{"id":69496,"date":"2016-04-11T16:23:52","date_gmt":"2016-04-11T16:23:52","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=6a485aefe76f768fa08d0b7c840e231b"},"modified":"2016-04-11T16:23:52","modified_gmt":"2016-04-11T16:23:52","slug":"statement-to-parliament-uk-steel-industry-update","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=69496","title":{"rendered":"Statement to Parliament: UK steel industry: update"},"content":{"rendered":"
\n

All of us are by now familiar with the perfect storm of factors that has led to the global price of steel collapsing during 2015. <\/p>\n

But for all the economic challenges we face, the real tragedy is a human one. <\/p>\n

Over the past 11 months I\u2019ve visited steelmaking communities right across the UK. <\/p>\n

They\u2019re very different plants in very different places. <\/p>\n

But one thing unites them.<\/p>\n

The pride and dedication of the highly-skilled people I meet. <\/p>\n

All they want is to be able to carry on doing what they do so well. <\/p>\n

And I\u2019m doing everything I can to help them do just that.<\/p>\n

I\u2019ll talk first about Port Talbot.<\/p>\n

Since becoming Secretary of State for Business I have been in frequent contact with the senior management of Tata. <\/p>\n

This includes several meetings with the group\u2019s chairman last year and this.<\/p>\n

Several weeks ago Tata told me, in confidence, that they were seriously considering an immediate closure of Port Talbot. <\/p>\n

Not a sale, a closure. <\/p>\n

That would have meant thousands of hard-working men and women could already be out of a job.<\/p>\n

Thousands more would be facing a bleak future. <\/p>\n

I was not prepared to let that happen. <\/p>\n

In the days that followed, I worked relentlessly to convince Tata that it was in everyone\u2019s interests to keep the plant open and find a new buyer.<\/p>\n

I also made it very clear that the government is totally committed to supporting and facilitating that process.<\/p>\n

This work paid off.<\/p>\n

Last month Tata announced its intention to sell the plant and its wider UK assets rather than close it. <\/p>\n

Since then, I have continued to meet with its executives here and in Mumbai.<\/p>\n

I\u2019ve been joined in this by my Right Honourable friend the Secretary of State for Wales.<\/p>\n

And we\u2019ve secured assurances that Tata will be a responsible seller, and will allow appropriate time to find a buyer.<\/p>\n

The formal sale process begins today (11 April 2016). <\/p>\n

I\u2019ve been in contact with potential buyers, making clear that the government stands ready to help.<\/p>\n

This includes looking at the possibility of co-investing with a buyer on commercial terms.<\/p>\n

And we have appointed E&Y to act as financial advisors on behalf of the government.<\/p>\n

Commercial confidentiality means I cannot go into detail about ongoing discussions. <\/p>\n

However, I will update the House as soon as it is appropriate.<\/p>\n

And let me just thank the First Minister of Wales for all his work so far.<\/p>\n

His support in these talks has been invaluable.<\/p>\n

I\u2019ll turn now to Tata\u2019s Long Products division.<\/p>\n

I\u2019m sure all members will join me in welcoming today\u2019s news of a conditional agreement between Tata and Greybull.<\/p>\n

It\u2019s an agreement that protects jobs and minimises the cost to taxpayers.<\/p>\n

We\u2019ve been closely involved in the sale process from day one, including making a commercial offer on financing if required.<\/p>\n

And we\u2019ll continue to work with them to get the deal done.<\/p>\n

Moving on to Scotland, on Friday we saw Liberty House receiving the keys to 2 Tata mills in Motherwell and Cambuslang.<\/p>\n

It\u2019s a great result for the people of Scotland, and the Scottish government deserves thanks for helping to secure it.<\/p>\n

And finally, since January the global price of steel has started to recover, although it is still a long way from its pre-crisis peak.<\/p>\n

So there has been some positive news for Britain\u2019s steelmakers.<\/p>\n

But our support for the industry and its supply chain continues. <\/p>\n

The Steel Council, which met for the first time early last month, is bringing together government and industry to find solutions.<\/p>\n

We\u2019ve been working closely with the unions.<\/p>\n

And let me take this opportunity to thank Community, in particular, for its positive, constructive approach.<\/p>\n

We\u2019ve taken action on power.<\/p>\n

\u00a376 million has already been paid to steelmakers to compensate for high energy bills, and we expect to pay over \u00a3100 million this year alone.<\/p>\n

We\u2019ve taken action on procurement.<\/p>\n

New rules make it easier for the public sector to buy British. <\/p>\n

And we\u2019re leading calls for EU action against unfair trading practices. <\/p>\n

We voted in favour of anti-dumping measures on wire rod and on steel pipes in July and October last year.<\/p>\n

And we voted in favour of measures on rebar and cold-rolled products in February this year.<\/p>\n

These measures are having a real effect, with rebar imports from China down 99%. <\/p>\n

However, we\u2019re still looking at ways of improving the EU tariff mechanism so we can help the steel industry without harming other sectors. <\/p>\n

I\u2019m happy to hear any suggestions that Honourable Members have on that front. <\/p>\n

And let me make one thing very clear.<\/p>\n

We have repeatedly demanded and voted for tariffs on unfairly traded Chinese steel, and we will continue to do so. <\/p>\n

Mr Speaker, I would love to stand here today and declare the crisis over.<\/p>\n

To say that not one more job will be lost in Britain\u2019s steel industry. <\/p>\n

That\u2019s not a promise I, or anyone in this chamber, can make.<\/p>\n

But I can promise this. <\/p>\n

This government has consistently done all we can to support Britain\u2019s steel industry.<\/p>\n

And that will continue.<\/p>\n

We know there are no easy answers.<\/p>\n

The challenges facing the industry are vast.<\/p>\n

Too many jobs have already been lost.<\/p>\n

Where that has happened, we have worked to ensure nobody is left behind.<\/p>\n

For example, we have committed up to \u00a380 million to help those affected by the closure in Redcar.<\/p>\n

And we stand ready to support any steel community facing redundancies. <\/p>\n

But that\u2019s something I am doing everything in my power to prevent. <\/p>\n

Britain\u2019s steel industry is a vital part of our economy.<\/p>\n

I want to secure its long-term future.<\/p>\n

I want to see \u2018Made in Britain\u2019 stamped on steel used around the world.<\/p>\n

And I want to protect the jobs of the skilled men and women who work in the industry. <\/p>\n

The people of Port Talbot, of Scunthorpe, and of steelmaking communities across the UK deserve nothing less. <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Statement by Business Secretary Sajid Javid on the steel sector.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/69496"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69496"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/69496\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}