Down the line, we can also help by giving steel manufacturers a lot more visibility, and that is exactly what we are looking at through the steel council.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): Business rates on plant and machinery are effectively a tax on investment, and they have comprised a very significant element of the cocktail of costs that have so seriously undermined the steel industry. It was rumoured before the last Budget that plant and machinery would be made exempt. Can the Secretary of State confirm that that was so and explain why it did not happen? Will that be reconsidered in putting together a package for any future buyer of Port Talbot?
Sajid Javid: The hon. Gentleman is right to raise the issue of business rates, because that has come up time and again from the industry, so it is right to look at it. One of the issues is that a change in business rates could be a rather blunt instrument, especially in the steel industry, if we look at the total cost of making that change and at just how little of that would flow down to the industry. There might be better and more focused ways of doing that. Having said that, where there are large steel operations, such as Port Talbot in Wales, there might be something that could be done. As he will know, business rates are devolved, but we are talking about this issue with the Welsh Government.
Chris Philp (Croydon South) (Con): I was pleased to hear the Secretary of State acknowledge a few minutes ago the part that high electricity prices—caused in part by the Climate Change Act 2008—have played in the unfortunate situation with steel and other energy-intensive industries. I am very concerned that the carbon price floor in the UK, at £18.08 per tonne, adds to the £5.30 per tonne in the EU, placing a burden on UK energy-intensive industries that is four and a half times that of our European neighbours. I know that he has done a lot to alleviate this burden with direct assistance, but does he agree that now might be a good time to look again at reducing the carbon price floor?
Sajid Javid: My hon. Friend is right that energy costs are a very important issue for the industry, especially when compared with those in other countries in Europe. He is right to point out the action that we have taken, with compensation now moving to exemption. There are other ways to help, and we are actively looking at them. One way is to look at more renewable power sources, which are exempt from many of the costs—a colleague mentioned the tidal lagoon earlier. There are certainly other ways that we can help, and we are looking at all those options.
Louise Haigh (Sheffield, Heeley) (Lab): I have submitted two freedom of information requests and numerous written parliamentary questions to see the Secretary of State’s secretive BIS 2020 plan. Well, now we know why he has wanted to keep the plan secret, because it proposes cutting more than 4,000 jobs and 40% of the Insolvency Service’s staff, who have been working flat out since the steel crisis began to unfold. These proposals go far beyond what the Chancellor has asked the Secretary of State for from his Department. Given the deepening crisis, will the Secretary of State go back to the drawing board and rethink those ill-thought-through plans that will make his job so much harder?
Sajid Javid: Mr Speaker, I am not sure what that has to do with steel.
Mr Speaker: Well, that is a matter—[Interruption.] Order. That is a matter of interpretation, and the right hon. Gentleman is perfectly entitled so to interpret.
David Rutley (Macclesfield) (Con): I welcome the steps that my right hon. Friend is taking in the face of very challenging global trends in the steel sector. I am also very grateful for the work that he has been doing to help pharmaceutical science across the UK to be repurposed and revitalised in the face of very challenging global trends. Does he agree that there are lessons there that could be passed on to the steel sector?
Sajid Javid: I agree with my hon. Friend. Where jobs are sadly lost in any industry, especially on a large scale, we should look at ways of regenerating the local area. We talked earlier about the sad loss of jobs in Redcar. One of the pieces of work that Lord Heseltine is leading on is how we can attract more inward investment and what tools we can use to regenerate such areas and create more jobs.
Nic Dakin (Scunthorpe) (Lab): May I pay tribute to all the people who have worked hard in the Scunthorpe area and elsewhere to put in place the sale subject to contract that we have today? I pay particular tribute to the trade unions, the workforce, the management team and the suppliers, in addition to Tata and Greybull—it has taken a lot of hard work over nine months to get to where we are today. In his statement, the Secretary of State referred to "a commercial offer on financing if required". My understanding is that there are three things subject to contract that need dealing with, and one of those is financing. Will he make it unequivocally clear that the Government will do everything necessary to make sure that that is not a barrier to the deal going ahead, and will he also tackle the other UK-based issue of the caveat that is still in place?
Sajid Javid: Let me join the hon. Gentleman in welcoming the news about Tata long products and Scunthorpe; it is very encouraging, and I am sure it will bring some relief to him and his constituents. I also join him in congratulating not only Tata and Greybull on working together to secure a deal, but the unions, the pension trustees and the others involved in making it happen. He asked specifically about financing, and the Government's involvement in it. As I mentioned earlier, we have been involved in the transaction from day one, and we have put on the table an offer of Government financing on commercial terms. That offer stands; should it need to be drawn down, it is clearly there to help make this deal happen.
Tom Pursglove (Corby) (Con): Having taken part in a cross-party visit to the Corby site last week—I am grateful to the Minister for Small Business, Industry and Enterprise for coming along as well—I am very confident in the plan that has been drawn up to secure the site's future. However, implementing it will require not only time but investment, and the business rate system at the moment penalises that very investment. What will the Secretary of State do to put a stop to that and to send a crucial sign of confidence from the Government?
