UK Steel Industry
Debate between Bill Esterson and Jonathan Edwards(8 years, 4 months ago)
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Bill Esterson
Absolutely. Any money taken away from pensioners affects the rest of the economy, including other businesses and the livelihoods of many other people. My hon. Friend is quite right that those considerations need to be carefully taken into account.
In his excellent speech, my hon. Friend the Member for Cardiff South and Penarth said that the vote to leave the European Union has been a body blow that has put uncertainty on top of the existing difficulties. I will remind the Minister of some of my hon. Friend’s questions. He wanted to know what the Government will do differently now and made the point that time is of the essence—the steel industry simply cannot wait for the new Prime Minister to take time to act. As my hon. Friend said, the Government need to continue working, and to step up that work, with local MPs, the devolved Assembly, local government and the unions. They need to move away from the laissez-faire approach we have seen in previous times. When my hon. Friend was making that point, the Minister was waving her hand dismissively, as she is sometimes wont to do. That is simply not the response that is needed on this critical issue.
My hon. Friend also said that access to the single market is essential. We heard in an intervention about the importance for Members of all parties of retaining that access. That is true not just for steel but for businesses in many other industries, too—not least those that are part of the steel supply chain, whether in manufacturing, construction or defence. We need to know what the options are for retaining that support. What action will the Government take to ensure that the supply chain will continue to be supported by UK steel production? What action will they take to ensure that raw material prices are not adversely affected, and that there is not the impact that my hon. Friend talked about?
My hon. Friend mentioned exchange rates and said that the benefits will be offset by import costs. He and a number of my hon. Friends mentioned energy costs. My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) talked about the impact of the carbon price floor changes. We heard about the impact of business rates and the need for action on energy costs more generally. Will the Minister tell us exactly what she or her potential successor will do to take action on those points?
On the issue of procurement, the steel for the Aberdeen bypass—it was a £12 million contract—was made in Turkey, not Scotland or elsewhere in the UK.
Jonathan Edwards
I was not going to make any tribal statements, but the Western Mail, the national paper of Wales, last month exposed the fact that the Welsh Government have been using rebar steel from Germany for a road project—the Eastern Bay link road in Cardiff—less than a mile from where rebar is produced by Celsa in the Cardiff South and Penarth constituency.
Bill Esterson
Unfortunately, the Western Mail does not find its way to Merseyside very often.
Bill Esterson
I am sure it is a fine paper.
My hon. Friend the Member for Cardiff South and Penarth asked about the Steel Council. Will the Minister confirm what discussions are taking place and what work it is continuing to do after the Brexit vote? It has a critical role in the next few weeks and months.
I am conscious that the Minister has a lot to respond to, but I want to reiterate the importance of what my hon. Friend said. Government action is needed now. The steel industry, the workers, the supply chain, the businesses directly affected and the rest of the economy cannot wait weeks or months for action. Steel is crucial to our economy, our strategic needs and our communities. The Minister or her successor needs to make sure the Government do whatever it takes to save our steel.