Redcar Steelworks

Baroness Armstrong of Hill Top Excerpts

Tuesday 13th October 2015 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, I am not sure that energy policy is the issue here. We have already paid £50 million in compensation under the Energy Intensive Industries Compensation Scheme. As my noble friend said, the issue is the lack of competitiveness, but I think some public organisations do this better. If one looks at Crossrail, one sees that it used a great deal of British steel in its concretes by way of the work that it did with the supply chain to encourage it to bid for work during that excellent project.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, does the Minister recognise that the north-east has faced issues like this before? When I became the Member of Parliament for North West Durham in 1987, Consett steelworks had closed. Ironically, one of the reasons that we were given for closing Consett was to keep things going in Teesside. We then faced a male unemployment rate in the region of 20%. It took years and years to begin to get people employed, and it was very difficult to get the quality of skills that they had been used to working with in the steelworks. This is a huge challenge to the local community and I really think that the Government have not taken it seriously enough. The summit in Rotherham will do nothing for Redcar.

The £80 million, as the noble Lord said, includes statutory redundancy costs, which is an outrage. Will the Government pay far more attention to what is going to happen to that community in Redcar, which is quite isolated? Unemployment in the north-east is already the highest in the country, and in the Tees Valley area it is probably higher than in the rest of the region. This is a real crisis for local people and the Government must recognise—in a way that, locally, they are not seen as having done so far—the impact that it will have on that local community and make sure that the opportunity for change and reconstruction of some manufacturing jobs is made more possible. That means working closely with the European Union as well with the local task force and the LEPs.

[Baroness Neville-Rolfe]

My Lords, I do not share the negative view that was set out, but I agree that we need to look forward. We set out in our Statement yesterday a great number of the things that we are doing on reskilling and looking forward, as the noble Baroness suggested. We have taken action at the EU level to work with other member states who face similar challenges—the French, the Germans and the Luxembourgers—in fighting dumping, and some measures have been taken. But as I said, this is a real competitiveness issue and we need to look forward and find new opportunities in this important industry.