Steel Industry

Lord Lawson of Blaby Excerpts

Tuesday 20th October 2015 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, this is a worrying time for communities that rely on jobs in the steel sector. That is across all the UK, including—I should add—in Lanarkshire, Scotland. Our hearts go out to the families and businesses involved. We have obviously been in discussion with Tata on an ongoing basis. It is a major business operator in the UK. The derogations that are mentioned in the Statement about industrial emissions are extremely important to it and to its future in the different steel communities in which it operates in the UK.

In terms of strategy, not only was there a summit last Friday—which set up three working groups in absolutely key areas that I mentioned in the Statement—but Anna Soubry launched a metals strategy this week which will work with metals industries right across the board, and that will, of course, include steel.

On the subject of China, the Prime Minister is indeed talking to the Chinese on the subject of steel and the necessary restructuring. Of course, it is not only a matter for bilateral discussion, because anti-dumping is a matter for the EU: 28 countries together can do more. We have actually taken EU action thanks to the UK on rebar anti-dumping, which is an issue between the UK and China. We have a number of groups; we have local task forces now in the affected communities, and I am grateful to the noble Lord for his suggestions.

[Lord Lawson of Blaby (Con)]

My Lords, the Statement quite rightly referred to energy costs, which are of the first importance in steel making. Is the Minister aware, however, that it is entirely a result of the misguided energy policy of this Government, which they inherited unchanged from the previous coalition Government, that energy costs for British steel makers are significantly higher than they are for steel makers in the rest of the European Union, and very substantially higher than energy costs in China? In the light of the disastrous news of which we are all aware, will she urgently ask her colleagues in Government to review the suicidal energy policy being pursued at the present time?

[Baroness Neville-Rolfe]

My Lords, the energy policies to which my noble friend refers date back to the Labour years and the coalition. We are where we are now; we have paid out £50 million to the steel industry through the special energy provisions that exist. One of the groups—the one on competitiveness and productivity being chaired by my noble friend Lord O’Neill—will look at energy and environmental costs, other regulatory costs, and what action industry could take to drive up productivity and competitiveness, in the light of the playing field that my noble friend has described.