Steel Sector

Debate between Stewart Hosie and Anna Soubry

Monday 18th January 2016 Commons Chamber

[Anna Soubry]

As I said, in July, and then again in November, we took that action for the first time. The Secretary of State went over to Brussels, and, as a result of his holding an emergency meeting, put pressure on the EU. We have already seen a big change in how China operates when it comes to dumping—it is not just from China, I should say; several other countries do it. China has taken action on rebar in a way not seen before, as a direct result of this Government’s work to protect our steel industry.

[Stewart Hosie (Dundee East) (SNP)]

I thank the Minister for her statement and for giving me early sight of it. May I say how terribly sad these redundancies are, following on from the announcements last year, including the mothballing of Dalzell and Clydebridge? For our part, our solidarity and thoughts are with all those who face an uncertain future, wherever they are.

I welcome what the Minister said on derogations and procurement. I reiterate the fact that we have an exceptionally difficult trading environment for steel production, which is partly driven by the 645 million tonnes of excess supply this year. However, Chinese steel exports alone are likely to exceed 100 million tonnes this year. In that context, the governmental talks with the European Commission are vital. Will the Minister press for fast-tracking the investigation into Chinese steel exports?

At home, all Governments must support the workers and communities affected by all the announcements. In Scotland, the primary focus is on finding a viable future for Dalzell and Clydebridge, for which I understand there are serious interested parties. Will the UK Government be as positive and as forthcoming as possible, within the rules that apply, in support of any viable buyers for any of the plants?

May I briefly ask the Minister two specific questions? She said a number of things on energy costs that I welcome, but will her Department keep that under very close review to make sure that, should that be insufficient and additional help can be provided, such help is given at the earliest possible opportunity?

Secondly—this mirrors the shadow Secretary of State’s final point—the steel industry is vital, but it has suffered from the absence over decades of an industrial strategy. We discussed that in a debate last week. Will the Minister bring forward, or have her Government bring forward, a credible, coherent industrial and export strategy centred on steel at the earliest opportunity?

[Anna Soubry]

I thank the hon. Gentleman for his comments. It has absolutely been a pleasure to work with Fergus Ewing—I think that is the correct way to refer to him—with whom I have had such discussions. I of course fully back all efforts to sell Dalzell and Clydebridge, and I very much hope that a buyer can be found. Any support that the UK Government can give will be given.

The hon. Gentleman made good points about energy costs, but as he will know, the state aid rules are really strict when it comes to any support we give the steel industry. He talked about the future, but I would say this. One of the things we have done as a Government—this has never been done before—is to look at all the huge infrastructure projects that we are rightly putting together, at huge cost to the taxpayer. That includes HS2, for example. We have assessed the steel needs of all those projects, and we have given that assessment to the steel industry, so we are already doing that sort of work. We are looking not just at the next five, 10 or 15 years, but right the way down the track, if I may use that expression, at the sort of work the Government are doing to invest in our infrastructure, and we have put our steel requirements to the industry.

I know that this may sound a little emotional, but it is our absolute intention and we are absolutely determined that the steel used in HS2 will be made in this country. That is not just at Scunthorpe; we also want to ensure that there are blast furnaces in south Wales. That is our determination, and we are working towards it.

Trade, Exports, Innovation and Productivity

Debate between Stewart Hosie and Anna Soubry

Wednesday 13th January 2016 Commons Chamber

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

I am grateful for the opportunity to debate a number of the Government’s key economic priorities. I will begin, however, by singing the praise of my Cabinet colleague the Secretary of State for Scotland. Not only is he outstanding as a Secretary of State, but today he made a very important announcement about what in many ways should be his private life, although it is not because it is in the public domain. It took great courage, and I am hugely proud to sit in the Cabinet with him. I can see nods all around the Chamber in support of our Secretary of State at what might be a difficult time for many, but I am sure for him is a very happy day. Finally, he can be the man he has always been, and can sing out and be proud of being that man. I pay tribute to him and I am pleased we all agree on that.

[Stewart Hosie]

It is absolutely right and appropriate for the Secretary of State for Scotland’s Cabinet colleague to announce her support in the Chamber, and Scottish National party Members welcome what has been said. In terms of the debate, however, and notwithstanding that we hope he is happy, may we say that we fundamentally disagree with his politics?

[Anna Soubry]

I took that as read! I put it on the record that the First Minister for Scotland has tweeted her support. Frankly, I am not surprised. In this day and age, I think most people will just shrug their shoulders and say, “Yeah, whatever. Am I bothered?” Of course we are not. We celebrate what is, and should be, a happy day for my right hon. Friend.

Let us get on with the debate. The motion before us refers to the United Kingdom economy and economic growth. I wish to take a very quick trip down memory lane to put this debate into context, because that is important. The hon. Member for Dundee East (Stewart Hosie) talked about the Government’s record. I want to talk about the past six or seven months, but I also want to talk about the previous five years, notably to remind everybody of the situation we faced back in May 2010. It is important to remind everybody that at that time we were in the worst recession that our nation, the United Kingdom, had faced for 100 years: the biggest budget deficit in our peacetime history and over half a million more people on the dole. That was the situation that we on the Government Benches had to pick up: an economy brought to its knees and on the brink of bankruptcy from Land’s End to John O’Groats, and from London to Inverness and Bodmin. All across our nation, we saw a country on its knees.

To save us from that economic mire we had to take some very difficult decisions to control spending, reduce the deficit and rescue our economy. Those decisions, every single one of them, were opposed by the parties sitting on the Opposition Benches, notably Labour and the SNP. Each and every decision was opposed. How wrong they were. It is thanks to the hard work of the British people that our economic plan has worked and continues to work. The deficit is down by more than half, there are over 2.2 million more people in work, and there are over 900,000 more businesses. The United Kingdom has been the fastest-growing economy in the advanced world. That is a record of which Government Members are proud.

Scotland has been part of that success story. It is unfortunate that the hon. Member for Dundee East has just made us a long speech full of doom and gloom, trotting out this, that and the other and talking down the Scottish economy, because it is part of the United Kingdom economy. That is wrong and sad, because there is a success story.

--- Later in debate ---

[Anna Soubry]

I will give way in a moment; I’m on a roll.

As the Smith report is implemented and the Scotland Bill comes into force, the SNP will finally have the powers it seeks—it will be the most devolved Government in the world—and it will be interesting to see—

[Stewart Hosie]

rose—

[Anna Soubry]

In a moment.

Then the SNP will have responsibility, and we will see whether it will be able to deliver. I would bet good money that it will not be able to.

--- Later in debate ---

[Anna Soubry]

Our debt has gone up; I am not—[Interruption.] All right; it is not about scoring cheap political points, as the hon. Gentleman knows—obviously I would never engage in such a thing—but he cannot deny that 2 million more people are in work. That is part of our proud record. He should be praising that. The Labour party would do well to do that when we do the right thing. Over 2 million more people in work—why can the hon. Gentleman not give credit where credit is due?

[Stewart Hosie]

It only took the Minister 12 minutes to revert to type. “Rag, tag and bobtail” if she likes, but that is as nothing compared with how the Scottish people describe her party. However, let me clear up just one little fact about the oil price, which I thought she might raise. Yes, we said it would be $110 a barrel. That is absolutely correct, but can we be absolutely clear that the UK Government’s Department of Energy and Climate Change had the barrel price at between $114 and $127, and at the very least admit that the UK Government got it wrong?

[Anna Soubry]

But the point is that the hon. Gentleman and his party were basing the whole of Scotland’s economic future on oil. How mad was that?

--- Later in debate ---

[Anna Soubry]

It is not for me to speak on behalf of others, but I can assure the hon. Gentleman that there was no joy on the Government Benches at the fall in the oil price. The joy, I would like to think, was at the point I made, and made rather well. The hon. Gentleman is in a party that put all its faith in the oil price as the salvation of Scotland’s economy and it was absolutely wrong. I hope the hon. Gentleman will forgive me for not knowing the constituency he represents, but I suspect it is in the north-east of Scotland. He makes a good point, and this is the only good point, about the concerns we all have about the future of the oil and gas industry.

I am well aware of the importance of the oil industry to north-east Scotland. I am also well aware of the redundancies announced yesterday by BP, and I agree that there is much that we—the hon. Gentleman should note the “we” bit—can do. It would be so good for the UK Government to work with the Scottish Government to make sure that we do all we can. We have a fantastic oil industry, based largely in Aberdeen, that is one of the finest in the world. There is much that we can do, working together, to make sure that we do not see further job losses, especially on the scale we have seen.

[Stewart Hosie]

rose—

[Anna Soubry]

I will give way to the hon. Gentleman, but then I want to make some progress.

[Stewart Hosie]

I thank the Minister for what she has just said, which was helpful. However, she has twice made the incorrect and false assertion that we based any forecast only on oil, which was never true. The Minister has accused others of misleading the public over the approach to TTIP; I hope she does not want to mislead the public over her assertion that the economy is based solely on one industry.

[Anna Soubry]

I am afraid I do not agree.