British Steel

Pat McFadden Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for the hard work that he put into understanding and helping the steel industry during his time as a Minister. I know that it was well appreciated. I echo his tribute to Roy Rickhuss. My hon. Friend, the new Minister and I have always had a good relationship with the trade unions. I spoke to Roy Rickhuss and Steve Turner of Unite this morning, and they share the intention of everyone in this House to get the best possible future for British Steel.

One reason, although it is not the only reason, for the problems that British Steel is experiencing is the uncertainty around whether our future relationship with the European Union will involve tariffs—at least that is what the management say. Like my hon. Friend, I have a high regard for the management of British Steel, which needs to be taken at its word. We should resolve that uncertainty as quickly as possible, because that would be a major contribution that we can make to the future of British Steel.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

I am grateful to the Secretary of State for his approach in recent weeks and for his statement today. I thank him for his comments about the difficulty of turning off steel mills like a tap, because they cannot be turned off and on like that. We are all grateful to hear that the wages will continue to be paid for the moment and that the company continues to trade. Will he say anything more about the official receiver’s capacity to keep the situation going so that a new buyer can be found?

[Greg Clark]

I am grateful for what the right hon. Gentleman says. It is important that I should state, and that the House should recognise, that the official receiver is independently appointed by the court. The official receiver has a team of special managers from Ernst & Young who were appointed today, and their responsibility is to secure the best possible resolution for the assets they inherit. They have strict duties to the court, and they cannot be directed by me. My experience of the Insolvency Service and the official receiver is that they will want to recognise the importance of continuity, which I contend will help to secure the best value for the future of the site. From my conversations, I know they have that very much in mind, but it is important to emphasise that they are independent and do not take direction from me.