UK Steel Industry
Debate between Paul Flynn and Anna Turley
Anna Turley
It certainly has made the situation worse. I believe it has added approximately 10% to the prices of the UK steel sector.
I come before the House to call on the Government to act on the factors that I have outlined. I will set out five key actions that the Government could agree to today to demonstrate their commitment to the British steel industry. First, they must fully implement the energy-intensive industries compensation package well ahead of the committed date of April 2016. Energy-intensive industries in the UK are exposed to far higher costs than those elsewhere and face a total cost of £430 million this year.
The package of compensation and exemption measures that were promised over the course of the last Parliament would place the UK industry on a level playing field with its EU counterparts. If the package were in place today, it would have reduced costs from £30 per megawatt-hour to £7 per megawatt-hour. Instead, with compensation available for only a small proportion of the policy costs, energy-intensive companies continue to be exposed to upwards of 70% of them. It is imperative that the spending review announcement allays those worries and confirms the budget for the package. Energy prices for UK steel producers can be more than 50% higher than for our main European competitors.
Paul Flynn (Newport West) (Lab)
I speak as an old lag of the steel industry, having worked in it for 30 years before they pensioned me off into a light job on these green Benches. I applaud the plea that my hon. Friend is making. The steel industry has a wonderful record of serving the country efficiently over many years. Let us all join in the plea, which I am sure all Members will do today, for the Government to take an exceptional measure to deal with what is a temporary problem in the industry, but one that could lead, if neglected, to permanent damage.
Anna Turley
My hon. Friend is absolutely right. This is a difficult time and there are actions that the Government could take to build resilience. There is a future for the UK steel industry. I am sure that everybody—this is certainly true of those on the Opposition Benches—agrees with that. We hope to hear from the Government that their commitment is the same.