British Steel

Rebecca Long Bailey Excerpts

Wednesday 24th July 2019 Commons Chamber

[Greg Clark]

I am grateful for my hon. Friend’s generous words. He has been assiduous not just in being a member of the support group, but by working in Skinningrove with the customers of British Steel to convey the assurances that are necessary. Buyers will have questions about this extensive and complex set of assets, so it is important—and will continue to be important, especially during the weeks ahead in August—that everyone is available and active in providing the answers to those questions.

Through the industrial strategy, the Government have established programmes to support improvement in energy efficiency, which is very important; to decarbonise industrial clusters, of which steelmaking is a prime example; and to invest in research and development. Through the industrial strategy, we have the biggest increase in R&D in the history of this country. I am making these points to prospective purchasers so that they can see that the environment is a positive one.

It would be wrong for me to comment on the individual bids, as that is legally and strictly a matter for the official receiver, but I have made myself available in this country and overseas to answer questions. I think that I have had more than 25 meetings with bidders, and it has been encouraging—to use the words of the official receiver—that serious bids have been made, but the work must continue to land them and to secure the future.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

I do hope that this is not my last exchange with the Secretary of State, but just in case it is, I want to stress my thanks for the amazing Mini Cooper toy that he presented me with last week and to say that he should not worry because there will always be a parking space in my heart for him. We might differ in our approach to many of the structural flaws that our economy faces, but we actually have more in common on most issues than many people would realise, not least on industrial strategy. I also thank my hon. Friend the Member for Redcar (Anna Turley) for securing this important update on British Steel.

The Secretary of State shares my opinion that British Steel must be kept as one entity, not splintered off to different buyers who do not have the long-term success of the company at heart. However, there have been reports this week that the Chinese Jingye Group, which was interested in the company as a whole, has pulled out. It was also reported that the deadline for bids has been moved a number of times. Indeed, an email sent from the official receiver is reported to have stated that no deadline has been set to conclude a sale process. Can the Secretary of State confirm how many prospective buyers remain, how many are interested in acquiring the entire the company and what deadlines for the sale have been set? Will he also confirm, as my hon. Friend mentioned earlier, that he will only give his support to bids that support the long-term interests of the company, the workforce, the local community and the steel industry as a whole?

The Secretary of State must recognise that, as Labour has repeatedly stated, action must be taken on electricity prices, business rates, driving investment and, of course, securing a good Brexit deal, because no deal could mean no steel. Will he therefore assure the House that he will be taking steps to ensure that the new Prime Minister urgently takes action on these issues and understands the real importance of the steel industry?

[Greg Clark]

I am very grateful to the hon. Lady for the generosity of her remarks. I have enjoyed my exchanges and meetings with her. I hope the parking space in her heart has a charging point for the electric Mini—that would be very important.

The hon. Lady invites me to comment on the bids and some of the press speculation as to who is bidding and who is not. First, this is a matter for the official receiver, and secondly, I would not want to prejudice any of the bids by commenting. The discussions, in many cases, take place under confidential terms, and it would be wrong to do anything that might disadvantage that. There is often, in situations like this, speculation in the press, and much of it is misplaced. What I can say—the official receiver has said this publicly—is that several bids have been made and he is looking for bids that consider the whole of the operation. I welcome that, as the hon. Lady does.

On long-term commitments, we do have a long-term commitment to manufacturing, and to steel in particular. I mentioned some of the funds that are available in the industrial strategy. Of course, because they would accompany substantial investments, which I hope will be in place, they require a long-term commitment from any prospective buyer.

The hon. Lady is right to raise the question of energy prices and electricity prices. This is not a new phenomenon, and it is not unique to any particular Government. In fact, the biggest increase in industrial electricity prices took place under the previous Government. In the past five years, we have contributed nearly £300 million to energy-intensive industries as a rebate towards those costs. Through the industrial energy efficiency fund that is available in the industrial strategy, we want to reduce further the costs of energy. It is very important that we should do that.

The hon. Lady asks questions about the incoming Prime Minister. I spoke to both candidates during the leadership contest to impress on them what she and I agree is the crucial role of this industry. I know that she, the Under-Secretary—my hon. Friend the Member for Pendle (Andrew Stephenson)—and other hon. Members have communicated not just with the current Prime Minister but with her potential successors to reinforce the resolution across all parts of the House that this is at the top of the new Prime Minister’s agenda.