British Steel — House of Commons, 2019-05-22
Topic: Energy
Gregory David Clark (Conservative, Centre-right): I am grateful to the hon. Lady for the spirit in which she approached her response to the statement, recognising that there is a total common purpose across both sides of the House to provide the confidence for new investors to be able to take on these assets, and we all, wherever we sit in this Chamber, want this to be a change of ownership rather than something that puts a stop to steel production The hon. Lady was right to refer to SSI, and she will recall—as will her colleague the hon. Member for Middlesbrough (Andy McDonald)—the situation with Corus in 2010. One thing we know about steel assets is that they are not like other kinds of facilities; once they close, it is very difficult for them to come back into life. So it seems to me that we have a special responsibility to make every effort to ensure there is no interruption whatsoever in production. That is my purpose, and I see it reflected in what the hon. Lady said I agree with the hon. Lady about the strategic importance of steel. It presents a strategic opportunity as well, because this country and the world will always need steel and British steel is among the best in the world, so we should be looking to supply it. I think my commitment was demonstrated in the move I made to provide £120 million to make sure that the liability under the ETS was addressed. Crucially, if we had not removed that liability, it would have hung over the assets, preventing any new partner from taking them on The hon. Lady also asked about the reports of the £30 million facility. The assessment of the accounting officer gives more information on that. In fact, that £30 million was not for a permanent refinancing of British Steel; it was a contribution to an administration only. The assessment was that the contribution from all parties would not be enough to withstand the cost requirements during that administration. She will see clearly set out the assessment of the proposals that were given. I have been exhaustive in pursuing the possibilities with British Steel over many weeks. If she is in government, she will find that she is obliged to follow the ministerial code, under which we are not allowed to make a decision that would be illegal, immensely frustrating though it is. I would have much preferred to have given the opportunity of this loan rather than go down the route that has been taken, but that is the requirement and there is no possibility of setting that aside On the motivation of Greybull in investing its cash in other facilities in France, one of the requirements in the case of any company failure is that the official receiver conducts an investigation into the reasons for the failure and the lessons to be drawn from it. I very much look forward to seeing the official receiver’s report. I dare say that the Chair of the Select Committee will also want to inquire closely, on behalf of her colleagues, into this as well On the question of new possibilities, I understand that there are buyers who have already made contact. The hon. Lady is right to say that important stakeholders such as Network Rail, which has been very supportive in recent weeks and has pledged to continue to be supportive, will work together. That is why I have invited everyone with an interest in this, including colleagues on both sides of the House, to work together so that we can make a demonstrable and clear case that the cross-party and cross-House of Commons consensus that reflects the importance of the steel sector is available to any new investor Finally, I agree with the hon. Lady’s assessment, relating to the report she mentioned, that the consequences are important not only for the workforce and those in the supply chain, vital though they are; they are also important for whole communities and indeed for the country. This furthers my resolve, which I know she shares, to do everything we can in the days and weeks ahead to ensure that there is continuity in these operations.