UK Steel Industry Debate

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Iain Wright

Main Page: Iain Wright (Labour - Hartlepool)

UK Steel Industry

Iain Wright Excerpts
Monday 11th April 2016

(8 years, 8 months ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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I can give that commitment to my right hon. Friend, who speaks with a great deal of experience both of Wales and of business. He is right to identify energy as an issue. I do not believe that the constraints are coming from the EU, and we have demonstrated that there is action that we can take, but there is more that we can do. My right hon. Friend has good ideas and I look forward to discussing them with him further.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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To secure a long-term, sustainable, profitable future for the British steel industry, the focus needs to be on developing high-value, niche downstream products in particular sectors or for particular technologies, collaborating closely with customers in product development and design. Parts of Tata Steel, such as the Hartlepool pipe mill and facilities in Corby, do that, but they are not part of the potential sales process with Greybull Capital or Liberty House, so how will the Secretary of State ensure that the downstream capability in Hartlepool and elsewhere is maintained while a potential buyer is found?

In the Secretary of State’s response to the shadow Business Secretary, he mentioned sector groups. What specific work has he facilitated with industrial strategic sector groups, such as the Automotive Council and oil, gas and offshore wind industrial councils, to ensure closer collaboration with customers and the supply chain in order to provide a great future for British steel?

Sajid Javid Portrait Sajid Javid
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First, I thank the hon. Gentleman for his approach to this matter, in particular through his chairmanship of the Business, Innovation and Skills Committee. He is right to say that Hartlepool, Corby and other parts of the downstream steel business are where the high-value product is. Tata has made it clear in its approach to the sale that it will not cherry-pick. It knows that the downstream process is important to any potential buyer, so it will ensure that any buyer can purchase the whole group, which is an important commitment that we have managed to secure.

The long-established sector councils cover many different sectors. I mentioned earlier the automotive and aerospace sectors, both of which use British steel. We are working with them on the general supply chain to see how British products, including steel, can be used. We will continue that work.