Question

To ask Her Majesty’s Government, further to the answer by Baroness Neville-Rolfe on 20 October, what consideration they gave to discussing with the European Union the possibility of mothballing some of the steel plants recently announced for closure; what assessment they have made of the difficulties in mothballing a plant; and what estimates they have made, if any, about the costs of doing so.

The state aid rules on giving operating, rescue and restructuring aid to steel companies are unambiguously clear and all such interventions are prohibited. This includes Government financial support for mothballing of steel plant. Given the lack of ambiguity there has been no need to discuss these matters with the European Commission.

We know that the SSI Redcar plan had made losses of over £600m in over three years. When the company went into liquidation, the Official Receiver bought supplies to keep certain operations such as the coke ovens going in the hope of funding a commercial buyout. Unfortunately no commercial buyer could be found to maintain operations at the plant. While this was deeply disappointing news, with such large losses and debts, and the price of steel produces expected to stay depressed for some considerable time, it was perhaps not surprising.