UK Steel Industry

Nia Griffith Excerpts

Wednesday 15th July 2015 Westminster Hall

[Anna Soubry]

The short answer is that I need to make more inquiries about that issue, and of course I will write to the hon. Gentleman about it.

Yesterday I met Karl Köhler, the chief executive officer of Tata Steel. It is absolutely clear that his company will face huge challenges in the future; he has been very up front about that, and I understand that. My attitude—which hopefully was demonstrated last week, as has already been identified—is that this Government will and must do all we can to help the sustainability of the steel industry.

That is why I was so keen that we vote as we did about the threat of certain Chinese imports of certain steel products where there is good evidence that—unfortunately —China has been dumping. It is right that the EU should take the measures we are taking. I was so keen that we vote in favour of those measures that when the vote from the UK delegate was cast in favour of what many will say is a protectionist measure, although I do not have a problem with it, apparently it was necessary to go back to make sure, because it was the first time that it had happened and people were so shocked by it. I hope that the message goes out to all involved in the steel industry that I take this matter incredibly seriously.

The steel industry is a very important part of our manufacturing sector, it is important to our country and we have to do everything we can for it. However, the challenges are enormous and we should be under no illusions about that, and of course it is not only Tata but all the other steel companies that face real difficulties.

I will return to my speech—in fact, I will start it, or rather jump into the middle of it. The best way that the Government can support UK steel companies is through a successful economy and successful steel-using industries. That is why I take the view that we should stick with the plan that we started under the last Government. We will continue with it. Our ambition is to create the right business environment for free enterprise and to remove barriers to productivity and growth within sectors, including by deregulation, promoting fair competition and simplifying the business landscape. The Government work closely with the steel industry on a large number of issues, and that will continue.

[Nia Griffith (Llanelli) (Lab)]

Yesterday in the main Chamber, I thanked the Minister for her work on the anti-dumping measures. On supply chains for Government projects, we know that it is possible without breaking EU rules to, let us say, make it a bit easier for our supply chains to get the work. What will she do to get the Government to encourage and help the supply chains to make the necessary bids for the expected Government projects?

[Anna Soubry]

The hon. Lady makes a very good point and I thank her. I will certainly go back to my officials about that issue and discuss what can be done. Obviously, I would wildly encourage anyone within the supply chains to buy British-made steel; that is incredibly important for all the obvious reasons and because the steel is of such high quality.

In his opening remarks, the hon. Member for Middlesbrough South and East Cleveland talked about the skilled workforce. It may be that we have to revisit that issue, to ensure that apprenticeships are encouraged and that younger people are brought into the industry. However, the workforce in the steel industry are highly skilled.

Of course, there are certain niche sectors of the steel industry where we do particularly well and we rightly have a worldwide reputation. However, I will come back to the hon. Lady. Perhaps I will write to her about what more we can do, because the state aid rules are a real problem for us.