Tata Steel

Lord Cormack Excerpts

Thursday 16th October 2014 Lords Chamber

[Baroness Neville-Rolfe]

Decisions on company ownership are of course commercial matters for the companies concerned. As a businessperson, I know that important rules on consultation exist in this country. I emphasise again that, at this stage, we are not talking about closures or job losses but about discussions about a possible change of ownership. As I have said, the workers and the unions that represent them have an important part to play in industry, its success and our recovery from the difficulties of the recession.

[Lord Cormack (Con)]

My Lords, does my noble friend understand that Lincolnshire is not a highly industrialised county and that the impact of closure, if it came to that, on Scunthorpe would be significant? Will she please assure me that every possible advice and assistance will be given to all those involved, who will necessarily be fearing for their livelihoods? The impact of a closure on the whole county would be very significant, were it to come to pass.

[Baroness Neville-Rolfe]

I thank my noble friend for making that point. Of course, if there are job losses and adjustments to be made, we will all share the concerns of the local communities concerned.

Since this Government took office, the claimant count has fallen by 27%. In Scunthorpe, the long-term count has fallen by 22% in just the past year, so there are signs that the economy is recovering. However, I emphasise the point that I have been making all along: we are not talking about closures; we are talking about a possible change of ownership and we will actively engage on that. Fortunately, because of the changes that have been made in recent years, the steel industry is stronger and more competitive. We need to press forward to ensure that that continues.