HC Deb 22 January 2004 vol 416 cc1453-5
2. Helen Jackson (Sheffield, Hillsborough) (Lab)

If she will make a statement on the future of the steel industry. [149732]

The Minister for Industry and the Regions (Jacqui Smith)

Last Thursday, I chaired a steel workshop to discuss key issues affecting the sector and to consider what action may be taken to ensure its future. I am grateful to my hon. Friend, other hon. Members, the industry and trade unions for their contribution to the success of that event. It is clear that the steel industry faces major global challenges, but it is also clear that high technology and growing industries such as aerospace and construction require high-value steel products. Working together, we need to ensure that the UK steel industry can respond to the opportunities created by those new demands.

Helen Jackson

I thank my right hon. Friend for that answer, and the workshop was certainly useful. In south Yorkshire, we know that steel is the backbone of engineering and manufacturing as well as of high technology—it is a crucial industry. We know that the big players in the industry must make the shift from contracting to taking advantage of the new world markets through new investment, ideas and skills. What specific support and measures are the Government examining to help the big players make the crucial shift from contraction to future expansion?

Jacqui Smith

My hon. Friend has a good record on ensuring that both the steel industry in south Yorkshire and the Government are focused on practical initiatives to enable the industry to go forward. Support is already in place through the metals industry competitive enterprise scheme, which shares best practice among steel producers. It is important to ensure that the expertise in the National Metals Technology Centre is used to develop high-technology innovative processes, because that will lead to success. In partnership with Yorkshire Forward, we are discussing with my hon. Friend and other hon. Members what more we must do to ensure that key manufacturers in south Yorkshire can work together in the most effective way.

Michael Fabricant (Lichfield) (Con)

Of course we need to specialise in the specialised manufacture of steel, but does the Secretary of State agree with the United States Government, who maintain that there is dumping of cheap steel from the far east, and if so, what practical steps is she taking, with the World Trade Organisation, to stop that practice?

Jacqui Smith

The hon. Gentleman makes an important point: what we can most effectively do for our steel manufacturers in terms of international competition is to ensure that we all operate on the basis of fair and free trade. That is why the UK, along with its partners and through the OECD, is working to ensure that we develop multilateral agreements that will reduce trade distortions and provide the fair opportunities that our steel manufacturers deserve.

Alan Howarth (Newport, East) (Lab)

Does my right hon. Friend agree that the present trading range of sterling, enabling the UK steel industry to buy in dollar-denominated raw materials advantageously and to export to the eurozone highly competitively, provides a remarkable opportunity for the industry to recover market share at home and abroad? Will she encourage the industry to seize that opportunity, and will she tell the House yet more about the Government's practical plans for working with the UK steel industry to enable it to achieve that end?

Jacqui Smith

My right hon. Friend makes an important point about the current international opportunities for steel manufacturers. I have already outlined some opportunities in respect of the growing demand in the UK; for example, Government spending on construction is providing an important opportunity for our UK steel manufacturers. An important outcome of the steel workshop held last Thursday is the strong possibility of our being able to work with representatives from the industry, for example, to consider developing an innovation and growth team, as we have for other key sectors. With the industry, we can identify key factors for innovation and opportunity that will enable the sector to grow. My officials working with the industry are currently looking into how we can take that work forward so that we develop the type of practical initiative for which my right hon. Friend calls.