(6 days ago)
Commons Chamber
Chris McDonald
My hon. Friend raises a specific point about JCB. I am reasonably familiar with its business, and I think its particular concern may be around the sourcing of plate steel. The steel trade measures—the tariffs and quotas that we announced—are designed to ensure that the UK is not subject to subsidised steel, which would damage our upstream industry, and will certainly help to support the upstream sector. Of course, we need a strong upstream sector in order to have a strong downstream sector. The issue with plate steel is that the Dalzell plate mill in Scotland, which is capable of making many of these steels, has not been operating for some time. I would be happy to meet my hon. Friend and JCB to discuss that in more detail.
Chris McDonald
I was just going to address the point the right hon. Gentleman made about the business in his constituency. I am not familiar with that business, but the general approach we have taken is to ensure that the groupings of steel under the trade measures are subject to the tariffs where those steels are or can be made in the UK, accepting that some of them are not but could be made in the UK, including at operations such as Dalzell. It is not always possible to separate all those steels out based on the groupings, so that is the purpose of the quota.
I am always interested to hear of specific examples. I had a meeting with a business last week for which this appeared to be a concern, but once we discussed the issue in detail we found that it was not an issue for the business, because of some of the arrangements that were in place. If the right hon. Gentleman would like to share further details about that case, I am keen to hear them.
For clarity—perhaps I was not clear— a constituent of mine runs the company but the company itself is actually in another constituency, and it employs people throughout the west midlands. Could I write to the Minister about that particular case in order to seek more clarity?
I am grateful for that. I want to make two brief points on tariffs, which the Minister mentioned. First, the Shropshire chamber of commerce has said:
“There is growing concern that tariffs may be applied to certain materials and products that are not currently available from UK manufacturers”.
I would be interested to hear the Minister’s view on that. Secondly, concerns have been raised about fabricated steel products that appear to fall outside the tariff regime. In practice, that could create an unintended incentive for steel-processing fabrication work to move overseas to avoid tariff costs. Will the Minister comment on that?
Chris McDonald
I am aware of that issue as well, and if the right hon. Gentleman would like to include all those issues in the letter, I will be happy to provide him with a response.