British Steel: EU Emissions Trading Compliance

Jessica Morden Excerpts

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

I am grateful for my hon. Friend’s welcome. I know that his constituents would have faced a worrying time had this liability crystallised on the company. In fact, British Steel has free allowances to cover its emissions. It is not a question of this being, as it were, a punitive tax; because British Steel operates in an internationally competitive sector, it has allowances to cover the costs that it incurs. It is a question of matching up the timing of the new allowances with its obligations. In this case, we found a way to square that circle.

[Jessica Morden (Newport East) (Lab)]

Today’s statement is about specific support for British Steel, and I completely understand the position we are in. However, as the hon. Member for Monmouth (David T. C. Davies) said, other companies out there that have incurred significant costs will ask what support the Government might offer to them. What will the Minister say to them?

[Greg Clark]

The hon. Lady will know that, through the industrial strategy and our work with particular sectors, we have a strong record of investing in the future potential of industries. Steel is part of that, but as she will know, we have increasingly deep working relationships—whether with the automotive, life sciences or the creative industries, or other sectors such as construction—to make sure that we capitalise on our strengths in this country, which are innovation and discovery, putting ourselves at the cutting edge. That is available and is being well exploited across the economy. I hope and expect that the steel industry will be part of that investment in the capability and capacity to prosper in the future.