Ian Swales
Main Page: Ian Swales (Liberal Democrat - Redcar)(10 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
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Matthew Hancock
First, may I say that there is a remarkable amount on which the three main parties agree? I will go through the hon. Gentleman’s questions in turn.
The hon. Gentleman is right that steel underpins, quite literally, a huge amount of manufacturing and construction activity in the UK. We have taken strides to strengthen the skills provision for manufacturing, not least by strengthening and expanding the apprenticeships programme, but also more broadly. Should there be changes in employment, we will be there to ensure, as we do everywhere in the country, that people have the opportunity to reskill. However, that is not the situation at the moment because this is a sale.
On the hon. Gentleman’s point about the sale, we are consulting on strengthening the takeover code, as he knows, to ensure that the assurances that are given are binding. He talked about consultation and communication with the work force. Of course, the sale was announced yesterday, hence that is when the consultation and communication started. Although we are at an early stage, with the memorandum of understanding having just been announced, I would point out that the proposed purchaser brought a long products plant in Italy back into operation last year. We will, of course, be in constant communication with the proposed purchaser and Tata, as well as with the Scottish Government when devolved issues are concerned.
Finally, on the big picture of the long-term future of the steel industry, the Government have overseen an increase not just in the amount of steel that is produced, but in employment in the steel industry. Far from the fall of 8 million tonnes of steel that we saw between 1997 and 2010, there has been an increase under this Government. Clear action is being taken and we will not rest. While we will support all those who may be affected by this decision, that is by no means the path down which we are going. We will keep working to expand manufacturing, as we have done over the past four years.
Ian Swales (Redcar) (LD)
This matter is not just about Scunthorpe. The Tata beam mill in my constituency makes beams of such high quality that they are in nine of the 10 tallest buildings in the world and the new World Trade Centre in New York. The Government must do everything they can to protect that capability. I thank the Minister for the steps the Government have taken on energy costs, but I ask him to look at the extra taxes that are still paid by energy-intensive industries in this country, which reduce their competitiveness and dwarf the extra levies on financial services.
Matthew Hancock
I pay tribute to my hon. Friend’s work in this area. The work that he did to restart steel production in Redcar was widely noticed. By getting on the plane around the world to bring investment into that plant, he bears personal responsibility for the restarting of that steel production. He makes an important point about the costs for energy-intensive industries. There is no point in having an economy like the one we had in the past, in which the costs that are laid on energy-intensive industries merely mean that the production moves to other jurisdictions, often with higher carbon emissions. We have taken £7 billion-worth of action, but I take on board his call for more.