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Oral question asked in the House of Commons, by Stuart Bell (Labour). It was answered on Friday, 25 September 2009 on behalf of the North East Regional Grand Committee.

Regional Policy

Question
It is a great pleasure and honour for us to have you here as Chairman, Mr. Cook, and to have this Grand Committee sitting in Middlesbrough. May I build on the questions from my hon. Friends the Members for Middlesbrough, South and East Cleveland and for Stockton, South on the future of Corus? As the Minister knows from our 30 years of working together, we used to have a whole series of industries in the region: steel, chemicals and shipbuilding. We have seen them all diminish over the years. The steel industry is our area’s last major industry. I know that he has been working very closely with One NorthEast and the Corus response group to see what they can do. My hon. Friend the Member for Middlesbrough, South and East Cleveland indicated that 1,920 staff might be made redundant if—and I do not believe it for a moment—the steel mill closed. Is the Minister aware that other members in the local community—ancillary workers—are also dependent on the continued production of steel? He did not mention that he is having talks with the noble Lord Mandelson, who has put forward a series of proposals to assist the automobile industry. The Minister mentioned the parent company, and I invite him to make strenuous and direct efforts to talk with that company directly, because as we have seen on Teesside, the more remote the parent company becomes from the source of the work, the less easy it is for us to retain influence in its affairs. When British Midland operated out of Teesside airport, it was a local business and we could talk to Sir Michael Bishop, its owner, but as soon as it was bought by Lufthansa, we lost it and it disappeared from the airport. We fear that a remote parent company might not take fully into account the needs of our community and the desire to maintain steel industry production here. Mr. Cook, you will be aware of the efforts that are made by Members to keep the industry open—you, too, have made great efforts in that regard—and it remains primordial for this area that the steel mill at Redcar is made safe.
Answer

My hon. Friend and I entered Parliament together in 1983, as indeed did you, Mr. Cook, so it is a great pleasure after all these years to take part in a formal parliamentary occasion in his constituency. I thank him also for the welcome we had from the Mayor of Middlesbrough. The situation at Corus is the largest single issue facing the region. My hon. Friend is absolutely right that the situation relates not only to the principal employment base, but to the supply chain that sits alongside the industry, not least at Tees port, as the steel works are the principal part of its work load. In answer to my hon. Friend’s question, I am in touch with the company at every level, through officials—there are rules of propriety about these things, as he will know—and with the Departments that have an interest in the situation, such as the Department for Work and Pensions, which is looking at the impact on the labour market of any potential redundancy round, the Treasury and the Department for Business, Innovation and Skills. The Government’s plan is essentially to try to get the company through the economic downturn until the world market price comes closer to the price of production at the plant. That way, it will have a fighting change for survival, and all our energies are focused on that. I am open to any ideas that we have not yet thought of, but, believe me, absolutely everything that could have been thought of, including bringing forward public procurement that would involve steel, has been explored. The company has told me that the best thing I can do for it is to try to get the construction sector moving again in western Europe, particularly in the UK, so that demand for the product will increase, followed by the price, and it will be able to earn its way through the difficulties. My hon. Friend and I have known each other long enough, so if he has an idea that he thinks has not been explored, he should tell me what it is and I will ensure that it is taken forward within Government. Nobody misunderstands the seriousness of the situation on Teesside. When I last met formally the leaders of the 12 local strategic authorities in our region, the leader of Redcar council raised the situation in formal representations to the Government, stressing its seriousness, and asked for the support of the other leaders. One really encouraging sign—this is not a party political point—is that the leaders of every local authority in the region readily agreed and were able to speak on behalf of the region with a united voice for local government, drawing the same support for Redcar and Corus and supporting the policy of trying to get the plant through these challenging times.

Secondary information

Type
Oral question
Reference
NERGC c6-7 
Session
2008-09
Oral question type
Supplementary
Chamber / Committee
House of Commons Grand Committees
Subjects
Regional planning and development North East One NorthEast
Link
View this Oral question on www.publications.parliament.uk