Steel Industry

Debate between Sammy Wilson and Stephen Crabb

Wednesday 28th October 2015 Commons Chamber

[Stephen Crabb]

I agree with my hon. Friend about the price differential. We recognise that very significant differential, and we are determined to take action, but I do not agree that we fall foul of state-aid rules all the time. We are committed to doing what we can within the rules, to which not just the British Government but the UK steel industry have signed up.

[Sammy Wilson (East Antrim) (DUP)]

If we go down the road of looking for EU approval for changes to state-aid rules, does the right hon. Gentleman accept that the situation will not be resolved quickly? When it came to corporation tax in Northern Ireland, it took four years, and when it comes to the aggregates levy, we are still fighting on the issue after eight years. Does he accept that by the time the EU gets round to making a decision, the steel industry is likely to be well gone?

[Stephen Crabb]

I do not accept that the European or the British steel industry will be “well gone”, to use the hon. Gentleman’s phrase, but I think he is right when he talks about the length of time it takes to get state-aid clearance on these issues. This is one aspect of the overall issue that we are pushing for. My right hon. Friend the Minister for Small Business, Industry and Enterprise has had some discussions about this herself. This is a matter on which we are determined to take action—and not with respect only to the issue of state-aid approval that we are seeking at the moment, because we are concerned about the overall process for speeding up state-aid applications generally.

My right hon. Friend the Prime Minister discussed this issue with President Xi of China during the important state visit last week. President Xi recognised the UK’s concerns and will be taking action to address Chinese overcapacity. The working group on international comparisons in the steel industry, chaired by the Minister for Small Business, Industry and Enterprise, met last week and is looking at how we can speed up cases within the EU by working with other member states facing similar issues and working with the industry to speed up its provision of evidence on dumping, which would mean that we could then take action.