British Steel: EU Emissions Trading Compliance

Bill Grant Excerpts

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

The hon. Lady will know that, through the industrial strategy and our work with particular sectors, we have a strong record of investing in the future potential of industries. Steel is part of that, but as she will know, we have increasingly deep working relationships—whether with the automotive, life sciences or the creative industries, or other sectors such as construction—to make sure that we capitalise on our strengths in this country, which are innovation and discovery, putting ourselves at the cutting edge. That is available and is being well exploited across the economy. I hope and expect that the steel industry will be part of that investment in the capability and capacity to prosper in the future.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

I thank the Secretary of State for his statement and his support for British Steel. The steel industry, by its very nature, has very high energy costs. What action is my right hon. Friend or his Department taking to reduce those costs and, in parallel, to reduce pollution from the steel industry, which is very important for the future of the United Kingdom?

[Greg Clark]

I mentioned—it was announced in the spring financial statement—a new industrial energy efficiency fund worth a third of a billion pounds to partner with energy-intensive businesses in changing and upgrading their technology, so that they both consume less energy, and therefore have lower costs, and also produce lower emissions. As I said to the shadow Secretary of State, since 2013 we have provided nearly £300 million to energy-intensive industries in compensation for some of the effects of high costs. However, the way forward is energy efficiency, and that is the commitment that we made and backed in the financial statement.