Oral Answers to Questions
Debate between Richard Fuller and David Mowat(8 years ago)
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David Mowat
I give the right hon. Gentleman the categorical assurance that better mental health is a fundamental part of what the STPs are trying to achieve, as are better cancer outcomes and better integration of adult social care. If an STP does not include those things, it will have to continue to evolve until it does.
Richard Fuller (Bedford) (Con)
The Mayor of Bedford, Dave Hodgson, and I have a common approach to the STP in Bedford—it is ably led by Pauline Philip, the chief executive officer of Luton and Dunstable hospital—but he is frustrated that he is not being involved and that his voice is not being heard in the process. Will my hon. Friend ensure, when he reviews all the STPs, that he gets a guarantee in every single case that the local authorities have bought into the plan, and, if not, that they will not proceed?
David Mowat
I give my hon. Friend the categorical assurance that if local authorities and the NHS managers doing the planning work have not engaged properly, the plan will not be considered to be complete. That does not mean that every local authority has a veto on its STP.
UK Steel Industry
Debate between Richard Fuller and David Mowat
Richard Fuller
No, this is a lesson that we all need to learn. [Interruption.] If the right hon. Lady stops chuntering, I can make a point with which she might agree. Lessons have been learned from the 1980s, and in communities with a significant concentration of industries the Government always have to do more than they think they have to do.
Duties have been mentioned a number of times, so let us clear up the lesser duty rule. The point, as my right hon. Friend the Secretary of State said, is whether the duty is effective. We follow the lesser duty rule, and in the three instances that he mentioned, import penetration has all but disappeared. Giving up the lesser duty rule is not about stopping more steel coming in, but about raising prices on those products. If a 14% tariff is increased to 50% when imports are eliminated that will result in inflationary pressure from the steel industry to other markets, and might be regarded as supporting subsidies from one part of the steel industry to another. It is not right to give up the lesser duty rule, which is the underpinning of the World Trade Organisation, and to take the US approach of zeroing in on tariffs.
On the 267% tariff that America imposed on Chinese cold rolled flat, it was part of the same US decision that imposed a 31% tariff on Tata steel. Tit for tat on trade tariffs does not work.
David Mowat
Does my hon. Friend have a view about why Chinese dumping affects the UK industry much more than the German and Dutch industries? Indeed, Tata is trying to consolidate in Holland. Why have we been affected differently?
Richard Fuller
My hon. Friend speaks very intelligently. Private companies make decisions in different markets across the European Union. I disagree with my hon. Friend the Member for Wellingborough (Mr Bone), although we agree on Brexit, as I am not sure that the EU is pertinent to the decision that will affect the steel industry. The Government have taken effective action on procurement and power. Having served on a Bill Committee on the privatisation of Royal Mail, I think that a case can be made for the Government to take action on the pension requirements for members of the British steel industry, which was a nationalised industry. There is plenty of scope, for people like me who believe in the free market, to argue that the Government can take action on that basis.
The Opposition say that they believe in nationalisation. The hon. Member for Aberavon said that he believes in nationalisation, but that it is “not a long-term solution”. Opposition Members do not know when the crisis in the global steel industry is going to end. The global capacity glut is over 30%. I am afraid that if we nationalised, we could not determine when we could return the industry to the private market. If people nationalise, they do so for as long as it takes, and I believe, although I understand why my right hon. Friend will not do so, that the Government should rule out nationalisation, which is a step too far for the British economy in supporting the steel industry.
Finally, may I put the issue of the steel industry in context? During the time that most of us will spend in the House—I am looking at older Members—we will live though a global over-supply of capacity. That will be true not just of steel but of other sectors of our economy. We need to understand and abide by the rules that have created a free trade system that has been one of the biggest supports in improving living standards around the world. Supporting WTO rules on the lesser duty tariff is important, as is avoiding a tit for tat war on tariffs. Supporting communities with a significant industry that is affected and making sure that the Government do more than they think they need to do to support those communities are part of making sure that our economy supports them. I commend the Government on their actions, and I will continue to support them critically.