HC Deb 17 January 2002 vol 378 cc422-3
7. Ms Meg Munn (Sheffield, Heeley)

What steps she is taking to ensure that the UK steel industry can trade freely in the USA. [25551]

The Parliamentary Under-Secretary of State for Trade and Industry (Miss Melanie Johnson)

We are making every effort to ensure that US markets remain open to exports of UK steel products. Working very closely with the European Commission and our European partners, we are in frequent contact with the US Administration to seek to persuade them not to impose unilateral restrictions on trade.

Ms Munn

I thank my hon. Friend for that answer. Will she impress on the US Administration that much of the steel industry in Britain has already undertaken the restructuring that President Bush has requested and that the imposition of trade restrictions would be detrimental to my constituents who work in the steel industry and would have negative effects on the steel industry in many countries? Importantly, it would significantly hamper the valuable work that has been done by the OECD steel group to find ways of addressing the need for restructuring throughout the world steel industry.

Miss Johnson

In addition to my answer, I can tell my hon. Friend that the Prime Minister yesterday wrote to Sir Brian Moffatt to confirm that we take the issue very seriously. We are continuing to press our case at the highest level and he will press the case with President Bush at an appropriate time. I agree that the safeguard action will not solve the problem of global overcapacity in steel production. The problems that are being experienced in the US are largely of its own making and we believe strongly that it should not seek to export those problems to the rest of the world. We will continue to register our strongest opposition to the proposals and I agree that the OECD and multilateral talks about how to deal with the problem on a global basis are the way ahead.

Tony Baldry (Banbury)

Does the Minister agree that those who advocate global free trade cannot just pick and choose which bits of free trade they are going to support? Are not the US's proposed sanctions and tariffs against UK steel in breach of World Trade Organisation legislation?

Miss Johnson

I entirely agree. The proposed US action is contrary to its WTO obligations.

Dr. Ashok Kumar (Middlesbrough, South and Cleveland, East)

Is my hon. Friend aware that more than a year ago steel industry management at Corns announced the closure of Teesside technology centre and the transfer of the work force to a new technology centre in Sheffield? Many of my constituents who work at the Teesside technology centre are still waiting to hear about their future. Will my hon. Friend raise that matter urgently with the Corns management?

Miss Johnson

My hon. Friend makes a valuable point, because the staff involved are highly skilled scientists and lab technicians. Uncertainty over the future of such highly marketable individuals is not helpful. My hon. Friend the Minister for Industry and Energy will raise the issue when he meets the company shortly, including the points made by my hon. Friend the Member for Middlesbrough, South and Cleveland. East (Dr. Kumar).