Page:UK House of Commons Hansard 2016-04-11.pdf/40

 [Jo Churchill]

extending research and development credits to the steel sector to support the 21st-century steel industry that Members across the House have been talking about?

'Sajid Javid: My hon. Friend makes a very good point. In some parts of the UK where steel plants are based there are enhanced credits and capital allowances through enterprise zones. She makes an interesting suggestion about R and D tax credits that could help the industry more widely, so of course I will meet her.

Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab): When the Secretary of State comes to the Dispatch Box, he has to be careful about what he says. In his statement he referred to the £80 million promised to Redcar. I would dispute that figure in relation to what has been delivered in our area in the past six months. Today in our all-party parliamentary group meeting the Secretary of State did not rule out the option of Tata potentially remaining in situ at all steel sites, not just in relation to strip products. What type of co-investment plans can he put forward to the House so that we can discuss on the Floor of the House the options available for UK steel?

Sajid Javid: I know that the hon. Gentleman means well and has fought hard for his constituents, but I am sure he understands that in trying to secure a deal, it would not be in the interests of such a deal if the commercial terms were discussed on the Floor of the House. When buyers approach us or approach Tata, many aspects will be commercially sensitive. Some potential buyers will not even want to reveal that they are in discussions, and we must respect that or we risk losing a deal. I hope the hon. Gentleman can respect that too.

Mr Peter Bone (Wellingborough) (Con): Surely the only way to secure a long-term future for the British steel industry is to stop Chinese dumping. The Americans have imposed a 266% tariff on Chinese products. The British Government cannot do so because we are in the EU. Does the Business Secretary agree that it would be in the interests of the British steel industry if the Government imposed a 266% tariff now and worried about the EU later?

Sajid Javid: I know what my hon. Friend means by that, but I think that what he is really interested in, as I am, is tariffs that actually work. The right level has to be the level that actually works. The Americans might have imposed higher tariffs, but if they are too high they will hurt the rest of industry and consumers and they will cost thousands of jobs down the supply chain. Where the EU has imposed tariffs, driven by evidence, the results have been a massive fall in imports. In rebar, for example, a 13% tariff led to a 99% fall.

Nick Thomas-Symonds (Torfaen) (Lab): The European Commission wants to move away from the lesser duty rule. Quite simply, the problem is that when it is in place the duty that can be imposed will always be far less than the margin of the dumping. Can the Secretary of State be clear: was the Eurofer spokesman right when he said that the UK Government were “certainly the ringleader” in blocking its reform?

Sajid Javid: The first thing to say about the lesser duty rule is that the duty that it leads to is either one that stops the dumping or one that rights the injury caused to industry. That is how the tariff is actually calculated. Again, all the evidence suggests that it actually leads to results, and what the hon. Gentleman really wants is results. He is absolutely wrong to suggest that it is the British Government who are blocking this. He will know that no single Government can block it, because a blocking minority at least would be needed. As I have said, if he has a suggestion that is particularly targeted at steel, I am willing to listen.

Seema Kennedy (South Ribble) (Con): My right hon. Friend quite rightly began his statement by saying that the collapse in the global steel price is a human tragedy. Will he update the House on the measures that are being taken to support workers in our steel communities?

Sajid Javid: My hon. Friend makes a good point. Where there have been job losses—we talked about Redcar earlier—the Government have worked with local councils and others to try to secure further investment for the area, both domestically and from abroad, to try to replace those lost jobs. We have introduced other measures, such as skills training, reskilling workers so that they are ready to take new jobs. There are probably many more things that we can do. We are often led by the local areas, because each area is different, and we will continue to do that. That will be a priority.

Mark Tami (Alyn and Deeside) (Lab): The Secretary of State needs to realise that this crisis affects the whole UK steel industry, not just Port Talbot. We need action that will give us the time—time is key here—to find a secure future for all the UK plants.

Sajid Javid: The hon. Gentleman is absolutely right that time is key. That is why I was keen to meet Tata last week in Mumbai and to try to get those reassurances. I believe that I have got those reassurances. Again, ultimately the control of time will be with the seller, but I have every reason to believe that Tata will be a responsible seller.

Martin Vickers (Cleethorpes) (Con): I thank the Secretary of State for his statement and commend the Minister for Small Business, Industry and Enterprise for her tireless work in keeping me and my neighbouring colleagues in north Lincolnshire up to date about the Scunthorpe situation. I also commend the workforce at Scunthorpe for the extremely responsible approach that they have taken. Will my right hon. Friend elaborate on how he will ensure that public sector infrastructure and construction projects actually use British-manufactured steel?

Sajid Javid: I join my hon. Friend in welcoming the news today about Scunthorpe and Tata long products. That is 4,000 jobs secured, which is obviously hugely welcome news and a vote of confidence in the British steel industry. He asks about the pipeline and procurement and how we can ensure that more of it is British. The changes that we have already made to procurement rules, where economic and social factors can be taken into account, will help to achieve just that. At the same time, with the large industrial infrastructure projects