Crisis meeting held for future of steel industry

Prime Minister hosting crisis talks on UK steel industry, the future of the Port Talbot Steelworks and 5,500 staff.

Prime Minister David Cameron is hosting crisis talks in Downing Street, after mounting pressure to guarantee the future of the Port Talbot steelworks, following Tata Steel’s announcement of plans to sell the plant in south Wales.

The meeting, which will be attended by ministers and senior officials from the Treasury, Department for Business, Cabinet Office and Welsh Office, will focus on providing a “sustainable long-term future” for the steel sector.

Tata Steel directly employs 15,000 workers and supports thousands of others. Steel production makes up one per cent of Britain’s manufacturing output and 0.1% of the country’s economic output.

The Port Talbot plant is said to be losing £1M a day.

Labour has urged ministers to “get their act” together and step in now, with the government wanting reassurance Tata Steel will not close its plants before a buyer is found.

Jeremy Corbyn has said that the government must intervene to safeguard the future of the UK steel industry, so far stopping short of taking the business into permanent public ownership.

There have been more 850,000 signatures on a labour petition calling for the Parliament to discuss the situation, but the government have ruled out the move.

Labour has said the Port Talbot plant, which was privatised in the 1980s as part of the sale of British Steel, should be temporarily renationalised if no buyer comes forward and it faces closure.

There are concerns that the end of the steel industry and Port Talbot would have a major effect on Britain’s status as a leading military power, undermining defence capabilities.

Lord West, a former First Sea Lord, said: “I cannot think of another major military power that doesn’t have its own indigenous steel production capabilities.”

Shadow chancellor John McDonnell said the government “should nationalise to stabilise” and “bring forward the support that was expected in this budget and didn’t happen” about reducing business rates.

Stephen Kinnock, Labour MP, has called for an immediate injection of government money to ensure plant – which is in his Aberavon constituency – keeps going while its future lies in the balance.

 

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