UKIP turns to EU as Blair stalls release of Mittal documents

Mr Knapman has tabled a question calling on the Commission to release documents relating to the British position in negotiations which lead to EU anti-dumping tariffs on steel imports being reduced for steel produced by the Mittal Steel Group. Group owner Mr Mittal has donated over £2m to the Labour Party over the last 2 years.

Mr Knapman originally wrote to the Prime Minister on the 20th August (letter attached) requesting documentation relating to the role of the British government in tariff negotiations. Aside from an acknowledgement letter, no further correspondence has been forthcoming, despite clear guidelines from the Information Commissioner that requests should be dealt with within 20 working days.

Mr Knapman said, "My original intention was simply to give the government an opportunity, in the interests of openness and transparency, to dispel any notion that Mr Mittal’s donation had unduly influenced the government’s negotiating stance. Their failure to respond within the time limits they set, and Peter Mandelson’s role in subsequently cancelling all anti-dumping tariffs, inevitably creates the impression that there is, after all, something to hide.

"It is clearly in the public interest to know whether this government accepted a £2m donation, and then, while holding the Presidency of the European Union, used its influence to the advantage of the donor. Given that the Commissioner involved was Peter Mandelson, we find the prolonged silence from Downing Street worrying at best. Does the government have something to hide, or does it simply believe it is above the law and doesn’t have to release information?"

UKIP said that the question tabled reads, "Some months ago, Mr Barroso suggested that the institutions of Europe should become more transparent. I would like to give him an opportunity to prove that his intentions then were good, particularly as he has now had time to recover from his yachting holiday.

Over the past few years, a Mr Lakshmi Mittal has donated large sums of money to the British Labour Party. I am sure it is coincidental that shortly after these donations, the European Commission reduced the rate at which anti-dumping duty was applied to products from Mr Mittals steel mills in Romania, South Africa, China and India. No other single company benefited to anything like the same extent.

In the new spirit of openness and transparency which accompanies Mr Barroso and Mr Mandelson, will the Commission make available all documentation relating to the decision to reduce tariffs charged to Mittal Steel imports from nations subject to an anti-dumping regime?" ENDS

Notes to Editors:

Roger Knapman’s letter to Tony Blair is appended below the contact details.

For further information, please contact:

Roger Knapman MEP, UKIP Leader, 01822-860254 or 07890-010919

Mark Croucher, UKIP Press Office, 0207-222-9365 or 07960-584161

Dear Mr Blair,

Historically, the Labour Party has benefited enormously from the financial support of Mr Lakshmi Mittal, most recently in July of this year, when it received a donation in the sum of £2m.

Mr Mittal, when announcing this donation, made it clear that he would take legal action against any who insinuated that the donation was conditional upon any benefits accruing to him as a result.

However, our research has indicated a number of measures passed by the European Commission which would appear to favour Mr Mittal’s companies unduly.

In order to ensure that government is seen to be transparent in such matters, and to drive home to the voting public that you are as determined now as you were in 1997 to stamp out the appearance of sleaze, I would request that you make available the following information:

(a) Details of instructions provided to the British negotiating team in respect of European Union anti-dumping tariffs imposed on steel products produced in Romania, South Africa, India and China at any time since 1997.

(b) Details of documentation relating to EU decisions which saw the tariff on steel produced by Ispat Sidex SA of Romania or its predecessor or successor companies reduced to 5.7%, and any instructions to the British permanent delegation in Brussels relating to negotiations concerning Directive 963/2002 or 979/2002.

(c) Details of correspondence between the British and Luxembourg governments relating to any decision to extend the reduction in tariffs applied to imports from Ispat Sidex SA which would account for the appropriate directive (630/2005) being passed on the final day of the Lumxembourg presidency of the European Union rather than under the British presidency.

(d) Details of documentation relating to EU decisions which saw the tariff on steel produced by Ispat Iscor of South Africa reduced to 5.2% under Directive 963/2002, and any instructions to the British permanent delegation in Brussels relating to negotiations.

(e) Details of documentation relating to EU decisions which saw the tariff paid by Ispat Industries Ltd of India reduced to 14% under Directive 1310/2002, and any instructions to the British permanent delegation in Brussels relating to negotiations.

(f) Details of the British position on the removal of anti-dumping tariff barriers to steel produced in Romania, China and India as per official notice 2005/C 192/5 on the 6th August 2005, and any instructions to the British permanent delegation in Brussels relating to negotiations.

(g) Details of any instructions or representations on behalf of the British government, formal or informal, which were passed to the EU Trade Commissioner, Mr Peter Mandelson, relating to these matters.

(h) Details of correspondence received from or sent to Mr Mittal or his agents in relation to these tariffs by the British government

(i) Details of correspondence relating to the European Union punitive tariff on US steel, particularly in relation to Ispat Inland, Mr Mittal’s US company, and on Mr Mittal’s donation to the campaign in the United States to impose retaliative tariffs on EU steel imports contrary to the interests of the UK.

(j) Details of studies relating to the impact on Anglo-Dutch steel company Corus, including the effects on UK employment in the steel industry, of the reduction and/or removal of tariffs imposed on non-EU produced steel.

I am concerned that shortly after Mr Mittal’s donation of £125,000 to the Labour Party became public, the EU decided to reduce tariffs on steel produced by Mr Mittal’s company in Romania to 5.7%, compared with between 9.9% and 37.2% applied to the products of other Romanian steel companies. At the same time, the import tariff applied to steel from Mr Mittal’s South African company, Ispat Iscor, was also slashed from the standard 38.2% to 5.2%. The information requested above will allow you disprove any link between the donation and subsequent legislation.

I am further concerned that shortly after Mr Mittal’s donation of £2m to the Labour Party last month, and within 2 weeks of Mr Mittal’s purchase of a stake in the Chinese state steel producer Varin Iron and Steel, the European Commission cancelled all anti-dumping tariffs on steel produced in China, whereas previously these tariffs were set at 8.1%. As with the previous instance, information relating to these measures will dispel any notion of a link between the large donation and the advantageous outcome of tariff negotiations conducted by EU Trade Commissioner Peter Mandelson. This cancellation of anti-dumping tariffs also applies to Romania and India, where Mr Mittal has considerable interests in the steel industry.

With thanks in anticipation of your prompt response in line with the terms of the Freedom of Information Act, I remain,

Yours sincerely,


Roger Knapman MEP
Leader
U.K. Independence Party