Oral Answers to Questions
Debate between Nicholas Dakin and Lord Vaizey of Didcot(8 years, 8 months ago)
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Nic Dakin (Scunthorpe) (Lab)
9. What steps he is taking to bring about the completion of the EU digital single market with regard to telecoms, audio visual policy, IT security and data protection.
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
This Government are a great champion of the digital single market, and I know that all colleagues will have read the Prime Minister’s excellent White Paper. It means, for example, that people will no longer pay roaming charges when travelling across the EU, and once the digital single market is in place, we will see a huge increase in our GDP.
Nic Dakin
According to the No. 10 website, we could create £325 billion of additional growth by fostering a digital single market, and it points to the advantages of that for consumers. Given that, why would anybody campaign to leave the EU rather than energetically work to get the best deal for the UK?
UK Steel Industry
Debate between Nicholas Dakin and Lord Vaizey of Didcot(9 years, 11 months ago)
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Mr Vaizey
Hansard has on the record the reason why my right hon. Friend the Minister for Business and Enterprise could not attend the previous debate. I gather that today he is assisting the Chancellor with the autumn statement, because his brief covers a wide range of issues. Indeed, Mr Davies, you are an expert on the working relationship between the Chancellor and the Minister for Business and Enterprise.
Mr Vaizey
I do not wish to sound churlish, but it is said that one should be beware of Greeks bearing gifts, and one should also be beware of Labour Members, however much one admires them, bearing compliments.
The hon. Member for Cardiff South and Penarth is working hard to secure a long-term future for the steel industry in his constituency. He has been an assiduous champion for Celsa and has facilitated meetings between it and Ministers. I picked up on about nine points made by hon. Members during the course of the debate, but he left me with five or six specific questions, mostly focusing on efforts to mitigate the impact of high energy prices and of competition, which from his perspective is unfair—I hope that I am not speaking out of turn in putting it that way—and on what the Government are doing about things. He also asked about the future strategy for the steel industry.
I have quite a long speech, but the hon. Gentleman spoke rapidly, if clearly, and the time left to me is not long, especially given the level of interest in the debate. I will try to pack in as much in the short period available as he managed.
It is well known that the steel industry is cyclical, and we also know that it has faced particular difficulties in the past few years, especially with the economic downturn having a major impact on construction, leading to overcapacity and severe competition throughout the world. It is worth saying, as I did in the previous debate, that the UK remains a significant player in the global steel market. We have replaced France as Europe’s second largest producer of steel and we have overtaken Italy. It is worth remembering that we continue to manufacture to a high level in this country.
My right hon. Friends the Minister for Business and Enterprise and the Secretary of State for Wales met the hon. Member for Cardiff South and Penarth and representatives of Celsa to talk about the company’s concerns, in particular the policy issues, which it is important to note affect many other steel companies in the UK as well. The Minister for Business and Enterprise replied at the beginning of this week to the letter that was sent out by Celsa following that meeting.
The first major issue raised at the meeting and in the debate today was compensation for energy-intensive industries for the indirect costs of the European Union emissions trading scheme and the carbon price floor. The hon. Member for Cardiff South and Penarth knows that the Government are trying to compensate electricity-intensive industries for the indirect costs of the renewables obligation and the feed-in tariff. We are also seeking to exempt EIIs from the costs of the contract for difference.
The mitigation has not been brought forward, because we need to seek state aid clearance from the European Commission. It took 18 months to obtain Commission state aid clearance for the carbon price floor. The hon. Gentleman and Celsa would perhaps like to see the Government being what they might describe as more robust, but clear state aid clearance is important. As he knows, if aid is provided before state aid approval is given, technically that would be illegal and we run the risk, if approval is not given, that the company would have to pay back the state aid. That is the reason. I am sure that the Chancellor, if he could wave a magic wand, would wish to bring forward mitigation, but we have to go through the process.
The hon. Member for Cardiff South and Penarth also talked about procurement. We have greater transparency of opportunities through the publication of procurement pipelines, which now cover 19 sectors. We have a simpler public procurement system; we have abolished the pre-qualification questionnaires for low-value contracts; and we help suppliers to find contract opportunities via a single online portal. We are working with industry to map supplier capabilities. We want to quantify the opportunity that exists to maximise the economic benefit for the UK—of course we do. Where there are capability gaps, sectors will encourage domestic suppliers to expand to fill them, with support from the Manufacturing Advisory Service.
The hon. Member for Middlesbrough South and East Cleveland tried to tempt me to have a pop at the Scottish Executive over the Forth bridge. My understanding is that the approaches to the bridge are to use British Tata steel, but I cannot comment on the procurement process of the Scottish Executive—[Interruption.] Perhaps the hon. Member for Na h-Eileanan an Iar (Mr MacNeil), commenting from a sedentary position, would like to say why the Scottish Executive procured from China, Poland and other markets.
Steel Industry
Debate between Nicholas Dakin and Lord Vaizey of Didcot(10 years, 1 month ago)
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This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
It is a great honour to speak under your chairmanship, Mr Turner. I apologise for the fact that I am the Minister responding to this debate. The Secretary of State is in India, and my right hon. Friend the Minister for Business and Enterprise, who has responsibility for energy, is in a Bill Committee. However, I am a Minister in the Department for Business, Innovation and Skills, and I was recently promoted to serve in that Department as well as in the Department for Culture, Media and Sport. That is despite the fact that The Guardian described me as a Liberal Democrat who had not been promoted and who sat in Cabinet, all three of which are wrong.
I am grateful to the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) for mentioning my late father’s book, “The History of British Steel”, of which I just happen to have brought a copy. I hope that the hon. Gentleman will indulge me for a moment, because it is the 40th anniversary of the publication of that great book. The hon. Gentleman’s illustrious predecessor, the late Ashok Kumar, and I became good friends because he stopped me in the corridor one day and said that he suspected that even though I was in the House, he was the only Member of Parliament who had read “The History of British Steel” by John Vaizey. That was true at the time, but I have since rectified that. That remarkable text highlights the ups and downs of the British steel industry, which has gone through many crises in its 170-odd year history. Many of those difficulties were caused by political interference, but quite a few were caused by stiff competition, particularly in the early 20th century from America.
The hon. Gentleman ended his remarks on a positive note, not only by kindly mentioning my late father’s book but by talking about the resilience of the British steel industry. It is important to focus on an industry that still employs 300,000 people. The north-east has a proud history of steel making and manufacturing, and I am particularly delighted that the former Tata Steel plant at Redcar is once again producing steel for customers around the world under its new owner, SSI Thailand.
The UK continues to make manufactured goods. A successful manufacturing sector remains the key to driving the innovation and exports that are crucial to productivity growth in the UK economy, and the steel industry has an important role to play in generating future economic growth. The hon. Gentleman talked about the supply chain. Our steel industry underpins a number of key advanced manufacturing sectors and sustains the livelihoods of many local communities, particularly those in his constituency.
Steel is found in skyscrapers, washing machines and almost any essential goods that one might care to mention. The modern steel industry has made huge technical advances. I am told that 75% of the types of steel used today have been developed in the past 20 years. If the Eiffel tower were rebuilt today, we would need to use only a third as much steel as was used when it was built. Modern cars use new steel that is stronger but 35% lighter.
As the hon. Gentleman and I have already said, steel is a critical part of the supply chain for high-technology industries such as aerospace, automotive and construction, all of which require high-value, continually improving steel products. We remain committed to a healthy and growing steel industry in the UK. There will always be a need for steel, but we must consider our steel industry in the context of the global economy, as the hon. Gentleman did. He highlighted the impact of energy regulation and imports, which I hope to address in my remarks.
As I said at the outset, the steel industry is notoriously cyclical. It has booms, but major slumps in prices and output have occurred regularly throughout its history. The sector is emerging from a downturn that is considered by many industry insiders to be more extreme than any other in living memory. Half of steel output is used in construction, an industry that suffered more than most during the recession. Despite renewed economic growth, demand for steel is still well down compared with before the crisis hit and is not expected to grow substantially this year. High energy costs, which I have already mentioned, and chronic overcapacity in the wider European steel industry have also affected prices, squeezed profits and hit investment. UK steel companies, like their competitors, have been forced to make uncomfortable decisions, and it is regrettable that Tata Steel has reduced its work force by 25% and its UK operating and production company by more than 20%.
Nic Dakin
I congratulate the Minister on his speech so far. Despite all the challenges that steel has faced, and following the great work by workers in my constituency and across the country to get the steel industry to where it is today, will he make it clear that the Government are committed to working with steel workers and steel companies to ensure that there is a steel industry for the future, whatever bumps and troughs there may be in the road as we move forward, so that it can be a foundation to move this country forward, as it has been in the past?
Mr Vaizey
I am happy to make that clear. The Government are unequivocal in their commitment to the UK steel industry and will do all they reasonably can to support the industry as it faces the hurdles and obstacles in achieving fair competition. No one denies the climate in which the UK steel industry operates, and we were saddened to hear the announcement last month that the ESCO Corporation foundry in the constituency of the hon. Member for Middlesbrough South and East Cleveland will be closing with the loss of 65 jobs. This will be a very difficult time for all those affected, but I am encouraged that the company will continue trading until the end of the year, particularly as that will hopefully allow employees time to secure alternative employment. A talent retention solution that helps skilled employees affected by redundancy to find jobs in other engineering companies should be able to assist in that regard. He also raised concerns about the current financial position of the SSI integrated steel plant at Redcar, and there are clearly challenges ahead, but the situation is not as serious as recent press reports suggest.
Oral Answers to Questions
Debate between Nicholas Dakin and Lord Vaizey of Didcot(10 years, 8 months ago)
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Nic Dakin (Scunthorpe) (Lab)
12. What information her Department holds on the number of local newspapers that have closed since May 2010; and what steps she plans to take to support such newspapers.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
The Department does not hold that information, but our local press plays an incredibly valuable role in local communities, and we appreciate the challenges facing the sector. We have a number of policies to support local newspapers.
Nic Dakin
I thank the Minister for his answer. Does he have a view on the number of local papers that have, like the excellent Scunthorpe Telegraph, since May 2010 moved from being daily newspapers serving their community to being weekly newspapers serving their community? What impact does that have on communities?
Mr Vaizey
I understand that the Scunthorpe Telegraph has made that move and that, as a result, its circulation has gradually risen by a small amount. The Government have restricted the amount of local papers that councils can put out, relaxed media ownership rules, and continued to have statutory notices in local papers, so we do want to support local papers where we can.
Oral Answers to Questions
Debate between Nicholas Dakin and Lord Vaizey of Didcot(10 years, 9 months ago)
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Mr Vaizey
My hon. Friend rightly raises that issue regularly. The Government work with Ofcom and BT Openreach to ensure that the highest standards are maintained. There are occasional problems, which we work on, but BT did a good job over Christmas and new year during the floods.
Nic Dakin (Scunthorpe) (Lab)
How can the Minister support my constituents who have contacted me this week, such as those from the village of Messingham, who cannot get the full benefit of broadband because it is not adequate?
Mr Vaizey
We are putting £500 million into broadband. As my right hon. Friend the Secretary of State pointed out in her answer to the Opposition spokesman, Labour councillors up and down the country are applauding our fantastic work. I am sure the hon. Gentleman would want to join them in applauding us on how quickly the roll-out programme is going.
Oral Answers to Questions
Debate between Nicholas Dakin and Lord Vaizey of Didcot(10 years, 11 months ago)
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Nic Dakin (Scunthorpe) (Lab)
12. How her Department measures the success of steps taken to reduce the number of nuisance telephone calls.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
The issue of nuisance telephone calls is a priority for the Department, and we will be publishing our action plan shortly. We would like to see more effective enforcement by the Information Commissioner’s Office and Ofcom, through use of their substantial fining powers. Also, we are keen for them to more easily share information with each other.
Nic Dakin
A 90-year-old constituent of mine who has signed up for the telephone preference service continues to be plagued by nuisance calls. There is not enough urgency from the Government on this matter. Will the Minister commit, as a starting point, at least to implement all the recommendations made by the all-party group on nuisance calls? That would be a start.
Mr Vaizey
I reject the accusation of a lack of urgency. I have worked closely with a number of stakeholders over many months. We are publishing our action plan in the new year because we want to take account of the excellent reports by the all-party group and the Select Committee.
Oral Answers to Questions
Debate between Nicholas Dakin and Lord Vaizey of Didcot(11 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)
We are making good progress. With the signing of the procurement for Northumberland this week, 20 projects should be under way, representing more than 60% of the budget. All procurements are scheduled to complete by the end of summer 2013.
Mr Vaizey
I know that the hon. Gentleman will welcome the contract that was signed on 8 March with Onlincolnshire, the brand for the delivery of broadband in Lincolnshire, with £14 million of investment from the Government and £8.5 million coming from BT. At the end of that contract, the coverage will be not just 90% but 94.5%.
Oral Answers to Questions
Debate between Nicholas Dakin and Lord Vaizey of Didcot(12 years ago)
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Nic Dakin (Scunthorpe) (Lab)
T4. Given the importance of the high standards and diversity in our media, will the communications Bill include any Leveson inquiry recommendations on media and cross-media ownership?