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Question
Does the Minister understand that by not exempting pre-agreed purchase contracts, he is damaging good, decent British manufacturing firms in Rhondda and Ogmore?
Minister reply
The minister acknowledged the concerns raised about excluding pre-agreed purchase contracts but did not provide a detailed response within the provided transcript.
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Question
What specific steps is the Minister taking to ensure that the impact of this measure on downstream steel sectors, such as automotive manufacturing, will be minimal?
Minister reply
The minister emphasised that the government has been engaging closely with industry stakeholders including those from downstream sectors like automotive manufacturing. He committed to monitoring and reviewing the implementation of the trade measures actively to ensure they operate effectively while minimising any adverse impacts.
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Question
Will he confirm that all the measures announced today will cover UK-EU steel trade?
Minister reply
The minister confirmed that the new measures include adjustments to ensure stability for UK-EU steel trade, with an increase in EU quota access from 1.58 million tonnes to 2.08 million tonnes.
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Question
Will the Minister meet representatives of the British Steel Pension Scheme?
Minister reply
The minister stated that he would be willing to meet with representatives from the British Steel Pension Scheme to discuss any concerns they may have regarding the steel trade measure.
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Question
How will this affect the UK’s ability to supply products such as rolled plates and high-tensile sheet?
Minister reply
The minister responded that the measures have been carefully designed to protect categories of steel that are manufactured in the UK while excluding many imports. He assured that the government continues to work closely with industry stakeholders to ensure continued availability for businesses.
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Question
When will he publish a full impact assessment of these measures?
Minister reply
The minister committed to publishing an impact assessment on the downstream steel sectors before Parliament breaks for summer, addressing concerns about potential negative impacts.
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Question
Welcomed partial U-turns but criticised lack of early notice, higher tariffs affecting downstream industries, limited quota adjustments and non-exemption of pre-agreed purchase contracts. Emphasised risks to national security in defence projects due to insufficient protections.
Minister reply
Responded by explaining the necessity of aligning with EU negotiations, justified maintaining a high tariff rate against dumping practices from countries like China, acknowledged increased quotas for critical sectors including defence, but rebutted criticisms regarding quota adjustments and exemptions.
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Question
Welcomed measures to protect the steel industry while seeking a meeting with the Minister to discuss opening a manufacturing facility in Llanelli for producing steel bands, currently imported from the EU.
Minister reply
Expressed willingness to meet the MP and discussed the importance of increasing domestic production through tough trade protections. Offered an opportunity to discuss the proposal during his surgery on Monday.
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Question
Praised adjustments but raised concerns about categories 14 and 27 covering specialist steels for aerospace, defence, Formula 1, precision engineering; protection of contracts signed between March and today; permanent tariff increases on specialist steels.
Minister reply
Confirmed increased quotas in specific categories including stainless bars and light sections (category 14), offered to discuss transitional arrangements further, requested clarification on the final question regarding WTO process.
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Question
Tata Steel’s Steelpark in Wednesfield and manufacturers across Wolverhampton North East and the Black Country rely on resilient supply chains for steel. Will the Minister set out how today’s statement on increased quotas and steel under contract before 14 March will continue to back British-made steel production while giving downstream manufacturers the competitive certainty and confidence that they need?
Minister reply
My hon. Friend is right to defend her constituents’ interests. We have tried to meet the precise concerns she raises, allowing for historical levels of imports in most areas and persuading people to buy British steel where we produce it. I am happy to take my hon. Friend through the various specifics on Monday afternoon.
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Question
Hundreds of constituents work at Scunthorpe steel, so he is supportive of any action that protects those jobs. He also welcomes the adjustments and agrees that it is preposterous that defence contracts do not use British steel. What will be done to ensure that the industry benefits from reduced energy costs?
Minister reply
The rules for the supercharger were changed in April, taking support from 60% to 90% of energy costs. On whether we are better being in or out of the EU, it is ironic that not having to negotiate tariffs and quotas with the EU would have been avoided if we were still a part. One of six bridges rebuilt in Kyiv used British steel.
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Question
My constituency has many steel fabrication businesses, some visited recently. Will the Minister outline how he listened to such businesses and their concerns before this announcement?
Minister reply
Officials and I have spoken to a large number of such companies, trying to explain that we are tackling only categories of steel that can be produced in the UK. We increased quotas for tariff-free imports precisely to address such concerns.
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Question
The imposition of tariff barriers alone is not sufficient to address shortcomings in our steel industry. The Minister said it is important to provide more opportunities to help people buy British steel, but there is a difference between saying that and making it happen. What are the Government doing to close strategic capability gaps?
Minister reply
This is why we have a steel strategy and trade measure. We introduced a new procurement strategy when in government in 2024 to ensure that when the Government spend taxpayers’ money, they do so on British steel wherever possible.
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Question
The steel strategy refers to 50% of future UK-made steel being Welsh steel. Will he say a bit more about that?
Minister reply
We want to get to 50% of UK steel needs met by British-made steel, and we are at a critical moment as the sector has been in decline for decades.
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Question
The Minister spoke about monitoring this policy from day one but there will not be a review until 12 months. What will the monitoring comprise, and what happens if problems are revealed very early on?
Minister reply
We want to ensure that people can maintain historical trade flows so we need to monitor how those trade flows are progressing with HMRC on a regular basis.
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Question
The increase in quotas and removal of majority categories from the scope is welcome news. Will the Minister explain how the Department has been working with individual businesses to understand their concerns and support them going forward?
Minister reply
I am keen to go through the fine detail with Members where I can, like having a conversation on Monday afternoon if my hon. Friend wants.
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Question
It is worth reinforcing that some 75% of steel imports are not impacted by the measure which is good news. Does he agree that the reason we are in this pickle is that the previous Administration had no steel strategy for 14 years and allowed the whole industry to collapse by 66%?
Minister reply
I think I am going to have to resign, because I agree with every single word of what the hon. Gentleman just said.
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Question
Welcomes the Minister’s statement and particularly the decision to remove products where there is no domestic production. Will he clarify whether galvanised wire products are covered by the exemption?
Minister reply
There is not an exemption; it is just that we are including some categories of steel in the trade measure and not others. Nearly 75% of steel imports are not covered.
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Question
I thank the Minister for his flexibility and request a clearer explanation of how dynamic he will be on quotas in case of sudden price spikes. He also asks about measures to prevent the UK becoming a dumping ground for cheap fabricated products, and inquires what will happen with the collected millions from British businesses importing steel above quota.
Minister reply
The Minister acknowledges the importance of predictability but states that a review after one year is planned. On fabricated steel, he says they will look into this issue carefully without overpromising sudden changes to quotas.
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Question
Asks if the announcement benefits downstream producers in Harlow, such as MRI Fabrications and LWC Engineering.
Minister reply
The Minister suggests the MP visits on Monday to discuss specifics with officials. He advises against having favorites among constituents.
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Question
Inquires about Thames Covers, a local business that relies on stainless steel tubing and is concerned about additional 50% price tariffs.
Minister reply
The Minister advises the MP to discuss specifics with officials after Monday's meeting. He clarifies that only out-of-quota imports are subject to 50% tariffs.
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Question
Expresses concern for small and medium-sized fabricators who cannot buy large bulk orders of steel, fearing overseas manufacturers might fabricate steel to avoid tariffs.
Minister reply
The Minister acknowledges the point about fabricated steel but says they will closely monitor it from day one without promising immediate inclusion. He mentions Canada's experience and compensation scheme.
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Question
Acknowledges the positive statement and asks about Northern Ireland's disproportionate impact of steel tariffs and red tape on manufacturing, seeking financial mitigation or flexibility.
Minister reply
The Minister discusses the Windsor framework negotiations with the EU and states he cannot offer compensation. He emphasises the importance of a strong UK steel sector to ensure its future.