Blog

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effects of the level of business rates on capital investment in the UK steel industry.

Mr David Gauke

The government concluded the Business Rates Review at Budget 2016. The government consulted with stakeholders, including the steel industry.

From April 2020, business rates for all businesses, including the steel industry, will be cut through a switch in the indexation of business rates from RPI to the main measure of inflation currently CPI.

The government has worked hard to deliver on the steel industry’s key asks. We (a) secured state aid approval to compensate for energy costs, (b) secured flexibility over EU emissions regulations, (c) published guidance so that the true value of UK steel can be taken into account in major procurement decisions, and (d) continue to tackle unfair trading practices at an EU and an international level

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the potential effect of a UK withdrawal from the EU on the British steel industry.

Anna Soubry

The UK is stronger, safer, and better off in a reformed EU, and this very much applies to our steel industry. The EU is our most important market for steel, buying over half our steel exports, and it is a powerful voice pushing for fair international trading conditions. Our membership provides access to a vast open market with a good system that balances the interests of producers and users. Outside the EU, we could find ourselves on the receiving end of EU tariffs, which would result in additional costs for the UK steel industry. In addition, we would be less able to defend ourselves against unfair competition from third countries. The Commission now has a record 37 measures against steel products, 16 of which are on Chinese imports.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Business, Innovation and Skills, what powers are available to his Department to restrict dumping of steel imports in the UK; and which of those powers he has used.

Anna Soubry

Trade defence is an EU competence. The EU’s anti-dumping procedures are set out in Council Regulation (EC) No 1225/2009 (the EU’s basic anti-dumping Regulation). The process is mainly initiated following requests from EU producers to the Commission. The Commission is responsible for considering requests for and, if appropriate, opening anti-dumping investigations. The UK, or any other EU member state, cannot unilaterally impose tariffs.

It is for industry to demonstrate prima facie evidence of dumping to the European Commission. We encourage industry to present this evidence to the Commission where they have evidence of dumping. Where evidence is sufficient to justify an investigation the Commission will do so and present any proposals for imposing duties to Member States.

The Government stands ready to assist all parts of UK industry in making its case to the Commission and has actively lobbied the Commission in support of UK steel producers in a number of recent cases, including reinforcing bar and cold-rolled flat products.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Business, Innovation and Skills, what steps he has taken to (a) improve customer confidence in and (b) ensure continuity of client contracts with Tata steel.

Anna Soubry

Tata have confirmed to us that they working closely with all of their customers and suppliers at this time, and HMG is supporting Tata to make sure that their customers and suppliers are fully aware of all the efforts the Government is making to secure a sale of their UK facilities.

The Government has also written a letter to Tata’s supply chain and customers highlighting our commitment to the UK steel sector, and the steps we are taking to support the industry.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the contribution of the Materials Processing Institute to the development of a modern British steel industry.

Anna Soubry

The Government is exploring all options to support steel and the foundation industries. We are interested to consider how we can develop the best way forward for the UK industry alongside all parties with steel expertise, including the Materials Processing Institute.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Minister for the Cabinet Office, what the value was of publicly-procured British steel in the UK in each of the last 10 years.

Matthew Hancock

I refer the hon. Member to the answer I gave to the hon. Member for Clacton on 4 May to UIN: 35702.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the potential contribution of innovation, research and development to the future viability of the British steel industry.

Anna Soubry

The UK is a world leader in advanced manufacturing sectors such as automotive and aerospace, which continue to grow rapidly. These industries all require high value, continually improving steel products in order to remain competitive, and therefore innovation will continue to play an important role in the future of the UK steel industry. The Steel Council recognises this; UK Steel are leading the Future Capacity and Capabilities working group which is currently undertaking work to better identify where innovation and R&D is needed to meet future requirements for steel products, and how industry and Government can work together to support this.

Since 2010 we have been supporting the steel sector by offering grants totalling £29 million and loans totalling £33 million towards projects including:

o The development of facilities, such as the R&D centre at Warwick University.

o Development of new products.

o And investment in training, skills and apprenticeships.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, how many Renewables Obligation Certificates have been issued to steel producers who have recycled energy in their steel plants.

Andrea Leadsom

The Renewable Obligation is designed to support investment in renewable electricity to meet our EU renewables target and contribute towards our wider low carbon goals. It only supports electricity generated from renewable non-fossil sources. This definition is taken from the EU’s Renewable Energy Directive 2009/28/EC and is set out in the Renewables Obligation Order 2015.

To date, no steel producer has accredited under the Renewable Obligation and so no Renewable Obligation Certificates have been issued to steel producers.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask the Secretary of State for Business, Innovation and Skills, what meetings he has had with the European Commissioner for Competition on EU state aid rules and support for energy-intensive industries.

Anna Soubry

Over the past year, my right hon. Friend the Secretary of State for Business, Innovation and Skills has met and called several times with Margrethe Vestager, European Commissioner for Competition, to discuss EU state aid rules and energy-intensive industries. I as Minister of State for Business, Industry and Enterprise attended the energy intensive industries high level stakeholder conference in Brussels in February. Senior officials from the Department have also had regular meetings with Commission Competition officials to discuss these issues.

The below Parliamentary question was asked by Kevin Brennan on 2016-05-18.

To ask Mr Chancellor of the Exchequer, if he will undertake a comparative assessment of levels of business rates applying to steel producers in the UK and in other EU member states.

Mr David Gauke

The government concluded the Business Rates Review at Budget 2016. The government consulted with stakeholders, including the steel industry.

From April 2020, business rates for all businesses, including the steel industry, will be cut through a switch in the indexation of business rates from RPI to the main measure of inflation currently CPI.

The government has worked hard to deliver on the steel industry’s key asks. We (a) secured state aid approval to compensate for energy costs, (b) secured flexibility over EU emissions regulations, (c) published guidance so that the true value of UK steel can be taken into account in major procurement decisions, and (d) continue to tackle unfair trading practices at an EU and an international level