Protecting Britain’s Steel Industry
Darren Jones Excerpts(3 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Darren Jones (Bristol North West) (Lab)
The heart of the issue that we are debating today is the Government’s power, or willingness, to intervene in the national interest. The Conservative party told the public that voting for Brexit would mean that we took back control. Instead, since Brexit, the Conservatives have scrapped the industrial strategy, failed to secure a slot in the Queen’s Speech to reform state aid, failed to improve public procurement rules and boxed themselves into a corner by failing to reform the rules of the Trade Remedies Authority, as we have heard this evening. These issues are now putting jobs in the steel industry at risk, as the steel industry tells us, at a time when the sector is once again in peril as it swings from steel crisis to steel crisis.
The long-running pressures on UK steel are well known—high energy prices, high business rates and global competition from countries that undercut the price of British steel—but the importance of the steel sector to the UK is also well known, from protecting highly-skilled, well-paid jobs in communities that rely on the industry, to being able to buy domestic sources of steel, which need to be low-carbon.
The Government, however, have failed to do anything helpful on these issues. In fact, they have made things worse by publishing an industrial decarbonisation strategy that once again does not have sufficient buy-in from the Chancellor to help businesses to make the changes they need. Now, to make things even worse, the Minister tells us that the Government cannot do anything to stop the Trade Remedies Authority scrapping tariff safeguards, at a time when we all know that huge gluts of cheap steel are waiting to be exported from countries such as China.
I am going to be unusually generous to the Government, because I believe the Minister knows he is in trouble, which is why he barely touched on this motion in his speech. I think the Business Secretary knows all of this and he wants to do something about it, but, much like when Downing Street mounted a coup and took industrial policy from the Department for Business, Energy and Industrial Strategy, the Business Secretary and the Ministers here seem not to have the authority or power to act. That is why repeatedly the Business Secretary has said that it is the International Trade Secretary’s responsibility to sort this out. I note that neither of them is here this evening.
In a letter to me, the International Trade Secretary said, “We will not hesitate to defend UK industry and we will be working across government to ensure the UK can defend its vital interests.” It is the Government’s lucky day, because our motion gives them that opportunity to bring forward the emergency legislation they need to reject the TRA’s recommendations and to temporarily extend the tariff safeguards until fuller reforms can be brought before the House. So this is a real test for the Government, given everything the Conservative party has told us about Brexit, levelling up and protecting British industry. The Government have the power to intervene—the question is whether the Conservative party will do so.
Trade Bill
Darren Jones ExcerptsWednesday 20th May 2020
(4 years, 2 months ago)
Commons ChamberRead Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts
Darren Jones (Bristol North West) (Lab) [V]
According to research from the Harvard Kennedy School’s Growth Lab, British exports have been declining, concentrating into a smaller number of products and acting as a drag on our economic growth. Remarkably, in the past decade the UK has added only two new export products, and, perhaps embarrassingly, our main new export has been bovine, sheep and goat fat. I declare my interest as an amateur vegan, but I suggest that an economy that is as complex and capable as ours really ought to have done better.
We know that economic growth can be driven by export diversification, but to do that we need an active industrial strategy that works with the market to make clear what we actually want to achieve while investing in workers with the skills to do it. Some colleagues will say, “Ah, but it was the European Union’s job, and now that we are taking back control, it will be much better and the Bill will help us do that.” I would respectfully compare the UK’s record to, for example, that of France, which is, of course, a member of the European Union. During the same timeframe in which the UK majored on bovine, sheep and goat fats, and added around $2 per capita, with a total UK market of $104 million, France has managed to add 10 new projects, creating a new $1.9 billion market and growing GDP per capita by $28. It has therefore been a question of intent and ability, not a question of power.
Based on current capacity, the UK has a pretty good spread of manufacturing capabilities, from chemicals and machinery to automotive, gas turbines and aerospace, but the bulk of our goods-based growth has come from aerospace and automotive, whose capacity relies on European supply chains. Based on current Brexit negotiations, those supply chains are at risk, as well as under added pressure from the pandemic. The Government have largely relied on services-based growth in our economy, which of course is an important part of what we do as a country, but they took their eye off the ball in respect of British manufacturing, resulting in a weaker and more exposed market for goods, exports and economic growth.
That is the context for this Bill, because the questions that we are considering today have been with us in one form or another for the past four years. Most of the provisions in front of us today first came before the House a few months after I was elected in 2017. By any measure, this legislation has taken too long. The priorities given force in the Bill, and which even now run through all the arguments on trade made by those on the Treasury Bench, are the same arguments we have heard over the period of trading inadequacy that I have just set out. The economy is in recession and we are on the cusp of a once-in-a-century collapse in output. The key test is whether the Government are committed to bringing back British manufacturing as a core component of the British economy.
In closing, I would like to ask the Minister to answer a number of questions when summing up the debate. First, will he set out for the House whether Parliament will be given the right to full and transparent scrutiny of the trade negotiations, and confirm whether that will be by a new or existing Committee of this House? As a former member of the European Scrutiny Committee, I note that we had such a function when the European Union was negotiating trade deals, but that does not seem to be replicated in the Bill.
Secondly, local government leaders are in the process of setting out recovery plans post pandemic. What conversations is the Department having with city leaders to ensure that those leaders on the ground have input into decisions made in Whitehall?
Thirdly, Ministers have long said, whether in Brexit or trade debates, that the Government will stand by their commitment to human rights, workers’ rights and environmental protections, but this Bill does not mention climate change or workers’ rights at all. Britain has an opportunity to set the global expectation on these issues. I would like to understand why the Government have not included such provisions. There is a significant opportunity to couple climate diplomacy with export opportunities as we work to help other countries to transition to net zero. I hope the Minister will confirm that these opportunities are also being considered by the Department.
As an anti-modern slavery champion for the Commonwealth Parliamentary Association, I have seen first hand the risks of global supply chains that do not have adequate protections and transparency built in. No work or business in the UK wants to be associated with illegal trafficking and exploitation of some of the most vulnerable people on the planet. I hope the Minister can set out how the Government intend to ensure that these protections are included in all future trade deals.
EU-Japan Economic Partnership Agreement
Darren Jones Excerpts(6 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
George Hollingbery
All I can say is that the Government are extremely ambitious in what we want to achieve. We are seeking to achieve that trade deal post Brexit and hope very much that we will. Furthermore, we are pursuing that same opportunity with all the other current signatories to deals across the European Union.
Darren Jones (Bristol North West) (Lab)
I declare my interest on the register and wish the Minister well in his new role. I note that the agreement between Japan and the European Union on the free flow of data has been separated from the free trade agreement. Will the Minister give the House a commitment that we will have the opportunity both to debate the data trade agreement that the EU and Japan wish to negotiate and to explore the opportunities and risks for the UK as part of the Brexit process?
George Hollingbery
It was not possible in putting together this agreement to reach the agreement that we wished for on data. The discussion between the two countries on that is still ongoing, and I have no doubt that the matter will come back to the House in due course.
My Department will continue to work with the European scrutiny Committees to identify appropriate ways to ensure the thorough scrutiny of similar EU-only free trade agreements while the UK remains a member state. The Government are considering the legislative framework for future trade agreements, but they are committed to ensuring that Parliament will have a crucial role to play in the scrutiny and ratification of the UK’s future trade deals when we bring forward proposals in due course.
The EU and UK agreed at the European Council in March that international agreements to which the UK is party by virtue of its EU membership—including, at the time of exit, the EU-Japan EPA—should continue to apply to the UK during the implementation period. Text to that effect was agreed in the draft withdrawal agreement. We continue to advance our dialogue with the Japanese Government on the shape of our future bilateral trade and investment relationship, which will come into effect after the implementation period, and I look forward to making progress as we continue to foster our post-Brexit relationship with the Japanese.