British Steel

Lord Stevenson of Balmacara Excerpts

Wednesday 24th July 2019 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I am very grateful to the Minister for repeating the Statement. Everybody will have noticed the very optimistic tone that underlies the words, and I hope very much that that optimism will be delivered in due course. I make it very clear that we support wholeheartedly the efforts being made by the Government and all concerned to make sure that there is a sale of the entirety of British Steel, hopefully to a single purchaser, and that the assets will be allowed to continue to develop. This is not just in general terms but also because, as we have heard before, this is a key element of the industrial strategy. This is our second largest steel-maker and a key supplier to many aspects of what will be required if this country is to flourish.

Will the Minister say a little more about the work that has been done by the British Steel support group, which has been exemplary in bringing together all those concerned to make sure that the best result is achieved? In particular, will he say more about how the confidence that the support group has built has been coupled with the government indemnity to the official receiver? How much and for what purposes has such an indemnity been raised? The Statement goes on to say that this is “without precedent”. If it works, why is it without precedent? Can we have an assurance that this might well be the approach taken by the Government in the future?

I have two other questions. First, can we have a commitment from the Government that the priority is to find a buyer for the whole of British Steel, and that the company will not be broken up if at all possible? Secondly, in addition to the cash presumably reflected in the indemnity, one of the key issues here is that the UK’s steel producers pay up to 50% more for their electricity than their EU competitors. What steps are the Government taking to resolve that issue?