British Steel

Debate between Lord Henley and Lord Morris of Aberavon

Wednesday 24th July 2019 Lords Chamber

[Lord Henley]

My Lords, I will not at this stage speculate on what might happen if the business goes under. We are doing what we can to keep that business. My right honourable friend made it quite clear that he has put a great deal of effort into making sure that it can continue.

To answer one other question put by the noble Lord, Lord Stevenson, relating to energy, we have put almost £300 million into compensation for the whole steel sector, trying to help it make energy costs more competitive. We have also offered support, as the noble Lord knows, on the extra costs for high-energy-using businesses and will continue to do so.

Going back to the question of the noble Lord, Lord Fox, I cannot speculate on what my right honourable friend’s successor might do, should my right honourable friend have a successor—it might still be my right honourable friend; it might still be me. I do not know at this stage, but I think the commitment that the Government have made so far is indicative of the process that we would want to continue.

[Lord Morris of Aberavon (Lab)]

My Lords, the participation of the Secretary of State is most encouraging, and I welcome the news of increased production in these extremely difficult circumstances. On a general point, will the Government bear in mind that one of the hazards of steel production in all parts of the United Kingdom is the high cost of electricity? Will the Government consider what might be done further to ensure that steel is produced economically and on a level playing field?

[Lord Henley]

My Lords, the noble and learned Lord is quite right to point out that the steel industry and various other industries have high costs relating to energy. That is why I mentioned the almost £300 million that we have offered to the steel sector to try to make energy costs more competitive. It can then look to the future as regards energy reduction, trying to produce the same amount of steel using less energy and—thinking of our zero-carbon targets for 2050—doing it in a greener manner.

British Steel

Debate between Lord Henley and Lord Morris of Aberavon

Wednesday 22nd May 2019 Lords Chamber

[Lord Henley]

No, I am not describing a company that has terminal problems. I think that it has a future, and it is the official receiver’s job to explore that and to find something viable that he can sell on. British Steel is producing fine products but it has been having problems. The level of the pound has increased the cost of its imports and, the company believes, the uncertainty over Brexit has also caused problems. However, I do not think that that is necessarily terminal for the company. It is a good company that produces fine products, and it is for the official receiver to find the right solution.

[Lord Morris of Aberavon (Lab)]

My Lords, can the Minister give an assurance that government procurement provides a level playing field for steel produced within the United Kingdom?

[Lord Henley]

My Lords, I can expand a little on procurement. As the noble and learned Lord knows, there are rules that the Government must stick to, but we were able to relax them so as to allow, for example, government procurement to make use of British firms slightly more liberally than was the case in the past. It might be better if I write to the noble and learned Lord in greater detail on that point, but certainly we have been encouraging the government departments that use steel to use British steel wherever possible.

Swansea Tidal Lagoon: Hendry Review

Debate between Lord Henley and Lord Morris of Aberavon

Tuesday 1st May 2018 Lords Chamber

[Lord Henley]

I am more than happy to lay before the House any amount of information about the Drax power station and, if the noble Lord’s figures are correct, confirm them. Obviously, those matters can also be taken into account.

[Lord Morris of Aberavon (Lab)]

My Lords, I support the interests of the noble Baroness, Lady Finn. Because of the delay of this project and the delay in electrification, is there not an impression that, in the words of President Obama, south-west Wales is at the bottom of the queue?

[Lord Henley]

My Lords, south-west Wales—and the whole of Wales—is not at the bottom of the queue. As my right honourable friend the Minister for Energy made clear in another place this afternoon, she has been engaged in discussions with colleagues in the Welsh Government. A decision will be taken at the appropriate time but we do not want to be rushed into it.