Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op): There is a real danger that the Secretary of State is at times presenting the idea that everything has been done and that he has done everything in his power. Let us look at the issues facing the industry as a whole. On energy, we still see prices that are 89% higher than those of European competitors. On procurement, the Ministry of Defence is not even keeping records of where its steel comes from; and on tariffs, he says he will do everything, but, as we have just heard, he will not take action to scrap the lesser duty rule and to change it, and this country is being seen as the ringleader on this in Europe. What is he going to change in those industry fundamentals that will prevent us from seeing crisis after crisis after crisis in the steel industry?
Sajid Javid: Let me pick up on one of the three important issues affecting the industry that the hon. Gentleman has identified—energy costs. One reason why those costs are higher for energy-intensive industries in Britain—in fact, it is the key reason—is the Climate Change Act 2008, which he would have supported and which was introduced by the last Labour Government. [Interruption.] The Conservatives did support it, but ever since we have been working on mitigating some of the problems it created for industry. I would have thought the hon. Gentleman supported that.
Richard Fuller (Bedford) (Con): We should be under no misapprehension that the future of the global steel industry will be brutally competitive for many years to come. If my right hon. Friend is successful in finding safe harbour for the Motherwell, Scunthorpe and Port Talbot steelworks, that will be a significant accomplishment, but he must do that while upholding the lesser duty rule. The rule underpins free trade and it secures jobs in many other sectors of our economy. Regarding tariffs, some hon. Members have talked about the Americans imposing a 200% tariff, but that that was done solely because the Chinese, on that one issue, provided no information in defence. By the way, in that same instrument, the Americans put a 50% tariff on UK steel manufactured by Tata.
Sajid Javid: I always listen carefully to what my hon. Friend has to say. He is a respected member of the BIS Committee and he has deep experience in business. He is right to highlight tariffs. The concern for any Government is always to strike the right balance in taking action where there is clear evidence of dumping and unfair trading, but not going any further than that, because the people who pay the cost are consumers. Such measures are like a tax; they are hardly progressive and the poorest are hit the hardest.
Jessica Morden (Newport East) (Lab): Steelworkers watching this debate—including those from Llanwern and Orb in Newport, who have travelled here today as they have many times to press the Government for more action to help the industry—are asking that their businesses, with full order books and assets such as the Zodiac line in Newport, remain saleable in this crisis; that the Government act on the pension fund; and that there is a long-term industrial strategy to give potential buyers confidence. The Secretary of State’s
statement has not made clearer what practical measures he will take to do that. Please will he expand on that now?
Sajid Javid: The hon. Lady is right to raise her and her constituents’ concerns. I reassure her that we are looking at everything. I think she is aware of much of the action we have taken, but I am sure she understands that there is no magic wand here. No Government can make these problems go away overnight. These are international challenges—just in the last few days we have heard about problems in the US, Australia and many other developed economies. If she respects that, she will work with us on trying to find long-term solutions.
Sajid Javid: We were the first EU country to change our procurement rules to take advantage of new flexibility to take into account economic and social factors. We have now extended that to the entire public sector—not just central Government. We are working on the visibility of the pipeline. We have £300 billion of infrastructure planned over the next five years—a huge amount of British business for British steel—and we are working with the industry and groups including UK Steel to ensure maximum visibility.
Anna Turley (Redcar) (Lab/Co-op): Last year, the Secretary of State and even the Prime Minister said they were doing everything they could to keep steelmaking on Teeside. Despite knowing for months that SSI was in trouble, nothing was done. Three thousand jobs were lost, 175 years of steelmaking were gone and a town was dealt a devastating blow. So when the Secretary of State says again that he is doing everything he can to help, why should the workers of Port Talbot and anywhere else in the country believe a single word he says?
Sajid Javid: The hon. Lady has fought hard for her constituents and is still doing a lot to help workers who lost their job. I and my right hon. Friend the Minister for Small Business, Industry and Enterprise have met her and we will continue to work with those who have lost their job—of course we will—but she will also know that the situation at Redcar is not directly comparable with that at Port Talbot and Tata Steel. The business was not viable after hundreds of millions of pounds of investment and no commercial buyers were coming forward. I know it is difficult news, but the hon. Lady knows that. If we look at today’s news about Tata long products, however, we see that it is possible to find a commercial buyer.
Richard Graham (Gloucester) (Con): I have no doubt that the Business Secretary is focusing on the key issues for potential investors in Port Talbot, including the pension fund and energy costs. As for a bright, long-term future for steel from Wales, may I encourage him to have early discussions with the Chancellor and the
