Steel Industry

William Cash Excerpts

Wednesday 28th October 2015 Commons Chamber

[Ms Eagle]

They have, and I will come on to the Chinese later in my remarks.

[Sir William Cash (Stone) (Con)]

I lived in Sheffield for the best part of 30 years. Does the hon. Lady accept that the real decline in the steel industry started with the horrendous nationalisation of the industry by the Labour party? What steps have Labour Governments ever taken to restrict state aid in other parts of the European Union, and from countries such as Germany and others?

[Ms Eagle]

I suspect that the nationalisation of the steel industry took place before I was born, and we could have a history lesson on that. There are many examples of EU Governments who do a much better job at preserving their steel industries than this Government appear to have done so far.

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[Anna Turley]

I could not agree more with my hon. Friend. The blast furnace and the coke ovens are national assets. They are part of British industry and manufacturing, and they are strategically important to our economy. They could and should have been preserved.

I want to talk briefly about two outstanding issues that are causing a great deal of concern in my constituency. The first is the training that has not arrived. We were promised £80 million, but it turns out to be £50 million when we take out redundancy and the statutory entitlement that the workforce should have had. That training is not coming through. We were told that a local taskforce would have control—I was pleased to be invited to sit on it—but the reality is that decisions are being made by officials. I understand that we are waiting for a decision from the Secretary of State to clear that money and send it.

[Sir William Cash]

The hon. Lady will know that the German Government provided subsidies for the training of employees, including steelworkers, to the value of €5.7 billion in 2013.

[Anna Turley]

The hon. Gentleman makes an important point. We should look at how the Germans support and respect industry and manufacturing.

[Sir William Cash]

They were allowed to do that by the EU.

[Anna Turley]

Absolutely. If they do it, why can’t we? I totally agree with the hon. Gentleman. We should also look at how the Germans support industry throughout their education system. He makes an important point.

The training is not coming through and plenty of people are coming to me—I have a huge postbag from people who are not accessing the training and support that they need. For example, Tom, an apprentice who came to my surgery at the weekend, has been an apprentice at SSI for three years and four months. He wants to continue and finish his apprenticeship and has worked very hard on it. He was told by a Department for Work and Pensions official that he should get a job in a bar or in retail.

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[Kevin Brennan (Cardiff West) (Lab)]

We have had a very good and, understandably under the circumstances, passionate debate. I am sorry that because the wind-ups have been truncated—the Minister and I have, I think, eight minutes each—we will not be able to refer to everybody who spoke in the debate. I think 21 Back Benchers participated in the debate. It is good that they were all able to speak and they did so with great passion. I would like to mention my hon. Friend the Member for Newport East (Jessica Morden), who represents the Llanwern area. That was where my father worked for 20 years and where I was privileged to work in the steel plant and coke ovens for six months before I went up to university. People who come from steelmaking backgrounds understand why everyone feels so passionate about this subject. I am sorry I cannot mention everybody’s contributions, but I commend the knowledge and passion the hon. Members who represent steelmaking constituencies brought to our proceedings, not just today but throughout the current crisis and long before that.

The Government cannot say that they were not warned about the crisis in the steel industry. MPs have been assiduously vocal over a long period of time. I see that the hon. Member for Stockton South (James Wharton), the so-called Minister for the northern powerhouse, has joined us. If he missed any of today’s proceedings he can read about them in The Northern Echo tomorrow. The efforts of my hon. Friends have been the very opposite of the showboating they were accused of. On the contrary, they have stood up for their communities, the British steel industry and its workers. They have made a substantial contribution towards forcing the Government to acknowledge that action is required, however late and inadequate it might be. It is good that the Business Secretary is finally talking to the European Commission, and it is good that he has gone to Brussels. Only last week, we found out in a parliamentary question from my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) that he had not—incredibly—until now spoken to the Commission about this. Clearly, he booked his Eurostar tickets very quickly to get over there today, and we welcome that.

It is perfectly reasonable, however, to ask why it has taken so long. Why has the Business Secretary been chasing rather than leading events? We know that when he became Business Secretary he did not want to have an industrial strategy and preferred to talk about an “industrial approach”. That hardly smacks of someone who will intervene before breakfast, lunch, tea and dinner, let alone supper, on behalf of British industry. There are echoes today of the famous row between Margaret Thatcher and Michael Heseltine over Westland.

[Sir William Cash]

rose—

[Kevin Brennan]

I am not going to give way, because of time.

We found out today that the Government are ordering hundreds of military vehicles and three new ships for our armed forces to be built using steel imported from Sweden. And this at the same time as Gareth Stace, of UK Steel, said that the British steel industry was “likely to die” without stronger support from the Government. He said that yesterday to the Business, Innovation and Skills Committee. We should not be surprised that the Business Secretary has until now pursued what Tata called in its briefing for this debate a laissez-faire ideology, because he has made it clear that that is what he believes in. You might not have read it, Mr Deputy Speaker, but his favourite book is “The Fountainhead”, by Ayn Rand, in which the hero blows up a poor housing estate because he does not like the design, such is his individualist approach.

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

May I begin by paying tribute to all those who work in our steel industry, particularly the workforce and indeed the management? I pay particular tribute to all those—it is mainly men, but some women also work there—who have unfortunately lost their jobs, and to their families, be they at Dalzell, Clydebridge, Scunthorpe, Rotherham, Llanwern or Redcar.

Nobody should ever dare to suggest that anybody on the Government Benches has taken any pleasure, happiness or anything else in the unfortunate demise we have seen over recent times of a large part of our steel industry. [Interruption.] The hon. Member for Cardiff West (Kevin Brennan) is sitting there, but he made one of the most disappointing speeches I have ever heard. He does no service whatsoever to his industry and the workers he says he seeks to support, who have come all this way to be here today. In the short time I have been in my position it has been a pleasure to attend a number of debates and even urgent questions to listen to the impassioned speeches of so many Members who speak on behalf of their constituents, and rightly so. That is their job and they do it. But, seriously and genuinely, to try to score cheap political and, in many respects, highly personal points does absolutely nothing at all. [Interruption.] The hon. Member for Middlesbrough (Andy McDonald) shouts at me, but he should know better. He knows how hard I, and others, worked to secure the future of the Redcar plant, but let us get to the facts.

The facts are as follows: the price of steel has in some instances, slab in particular, almost halved. That is the harsh reality. On the Redcar plant, it is a fact that all the time SSI was there—more than three and a half years—it lost hundreds of millions of pounds. You can have my word, Mr Deputy Speaker, that if anybody had come forward to buy the blast furnace to secure it or the coke ovens, the official receiver would have taken those offers exceedingly seriously. But the horrible truth is that no such buyers came forward, and why would they?

[Sir William Cash]

Will the Minister give way?

[Anna Soubry]

I am sorry, but I am not taking interventions. They would not, because the plant was losing hundreds of millions of pounds—even the coke ovens, which we fought so hard to secure, were losing £2 million a month. That was the harsh, awful reality.

All the steel industry asks for—and it is right to make these requests—is that we have a level playing field. It feels that its hands are tied behind its back. It makes its case, and I pay tribute to Gareth Stace, one of the first people—