Steel Industry

Debate between David T C Davies and Angela Eagle

Wednesday 28th October 2015 Commons Chamber

[Ms Eagle]

My hon. Friend’s practical suggestion should be considered with great seriousness not only by the Government but by the EU.

The steel summit in Rotherham was convened only following the Backbench Business Committee debate, and it ended with more job losses and no significant Government announcements. Far from keeping the House informed as the crisis has unfolded, the Government have had to be dragged kicking and screaming to the House to answer urgent question after urgent question.

Steel is an energy intensive industry that inevitably results in extra costs being placed on it for environmental reasons, but the Government have the power to lower energy costs for steel producers through implementing the energy intensive industry compensation package immediately.

[David T. C. Davies (Monmouth) (Con)]

Will the hon. Lady give way?

[Ms Eagle]

In a minute.

Despite being announced in the Chancellor’s autumn statement in 2011, the most substantial part of this package is still waiting to be implemented. Ministers admitted in a parliamentary question to my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) that they have not even bothered to raise the issue with the Commission in the last 12 months. It is clear that the Government have shown no leadership in Europe, and the Business Secretary is visiting the Commission for the first time today—better late than never I suppose, but what on earth has taken him so long? I welcome his visit, and I trust he will emerge from the Commission with some tangible progress—after all the foot dragging and inaction, it is about time he did.

--- Later in debate ---

[David T. C. Davies]

rose—

[Ms Eagle]

I said I would give way to the hon. Member for Monmouth (David T. C. Davies), so I will be polite and give way to him first.

[David T. C. Davies]

In the spirit of politeness, the hon. Lady and Opposition Members are absolutely right to raise this important issue, which affects many in my own constituency in south Wales. She mentioned environmental taxes. I have much sympathy with the point she is going to make, but does she not concede that it was her Government who brought in the environmental taxes in the first place?

[Ms Eagle]

The hon. Gentleman needs to demonstrate to his constituents that he is fighting for their jobs now. He needs to be putting pressure on his own Front Bench to have a proper strategy. This is a heavy industry, which is, by definition, energy intensive. The problem is that the Government do not have a strategy and are living hand to mouth trying to deal with a crisis they should have seen coming.