British Steel: EU Emissions Trading Compliance

Jonathan Edwards Excerpts

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

I would not put it that way myself. The suspension was put in place because we were liable to leave on 29 March. Given that the year to which the allowances refer is the calendar year from January to December, it was the observation that, as things stood, we were unlikely not to be a member of the scheme for the great majority of that year; now that we have agreed an extension of up to 31 October, that is clearly a different matter. The discussions we have had so far with the Commission have been constructive in recognising our ability to issue new allowances.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

To what degree does the Secretary of State agree with the assessment in the Financial Times on 16 April that this situation could have been avoided had the company not sold surplus allowances from previous years, and therefore that this situation is a result of management failure by the private equity firm that owns British Steel for which the public are now expected to pay?

[Greg Clark]

The hon. Gentleman reflects an accurate point: if the allowances had not been sold, they would be available to discharge the liability. This is by no means a unique practice; across industries and firms, it is a fairly common way to proceed. However, it might well command the attention of the House as to whether it is the best way to proceed.