Corus (Hansard, 8 April 2003)

§ Lord McIntosh of Haringey
My Lords, Corus is in discussion with bankers to renegotiate long-term funding and is developing plans to enable it to return to profitability. The Government are in regular contact with Corus at the highest levels and have been given assurances by the company that it is planning for a viable future in the UK. Any commercial negotiations would be a matter for the company.

§ Lord Livsey of Talgarth
My Lords, does the Minister recognise that steel-making is likely to be terminated in the UK if the interest shown by the LNM Group, headed by Lakshmi Mittal, and CSN Brazil results in the takeover of Corus's UK steel-making plants? That would put 26,000 employees in Port Talbot, Teesside and Scunthorpe out of work, with a huge knock-on effect on local employment. It would be catastrophic. The financial pages of the newspapers show that that interest exists. Will the Government, therefore, purchase the British arm of Corus and restructure it as with MG Rover or temporarily take it into the public sector? After all, steel is fundamental to the security of the manufacturing industry in the UK. UK Corus's shares are worth only 8p—a total of £260 million— which is surely a snip at present.

§ Lord McIntosh of Haringey
My Lords, I know that Corus is criticised for failing to respond to media speculation. Sometimes it is a little tight-lipped, but we can see why. The sort of media speculation with which the noble Lord, Lord Livsey, now regales the House is enormously damaging to Corus's suppliers, customers and employees. I do not think that we should take part in that kind of speculation.

§ Lord Brookman
My Lords, I declare an interest as the ex-general-secretary of the Iron and Steel Trades Confederation community union. Bearing in mind the reply that the Minister has just given, but nevertheless taking account of Corus's annual report, in which the 138 chairman stated that there will be further restructuring in the company, does the Minister not view it as essential that the trade unions meet the Government and the board of the company to try to avoid what has happened over the past few years; that is to say, some 10,000 job losses? It is essential that steps are take to avoid further tragedies in what was once a great company.

§ Lord McIntosh of Haringey
My Lords, I agree entirely with the noble Lord, Lord Brookman, that it is essential that the Government keep in close contact with both the management and the unions in Corns. I can assure him that that is the case. Patricia Hewitt has met Sir Brian Moffat and Michael Leahy of the ISTC on a number of occasions recently and will continue to do so.

Lord Morris of Aberavon
My Lords, at present, have the Government any powers to prevent an asset-stripper from purchasing Corus or any part of it for the purpose of disposal?

§ Lord McIntosh of Haringey
My Lords. I do not think that there is any adequate definition of what is meant by an asset-stripper. Clearly, Corus is a commercial company. It can conduct any negotiations it chooses, and it is doing so. We are concerned about the assurance that Corus has given to us about the plans for a viable future in the United Kingdom. Subject to that assurance, if I were the management of Corus, I would be talking to anybody who could help.

§ Lord Davies of Coity
My Lords, given the perilous state of the British steel industry, can the Minister confirm that, contrary to a European Commission recommendation, the British Government in a fairly recent meeting of the Council of Ministers opposed the application for anti-dumping measures against unfairly traded imports of hot-rolled coil from Egypt, Slovakia and Turkey? If that was their stance, what is the explanation for it?

§ Lord McIntosh of Haringey
My Lords, I understand that, strictly speaking, we opposed it only in relation to Egypt. The position of the accession states, principally Slovakia and Poland, is quite different. There is an issue there of the possibility of state aid, but it would be only for the purposes of reducing capacity. I hope that the noble Lord, Lord Davies, agrees that, from the United Kingdom's point of view, a reduction in capacity elsewhere in Europe is very desirable.

§ Lord Stoddart of Swindon
My Lords, if the worst scenario did arise and steel-making in the United Kingdom came virtually to an end—presumably, the Government do not want that result—are the Government prepared to do something to prevent the closure of our steel industry? If so, what are they prepared to do?

§ Lord McIntosh of Haringey
My Lords, if I were to start to respond to such hypothetical questions, not 139 only would I exceed my own responsibilities in this House but it would be enormously damaging, not particularly for government, but for the steel industry in this country. I shall not take part in such speculation.