Redcar Steel

Baroness Armstrong of Hill Top Excerpts

Thursday 15th October 2015 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, I am not privy to discussions between the Chancellor and Chinese senior Ministers, but I do believe in free trade. The point about the visit was to build relationships both ways. I believe that the Chinese can invest in Britain and can be helpful to Britain. Our industry obviously has to be competitive and produce great steel, as they did for example on Crossrail. That is what we need more of. We are looking forward. We are having a summit, which is taking place tomorrow, to look forward at other opportunities and prospects, and I look forward to hearing the results of that.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, the reality is that there was an offer from a local company, Hargreaves—which ironically is based just outside Consett and is essentially now a coal-mining and haulage business—to put money in and maintain the coke ovens. The coke ovens produce a new form of coke called foundry coke, which is much more value driven and therefore raises a much higher cost because it is more efficient. The Germans want to buy this coke and the only place that it can be made is at Redcar. The Government not working with the receiver to give some time has meant that the coke ovens will close today and no more opportunity will be there. That is surely something that the Government can and should do something about.

[Baroness Neville-Rolfe]

My Lords, the Government and the receiver did take time. They used the notice of intention to appoint an administrator. Talks had been going on before. As I said, it was not possible to come up with a viable case for continued use of these coke ovens and the blast furnace on a basis that would be competitive in the world. We all regret that. My heart goes out to the thousands of people who have lost their jobs. We now have to look forward, help them and find new opportunities.