British Steel: EU Emissions Trading Compliance

Martin Vickers Excerpts

Wednesday 1st May 2019 Commons Chamber

[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.

[Martin Vickers (Cleethorpes) (Con)]

I welcome the Secretary of State’s statement. It will be particularly welcomed by my many constituents who work at the Scunthorpe works, which, as he highlighted, supplies most of the rail network with track, which of course would have to be imported were the Scunthorpe works to close. Does he agree that this highlights that there is a cost to tackling climate change? It is far better that we approach that in a realistic, well-balanced way, such as the Government propose, rather than giving way to unrealistic demands from other groups.

[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.