Thamesteel

I congratulate you, Mr Davies, on chairing the debate. A lot of Members have been trying catch your eye, which reflects its importance. I also congratulate the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) on securing the debate. I know how important the steel industry is for him, as he showed in his powerful and emotional speech. I congratulate, too, my hon. Friend the Member for Sittingbourne and Sheppey (Gordon Henderson), who has been working energetically on the Thamesteel issue. His words show his commitment to that industry in his constituency. I had some involvement with Allied Steel and Wire workers when I was shadow Secretary of State with responsibility for pensions; they faced such pension problems as the hon. Member for Middlesbrough South and East Cleveland referred to, and I was impressed by their dignity and commitment. At that time, I was pleased with the shared, cross-party view on the importance of ensuring that pension obligations were properly met. This morning, we have also heard important contributions from the hon. Members for Redcar (Ian Swales) and for Scunthorpe (Nic Dakin) and my hon. Friend the Member for Warrington South (David Mowat). I followed with great interest the speeches of the hon. Members for Llanelli (Nia Griffith), for Motherwell and Wishaw (Mr Roy) and for Rutherglen and Hamilton West (Tom Greatrex). Ironically, I came to the debate straight from the Cabinet, where the Chancellor was reporting on the Budget to his colleagues. I must not breach Budget secrecy, but it is a Budget for enterprise and one that will show further commitment to and support for British business. We recognise, however, that UK steel companies and their overseas competitors have been forced to take some uncomfortable decisions as they weathered the economic storms of the past few years—companies such as Tata Steel, which has had to reduce its work force by 25% and its capacity by more than 20%. Nevertheless, the UK steel industry remains a significant employer, and it is a welcome and important part of our broad manufacturing base. Its intensive research and development is an important contributor to the UK economy. The steel industry underpins many parts of manufacturing and, as we heard this morning, many local communities, in turn tying into crucial high-tech industries such as aerospace, automotive and construction. Thamesteel, however, found itself at a significant competitive disadvantage on world markets, with competition from countries with lower costs, such as Ukraine and Turkey, so, sadly, it went into administration on 25 January, with the immediate loss of 350 jobs. The Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), who has responsibility for business and enterprise,has been working closely with my hon. Friend the Member for Sittingbourne and Sheppey to ensure that those affected receive all the Government assistance available to get them back into work as soon as possible. My hon. Friends have met to discuss the matter. Let me tell the House briefly what is involved. Tailored practical support is being provided by Jobcentre Plus through its rapid response service and by the talent retention solution programme, which can help engineers to find jobs in engineering. A Thamesteel taskforce has been set up locally by Kent county council to co-ordinate assistance; it has already met three times and is meeting again soon. The Department for Business, Innovation and Skills has been liaising with the Insolvency Service on redundancy payments and unpaid wages, and I understand that, with the exception of one or two cases, all claims have been processed. We will of course maintain the pressure to ensure that every claim is processed. Yes, BIS can and does speak to Her Majesty's Revenue and Customs, although we cannot guarantee what the response will be. The sale of the plant is a matter for the administrators, Mazars, but officials in BIS and UK Trade and Investment have kept in close touch with them and have offered assistance to identify potential buyers for the business.