Steel Industry

Debate between Sajid Javid and Tom Blenkinsop

Thursday 26th May 2016 Commons Chamber

[Sajid Javid]

Tariffs do have a role to play where there is evidence of unfair trade. The good news is that, where that evidence has come up, we have worked with our colleagues in the EU—and my hon. Friend’s colleagues in the EU—and been able to take action. In almost every case where a tariff has been introduced, it has resulted in a fall in Chinese imports of almost 90%. That shows us that the process is effective.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

My father-in-law is a British Steel pensioner. What does the Secretary of State believe will happen regarding the recent deals with Liberty and Greybull if the British Steel pension has to be absorbed into the Pension Protection Fund? Will he also remind the House how much money the Treasury has already made as a result of the state taking over the miners pension fund and receiving half the surpluses every year?

[Sajid Javid]

If this pension fund ended up in the PPF, the outcome would be different depending on the particular circumstances of this group of members. Where those members are existing pensioners—so they are receiving their pension already—they would typically continue to get 100% of their pension, but the indexation would change to the statutory minima, which is typically CPI.

Oral Answers to Questions

Debate between Sajid Javid and Tom Blenkinsop

Tuesday 3rd May 2016 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

8. What assessment he has made of the most significant threats to the UK steel industry.

[The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)]

Global overproduction and reduced demand have caused steel prices to collapse, eroding the profitability of steel producers across the world. We have acted decisively to help UK steel companies by delivering lower electricity prices, tackling unfair trade, updating procurement guidance and introducing flexibility in emissions regulations.

[Tom Blenkinsop]

One of the main issues in the current steel crisis is time. The Greybull deal took nigh on 12 months, and that time was allocated to ensure that a better buyer, as opposed to the original potential purchaser, came forward. What has the Secretary of State done and what conversations has he had with Tata to ensure that it will be a responsible vendor and allow enough time to encourage not just buyers, but the best buyers, to come forward? Where does he see strip and tube in the future? Does he still see Tata remaining in situ in some form in both those sectors?

[Sajid Javid]

The hon. Gentleman is right about the importance of time for securing a viable long-term future for the Tata strip business. I have had a number of discussions, as have my officials, with Tata. It has been very straightforward in being reasonable about time—of course, it does not have an unlimited amount of time, but it has shown through the long products business that it understands that things take time.

UK Steel Industry

Debate between Sajid Javid and Tom Blenkinsop

Tuesday 12th April 2016 Commons Chamber

[Sajid Javid]

I am sure the hon. Gentleman agrees with me that when there are job losses and the Government can help, of course they must do so.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Will the Secretary of State give way?

[Sajid Javid]

I will plough on, but I will give way in a moment. I am about to speak about Redcar, and I know that the hon. Gentleman is interested in that as well. We have committed up to £80 million to helping people affected by SSI’s closure. That includes more than £16 million to help local firms to employ former SSI workers, and a further £16 million to support firms in the SSI supply chain and the wider Tees valley. Millions more are paying for retraining at local colleges. For example, there was a £1.7 million package to help former SSI apprentices to remain in employment, education or training.

[Tom Blenkinsop]

The Secretary of State said that the Government would do everything possible for the communities and people affected. As he knows, on the day of the liquidation at Redcar, he announced an £80 million total package—

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[Tom Blenkinsop]

Not so long ago, at that Dispatch Box, the Secretary of State changed the figure to £50 million. Moneys on top of that have only been acquired because the Community trade union claimed a protective award from the tribunal to ensure that the workforce got what they were entitled to. The Government could have fast-tracked that some seven months ago.

[Sajid Javid]

I thought I heard the hon. Gentleman say “up to £90 million”. What we have always said is “up to £80 million”, and that has not changed. I agree that there is a long way to go, but so far, in respect of Redcar, nearly 700 jobs have been created, safeguarded or supported, and only a quarter of the more than 2,000 workers at SSI were claiming jobseeker’s allowance at the end of February.

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[Sajid Javid]

Not now.

The action taken on tariffs, energy costs and procurement has sent a powerful message to investors around the world that the British Government are standing up for UK steel. That commitment is not new; I have been working with the steel industry from my very first day as Business Secretary, long before the current crisis made it on to the front pages. As I told the House yesterday, Tata contacted me several weeks ago to warn that it planned to sell parts of its strip business and to close its Port Talbot site immediately. Thanks to the groundwork laid by my team and colleagues over the past year, we were able to secure a reprieve while a buyer is found. I am leading the Government’s efforts to help to find a buyer for the strip business, and we will update the House on progress as soon as possible.

When that buyer is found, the Government stand ready, as I have said, to support it in any way we can to help to get the deal done. We have already set out some of the ways in which we can help. It would not be prudent to go into the detail, but the goal is to find a commercial buyer, with the Government helping to secure that transaction and a long-term, viable future for the business.

[Tom Blenkinsop]

I understand where the Secretary of State is coming from but, taking a broader view of co-investment, one option is R and D. The steel sector does not have Catapult status. Will the Secretary of State look at that as a potential route for co-investment in the steel sector, particularly in respect of organisations such as the Materials Processing Institute, to get an R and D link with our domestic steel industry?

[Sajid Javid]

The hon. Gentleman makes an interesting point. He will know that Catapult centres are a partnership between Government, business and academia. If that can help the steel sector, I am more than happy to look into it if a proposal comes forward.

UK Steel Industry

Debate between Sajid Javid and Tom Blenkinsop

Monday 11th April 2016 Commons Chamber

[Sajid Javid]

My hon. Friend makes a very good point. In some parts of the UK where steel plants are based there are enhanced credits and capital allowances through enterprise zones. She makes an interesting suggestion about R and D tax credits that could help the industry more widely, so of course I will meet her.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

When the Secretary of State comes to the Dispatch Box, he has to be careful about what he says. In his statement he referred to the £80 million promised to Redcar. I would dispute that figure in relation to what has been delivered in our area in the past six months. Today in our all-party parliamentary group meeting the Secretary of State did not rule out the option of Tata potentially remaining in situ at all steel sites, not just in relation to strip products. What type of co-investment plans can he put forward to the House so that we can discuss on the Floor of the House the options available for UK steel?

[Sajid Javid]

I know that the hon. Gentleman means well and has fought hard for his constituents, but I am sure he understands that in trying to secure a deal, it would not be in the interests of such a deal if the commercial terms were discussed on the Floor of the House. When buyers approach us or approach Tata, many aspects will be commercially sensitive. Some potential buyers will not even want to reveal that they are in discussions, and we must respect that or we risk losing a deal. I hope the hon. Gentleman can respect that too.

UK Steel Industry

Debate between Sajid Javid and Tom Blenkinsop

Monday 29th February 2016 Commons Chamber

[Sajid Javid]

I can confirm all that to my hon. Friend, who makes his point very well. The rules are applied to all members of the European Union. The tariffs are set after an evidence-gathering process by the EU Trade Commissioner. Clearly, we all want them to be based on evidence so that it can be used to create the level playing field that we all want. My hon. Friend is correct to say that no single country can choose to change a tariff; we must work collectively through the EU rules.

Removing the lesser duty rule would have an impact. We want to address the impact of unfair trade without imposing disproportionate costs on the wider economy. We want to create that level playing field rather than a protectionist barrier. As I have already said—I am happy to say it again—where the evidence suggests it, I want to see the highest appropriate duties imposed. On rebar, which the hon. Member for Cardiff South and Penarth (Stephen Doughty) mentioned earlier, the UK industry is asking for tariffs of 20% to 30%. We support that and think that the evidence backs it, but I will never call for any action that could damage British business and hurt British consumers.

The hon. Member for Wallasey (Ms Eagle) called for an examination of the implications of granting market economy status to China. The Commission has not yet published its proposals, but, even if China is granted market economy status, the EU will still be able to take action on unfair trade practices and impose anti-dumping measures. After all, Russia has market economy status, and the EU has taken anti-dumping measures against Russia. Nor would market economy status affect the EU’s ability to tackle Chinese subsidies through anti-subsidy actions. In fact, the Commission has said that it wants to make it easier to tackle subsidies through trade defence measures.

It is clear that the Commission can do more within the existing rules, and I am doing everything I can to make sure it does so. That is why the UK has led the way in calling for more effective action. It was the UK that demanded and secured an extraordinary meeting of the Competitiveness Council to agree a European-wide approach to the crisis. It was also the UK that lobbied for an investigation into rebar dumping. We have been pressing the Commission to speed up its investigations into dumping so that appropriate steps can be taken as soon as possible. We have written to the Commission with specific proposals. We have voted to take action on seamless pipes and tubes, wire rod and cold rolled products. We have supported the Commission’s investigations into hot rolled flat products, and just last week I personally raised the issue with China’s Commerce Minister when he was in the United Kingdom.

[Tom Blenkinsop]

If what the Secretary of State says is true, why does the director general of Eurofer, Axel Eggart, state:

“By blocking the lifting of the Lesser-Duty-Rule, these Member States”—

including the UK—

“deliberately deprive the European steel sector of the chance to receive effective and legitimate remedy against massive dumping”?

Why does the Secretary of State think that the representative of the entire steel industry in the European Union says that?

[Sajid Javid]

I think I have already answered that question. We have been working closely with the industry to deliver as much support as possible. At October’s steel summit, the industry had five asks of the Government. Today, I am pleased to say that we have already delivered on four of them. Let me take this opportunity to thank my colleagues the Minister for the Cabinet Office, the Minister for Small Business, Industry and Enterprise, and the Commercial Secretary to the Treasury for their unstinting work.

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[Sajid Javid]

I think those numbers are right. Well over 90% of the steel was British, and that is exactly what we want to see. National Rail is using 98% British steel in major infrastructure projects, and more than 95% of the products used in the Crossrail project—the largest infrastructure project in Europe—are British. That is exactly what we all want to see.

[Tom Blenkinsop]

The question of how the tariffs are calculated is intriguing. China is in such breach of the World Trade Organisation rules that the calculation has to be based on Turkey as a model. Whether the tariff is 20% or 30%, the figure of 66% is a guesstimate, and the true number is probably far larger. It would be interesting if the Secretary of State could have dialogue with his European counterparts about that. We are talking about a problem that is far larger than the calculations suggest, and there is no information available because China is in such breach of WTO rules.

[Sajid Javid]

That is why we need to use whatever evidence is available. That means working closely with the industry, listening to it and taking note of its evidence. If the industry is saying that the right level is 20% to 30%, it is worth listening to that.

We have provided support packages worth up to £90 million for communities affected by plant closures in Scunthorpe, Redcar and Rotherham. The help on offer includes retraining, support for local companies that want to take on former steelworkers, and emergency help for workers who find themselves in a financial crisis. Earlier this month, Lord Heseltine announced the creation of an interim body for managing the former SSI site in Redcar, to ensure that it reaches its full potential. Lord Heseltine is also conducting a review of inward investment in the Tees valley, as well as looking at how to enhance education, employment and skills in the area.

As for the plants that are still operating, we continue to work with the Scottish and Welsh Governments and with individual companies on their specific needs. For example, we have repeatedly made it clear that we want the blast furnaces to carry on at Port Talbot, and we are working with Tata and the Welsh Assembly Government to help to make that happen. Although this remains an uncertain time, it is encouraging that Tata Steel Europe has announced that Greybull Capital is its preferred bidder for the purchase of the Tata long products business. That is a positive step. The negotiations are a matter for the companies involved, but we remain in regular contact with Tata about its future plans. If it is successful, the sale is likely to involve some element of state financial support, on commercial terms, for the new owner.

We have set up a joint Government and industry steel council to take remaining actions forward and to work through the conclusions of an independent study into the competitiveness of the UK steel sector. I will co-chair the first meeting of the steel council on Wednesday.

Oral Answers to Questions

Debate between Sajid Javid and Tom Blenkinsop

Tuesday 2nd February 2016 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

With Hartlepool Tata, Hartlepool Caparo, Air Products, Johnson Matthey, SSI Redcar, Boulby Potash and oil and gas industry job losses, Teesside is being hit hard. May I ask the Minister to meet me and other Tees MPs to discuss the future of the SSI site? May I also tell the Minister for Small Business, Industry and Enterprise that between 1987 and 1992, in Redcar alone, the Tory party sacked 20,000 steel workers?

[Sajid Javid]

I am more than happy to meet the hon. Gentleman and any colleagues, and I have met him before, to discuss this important issue. He will know of all the action we have taken, and are taking, to help the steel industry. However, he makes it sound as if, when Labour were last in office—over 13 years—they actually helped the industry. Production halved, and the number of employees fell by thousands—that is Labour’s record. It is left to this Government to actually support the steel industry.

Steel Industry

Debate between Sajid Javid and Tom Blenkinsop

Tuesday 20th October 2015 Commons Chamber

[Sajid Javid]

I understand my hon. Friend’s point, but he will know that the rules on state aid, unfair trade and compensation exist to protect British industry as well. Indeed, British industry, including steel manufacturers, would be the first to complain if other countries were violating those rules. Frankly, if we are going to complain about others violating the rules, we need to have clean hands ourselves.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

If the Secretary of State really believed what he was saying today, he would have made an oral statement instead of having to be dragged here yet again to answer an urgent question from the Opposition Benches. Why is he again raising the issue of £80 million for Redcar? It is not £80 million, as he knows all too well, because his own Prime Minister has blocked access for the entire sector to get hold of EU globalisation adjustment funding, of which £5 million could have been accessed by the sector to help the 5,200 workers who are directly affected. More than that, the Secretary of State knows that our EU and US allies have personally taken action against Chinese dumping. Act now, or we might not have an industry left!

[Sajid Javid]

I hope that the hon. Gentleman has welcomed the written ministerial statement that we issued today. Coming to the House to respond to this urgent question gives us a further opportunity to debate the matter, as we have done here before. What matters most, however, is action, as he suggests. [Interruption.] When it comes to action, he will know that for the first time ever, a British Government have taken action in terms of supporting duties by the EU. As I have said, we will take further action, and we will not hesitate to do so once the evidence is there.

Cost of Living

Debate between Sajid Javid and Tom Blenkinsop

Wednesday 27th November 2013 Commons Chamber

[Sajid Javid]

My hon. Friend is right. Hon. Members know—I am highlighting this as much as I can in the debate—just how many lives and aspirations the Labour Government destroyed in their time in office.

The House has just heard the shadow Treasury Minister. His speech was more interesting for what was not in it than for what was. There is no talk today of plan B—[Interruption.] What the shadow Treasury did not mention was predictable. Let me say what it was, because four or five months ago, we heard what he did not say today in virtually every single speech from Labour Front Benchers. We heard no talk today of plan B. I did not hear anyone say, “Too far, too fast.” There was no mention of a double-dip, let alone of a triple-dip, because Labour Members know that there has been only one dip in recent times: Labour’s dip. They have comprehensively lost the economic argument. They have no plan and no answers for the problems they helped to create.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

rose—

[Sajid Javid]

Does the hon. Gentleman have any answers to the problems Labour helped to create?

[Tom Blenkinsop]

I have no answer to the fact that we saw more growth in the last quarter of 2010 under the Labour Government than we did in the whole of 2011.

[Sajid Javid]

Let us talk about the growth in Middlesbrough South and East Cleveland. Is the hon. Gentleman referring to the record 92% increase in unemployment in his constituency in Labour’s last term? I notice that he did not refer to the 18% decline under this Government.

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[Sajid Javid]

The US did not have a Government as incompetent as the one we had in Britain, who boasted the sharpest decline in GDP in this country in living memory and in our post-war history. When I said earlier that Labour left this country poorer, I am sure the hon. Lady realised—if she did not, I am happy to repeat it—that we saw the sharpest decline in GDP of any major developed country during Labour’s term in office.

Our economic plan is pulling in growing inward investment, with inflows into the UK in the first half of this year greater than any other country in the world except China. As I mentioned earlier, we are increasing exports to growing economies. From 2009 to 2012, exports to Brazil were up by 49%, to India by 59%, to China by 96%, and to Russia by 133%. We have become a net exporter of cars for the first time since 1976.

[Tom Blenkinsop]

Will the Minister please explain why, since 2011, lending to small and medium-sized enterprises has gone down by £30 billion? Long-term female unemployment in my constituency has increased by 144% since his Government came to power.

[Sajid Javid]

The hon. Gentleman will know that SME lending was hit from 2010 to 2011 because of Labour’s banking crisis. We had the deepest banking crisis and the largest bank bail-out the world has ever seen. What did he think the impact was going to be? He should welcome the Government’s action to help SME lending, including the funding for lending scheme, which has helped thousands of companies.

The Opposition claim that economic growth is not felt by people across the UK and that living standards are falling. The truth is that the previous Labour Government left the country a lot poorer and, as a result, many hard-working families are finding it difficult. Our long-term plan for the economy, the plan that has put our country on a path to prosperity, will help those families. What better way to increase standards of living than by making sure that as many Britons as possible can take home a steady wage at the end of each month? With more than 1.4 million private sector jobs created in the past three years—more private sector jobs created in three years of this Government than in 13 years of the previous Labour Government—we now have more people employed than at any time in our history.

We are also taking measures that help to keep more cash in the pockets of hard-working people up and down the country, while economic confidence has helped to keep mortgage bills low. If mortgage rates rose by just 1%, the average mortgage bill would increase by about £1,000 a year. We are also letting people keep more of their hard-earned income. Our increases in the personal allowance are worth £700 each year to every average taxpayer—a tax cut for more than 25 million people—while 2.7 million people on low incomes have been taken out of income tax altogether.

Oral Answers to Questions

Debate between Sajid Javid and Tom Blenkinsop

Tuesday 12th March 2013 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

6. What recent assessment he has made of progress on the Government’s target of public sector net debt falling as a share of GDP in 2015-16.

[The Economic Secretary to the Treasury (Sajid Javid)]

The independent Office for Budget Responsibility assesses the Government’s performance against the fiscal mandate and supplementary debt target. The OBR’s assessment is that the public sector net debt as a percentage of GDP will be falling by 2016-17.

[Tom Blenkinsop]

Will the Minister confirm that the Government will have more than doubled the national debt between 2010 and 2015, and that this Government will have increased the national debt by more in five years than it increased in the entire 13 years of the Labour Government?

[Sajid Javid]

Having brought the country to the brink of bankruptcy and having set the economy ablaze, the Opposition now throw stones at the firefighters. The country will never forget that we had the largest budget deficit when we came to power. We were borrowing £5,000 a second, and that deficit began in 2001, long before the financial crisis. Since then, we have cut it by a quarter, brought back confidence to Britain and created jobs at a record rate.