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UK Steel Industry

My hon. Friend speaks very intelligently. Private companies make decisions in different markets across the European Union. I disagree with my hon. Friend the Member for Wellingborough (Mr Bone), although we agree on Brexit, as I am not sure that the EU is pertinent to the decision that will affect the steel industry. The Government have taken effective action on procurement and power. Having served on a Bill Committee on the privatisation of Royal Mail, I think that a case can be made for the Government to take action on the pension requirements for members of the British steel industry, which was a nationalised industry. There is plenty of scope, for people like me who believe in the free market, to argue that the Government can take action on that basis.

The Opposition say that they believe in nationalisation. The hon. Member for Aberavon said that he believes in nationalisation, but that it is “not a long-term solution”. Opposition Members do not know when the crisis in the global steel industry is going to end. The global capacity glut is over 30%. I am afraid that if we nationalised, we could not determine when we could return the industry to the private market. If people nationalise, they do so for as long as it takes, and I believe, although I understand why my right hon. Friend will not do so, that the Government should rule out nationalisation, which is a step too far for the British economy in supporting the steel industry.

Finally, may I put the issue of the steel industry in context? During the time that most of us will spend in the House—I am looking at older Members—we will live though a global over-supply of capacity. That will be true not just of steel but of other sectors of our economy. We need to understand and abide by the rules that have created a free trade system that has been one of the biggest supports in improving living standards around the world. Supporting WTO rules on the lesser

duty tariff is important, as is avoiding a tit for tat war on tariffs. Supporting communities with a significant industry that is affected and making sure that the Government do more than they think they need to do to support those communities are part of making sure that our economy supports them. I commend the Government on their actions, and I will continue to support them critically.

2.8 pm