Update on the UK Steel Industry

Lord Howell of Guildford Excerpts

Monday 11th April 2016 Lords Chamber

[Baroness Neville-Rolfe]

On the question of money, I am glad to clarify that we are open to discussions on the level of support. I articulated earlier what we have been telling investors today. I am also glad to have the opportunity to set out what we have been doing about anti-dumping in Brussels. Thirty-seven anti-dumping measures have been taken—15 against China—and another nine areas are being looked at. As a result, as I said in the Statement, rebar imports from China have gone down by 99 percent, wire rod by 90 per cent and there has been a similar effect in other areas. The noble Lord is talking about tariff policy more broadly—the so-called lesser duty rule. In general—I have dealt with trade pretty well all my life—that rule gives the right balance between industry, industry users and, ultimately, consumers. There is a wish in some protectionist member states to use the opportunity to change that fundamental principle which ensures that users and consumers benefit as well industry. However, changing that rule could have ramifications in other areas, from candles to screws to shoes—there has been a lot of debate on anti-dumping of shoes. We need good anti-dumping measures. We are working with the Commission on those and trying to improve the logistics so that we can have more success with anti-dumping. Above all, we need to move with speed.

[Lord Howell of Guildford (Con)]

Further to the question posed by my noble friend Lord Lawson, is it still the case that German steel-making electricity costs are 40% below those in the United Kingdom? If that is the case, and if it arises from differences in climate change and carbon reduction policies, are we not obliged under Section 2(2) and (4) and Section 6(2) of the Climate Change Act to take account of that? In failing to make the necessary amendments to the Climate Change Act, are we not in breach of that Act? Should not action be taken to correct the situation urgently?

[Baroness Neville-Rolfe]

My noble friend is a great expert in this area and I hesitate to make assertions. It is clear that we have been moving latterly to change our approach to make sure that our climate change obligations are met and that we help the energy-intensive industries, especially steel, which is such a strategic industry, at the same time. I shall certainly look into the points that he has raised and perhaps talk to him further.