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| UK minister: 'temporary ownership' of steel industry is an option - business live | |
| (35 minutes later) | |
| 8.55am BST | |
| 08:55 | |
| Anna Soubry sounded somewhat confused about how Scotland’s government had rescued its own steel industry earlier this year. | |
| She told Today Programme that: | |
| “ I think, and I’m using that word very carefully, I think they may have kept some of the staff on. I may be wrong about that, but they didn’t take ownership of the Clydebridge and Dalzell plants. | |
| However, the official announcement states that Tata sold the sites to the Scottish government, who are now selling them on to international metals group Liberty House. | |
| And when asked about how the government could take temporary ownership of Tata’s sites, Soubry admits that “I don’t know the fine detail of it.” | |
| It does suggest that the crisis may have caught ministers on the hop, as James Reed, political editor of the Yorkshire Post, tweets: | |
| Can't remember last time I heard Minister admitting to not knowing detail on own policy. Soubry struggling on #r4today over steel. | |
| 8.27am BST | 8.27am BST |
| 08:27 | 08:27 |
| Anna Soubry adds that there is “huge sympathy” for Tata, given the sums it has invested, but it is losing £1m per day. | Anna Soubry adds that there is “huge sympathy” for Tata, given the sums it has invested, but it is losing £1m per day. |
| Q: Couldn’t you pick up those losses? | Q: Couldn’t you pick up those losses? |
| We have to be compliant with state aid rules, the business minister replies. | We have to be compliant with state aid rules, the business minister replies. |
| But there is absolute determination to make sure that steel is made in Port Talbot, not just rolled and milled there. | But there is absolute determination to make sure that steel is made in Port Talbot, not just rolled and milled there. |
| And the government doesn’t want Tata’s UK assets to be split up too much, Soubry concludes. | And the government doesn’t want Tata’s UK assets to be split up too much, Soubry concludes. |
| 8.24am BST | 8.24am BST |
| 08:24 | 08:24 |
| Soubry: Government could temporarily step in | Soubry: Government could temporarily step in |
| Business minister Anna Soubry is on Radio 4’s Today programme now. | Business minister Anna Soubry is on Radio 4’s Today programme now. |
| Q: Is the government willing to take a stake in Tata’s steel assets? | Q: Is the government willing to take a stake in Tata’s steel assets? |
| The first thing we need to establish is what Tata means about its decision to leave the UK being ‘time-bound’ [see earlier statement], says Soubry | The first thing we need to establish is what Tata means about its decision to leave the UK being ‘time-bound’ [see earlier statement], says Soubry |
| She says that Tata has done an “outstanding job” in Britain, citing its ownership of Jaguar Land Rover. | She says that Tata has done an “outstanding job” in Britain, citing its ownership of Jaguar Land Rover. |
| But the British government wants enough time to secure a buyer. That will take months. | But the British government wants enough time to secure a buyer. That will take months. |
| Q: Could the government hold the assets until a buyer can be found, if Tata wants to sell up now? | |
| That is an option, Soubry says. | |
| Q: Are you saying that a Conservative government would be prepared in extremis to own a part of UK steel? | Q: Are you saying that a Conservative government would be prepared in extremis to own a part of UK steel? |
| I’m not sure ‘own’ is the right term. We do need to look at all options, but first we need to get time from Tata to run a proper sale process. | |
| Biz Minister Anna Soubry: Temporary UK govt ownership is an option for @Tatasteelltd #r4today | Biz Minister Anna Soubry: Temporary UK govt ownership is an option for @Tatasteelltd #r4today |
| Updated | |
| at 8.31am BST | |
| 8.18am BST | 8.18am BST |
| 08:18 | 08:18 |
| Wales first minister, Carwyn Jones, has urged Tata to be a “responsible seller” and keep its UK sites operating while a buyer is found. | Wales first minister, Carwyn Jones, has urged Tata to be a “responsible seller” and keep its UK sites operating while a buyer is found. |
| Jones also believes that “temporary nationalisation” needs to be considered. | Jones also believes that “temporary nationalisation” needs to be considered. |
| He told Sky News that: | He told Sky News that: |
| We can’t do it - we haven’t got the resources, but the UK government has got those resources. | We can’t do it - we haven’t got the resources, but the UK government has got those resources. |
| Jones insists that the steel industry can have a profitable future, even though Port Talbot is currently loss-making. | Jones insists that the steel industry can have a profitable future, even though Port Talbot is currently loss-making. |
| State ownership has to be considered if the industry is to move forwards.... and face the future with confidence. | State ownership has to be considered if the industry is to move forwards.... and face the future with confidence. |
| Updated | Updated |
| at 8.20am BST | at 8.20am BST |
| 8.08am BST | 8.08am BST |
| 08:08 | 08:08 |
| The head of Community, the steel union, tweets: | The head of Community, the steel union, tweets: |
| Just spoken with Welsh First Minister Carwyn Jones - a positive conversation, we are both determined to secure a future for steel making. | Just spoken with Welsh First Minister Carwyn Jones - a positive conversation, we are both determined to secure a future for steel making. |
| 8.06am BST | 8.06am BST |
| 08:06 | 08:06 |
| Business secretary Sajid Javid doesn’t appear to be scrapping his trip to Australia. | Business secretary Sajid Javid doesn’t appear to be scrapping his trip to Australia. |
| No sign of Biz Sec Sajid Javid returning from Australia re Port Talbot/Tata | No sign of Biz Sec Sajid Javid returning from Australia re Port Talbot/Tata |
| Sajid Javid spokesperson: :"He remains v.close to situation. And is being constantly updated" | Sajid Javid spokesperson: :"He remains v.close to situation. And is being constantly updated" |
| Javid is due to address the Australian British Chamber of Commerce tomorrow. | Javid is due to address the Australian British Chamber of Commerce tomorrow. |
| 7.57am BST | 7.57am BST |
| 07:57 | 07:57 |
| Industry chief: Temporary nationalisation could save steel | Industry chief: Temporary nationalisation could save steel |
| Terry Scouler, the chief executive of EEF, the manufacturers’ organisation, believes the UK government should consider taking Britain’s steel industry under temporary ownership. | Terry Scouler, the chief executive of EEF, the manufacturers’ organisation, believes the UK government should consider taking Britain’s steel industry under temporary ownership. |
| He told the Today programme that: | He told the Today programme that: |
| The government in Westminster and South Wales seems to be absolutely committed to maintaining steel production in Port Talbot.... | The government in Westminster and South Wales seems to be absolutely committed to maintaining steel production in Port Talbot.... |
| I don’t think nationalisation is the right way forward, but what’s being hinted at is temporary nationalisation. | I don’t think nationalisation is the right way forward, but what’s being hinted at is temporary nationalisation. |
| Temporary nationalisation could allow the steel industry to ride out the current tough market conditions. | Temporary nationalisation could allow the steel industry to ride out the current tough market conditions. |
| Scouler points out that the steel price has halved in the last 18 months. The government could do more to help, by “aggressively” looking at the state aid rules and clamping down on “illegal steel dumping”, he says. | Scouler points out that the steel price has halved in the last 18 months. The government could do more to help, by “aggressively” looking at the state aid rules and clamping down on “illegal steel dumping”, he says. |
| Updated | Updated |
| at 7.59am BST | at 7.59am BST |
| 7.53am BST | 7.53am BST |
| 07:53 | 07:53 |
| UK government sees steel as "vital strategic interest" | UK government sees steel as "vital strategic interest" |
| The UK government is considering whether a workforce management buyout could save the steel industry, according to the BBC’s assistant political editor, Norman Smith. | The UK government is considering whether a workforce management buyout could save the steel industry, according to the BBC’s assistant political editor, Norman Smith. |
| Smith told Radio 4’s Today Programme that the government is also considering the option of “direct state involvement”. | Smith told Radio 4’s Today Programme that the government is also considering the option of “direct state involvement”. |
| He told listeners that: | He told listeners that: |
| The view in government is that Port Talbot and the steel industry is a vital economic and strategic interest... and it’s the role of government to intervene to protect it. | The view in government is that Port Talbot and the steel industry is a vital economic and strategic interest... and it’s the role of government to intervene to protect it. |
| However, the government is also concerned that Tata wants to sell its UK assets quickly, giving only a few weeks to find a potential buyer. | However, the government is also concerned that Tata wants to sell its UK assets quickly, giving only a few weeks to find a potential buyer. |
| And there is also concern that any financial assistance could run foul of European state aid rules.... | And there is also concern that any financial assistance could run foul of European state aid rules.... |
| "It is the role of the Govt to intervene when a vital economic interst is at stake" says source re Port Talbot | "It is the role of the Govt to intervene when a vital economic interst is at stake" says source re Port Talbot |
| Updated | Updated |
| at 8.03am BST | at 8.03am BST |
| 7.47am BST | 7.47am BST |
| 07:47 | 07:47 |
| Opposition MPs have moved swiftly to pile pressure on the government, to prevent the steel industry collapsing. | Opposition MPs have moved swiftly to pile pressure on the government, to prevent the steel industry collapsing. |
| Angela Eagle MP, the shadow business secretary, says this “vital strategic industry” must be saved. | Angela Eagle MP, the shadow business secretary, says this “vital strategic industry” must be saved. |
| “Steel workers at Tata, their families and their communities will be desperately worried this evening as they face ongoing uncertainty. | “Steel workers at Tata, their families and their communities will be desperately worried this evening as they face ongoing uncertainty. |
| “Steel is a foundation industry that is hugely important for our economy. The Government should be doing everything possible to protect the industry in the short term as it faces this perfect storm. | “Steel is a foundation industry that is hugely important for our economy. The Government should be doing everything possible to protect the industry in the short term as it faces this perfect storm. |
| Awkwardly for the government, the actual business secretary - Sajid Javid - was on an aeroplane to Australia when Tata’s bombshell landed. | Awkwardly for the government, the actual business secretary - Sajid Javid - was on an aeroplane to Australia when Tata’s bombshell landed. |
| Eagle isn’t impressed, saying: | Eagle isn’t impressed, saying: |
| “After months of complacency and after a budget with no strategy for steel, Sajid Javid and his team seem to have gone missing in action at this crucial time. | “After months of complacency and after a budget with no strategy for steel, Sajid Javid and his team seem to have gone missing in action at this crucial time. |
| Updated | Updated |
| at 7.51am BST | at 7.51am BST |
| 7.32am BST | 7.32am BST |
| 07:32 | 07:32 |
| The agenda: UK steel in crisis as Tata pulls out | The agenda: UK steel in crisis as Tata pulls out |
| Good morning. | Good morning. |
| Britain’s steel workers are under a dark cloud of gloom and uncertainty this morning, after India’s Tata announced it is pulling out of the UK. | Britain’s steel workers are under a dark cloud of gloom and uncertainty this morning, after India’s Tata announced it is pulling out of the UK. |
| Tata dashed hopes that it would back turnaround plan for the steelworkers in Port Talbot, Wales. Instead, it will sell all its other sites across the UK, Rotherham, Corby and Shotton, | Tata dashed hopes that it would back turnaround plan for the steelworkers in Port Talbot, Wales. Instead, it will sell all its other sites across the UK, Rotherham, Corby and Shotton, |
| The move puts around 15,000 jobs at risk across the former British Steel operation, and the whole future of the UK steel industry is now in doubt. | The move puts around 15,000 jobs at risk across the former British Steel operation, and the whole future of the UK steel industry is now in doubt. |
| In a statement issued overnight, Tata claimed the turnaround plan for Port Talbot was simply too risky and uncertain given the deteriorating economic conditions. | In a statement issued overnight, Tata claimed the turnaround plan for Port Talbot was simply too risky and uncertain given the deteriorating economic conditions. |
| It warned: | It warned: |
| “While the global steel demand, especially in developed markets like Europe has remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently, due to structural factors including global oversupply of steel, significant increase in third country exports into Europe, high manufacturing costs, continued weakness in domestic market demand in steel and a volatile currency.” | “While the global steel demand, especially in developed markets like Europe has remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently, due to structural factors including global oversupply of steel, significant increase in third country exports into Europe, high manufacturing costs, continued weakness in domestic market demand in steel and a volatile currency.” |
| Official: @TataSteelEurope "explore all options ..incl potential divestment of Tata Steel UK, in whole or in parts" pic.twitter.com/zky25sHhOv | Official: @TataSteelEurope "explore all options ..incl potential divestment of Tata Steel UK, in whole or in parts" pic.twitter.com/zky25sHhOv |
| As we reported last night, the UK government is under serious pressure to act and protect the UK steel industry, led by the local MP. | As we reported last night, the UK government is under serious pressure to act and protect the UK steel industry, led by the local MP. |
| The MP for Aberavon, Stephen Kinnock, who was in Mumbai to lobby the Tata board, was briefed after the board meeting by Tata’s chief financial officer. | The MP for Aberavon, Stephen Kinnock, who was in Mumbai to lobby the Tata board, was briefed after the board meeting by Tata’s chief financial officer. |
| Kinnock told the South Wales Evening Post on Tuesday night: “We will not allow the closure of Port Talbot steelworks. One way or another we will continue to make steel in Port Talbot but it looks like Tata do not back the plan. We will work with Tata and the UK government to help find a buyer for the plant.” | Kinnock told the South Wales Evening Post on Tuesday night: “We will not allow the closure of Port Talbot steelworks. One way or another we will continue to make steel in Port Talbot but it looks like Tata do not back the plan. We will work with Tata and the UK government to help find a buyer for the plant.” |
| Related: Tata Steel to sell off entire British business | Related: Tata Steel to sell off entire British business |
| We’ll be tracking all the main developments through the day, and other news across the world economy, the financial markets and business. | We’ll be tracking all the main developments through the day, and other news across the world economy, the financial markets and business. |
| Updated | Updated |
| at 7.41am BST | at 7.41am BST |