Steel Strategy

Answer from Chris McDonald

Since publishing our steel strategy on 19 March, we have published provisional product scope and quota volumes for the new steel trade measures; further reduced electricity prices for steel companies from 1 April through our network charging compensation scheme uplift; confirmed that some steel companies will be part of the British industrial competitiveness scheme; announced new transparency requirements on the origin of steel in public procurement; set up a cross-Government working group on scrap; and introduced—today—the Steel Industry (Nationalisation) Bill.

Answer from Chris McDonald

I do indeed agree. The £100 million investment in 7 Steel UK is welcome news, but I met the owners of the business, and they told me that they were able to release that investment only because of the confidence they had in the Government’s approach following the publication of our steel strategy. That is a direct correlation between Government action and £100 million-worth of investment in Cardiff.<br/>I know that my hon. Friend has been a strong advocate of the steel industry. There is an opportunity later today for Members of the House to decide whether they are on the side of the steel industry or not. I encourage the Opposition to put their ideology aside just for a moment and get behind the steel industry this afternoon— I know that is difficult when a Bill has the word “nationalisation” in its title.

Answer from Chris McDonald

I thank my hon. Friend for raising issues with businesses in Stourbridge when we met earlier this week; I am happy to continue to work with her. The measures we have introduced, which are primarily to protect the UK steel industry, are targeted at steels that are made or can be made in the UK. There are sometimes difficulties where a product code covers multiple steel grades, but that is what the quota system is intended to deal with, and of course there will be a review in 12 months’ time.

Answer from Chris McDonald

I thank the right hon. Gentleman for his comments. I believe we have had representation from Stannah, the stairlift company based in his constituency. It is important to say that the Government take action like this reluctantly, but ultimately there are distortions in the market around steel. The EU taking action itself would lead to the UK becoming a dumping ground for cheap steel flooding in from overseas. We have taken a very carefully balanced approach and consulted carefully with the industry. I continue to receive representations, and, as I said, there is an opportunity for a review of the measures in 12 months’ time.

Answer from Chris McDonald

I am not familiar with the situation with Dynamic Metals. I was just having a discussion on the Front Bench with the Minister for Trade, my hon. Friend the Member for Rhondda and Ogmore (Chris Bryant), and if the hon. Lady writes to him, he will look carefully at the matter she has raised.

Answer from Chris McDonald

I reiterate the point that the action that the Government have taken has been to correct an issue in the market. We have taken wide representation. In fact, we amended the list as a result of some of that representation. The shadow Minister’s point about inflation goes exactly back to the point that I made earlier. This country cannot be in a position where we say that we are prepared to buy the cheapest thing, wherever it is made in the world, to the sacrifice of our own industry. We cannot allow foreign Governments’ industrial policies to drive our own industrial policy. That is why we have taken this action—similar action to that taken by the EU. It comes down to a question of whose side are you on. Are you on the side of British industry, like the Government, or are you on the side of overseas industry? That seems to be the case being prosecuted by the Opposition.