HIS CLAIMS VS THE REALITY
SAJID Javid was grilled over the steel crisis yesterday. Here DANIEL MARTIN analyses his comments
CLAIM:
Sajid Javid said the Government had changed procurement practices to make it easier for the public sector to buy British steel. The rules were brought out last October to cover Whitehall departments but have been extended to the rest of the public sector. It means organisations can take ‘economic and social factors’ into account when deciding whose steel to buy – rather than just going for the cheapest. The Cabinet Office said its procurement rules were ‘consistent with the Public Contracts Regulations, which implement EU rules’.
REALITY:
Mr Javid’s new rules cannot force public bodies to buy British, because that would be illegal under European law. He can only urge them to do so. His proposal has been undermined by the revelation that, for the past six years, the public sector has been urged to buy the cheapest steel rather than British. David Cameron imposed new procurement rules saying value for money concerns were paramount soon after becoming prime minister. That has led to navy frigates and Ajax military vehicles being made with steel from Sweden; the Forth crossing in Scotland with steel from Poland, Spain and China; and the Mersey toll bridge with steel from South Korea.
CLAIM:
Mr Javid said he did not know how important last week’s Tata Steel board meeting in Mumbai was going to be – which is why he decided to go to Australia. He said he had decided to go because he did not think the company would announce its plans to move out of the UK altogether.
REALITY:
The meeting on March 29 was so important that MPs and union representatives travelled to Mumbai in an attempt to lobby board members. Stephen Kinnock, the MP for the South Wales constituency covering Port Talbot, said last week it was obvious to all concerned that the meeting was vital. Delegates said they tried their best to persuade Tata bosses of their cause – but that their efforts were hampered by the absence of the relevant ministers.
CLAIM:
Mr Javid told Andrew Marr that he had decided to return immediately after Tata Steel announced it was pulling out of the UK. ‘I turned around, I came straight back and my first visit was to Port Talbot.’
REALITY:
It was several hours before Mr Javid decided to fly back. On the morning after Tata Steel’s announcement, aides to the Business Secretary were insisting that he was being kept fully in touch and would not be returning. Only after attending a dinner for
businessmen in Sydney did he change his mind. No 10 denies claims that he was ordered back by David Cameron.
CLAIM:
Mr Javid said the Government had been at the forefront of EU efforts to ensure that higher tariffs were placed on cheap Chinese steel. He said claims that the UK was blocking moves to protect European steel ‘couldn’t be further from the truth’.
REALITY:
Although the UK has agreed to the increase of tariffs on some special types of steel, it has blocked effective measures to protect all European steel from Chinese dumping. The EU Commission had wanted to change what is known as the ‘lesser duty rule’, which would have allowed tariffs of up to 66 per cent. European steel experts said Britain was the ‘ringleader’ in blocking this move. It means tariffs on Chinese steel are as little as 9 per cent.