Articles
Engineering-related topics have been dominating select committee proceedings in Westminster in recent weeks – but all for the wrong reasons.
First, the directors of Volkswagen in the UK were hauled before MPs to discuss the diesel emissions scandal. And then, a few days later, representatives of the steel industry filed in to explain the events that have led to hundreds of job losses.
Gareth Stace, director of trade body UK Steel, was in combative mood, urging MPs to take concrete actions to prevent further trauma for the sector. He said: “The most concerning thing for the steel industry workforce is that we can’t take control of this unless we get significant help from the government. We are a highly efficient, innovative and skilled workforce but we have our hands tied behind our backs because of government policy and the European Commission not acting as quickly as it could to stop the massive onslaught of Chinese imports.”
Stace reiterated the key actions the government must take in the short term to demonstrate its commitment to the industry. These included: fully implementing the Energy Intensive Industry Compensation Package ahead of April 2016, bringing business rates in line with France and Germany; fully considering derogation requests from the sector on a realistic timetable to meet increased commitments under the industrial emissions directive; continuing to back EU-level action on anti-dumping measures which support the steel sector against the rapid rise in global imports; and supporting local content in major construction projects.
“There is a massive future for the sector, but if these points are all delivered tomorrow that wouldn’t be it. We have highlighted these actions as things government can do in the short term,” said Stace.
There were signs that the government was listening, with business secretary Sajid Javid subsequently confirming that the steel industry will be given extra time to meet new EU rules on emissions. The extra time, which is now awaiting final approval, will allow the sector to avoid paying multi-million pound fines it would otherwise have faced for not meeting the targets quickly enough.
Meeting EU emissions regulations is one of the top issues the steel industry has said is harming its competitiveness. The EU industrial emissions directive could have added millions of pounds of additional costs to the industry next January. The UK is pushing for transitional arrangements and derogations in the directive to benefit steel companies.
Javid said: “We recognised the costs these regulations could have and are working with businesses to agree a flexible way forward that doesn’t damage our competitiveness. Cutting red tape was one of the issues discussed at our recent steel summit and it is important that we are making progress quickly on it. I will also go to Brussels to make the case for firmer action on unfair trade.”