Steel Industry

Debate between Stephen Kinnock and Sajid Javid

Thursday 26th May 2016 Commons Chamber

[Sajid Javid]

The pension trustees believe that their proposal will move the scheme into surplus and make it stable. However, it is worth emphasising that the Pensions Regulator will be very much involved. If this actually did go ahead, the Pensions Regulator would rightly have to be satisfied with it, and there would also have to be a number of other safeguards.

[Stephen Kinnock (Aberavon) (Lab)]

There has been speculation in the media that Tata Steel may in fact decide to retain the business. Will the Secretary of State explain what role Tata Steel would play in dealing with the pension scheme if that were to happen?

[Sajid Javid]

There is all sorts of speculation on this issue in the press, but what I can tell the hon. Gentleman, who has been very committed to this process—we have discussed it in person a number of times—is that Tata remains committed and very focused on the sales process. As I mentioned earlier, there are seven potential bidders. The next step is to narrow the field—that is important—so that we can all focus, along with Tata, on the most credible bids. The Government stand ready to work with those bidders.

UK Steel Industry

Debate between Stephen Kinnock and Sajid Javid

Tuesday 12th April 2016 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

I wish to start today by thanking both the shadow Secretary of State, my hon. Friend the Member for Wallasey (Ms Eagle), for securing this debate, and you, Mr Speaker, for granting it.

I also thank the Secretary of State for his statements yesterday and today and for attending the special meeting of the all-party group on steel yesterday afternoon. However, although I am grateful to him, l regret to say that those meetings and statements have done little to address investor and customer confidence, which are of paramount importance at this time. Alongside the efforts the Government need to make to find and support a commercial operator, the priority at the moment should be securing the order book.

Erosion of the customer base is the most pressing issue facing the British steel industry. If the customer base goes, it will not come back. Unless the order book is secured, it does not matter what else happens. No one will buy a business if it has no customers—it is as simple as that. That is why I was so deeply concerned by the Secretary of State’s response to my question at the APPG yesterday, when I asked him to outline the specific actions he was taking in that regard. He said that he would be happy to engage with customers as and when they approached him. That is simply not good enough. The Secretary of State should be on the phone. He should be reaching out to the chief executive officers of Honda, Nissan, Jaguar Land Rover and others, making it clear that production of the world class steel that they have come to expect and to rely on will continue, come hell or high water.

This House and every steelworker in the country now looks to the Secretary of State to take action. He should set out precisely, and in specific detail, the representations that he intends to make in the coming days and weeks to the companies that comprise the customer base, which is the lifeblood of the British steel industry.

[Sajid Javid]

The hon. Gentleman makes an important point about the companies in the supply chain and the customers, and he is absolutely right to do so. What I have said to him and to others is that we are engaging with many of those organisations—I know that the Secretary of State for Wales is, too—but what he must understand is that much of this is commercially sensitive. Many of those suppliers would not like us to discuss who we are talking to and what their concerns are. I hope that he understands that it would be quite improper for us to divulge that information.

[Stephen Kinnock]

I fear that the Secretary of State has misunderstood me. I am simply saying that it is very important to be on the telephone to the customer base. [Interruption.] We on the Opposition Benches and the steelworkers of this country would like a little bit more detail. [Interruption.] Ministers must forgive us for being sceptical about what they are doing or for thinking that there may be a lack of action.

The Secretary of State talked about co-investment yesterday. Although I welcome the fact that he has belatedly converted to the fact that the Government and industry can work in partnership, I am not entirely sure what co-investment means in his terms. I agree with him that nationalisation is not a long-term solution, but what customers need to know is that, come what may, they will still be able to purchase strip products from the Tata sites. Such security can be offered only if the Government commit to keep all options on the table. Can the Secretary of State make such an assurance to the House?

The men and women working in steel and connected industries across this country are among the most highly skilled and effective people in Britain. The Port Talbot workers are already turning the business around, with improved productivity leading to tangible improvements in business and financial performance. Their skill and dedication is matched by that of Roy Rickhuss, the general secretary of Community, who was even praised by the Secretary of State yesterday.

The surprise announcement that we really needed yesterday was not that of a Conservative praising a trade union leader, but that of the Government announcing an end to their laissez-faire attitude. What we needed from the Government was a list of all the discussions that they have had with the customer base, but what we got was yet more prevarication and procrastination. What we needed from the Government was the announcement that all options were on the table, but what we got was ambiguity. What we needed from the Government was the announcement that they would put down their pom-poms and give up their role as China’s chief cheerleader in Europe; that they would end their championing of market economy status for China; and that they would end their campaign against trade defence reform, but what we got was more of the same.

Yesterday, the Secretary of State only confirmed something that we already knew—that the Government’s approach has been characterised by a dangerous combination of indifference, incompetence and a rolling out of the red carpet for Beijing.

UK Steel Industry

Debate between Stephen Kinnock and Sajid Javid

Monday 11th April 2016 Commons Chamber

[Sajid Javid]

I know from my hon. Friend’s work on the Business, Innovation and Skills Committee that she takes an interest in this. She is absolutely right that none of us wants to be back in this situation in one, two or three years from now. We want to find a long-term buyer that will invest in the business. That requires Government support and we are ready to work with that buyer.

[Stephen Kinnock (Aberavon) (Lab)]

Before I start, I want to pay tribute to the 13 steelworkers who are in the Public Gallery today along with the outstanding general secretary of the Community union, Roy Rickhuss. I also want to join the Secretary of State in paying tribute to Carwyn Jones, who has been doing a fantastic job. What a contrast to the British Government. Within days, Carwyn Jones had put £60 million on the table, so he is someone who is actually closing the gap—[Interruption.]

[Stephen Kinnock]

I hope that the UK Government will take note of the fact that the Welsh Assembly Government so rapidly put £60 million on the table.

The Secretary of State asked for some focused suggestions and questions, so here are three for him. First, what are the Government doing to secure the customer base—key clients such as Honda, Nissan, Jaguar Land Rover? I hope he and his colleagues are picking up the phone to those customers and ensuring that we retain the integrity of the order book. Secondly, on the blast furnaces, I would like to follow up on what was asked by my hon. Friend the shadow Secretary of State. Does the Secretary of State believe that the blast furnaces in Port Talbot should continue as an integral part of the UK steelmaking industry? Thirdly, can he explain why the British Government continue to block the scrapping of the lesser duty rule? The entire industry and the European Commission repeatedly tell us that by scrapping that rule we would give the anti-dumping measures real teeth to deal with the dumping of Chinese steel. Perhaps the reason is that the UK Government would rather cosy up to Beijing than stand up for British steelworkers.

[Sajid Javid]

First, let me say that this is obviously a very difficult situation for the hon. Gentleman’s constituents. I am working with him, and I stand ready to work in any way I can to help him and to listen to what he has to say. The meeting I have already had with him was very useful, but I look forward to many more as we jointly try to help with this situation. He asked three questions, one of which was about the customer base. One of the most important things we can do—and we are doing it—is provide confidence that we can help to find a buyer that will secure the long-term interest of the steelworks, because that is what the customer base is going to want. We are in touch with many parts of the customer base—I talked earlier about the auto and aerospace industries—and providing that confidence is going to be key to reassuring them that they do not need to look elsewhere.

The hon. Gentleman asked about the blast furnaces, which I went to see in action just last week. They are hugely important, but I do not think I am in a position to say exactly what the structure of the business should be going forward. We will work with all parties to make sure that we can secure as many jobs as possible and that steelmaking continues. Lastly, he asked about the lesser duty rule. I point out to him that it has been the long-standing view of the previous Labour Government and this Government that in general the lesser duty rule gets the right balance in terms of the interests of industry and consumers. The last two British Trade Commissioners that were sent to Brussels, both appointed by Labour and both Labour peers, strongly supported that rule. As I said earlier, what I am interested in is what actually works to help the industry and what we have seen so far is that the tariffs imposed actually work, leading to massive reductions in Chinese imports.

Steel Industry

Debate between Stephen Kinnock and Sajid Javid

Tuesday 20th October 2015 Commons Chamber

[Sajid Javid]

This is an opportunity to remind the hon. Lady of action that has already been taken—for example, the compensation of more than £50 million already provided to the steel industry for higher energy costs, and our becoming the first of all 28 EU member states to adopt new procurement rules, which will give us the kind of flexibility that I know she wants to see.

[Stephen Kinnock (Aberavon) (Lab)]

The Secretary of State will be aware that the hard closure of the Redcar steelworks will cost hundreds of millions of pounds to secure the assets that are there, and the continued bad news on closures will cost hundreds of millions of pounds more, potentially running into billions. Has he shared this information with the Chancellor of the Exchequer? Does the Chancellor understand the impact this will have on his much vaunted deficit reduction plans?

[Sajid Javid]

Of course the sad closure of the steelworks—the coking facilities—at Redcar is well known and understood throughout the Government, and every Department that needs to be involved in providing support and help is involved.