§ 9. Helen Jackson (Sheffield, Hillsborough)If she will make a statement on prospects for the steel industry. [2039]
§ The Minister for Employment and the Regions (Alan Johnson)The United Kingdom steel industry has experienced difficult trading conditions in recent years and many jobs have been lost as a result of restructuring and cost cutting. However, the industry has an excellent productivity record, a wide range of high-quality products and a well trained work force. All of that will help its competitive position.
§ Helen JacksonI thank the Minister for his answer, but does he accept that there is widespread concern in the steel industry in my constituency and in south Yorkshire that very high energy prices and uncertainty about the euro are making the industry less than competitive in Europe? Is he surprised by the fact that, according to his written answer to me on 9 July, his Department does not even know or collect region by region import and export figures for steel and related industries? Will he ask the Department to sharpen up its act on behalf of the steel industry so that, as Members of Parliament, we can track properly exactly what is happening region by region with exchange rates, imports and exports in our core manufacturing industry?
§ Alan JohnsonMy hon. Friend makes an important point. She has been a vigorous campaigner on behalf of steel communities, particularly in south Yorkshire. We are 922 aware of the problems of the steel industry, but none of them can be solved instantly. They relate to issues which we are working hard to try to resolve.
On my hon. Friend's specific point, I fully expect not to get the award for best written answer this year. I will look at the matter again, although I have made inquiries of the United Kingdom Steel Association, and it told me that it does not keep figures other than for Customs and Excise. So, it is a mystery why its report to my hon. Friend differs from the information that it is feeding to us. We should be able to ensure that we have better figures that are based on regions, especially since, through regional development agencies and the thrust of our regional approach, we shall need them in future.
§ Mr. Graham Brady (Altrincham and Sale, West)With UK energy prices already higher than those of many of our European Union competitors, is it not insane to pile the climate change levy on the UK steel industry while it is struggling to compete?
§ Alan JohnsonWe have already had a canter round the course on the climate change levy. Corus—and the UK steel industry in general—was very clear that the climate change levy did not lead to its recent difficulties. Indeed, we have negotiated an exemption for dual-use fuels. That is subject to a challenge because there was a complaint by a UK secondary steel manufacturer, but it was widely welcomed by the steel industry. We have struck the proper balance between pursuing environmental targets, on which hon. Members on both sides of the House agree, and ensuring that we have a competitive steel industry in this country.
§ Mr. Win Griffiths (Bridgend)Has my hon. Friend had any recent discussions with management and unions on the situation in south Wales, where we were particularly severely hit at Newport during the most recent reorganisation of British steel, in order to find out whether the Government can do anything further with Corns management and unions to promote the industry and ensure that there are no further job reductions in south Wales and in Port Talbot especially, which has a lot of good things going for it?
§ Alan JohnsonWe announced a package of measures on 3 May to help steel communities throughout the country, but particularly in Wales. On my hon. Friend's specific point, I will of course be willing to talk to the Iron and Steel Trades Confederation and other unions, all of which have an excellent track record of taking a constructive approach to such problems. I would be delighted to talk to them to see whether we can assist further in the area that he has mentioned.