British Steel

Lord Morris of Aberavon Excerpts

Wednesday 24th July 2019 Lords Chamber

[Lord Henley]

My Lords, I will not at this stage speculate on what might happen if the business goes under. We are doing what we can to keep that business. My right honourable friend made it quite clear that he has put a great deal of effort into making sure that it can continue.

To answer one other question put by the noble Lord, Lord Stevenson, relating to energy, we have put almost £300 million into compensation for the whole steel sector, trying to help it make energy costs more competitive. We have also offered support, as the noble Lord knows, on the extra costs for high-energy-using businesses and will continue to do so.

Going back to the question of the noble Lord, Lord Fox, I cannot speculate on what my right honourable friend’s successor might do, should my right honourable friend have a successor—it might still be my right honourable friend; it might still be me. I do not know at this stage, but I think the commitment that the Government have made so far is indicative of the process that we would want to continue.

[Lord Morris of Aberavon (Lab)]

My Lords, the participation of the Secretary of State is most encouraging, and I welcome the news of increased production in these extremely difficult circumstances. On a general point, will the Government bear in mind that one of the hazards of steel production in all parts of the United Kingdom is the high cost of electricity? Will the Government consider what might be done further to ensure that steel is produced economically and on a level playing field?

[Lord Henley]

My Lords, the noble and learned Lord is quite right to point out that the steel industry and various other industries have high costs relating to energy. That is why I mentioned the almost £300 million that we have offered to the steel sector to try to make energy costs more competitive. It can then look to the future as regards energy reduction, trying to produce the same amount of steel using less energy and—thinking of our zero-carbon targets for 2050—doing it in a greener manner.