British Steel: EU Emissions Trading Compliance

Tom Pursglove Excerpts

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

The hon. Gentleman talks about taking us to the cliff edge. It is a legal responsibility on the part of each emitter to comply with its requirements to surrender allowances. Notice was given, and as some of my hon. Friends pointed out, every other company acted on that. We were presented late in the day with a choice I described as unenviable. We responded to that pragmatically, and I detect in the hon. Gentleman’s tone a recognition that this is the right step. To avoid repetition of this situation, the advice from the company and the industry is clear: the House needs to come together, long before 31 October, and agree a withdrawal agreement that would result automatically in the ability to release allowances, not only for this year but for the following year too.

[Tom Pursglove (Corby) (Con)]

I very much agree with the steps taken by my right hon. Friend. However, is he essentially saying that this whole situation has arisen because the United Kingdom, and specifically our steel industry, is being punished by the European Union, despite our still remaining a member?

[Greg Clark]

I would not put it that way myself. The suspension was put in place because we were liable to leave on 29 March. Given that the year to which the allowances refer is the calendar year from January to December, it was the observation that, as things stood, we were unlikely not to be a member of the scheme for the great majority of that year; now that we have agreed an extension of up to 31 October, that is clearly a different matter. The discussions we have had so far with the Commission have been constructive in recognising our ability to issue new allowances.