Welsh Affairs — House of Commons, 2016-03-03
Topic: Foreign Trade
Stephen Nathan Kinnock (Labour, Centre-left): I thank the hon. Gentleman for his intervention. Membership of the European Union is defined by how a country engages and how it works with partners in Brussels—both with the European Commission and the other member states. What we have is a Government who, in 2011, recognised that there should be an energy-intensive industries compensation package, but then failed to knock on the door in Brussels and make it happen. How can it be that it took five years to deliver that deal When it comes to the dumping of steel, the British Government are the ringleader of a set of member states that do not want to reform the anti-dumping rules—so we still have the lesser duty rule—and are cheerleaders for China, lobbying for it to have market economy status. I am afraid that we need to draw a line under this constant scapegoating of Brussels. The blame should be laid squarely at the doors of Nos. 10 and 11 Downing Street and the rest of the Cabinet. Unlike other member states, they have failed to engage in Brussels in a way that wins for British business The Government operate in a fog of laissez-faire ideology. They pray to the gods of the free market, and then they hope for the best. In reality, the market economy can function effectively only if it is regulated. Just as football requires the off-side rule to ensure fair competition, so our steel industry requires the right regulatory framework, so that it can trade in equitable conditions—on a level playing field. Instead, the Government’s blithe faith in the free market is driving them to lobby for China to be given market economy status, and to refuse to support the scrapping of the lesser duty rule I wish to state now, with utmost gravity, that if speedy action is not taken to prevent the dumping of Chinese steel, we will witness the beginning of the end of UK steel making. The Government know full well that this foundation industry is hanging by a thread. Neither free market dogma nor cosying up to Beijing should be allowed to impede their patriotic duty to emulate other EU countries and stand up for the men and women who are the backbone of the British economy The Minister for Enterprise and the Secretary of State for Business, Innovation and Skills recently visited my constituency, and I hope they will return so that they can go to the homes of some of my constituents who have lost their jobs. I hope they will look those men, women and families in the eye and explain themselves—explain how they can claim publicly that they are supporting the steel industry, while fighting tooth and nail behind closed doors against the lifting of the lesser duty rule and for market economy status for China I hope those Ministers will explain how they can claim publicly that they are changing public procurement to maximise the use of British steel, while allowing the Ministry of Defence to build the latest flotilla of Royal Navy frigates with Swedish steel. I hope they will come to Aberavon and explain the breath-taking contrast between their words and their deeds, for the people of my constituency deserve an explanation I am certain that the British steel industry has a promising future if it is given the right support by Government. The men and women at the Port Talbot works make the finest steel that money can buy and they are breaking all production and efficiency records, but the industry requires a long-term industrial strategy based on a sustained, comprehensive approach to skills, investment, regulation, energy and industrial relations. That is why I am proud to co-chair a working group of the all-party parliamentary group on steel, which will produce a report, "Steel 2020", on formulating a long-term industrial strategy for British and Welsh steel Our strategy for the future of the Welsh economy must not be limited to steel. We need a new industrial revolution grounded in the new economy of renewables and connected technology, a fourth industrial revolution such as the one that was spoken of at the recent meeting of the World Economic Forum in Davos. I see Wales at the forefront of that revolution. The Swansea Bay tidal lagoon could transform the energy industry, but frustratingly, its future is under threat owing to the Government’s perpetual flip-flopping. A positive decision on the lagoon would not only put a much needed tick in the Government’s ever-diminishing green credentials, but deliver a massive boost to the local economy. By committing to sourcing as much steel as possible from the UK, it would significantly help the UK steel industry. That project needs and deserves rapid advance. The Government need to get off the fence, and fast The Government’s short-sightedness is undermining other forms of renewable energy, such as wind and solar. These are burgeoning industries in my constituency, with hundreds of jobs at stake, but they are under threat because of the Government’s moves to cut price stabilisation mechanisms, such as the feed-in tariffs. The Government have been on a policy descent from "Hug a huskie" to, in the words of the Prime Minister, "Let’s cut the green crap".