British Steel

Lord Stevenson of Balmacara Excerpts

Tuesday 21st May 2019 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I am grateful to the Minister for repeating the Answer given in the other place, although it was curious because it did not seem to address any of the points that could bear on the Question which the Secretary of State was asked.

British Steel is our second biggest steel maker and one of only two integrated steel-making sites in the UK. As the only UK steel plant which produces rails used in our tracks, it provides almost all those procured by Network Rail, as well as supplying ScotRail, TfL and Translink in Northern Ireland. It also exports a large volume of products across Europe. Given these facts, your Lordships might well have expected the department to have a very detailed knowledge of the workings of British Steel, which I assume is at the heart of our industrial strategy. For instance, as we heard only last week, and in the Statement, it put £120 million into the company as part of the ETS bailout. Is that money now at risk? Are we to believe that if the company goes into administration tomorrow—as it may do—the money will not actually come back to taxpayers, as was stated? Did the Minister agree with the company’s acquisition of a company based in France, for £42 million, only last week? These things do not suggest a company in trouble, yet we hear today that it needs between £30 million and £75 million to survive.

In order to get some answers, I will ask some specific questions. How much is the company actually asking for? Press reports today range between £30 million and £75 million. What is the figure? What is the current status of the negotiations? There are rumours circulating in the press that the discussions have stalled. Have they? If the company does go into administration tomorrow, what plans do the Government have to support the 4,000 or so people employed directly and the 20,000 or so in the supply chain?

[Lord Henley]

My Lords, I do not think I can take the noble Lord very far on this. His first question was whether the ETS £120 million was at risk. I assure him that that is not the case. That was made clear by the various guarantees that my right honourable friend announced when he made the Statement on 1 May this year. I did offer to repeat that Statement in the House but that was declined. That money is secure. The noble Lord asked a number of other questions about how much British Steel was asking for and what our further plans were. As my honourable friend made clear in the Statement, it would be wrong at this stage to say much more, because detailed discussions with the company have been going on and will continue. As my honourable friend made clear, we will update the House as soon as possible and bring further information to another place and this House when it is appropriate.