Steel Industry

Iain Wright Excerpts

Thursday 26th May 2016 Commons Chamber

[Sajid Javid]

Many members of the pension scheme may well be concerned, and that is why it is absolutely right that they have full information from the Government in the consultation. I understand that the chairman of the trustees has today welcomed the Government’s move, but, at the same time, he has said that the trustees themselves will write to all the members. I welcome my hon. Friend’s recognition that this is all about not only getting the best outcome for the members but sustaining the long-term future of our great steel industry.

[Mr Iain Wright (Hartlepool) (Lab)]

I welcome the Work and Pensions Secretary’s rhetoric in today’s written statement, when he says:

“Britain’s steel industry is an important part of our economy and this Government is working to help the industry secure a long-term viable future.”

However, may I push the Business Secretary on the risk that steps that are taken could set a dangerous precedent, whereby companies abdicate their responsibilities to the members of their pension schemes? So is this deal purely for steel, or are the Government extending it to other strategically important sectors of the economy or to companies that are identified as crucial to the UK? Is the Government’s preferred option the precedent of the Royal Mail scheme in 2012 in distinguishing between past and future service contributions to members’ pensions in the steel industry?

[Sajid Javid]

I welcome the hon. Gentleman’s comments. First, there is no deal, and there is no preferred option; this is a very open consultation. As he will see, there are a number of options the Government are looking at, but no decision has been made. As I mentioned earlier, we are very wary of setting a precedent. I can assure him that this is very much about this scheme, and this scheme only, in these very unique circumstances.