British Steel

Chris Elmore Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

If I am legally permitted, and I do not see why I should not be, I will put the letter of indemnity in the Library of the House. If I am not permitted to do so, I will find a way to share it, perhaps through the Select Committee. It reflects the fact that an industrial facility such as a steelworks is a hazardous environment, with a lot of risk. Given that the official receiver is legally responsible for that site, he should be fully indemnified. So the indemnities arise, for example, through liabilities that might arise from carrying out the proper performance of his duties as liquidator in maintaining, securing and funding the ongoing operation of the company’s undertakings and distributing its assets. So it is the work that the official receiver is engaged in that has the backing of this indemnity from the Treasury from the outset—from this morning, when the letter was sent.

[Chris Elmore (Ogmore) (Lab)]

It is clear from the Secretary of State’s statement that he cares deeply about the issue, but may I take him back to the question from my hon. Friend the Member for Hove (Peter Kyle) on a sector deal? The Secretary of State talks about why the deal cannot take place, but may I put it to him that the industry clearly is suffering and is not cash-rich and that could be a good reason to implement the sector deal now and take that risk to ensure that we protect jobs and the industry in the future? If there are no other reasons why the deal could not take place, that would at least give us some assurances for the future.

[Greg Clark]

I am grateful for what the hon. Gentleman says. I am keen to have a sector deal in the steel industry. The nature of sector deals is the Government investing in certain capital improvements, research and development programmes or training programmes, and the industry investing alongside them. That is the essence of the deal. As is evident in the case of British Steel, it has not been possible for it to invest, which is why it has not been possible to conclude the deal. Given that, he makes a reasonable point: perhaps separately from the sector deal, other things could be done for a sector that is going through what is evidently a challenging time, not just here but around the world.