THE Prime Minister will chair a meeting in Downing Street to discuss the crisis gripping the steel industry amid growing fears of huge job losses.
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“This industry is in difficulty right across the world”, Cameron said.
Unions have accused China of killing off British industry by “dumping” steel on the market at prices that can not be competed with.
Very unlikely. The Government would have to take over the losses and running costs – and the Conservatives don’t usually support renationalisation.
“The question we want answering is why then did the UK Government allow the future of an essential industry that is fundamental to ensure our national security to be in the hands of a foreign power”.
Management of its European division Tata Steel Europe will now evaluate and implement the most feasible option for its British operations.
Cameron defended the government’s handling of the crisis after opposition Labour said it was “missing in action”.
A joint statement from the British government and the Welsh regional government said they would work with unions to maintain the steel industry. He said: “The government will do everything it can, working with the company to try and secure the future of steelmaking in Port Talbot and across our country. It’s a vital industry”, the Prime Minister stated.
Among the other plants that will be affected are Rotherham, Corby and Shotton.Tata’s British business employs about 15,000 workers, including 4,000 at Port Talbot, the country’s biggest steelworks.
Tata’s two mothballed Scottish plants, Dalzell and Clydebridge in Lanarkshire, were bought last week by metals firm Liberty House after the Scottish Government formed a taskforce to save them.
A Financial Times editorial this week urged against nationalization while leftist author Paul Mason believes it should become a mutually owned business, with permanent state support, and points out steel’s usage in the United Kingdom defense sector.
Community general secretary Roy Rickhuss said: “Seeing confusion and mixed messages from ministers will only increase the worry of steelworkers across the UK”.
He managed to fit in a meeting with Australian prime minister Malcolm Turnbull yesterday and also spoke by telephone to Tata group chairman Cyrus Mistry (correct), as well as having a cross-government conference call with other British government ministers.
Tatas have struggled hard to turn around Corus, which it renamed as Tata Steel Europe in 2010 and analysts feel it could be really difficult to find a buyer.
Business secretary Sajid Javid has also cut short an official visit to Australia to return to the UK.
Steel production makes up one per cent of Britain’s manufacturing output and 0.1 per cent of the country’s economic output.
A senior source close to Javid said it was “insulting” to suggest he was not focused on the steel industry’s future.
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A spokesperson for the First Minister said: “This is a deeply worrying time for the workforce, their families and our communities, and we will continue to work for a lasting solution”.
