British Steel

Debate between Greg Clark and Jonathan Edwards

Wednesday 24th July 2019 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

The prize for patience and perseverance goes to Jonathan Edwards.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Diolch yn fawr iawn, Madam Deputy Speaker. In February this year the EU put in place a definitive safeguard strategy on steel imports, covering 26 steel product categories. It put in place a 25% tariff once the quota has been surpassed. What analysis have the British Government undertaken of the impact on the UK steel sector of leaving the EU customs union, in terms of exports to our biggest market and imports to the UK?

[Greg Clark]

We have been very clear in the discussions that have been taken prospectively. Obviously, the arrangements are not settled until the Brexit conclusions are settled, but we have been very clear in a number of product areas that safeguards should be available and should be used for precisely the purpose they have been so far and will be needed in future.

British Steel: EU Emissions Trading Compliance

Debate between Greg Clark and Jonathan Edwards

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

I would not put it that way myself. The suspension was put in place because we were liable to leave on 29 March. Given that the year to which the allowances refer is the calendar year from January to December, it was the observation that, as things stood, we were unlikely not to be a member of the scheme for the great majority of that year; now that we have agreed an extension of up to 31 October, that is clearly a different matter. The discussions we have had so far with the Commission have been constructive in recognising our ability to issue new allowances.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

To what degree does the Secretary of State agree with the assessment in the Financial Times on 16 April that this situation could have been avoided had the company not sold surplus allowances from previous years, and therefore that this situation is a result of management failure by the private equity firm that owns British Steel for which the public are now expected to pay?

[Greg Clark]

The hon. Gentleman reflects an accurate point: if the allowances had not been sold, they would be available to discharge the liability. This is by no means a unique practice; across industries and firms, it is a fairly common way to proceed. However, it might well command the attention of the House as to whether it is the best way to proceed.

Honda in Swindon

Debate between Greg Clark and Jonathan Edwards

Tuesday 19th February 2019 Commons Chamber

[Greg Clark]

I agree with every part of what my hon. Friend says. At a time of change and challenge for the industry, this is just the time to provide the certainty, commitment and enthusiasm about the future that will retain and attract investment from this country and around the world.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Those arguing that this announcement is in no way Brexit-related are insulting the intelligence of the workers in Swindon and those in the manufacturing companies along the supply chain. Two of those companies are based in my constituency and they employ hundreds of workers. What discussions will the British Government be having with the Welsh Government to co-ordinate a response to today’s announcement?

[Greg Clark]

I am grateful to the hon. Gentleman for his question. It is important to point to and acknowledge the reasons for the decision that have been given by the company. I have been clear that publicly the automotive sector has strongly advocated the need for supply chains to continue to be effective and uninterrupted. I work very closely with Ken Skates, my counterpart in the Welsh Government. We will make sure that we work together to ensure that the supply chain in Wales is part of initiatives we take.

Leaving the EU: Airbus Risk Assessment

Debate between Greg Clark and Jonathan Edwards

Monday 25th June 2018 Commons Chamber

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

These warnings from Airbus, other manufacturing companies and, indeed, other sectors are not new to the British Government, as their own economic impact assessment shows that leaving the single market and the customs union will be hugely damaging. Is not the reality that for the Welsh economy the UK’s Brexit policy is a game of Westminster roulette where every chamber is loaded?

[Greg Clark]

The hon. Gentleman should be more constructive. Given that the whole country—the United Kingdom—voted to leave the European Union, we should be engaged in making sure that we have the best deal possible. I talk regularly with colleagues in Wales about what is required in the terms of that agreement. He should contribute to that, rather than wishing away the results of a referendum that clearly he did not want.

Energy Policy

Debate between Greg Clark and Jonathan Edwards

Monday 25th June 2018 Commons Chamber

[Greg Clark]

Of course we look at energy security, and having a diverse energy supply is important. In so doing we have to look at the contribution that is being made, and it is much more cost-effective to diversify our energy by commissioning sources that, in many cases, are a third cheaper than what is proposed. We can do more of it if we adhere to value for money.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

This announcement will be met with widespread anger in the communities that I represent, and it is the second broken promise from the 2015 Tory manifesto on top of the cancellation of electrification. Will the Secretary of State outline how detailed the discussions were with the Welsh Government regarding joint equity in the project? If the Welsh Government determined that they wanted to increase their equity share and go it alone, would the British Government stand in their way?

[Greg Clark]

The commitment given was to enter into discussions to see whether the project could be financed. We have done that rigorously, including with the Welsh Government. I think there have been more than 10 meetings with the Welsh Government this year alone to consider whether this was possible and to make sure we were looking at every possibility. The conclusion we have drawn is that it cannot be justified in terms of value for money. It was right to work with the Welsh Government to look at all the possibilities, but we have to abide by the conclusions of a serious analysis.

Nuclear Power

Debate between Greg Clark and Jonathan Edwards

Monday 4th June 2018 Commons Chamber

[Greg Clark]

No. The NAO report noted that all major energy projects have some involvement with the state. That is a feature of the current market not just in this country but around the world. We want to drive the best value for money for both the taxpayer and the bill payer.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Now that the British Government have decided to invest directly in nuclear projects, surely they will be doing the same for other energy projects, such as the Swansea Bay tidal lagoon, or will this be determined solely on the basis of the contract for difference financing model?

Budget Resolutions

Debate between Greg Clark and Jonathan Edwards

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right to say that hydrogen offers big advantages. It is a clean fuel, and this country has great expertise in developing and applying it.

Let me say something about business finance, which has already come up in the debate. In a strategy that connects our areas of strength, it is essential that we allow the businesses that are growing across our country to benefit much more than previously from our financial services sector, which is one of the most significant in the world. The deep pool of capital that we have should be available to growing companies up and down the country. The Budget therefore includes a new £2.5 billion investment fund, incubated in the British Business Bank, to drive forward more investment into growing companies across the country. The British Business Bank will establish a network of regional managers by autumn next year, ensuring that it is not just in London and the south-east that these sources of finance and advice are available, as it is essential that they are in place right across the UK.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The reality is that the Office for Budget Responsibility downgraded forecasts for business investment, productivity and growth in the economy for the entire forecasting period, so what the Chancellor announced in last week’s Budget clearly does not go far enough.

[Greg Clark]

I think the hon. Gentleman misunderstands what was said. The OBR recognised that its forecast that the productivity rate would recover after the financial crisis, which it has been making for many years, has not been realised. There has been no new event; it has just recognised what has happened, which has had consequences for the financial forecasts. Faced with that, the right thing to do is to look seriously for the long term—I do not think that this matter divides Members—at how we can act on the foundations of productivity. Talking about investment in research and development, the infrastructure that we depend on and sources of finance for growing businesses in every part of the country is a serious response to the OBR’s revised productivity forecast.

Industrial Strategy

Debate between Greg Clark and Jonathan Edwards

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for what he has said. I particularly commend the Mayor of Tees Valley, Ben Houchen, who was instrumental in, for instance, the proposals for the regeneration of former sites of special scientific interest that has been so well received on Teesside. I am aware that my hon. Friend initiated a successful Westminster Hall debate on this subject. As he knows, we want to get on with testing technology for carbon capture, utilisation and storage, and Teesside offers a particularly attractive environment for that because of the connections between the different users and suppliers in the area, but there needs to be a competition that can lead to an award. I know that my hon. Friend is proceeding with that, and I know that Teesside will be very well placed.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Page 218 of the White Paper shows that, after decades of economic misrule from Westminster, gross value added per hour worked in central London is 150% of the UK average, while in Wales it is only 81.4%. Therefore, a litmus test for the Secretary of State’s strategy should be how it tackles geographic productivity and wealth inequalities. What benchmarks is he using to determine success or failure in addressing those challenges?

[Greg Clark]

The hon. Gentleman is right to raise the issue. The productivity challenge that we face is about disparities. We have some of the most productive people and places in the world, but we have other places that are behind that level. The relentless focus of the industrial strategy is therefore on how we can close that gap by raising the earning power of those who are following. He will see that Wales—its industries and training and education system—is a prime area of focus throughout the strategy. I was pleased to work with Ken Skates, the Minister in the Welsh Assembly Government, to co-ordinate our work precisely to close that gap.

Energy Price Cap

Debate between Greg Clark and Jonathan Edwards

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

I agree with my hon. Friend. While there should certainly not be barriers in the way, it also should not be necessary for people to spend every evening on the internet checking whether their bill has gone up by an outrageous margin. If people are loyal to a brand, it is not unreasonable for them to expect to be treated reasonably, especially as that brand may be a trusted brand. The regulator should enforce that.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

We produce far more electricity in Wales than we use, yet we pay the highest electricity prices in the British state. More than a third of our households are in fuel poverty. Does that not suggest that Westminster control over Welsh energy policy is not working?