Steel Industry
Debate between Stephen Crabb and Tom Blenkinsop(9 years ago)
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Stephen Crabb
Madam Deputy Speaker, the hon. Member for North Durham (Mr Jones) was one of those Members I mentioned earlier who were here before 2010 and sat in silence while employment and manufacturing plummeted and UK steel production plummeted.
Moving on, we are also supporting the Scottish Government’s taskforces in Dalzell and Clydebridge. We will work with them and also continue to monitor the situation in the black country to make sure that necessary support is provided for communities and families affected by the Caparo Wire announcements.
The House understands that there are no easy solutions in the face of what are, unquestionably, incredibly difficult market conditions right now. Excess capacity in global steel is enormous—about 570 million tonnes last year, almost 50 times the UK’s entire annual production. The price of steel slab has fallen by a half in the past year alone, while fluctuating exchange rates have added further pressures.
Tom Blenkinsop
The right hon. Gentleman makes an interesting point about production, but what we have in the home UK economy is 3 million tonnes of scrap steel, which we export to Turkey and China, and it comes back here in slab. Will the Government look at developing a potential strategy for electric arc furnaces on sites such as Redcar to use to create a new home market to supply the British market rather than exporting to Turkey and China?
Stephen Crabb
That is a useful and constructive point. It is, of course, the model that Celsa Steel uses in Cardiff. At the moment, we are looking at all aspects of the steel industry to identify future growth opportunities.