UK Steel Industry

Debate between Stephen Kinnock and Charles Walker

Thursday 21st January 2016 Westminster Hall

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I congratulate the hon. Gentleman on securing the debate. The estimated capital cost of Trident could be up to £165 billion. Is he seriously saying that if the UK Government redirected that amount of capital investment, we would be able to produce only 20,000 jobs?

[Mr Charles Walker (in the Chair)]

Order. I am not allowing Members to get into a debate on Trident. Mr Kinnock, can you continue, please?

[Stephen Kinnock]

Thank you, Mr Walker. I defer to your better judgment, but I would be more than happy to continue that debate outside the Chamber.

In the light of what we are discussing, will the Minister explain why the Government will not go further in using Government procurement to support the British steel industry? It is one thing to put in place procurement guidelines, but driving the message home across Government, let alone the private sector as well, is another matter. Words are easy, but actions are far more difficult, and those actions require leadership. With Hinkley Point B, the Government have a real chance to show leadership by using procurement to support British industry. However, they seem to be squandering that opportunity, with no British steel due to be used on the project.

I would also like to ask the Government about the Swansea bay tidal lagoon. First, they need to get on and approve the project—each day of delay is costing months or years of progress on it. However, I also ask them to show some leadership and to commit to sourcing all the steel for the turbines, or as much of it as possible, from the United Kingdom steel industry. The tidal lagoon not only provides the entire Swansea bay area with job opportunities, which are desperately needed in the light of Monday’s announcement, but supports local jobs at the Port Talbot Tata Steel plant.

British steel is among the highest-quality steel in the world, and we should make better use of it. British-based certifiers have among the most robust standard regimes, particularly on environmental and social impact, so it is unusual to say the least that the Government appear to favour BES 6001, rather than the far more robust BS 8902, as the standard for reinforcing steel. No Chinese steel meets the stringent quality and sourcing criteria of BS 8902, so its adoption as the Government standard would help to protect against Chinese steel dumping and support high-quality British steel.

The fourth area on which we have repeatedly called on the Government to act is the dumping of Chinese steel on the British market, which is the greatest challenge facing the British steel industry. The Secretary of State for Business, Innovation and Skills is no fan of the European Union, but he seems to be a fan of hiding behind it. The Secretary of State and the Minister know that far more can be done to support the steel industry without the Government’s breaching state aid rules. The Government must work with Europe to deal with the issue of Chinese steel dumping. Last year, China produced 441 million tonnes of steel more than it consumed, much of which was dumped in the UK.