Wednesday 24th July 2019

(4 years, 8 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Greg Clark Portrait Greg Clark
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My experience from conversations with the bidders for British Steel is that there is a recognition in the steel industry—not just in this country, but around the world—that the move to cleaner and greener production is happening globally. Actually, there is an opportunity to get ahead of that, as investing in improved energy efficiency and reducing carbon emissions will have to be done everywhere. Again, one of the purposes of the industrial strategy is to advance ourselves as a place where this has been done well and reliably and has been well supported. That, it seems to me, is best for the long-term future of steel making and other manufacturing, rather than attaching ourselves to a model that will be increasingly costly around the world. The future depends on being more energy efficient and greener.

Stephen Kinnock Portrait Stephen Kinnock (Aberavon) (Lab)
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The UK exports 2.6 million tonnes of steel to the European Union every year. It is estimated that a no-deal Brexit would add £70 million of additional administration costs and costs relating to border checks. Does the Secretary of State therefore agree that a no-deal Brexit represents an existential threat to the British steel industry, and will he be conveying that message loud and clear to his successor and to the incoming Prime Minister?

Greg Clark Portrait Greg Clark
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I gently say to the hon. Gentleman that that message should be conveyed to all Members of the House who did not vote for a deal that would have provided, as British steel advised, the ability to trade in that way. My views on the desirability—in fact, the imperative—of having a good deal that allows us to trade without introducing barriers and frictions are well known to the House, and indeed beyond. What I will say is that at this time, when potential purchasers are considering British steel, actually it is not the case that the steel industry would not have a future in the event of different forms of Brexit. It is very important to convey to prospective buyers the fact that the industry that exists, with its opportunities domestically and internationally, and with the quality of its workforce and of its steel production, is attractive in itself and will not be trumped by the Brexit settlement. It is important that those prospective buyers have confidence, as some of them have having done their due diligence, that this is a good investment in all circumstances.