Oral Answers to Questions

Debate between Nic Dakin and Anna Soubry

Tuesday 28th June 2016 Commons Chamber

[Anna Soubry]

We have changed the procurement rules in relation to Government funding, but there is really no excuse. We know how brilliant British steel is—[Interruption]—especially when it comes to the construction of railway lines. It is the best steel in the world, which is why so many people buy it when they are constructing rail lines.

[Nic Dakin (Scunthorpe) (Lab)]

I welcome the Minister’s comments about UK steel, and Scunthorpe steel in particular. What is she doing to ensure that there is a clear pipeline of infrastructure projects in train so that the correct capacity is put in place for creating the steel for those projects?

[Anna Soubry]

I am grateful, as ever, to the hon. Gentleman for his question. One of the things that will certainly take place today is the Secretary of State leading an extremely large meeting, as the hon. Gentleman might imagine, of all the key players in British industry, following last week’s vote. One of the things that we have already discussed is the need to make sure that we address—if at all possible, and if we can really get determination—huge infrastructure projects. Whether it is HS2, a third runway or whatever, it is incredibly important that we make the very best of what has been a very bad decision by the British public, if I may say so.

Oral Answers to Questions

Debate between Nic Dakin and Anna Soubry

Tuesday 2nd February 2016 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

T4. The welcome new procurement guidelines for steel are worthless unless they have an impact on procurement practice. What are the Government going to do to ensure that this is delivered properly? How will they ensure that all Departments and government contractors follow these guidelines? How will the Government assess their impact?

[Anna Soubry]

The hon. Gentleman makes a good point, and he will of course know that 98% of Network Rail’s tracks are made in his constituency. He can be assured that we will make sure there is real delivery on those procurement changes. May I just pay tribute to the councils of Corby, Sheffield, Powys, Cardiff, Rotherham and his own in North Lincolnshire, all of which have signed up to the new agreement to make sure that in their procurement they use sustainable and brilliant British steel?

UK Steel Industry

Debate between Nic Dakin and Anna Soubry

Thursday 21st January 2016 Westminster Hall

[Nic Dakin]

The Minister must realise that the industry was promised this by the coalition Government three years ago. It still has not got it, and the expectation is that it will not have it until April.

[Anna Soubry]

As the hon. Gentleman knows, the forms have gone out and people are already bringing back their submissions. There was not a Conservative Business Secretary in the coalition Government, but there is one now—and, goodness me, what a difference it has made to getting on and getting the job sorted.

Steel Sector

Debate between Nic Dakin and Anna Soubry

Monday 18th January 2016 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

It is strange that Redcar did not meet the criteria for exceptional growth funds, but I am pleased the Minister has indicated that they will be used to assist the Greybull Capital interest in long products. The Foreign Secretary stood at that Dispatch Box and said that the Government will judge market economy status through “the prism of steel”. Will the Minister confirm that there will be no drawing back from that position?

[Anna Soubry]

I always try to be honest and helpful to the hon. Gentleman. I did not hear that comment from the Foreign Secretary, but I assure the hon. Gentleman that I will take it up with him. As he knows, we are working hard to secure the future of the blast furnaces at Scunthorpe, and we are determined that British steel will continue to be made in this country and that it has a sustainable future.

Redcar Steelworks

Debate between Nic Dakin and Anna Soubry

Thursday 15th October 2015 Commons Chamber

[Anna Soubry]

That is a very good point, and the simple answer is yes.

[Nic Dakin (Scunthorpe) (Lab)]

The coke ovens and the blast furnace are national assets, and this Government should do everything, even at this eleventh hour, to secure them so that they are not lost and are instead retained in order to allow the future to be bright again.

[Anna Soubry]

That is exactly what we will do: we will do everything we can, within the law, and bearing in mind the harsh economic realities that face Britain’s steel industry.

Redcar Coke Ovens

Debate between Nic Dakin and Anna Soubry

Tuesday 13th October 2015 Commons Chamber

[Anna Soubry]

Because the official receiver has come to the conclusion—[Interruption.] No, we cannot hide behind the fact that the official receiver is in charge. The official receiver has said he cannot find a buyer. The hon. Lady says it is a mere £30 million. I am sorry, but is that for six months, 12 months or 18 months? How would she justify that to her constituents? It is not Government money, but her constituents’ money. Let me make it very clear: if we do it for Redcar, then do we not do it for every other industry or business in our country that, unfortunately, cannot find a buyer for its products?

[Nic Dakin (Scunthorpe) (Lab)]

May I, on behalf of the Scunthorpe steel community, express solidarity and support for the Teesside steel community at this very difficult time? When Jaguar Land Rover was in significant difficulty and very challenged, the then Labour Government stepped in and intervened. Jaguar Land Rover is now a byword for success. When will the Conservative Government step in and intervene so that steel can be the byword for success in the future that it has been in the past?

[Anna Soubry]

The hon. Gentleman knows we have done everything we can. He also knows that the state aid rules on steel are the toughest. I am more than happy to go through them with the hon. Gentleman to see whether he can find me a way of doing what he says he wants us to do.

UK Steel Industry

Debate between Nic Dakin and Anna Soubry

Thursday 17th September 2015 Commons Chamber

[Anna Soubry]

I think we are agreed because this has affected Governments of all colours—or rather, of both colours. In all seriousness, the rules on state aid are very strict. I take the view that we should not blatantly breach those rules, because we cannot hold to account other countries that breach them, blatantly or otherwise, if we are guilty of doing the same.

[Nic Dakin]

The reality is that the universal application of the carbon floor tax in this country has had a detrimental effect on energy costs for this industry, and the mitigation package so far put in place does not fully address what needs to be done. Will the Minister make a commitment to do her very best to bring forward the mitigation from the current 2016 destination?

[Anna Soubry]

The hon. Gentleman can be assured that I will do everything I can. I think we all agreed on and voted for the financial obligations that we have put on all our industries, so there is nothing between us. I want us to be able to reduce energy prices, not just for domestic consumers—ordinary members of society—but for industry. I think that that would be a much better way forward.

I have not actually got a speech to read out, which often frightens my officials—you may be quite pleased about that, Madam Deputy Speaker—so I will just remind the House of the actions that I and the Secretary of State for Business, Innovation and Skills have taken. He will meet the all-party group on steel and metal-related industries on 26 October. I assure all hon. Members that both he and I have spoken to the Prime Minister and the Chancellor of the Exchequer. Only this morning, I bumped into the Secretary of State for Energy and Climate Change and had yet another discussion about this problem, the urgency of the situation and what we can do to provide assistance. Hon. Members should be assured that we are doing all that and having such discussions at governmental level.

I met the director of UK Steel back at the beginning of June. I have met the chief executive of Tata Steel, Karl-Ulrich Köhler, who did not flinch from explaining to me the very real difficulties that Tata faces in its operation in the United Kingdom. I pay tribute not just to the workers at Tata Steel, but to its management for all that they do. They and hon. Members can be assured that I certainly got everything he told me: Tata does not want to leave the United Kingdom. He made it very clear that it still has a huge commitment to Britain.

We had a debate on the UK steel industry in July, but it was only for 30 minutes, which, as we all know, is far too short. Since then, I have been to Port Talbot and to Celsa, and I have met the directors of SSI. I have had private conversations with the hon. Members for Redcar and for Middlesbrough South and East Cleveland, and we will meet later. Rightly and understandably, the Members who represent Rotherham—the right hon. Members for Wentworth and Dearne (John Healey) and for Rother Valley (Kevin Barron), and the hon. Member for Rotherham (Sarah Champion)—and of course the hon. Member for Scunthorpe, asked to meet me. I have met them, along with the trade unions who came with them and, in the case of Rotherham, the management of Tata. I am due to have meetings with my hon. Friends the Members for Cleethorpes (Martin Vickers) and for Brigg and Goole (Andrew Percy), as well as with those who represent Hull and Rotherham. As I have said, the Secretary of State for Business, Innovation and Skills and I are meeting the all-party group, and we will continue to hold such meetings.

I want to go through some of the very important points made about what more the Government can do. You are looking at me, Madam Deputy Speaker, as if to say, “Get on with it!” You are not wrong, but these are important matters, and I hope that you will forgive me.

The hon. Member for Redcar covered nearly all the points that other hon. Members have made. I have discussed the price of energy, especially for industries, such as steel, which use so much electricity, so I think I have dealt with that point.

Some hon. Members mentioned business rates. They made a compelling case about the fact that if businesses invest—more than £182 million was invested at Port Talbot—they find, bizarrely, that their business rates go up. Even more bizarrely, businesses pay corporation tax only if they are in profit, but whether or not they are in profit they have to pay business rates. That is another peculiarity of the system. We will have a full review of business rates, but the Chancellor has made it quite clear that the outcome must be fiscally neutral. What I would say to everyone as a caution is that if we change the rules in relation to plant and machinery, we will have to move the burden somewhere else, because it must be fiscally neutral.

On the dumping of steel, the hon. Member for Redcar will already know what I have said about the decisions that have been made. There are more decisions to be made in the European Union to make sure that we do all we can to stop steel dumping.

Several hon. Members made very good points about public procurement. It is right that the Government should practise what they preach, and that applies to local authorities as well. I would gently say to SNP Members that they must champion, as many hon. Members on both sides of the House do, the works in their constituencies. They should beat up on Ministers and on Governments—whether the Scottish Government, the Welsh Assembly or whoever they may be—to say that people must buy British.

When I went to Port Talbot, which supplies a large section of the automotive industry, a particular car company was being shown around, and I hope it will not just buy British, but buy Welsh. We have taken a number of steps to ensure that business can get the most from procurement opportunities. Current public sector contracts can be found on the contracts finder portal, which provides what we call forward pipelines of potential contract opportunities up to 2020, including more than 500 infrastructure projects. Public procurement is important, and we are looking at it. We know that Crossrail achieved 97% of UK content and that 58% of the work went to UK small and medium-sized enterprises. There is more that we can do on public procurement, and I have asked my officials to look at that.

I am looking through my notes to make sure that I deal with everything that has been raised by hon. Members. If any of them wants to remind me of anything that I have missed, I am more than happy to take interventions.

Nobody wants to intervene, so I will just say this. I am going to China next week and Members can be assured that the Secretary of State and I will not hesitate to discuss a number of matters with the Chinese Government. We want to talk to them about dumping, production and the future of their steel industry. We will not hesitate to make those representations. If there is anything in any of the speeches that I have not responded to, I will write to each and every hon. Member and answer their points.

Finally, I doubt that this matter will go to a vote. Therefore, we will get on with arranging the summit quickly. I already have a list of people whom it is obvious we should invite. It will be a cross-Government summit, I hope, that will involve the Welsh Assembly, the Scottish Parliament, all the relevant Departments and representatives of the workers and the various companies. I congratulate everybody on what has been a very good debate.

Oral Answers to Questions

Debate between Nic Dakin and Anna Soubry

Monday 24th November 2014 Commons Chamber

[Anna Soubry]

The hon. Gentleman makes an interesting and good point. He has asked a couple of questions in one, and I hope to answer them as fully as I can. It is delivery that is important, which means that all our Departments have to sign up to it, but of course, they can play a part in delivering the corporate covenant as well. However, there is more that we can do, and we have to get the message out across the NHS and through the devolved Administrations. If we all do that—if I may say, working together to ensure that—we can absolutely deliver on the covenant in the way we want.

[Nic Dakin (Scunthorpe) (Lab)]

Does the covenant offer an opportunity for local and national Government to respond to my constituent Sue MacLean’s campaign to ensure that veterans who pass away without anyone to deal with their affairs have something more than a pauper’s funeral to recognise their passing?

[Anna Soubry]

I am more than happy to discuss this with the hon. Gentleman. We know that our forces charities play such an incredibly important part in the welfare of and assistance given not only to those who serve, but to veterans. We have a fabulous system in this country of which we should be proud.