Steel Industry
Debate between Sajid Javid and Angela Smith
Sajid Javid
I thank my hon. Friend for her comments. I can absolutely assure her that we continue with the rest of the work, which began a long time ago, including on energy costs, emissions regulations and unfair trading, but of course on procurement as well. One of the streams on procurement, as she suggested, is ensuring our procurement pipeline. Over the next five years we have the biggest infrastructure pipeline of any Government, and that is well known to all steel suppliers and producers.
Angela Smith (Penistone and Stocksbridge) (Lab)
I acknowledge that the Secretary of State and the Business Minister have both visited Stocksbridge, and they will now fully understand that the plant makes some of the very best steel in the world. On that basis, it is really important that we have a responsible buyer for the business. Will the Secretary of State give further details of the timetable, which would be an indicator that Tata is committed to finding a responsible buyer, and tell us how the pensions consultation timetable fits into the overall timetable for the sale of the Tata UK holdings?
Sajid Javid
I enjoyed my visit last week to Stocksbridge in the hon. Lady’s constituency, where I could see for myself just what a strong and valuable business it is. I agree with her comments about the business. In terms of the timetable, I mentioned earlier that Tata itself wants a swift process, but it has not set out a specific timetable. That is good, because there is some flexibility in that. The pensions consultation is a four-week consultation. If the Government were to take any of the proposals forward—again, I stress that it is an “if”—it will be based on the evidence that is returned in the consultation. Then we would want to make sure that it is done as quickly as possible in order to help the sales process.
UK Steel Industry
Debate between Sajid Javid and Angela Smith
Sajid Javid
My hon. Friend makes a good point. Energy is a big issue, and will remain so for all our energy-intensive industries. The tidal lagoon is an important issue. We have begun a feasibility study, and my Department is in discussions with the Department of Energy and Climate Change and the Treasury on that very issue.
Angela Smith (Penistone and Stocksbridge) (Lab)
May I make it absolutely clear to the House that this is an issue relating not just to Wales or Port Talbot? It is a UK problem, and the Secretary of State will agree that it is a national issue. The 900 steelworkers in my constituency whose jobs are on the line expect him to guarantee that he will do whatever it takes to give them the future that they deserve. There was an optimistic note in what he said. He mentioned co-investment. Will he explain to the House what that is, and whether it guarantees that the Government are willing to intervene and do whatever is necessary to save our industry?
Sajid Javid
The hon. Lady is absolutely right: this is a UK-wide problem. We have discussed Scotland and, of course, Wales, but it also affects south Yorkshire, Corby and many other parts of the UK so she is right to bring that to the attention of the House.
On co-investment, I said that to demonstrate that when I say that we will look at all options, we really will do so. It is possible—I do not know at this point, because the sale process has only just formally begun—that someone might come forward and ask for investment or funds from Government in lots of different ways. That has to be done on commercial terms, but that demonstrates how far the Government can go to make sure that this deal is successful.
Oral Answers to Questions
Debate between Sajid Javid and Angela Smith(8 years, 10 months ago)
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The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We are taking clear action to help the steel industry. We are cutting electricity costs, tackling unfair trade, updating procurement guidance, introducing flexibility in emissions regulations and reviewing business rates. That is what the steel industry has asked for and what we are delivering.
Angela Smith
I thank the Secretary of State for that answer. The Foreign Secretary said of China the other week in this Chamber that
“it is through the prism of steel that their claims to be treated as a market economy are likely to be judged in the European Union.”—[Official Report, 12 January 2016; Vol. 604, c. 694.]
Equally, the Ministry of Defence has recognised the strategic importance of the steel industry with the support that it has given to Sheffield Forgemasters. When will the Secretary of State follow suit? In particular, when will he pull his finger out and start battling for British steel with companies such as EDF?
Sajid Javid
The hon. Lady may be interested to know that it was the Secretary of State who asked for an emergency meeting of the European Council to discuss this issue of unfair trade for the first time and to make sure that when the EU takes action, it does so appropriately and in a speedy fashion. The EU is considering the issue of market economy status. When it puts forward a proposal, we will take a careful look at it. Even if a country does have market economy status, that does not stop the EU taking action, as is shown by the examples of Russia and the US.
Steel Industry
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Sajid Javid
May I thank the hon. Lady for taking part in the steel summit on Friday? She will know that one thing we talked about was support for workers, and I welcome the creation of a taskforce in Scotland. As I said, we will support that and help in any way we can. She is absolutely right to emphasise that we must do everything we can for the workers who have been affected and their families, and that is certainly the way that we will move forward.
Angela Smith (Penistone and Stocksbridge) (Lab)
Clearly, urgent action is needed to stem the flow of job losses in the steel industry, and what the Business Secretary has had to say today is woefully inadequate. What is even more inexplicable is his refusal to commit to a long-term strategy for the future of the industry. Elsewhere in government there has been a commitment to a 25-year strategy to secure the future of food and farming, so why can he not do the same for steel?
Sajid Javid
I thank the hon. Lady for joining the steel summit on Friday. We collectively discussed the issue of strategies, procurement and pipeline, and the whole supply chain. I hope she will be reassured that since that meeting we have already, for example, set out a metal strategy, which has steel as a very important part of it.