British Steel

Edward Leigh Excerpts

Wednesday 24th July 2019 Commons Chamber

[Greg Clark]

I am very grateful to the hon. Lady for the generosity of her remarks. I have enjoyed my exchanges and meetings with her. I hope the parking space in her heart has a charging point for the electric Mini—that would be very important.

The hon. Lady invites me to comment on the bids and some of the press speculation as to who is bidding and who is not. First, this is a matter for the official receiver, and secondly, I would not want to prejudice any of the bids by commenting. The discussions, in many cases, take place under confidential terms, and it would be wrong to do anything that might disadvantage that. There is often, in situations like this, speculation in the press, and much of it is misplaced. What I can say—the official receiver has said this publicly—is that several bids have been made and he is looking for bids that consider the whole of the operation. I welcome that, as the hon. Lady does.

On long-term commitments, we do have a long-term commitment to manufacturing, and to steel in particular. I mentioned some of the funds that are available in the industrial strategy. Of course, because they would accompany substantial investments, which I hope will be in place, they require a long-term commitment from any prospective buyer.

The hon. Lady is right to raise the question of energy prices and electricity prices. This is not a new phenomenon, and it is not unique to any particular Government. In fact, the biggest increase in industrial electricity prices took place under the previous Government. In the past five years, we have contributed nearly £300 million to energy-intensive industries as a rebate towards those costs. Through the industrial energy efficiency fund that is available in the industrial strategy, we want to reduce further the costs of energy. It is very important that we should do that.

The hon. Lady asks questions about the incoming Prime Minister. I spoke to both candidates during the leadership contest to impress on them what she and I agree is the crucial role of this industry. I know that she, the Under-Secretary—my hon. Friend the Member for Pendle (Andrew Stephenson)—and other hon. Members have communicated not just with the current Prime Minister but with her potential successors to reinforce the resolution across all parts of the House that this is at the top of the new Prime Minister’s agenda.

[Sir Edward Leigh (Gainsborough) (Con)]

A very large number of my constituents work at Scunthorpe. Can the Secretary of State assure me that whatever happens, their welfare is at the forefront of his mind? In an international market that is often manipulated by Governments, notably the Chinese, will he assure me that in this case, to quote Sir Keith Joseph, the market is not enough, and there will be an activist and extremely interventionist approach by the Government to ensure that there is a buyer? Lastly, I have always thought that my right hon. Friend was an outstanding parliamentarian ever since our days on the Public Accounts Committee together, and I wish him well in the reshuffle.

[Greg Clark]

I am very grateful to my right hon. Friend. My training under his expert tutelage on the PAC stood me in good stead for ministerial office, and I am grateful to him for that.

I am encouraged by my right hon. Friend’s encouragement to take an activist approach. That is the approach that I have been taking. In my view—and this applies to everyone who has been part of the support group—we let this slip through our fingers if we are not there to make sure that all the questions can be answered, whether through the trade unions, which have been magnificent in this, or through the local authorities, including some of his neighbours in Lincolnshire. Ursula Lidbetter, who leads the Lincolnshire local enterprise partnership, has been very active in the group. I will, in so far as I am still at this Dispatch Box, continue that approach. I am sure that my right hon. Friend’s recommendation of an activist approach will sound with some resonance down the corridors of this place and reach the ears of the new Prime Minister, who I hope will follow his sage advice.