UK Steel Industry Debate

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Tuesday 12th April 2016

(8 years, 1 month ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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First, that will be a decision for the EU. We will, of course, have an input, but it will be a collective decision. Secondly, if any country wants market economy status, it must earn it. Whatever the country, it must show that it is behaving in a responsible way. Thirdly, we must remember that even when countries get market economy status, tariffs can still be imposed. Russia and the United States would be good examples.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
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Does the Secretary of State accept that many on this side of the House believe that it is for this House and this Government to decide when a country such as China is dumping? We should decide whether to impose tariffs. Indeed, many of us think that if we had been outside the EU months ago, we would have imposed tariffs on Chinese dumping and would have solved the problem.

Sajid Javid Portrait Sajid Javid
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We have led the way in taking action, which has resulted in the right tariffs, which have helped the steel industry while protecting producers and consumers. My hon. Friend will agree that when action is taken through tariffs, we want to ensure that they are at the necessary level to help the industry without hurting consumers and producers.

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Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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It is a great pleasure to follow the hon. Member for Airdrie and Shotts (Neil Gray), who speaks for the Scottish National party. I have to say that I thought some of his remarks were more designed for party political purposes than to deal with what we are facing today. We are dealing with people’s livelihoods and with whether they have jobs, and I hope the tone of the House today will be about a solution and what we can do, rather than about making party political points. I also regret, Sir, that Parliament was not recalled last week, as this was a matter of such urgency that we could have come back to have a proper debate, and Members interested in this vital issue would have attended. It was quite right, Sir, that you allowed this Standing Order No. 24 application and that it was unanimously approved by this House—there was no opposition to it.

I know that many Members wish to speak, so I will keep my remarks brief. I declare an interest, as some of my constituents work in the steelworks in the neighbouring constituency and have contacted me about their concerns. This is about not just the people who work directly in the industry but those who rely on the economic benefit from it. I also spent 13 years in south Wales, so I know how important the industry is there.

The shadow Business Secretary analysed the situation very well. There has to be a steel industry in this country, and I think Members on both sides of the House agree on that. We cannot be left without a steel industry, and there is one reason for that: if there is a war in the future—I hope there will not be—we have to have our own steel industry or we cannot defend ourselves. Everyone accepts that we need a steel industry and everybody wants to work towards a solution. I know that the ministerial team have been working very hard but I do think they are working with one hand tied behind their back.

The shadow Business Secretary’s analysis was absolutely right: the problem our steel industry has is the unfair dumping of Chinese steel, and now perhaps Russian steel, on to the market, backed by state-controlled companies, which can put millions of pounds into their industries with no problem at all. If I was sitting in China and I wanted to keep my industry going, the classic way I would do it would be by selling my product abroad at less than what it costs to produce. What then happens, as we have seen, and as the Secretary of State has made clear, is that businesses across Europe close. When those industries are knocked out, the main supplier—in this case, China—takes a bigger share of the market and can then bump the price of steel up and hold the whole world to ransom. That is just what happens.

Where do I think the one hand tied behind the back is? It is the European Union. We have heard from Members on both sides of the House that the problem has been delays in the European Union dealing with tariffs. If we were in the United States, the President would just impose a tariff of 266% and that would shut off Chinese steel coming into the USA. Whatever we think about the issue and whether we think the Government have been poor in pushing for tariffs or not, I hope the whole House can agree that if this matter was totally in the hands of this Parliament, the Government could make their decision and act, and the Opposition could criticise and vote against it if they did not agree.

Edward Leigh Portrait Sir Edward Leigh
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This is a vital national industry. Can my hon. Friend imagine any previous UK Government, in war or peace, allowing our steel industry to go down the tube? My constituency abuts Scunthorpe, and many of my constituents cannot understand the situation. If we had control of our own destiny, surely we could just stop this dumping overnight. This is unfair, unreasonable and ridiculous dumping, and we should stop it.

Peter Bone Portrait Mr Bone
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My hon. Friend is correct. That is the problem. I am afraid that the two Front-Bench teams cannot deal with this situation because of their position on the European Union. If the referendum had not been going on at the moment—