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Steel crisis: Jeremy Corbyn demands recall of parliament - live updates Steel crisis: Jeremy Corbyn demands recall of parliament - live updates
(35 minutes later)
2.15pm BST
14:15
Attention, Port Talbot. Jeremy Corbyn is heading your way...
Labour leader @jeremycorbyn going to Port Talbot this afternoon to show support for steel workers
2.09pm BST
14:09
Ben Wright of the Press Association is tweeting the scene at Port Talbot - from the media circus to the homes of worried steel workers:
The media presence outside #tatasteel plant in Port Talbot. pic.twitter.com/1b6WLdDxzO
Sebastien Boyesen’s sculpture, Mortal Coil, commemorating the steel industry in Port Talbot #tatasteel pic.twitter.com/ZhopVrPRh7
Houses in the shadow of Port Talbot's steelworks. #tatasteel pic.twitter.com/RTTfpEv4ZE
2.07pm BST
14:07
My colleague Graham Ruddick has analysed the crisis facing the steel industry, and explained why it can’t all be blamed on Europe:
Related: Would Brexit help Britain’s steel industry?
2.06pm BST
14:06
Would Brexit really help the steel industry, as campaigners are claiming?
One counter-argument is that UK industry would find it harder to sell products to the continent if Britain left the EU, especially if punitive tariffs were imposed. That weaker demand could feed through to the steel industry.
And although Brexit would allow Britain to slap much higher tariffs on cheap Chinese steel, that might not be a brilliant negotiating strategy if you’re trying to charm Beijing into a new trade deal.....
1.55pm BST
13:55
Here’s another sign that Brexit campaigners believe the steel crisis helps their case:
USA imposes a 266% tariff on cheap steel allowing its own industry to thriveThe benefit of being a sovereign nation pic.twitter.com/eMIaflUgeI
1.45pm BST
13:45
Labour MP, and Brexit campaigner, Kate Hoey has blamed Brussels for the plight of the UK steel industry.
She writes:
“The EU’s regulations on energy production are killing our steel industry. It is impossible for the UK to compete with non-EU countries like the US, where electricity costs half the price, and Norway, where energy is 25% of the UK price. They unlike us are free from dogmatic, ineffective rules on energy sources.
She also criticises the EU for allowing China to “dump cheap steel on European countries”.
(Although as we pointed out earlier, Britain actually blocked attempts to raise tariffs on Chinese steel).
Hoey also singles out the EU ban on state aid:
“The European Union also ties the UK’s hands on state aid, preventing us from temporarily nationalising the industry under their inflexible single market competition rules. This would allow Port Talbot to ride out the storm until steel prices recover and a new buyer is found.
(Reminder: EU rules ban countries from propping up failing companies, but do allow support to boost competitiveness)
1.37pm BST1.37pm BST
13:3713:37
Jeremy Corbyn has now tweeted a photo of his letter calling for MPs to be recalled to Westminster.Jeremy Corbyn has now tweeted a photo of his letter calling for MPs to be recalled to Westminster.
No response from @David_Cameron yet....No response from @David_Cameron yet....
My letter to Cameron pressing for the recall of Parliament to debate the threat to the steel industry #SaveOurSteel pic.twitter.com/7xZ7oE4JsqMy letter to Cameron pressing for the recall of Parliament to debate the threat to the steel industry #SaveOurSteel pic.twitter.com/7xZ7oE4Jsq
1.23pm BST1.23pm BST
13:2313:23
My colleague Nazia Parveen is meeting with Tata steel workers in Rotherham.My colleague Nazia Parveen is meeting with Tata steel workers in Rotherham.
They have told her they are desperately worried about their jobs, and urged the government to help. Workers are also unhappy that Chinese steel is being imported and used for local projects, rather than steel milled in the area.They have told her they are desperately worried about their jobs, and urged the government to help. Workers are also unhappy that Chinese steel is being imported and used for local projects, rather than steel milled in the area.
Nazia has also met with people who were laid off by Tata recently:Nazia has also met with people who were laid off by Tata recently:
Rotherham steel workers say they are 'devastated' and have lost their jobs for life.Rotherham steel workers say they are 'devastated' and have lost their jobs for life.
Senior union rep Stuart Samsome made redundant after almost 40 years at Tata steel-he said it was 'heart-breaking' pic.twitter.com/ztp0QSdQCCSenior union rep Stuart Samsome made redundant after almost 40 years at Tata steel-he said it was 'heart-breaking' pic.twitter.com/ztp0QSdQCC
Samsome said over the years the Rotherham Tata steel plant had been run into the groundSamsome said over the years the Rotherham Tata steel plant had been run into the ground
Steel for the Forth Bridge imported from China rather than getting it from 30miles down the rd from Rotherham, claim workers at TataSteel for the Forth Bridge imported from China rather than getting it from 30miles down the rd from Rotherham, claim workers at Tata
1.11pm BST1.11pm BST
13:1113:11
As well as recalling parliament, Jeremy Corbyn is asking David Cameron to convene a meeting of all interested parties to discuss the steel crisis.As well as recalling parliament, Jeremy Corbyn is asking David Cameron to convene a meeting of all interested parties to discuss the steel crisis.
That would include government, unions, and industry groups.That would include government, unions, and industry groups.
The Labour leaders also says that state ownership should be considered:The Labour leaders also says that state ownership should be considered:
“If necessary ministers must be prepared to use their powers to take a public stake in steel-making to protect the industry and British manufacturing. The Government must do whatever it takes to save this strategic industry.”“If necessary ministers must be prepared to use their powers to take a public stake in steel-making to protect the industry and British manufacturing. The Government must do whatever it takes to save this strategic industry.”
1.08pm BST1.08pm BST
13:0813:08
1.00pm BST1.00pm BST
13:0013:00
Labour’s deputy leader, Tom Watson, tweets that the business secretary must ‘get a grip’ of the steel crisis.Labour’s deputy leader, Tom Watson, tweets that the business secretary must ‘get a grip’ of the steel crisis.
The UK requires a secure steel production capacity. That's why @jeremycorbyn has demanded a recall of Parliament. Get a grip @sajidjavid.The UK requires a secure steel production capacity. That's why @jeremycorbyn has demanded a recall of Parliament. Get a grip @sajidjavid.
12.46pm BST12.46pm BST
12:4612:46
Anushka AsthanaAnushka Asthana
Sajid Javid spoke to Tata Steel chair Cyrus Mistry this morning, we hear.Sajid Javid spoke to Tata Steel chair Cyrus Mistry this morning, we hear.
The business secretary is “monitoring the situation closely and getting regular updates” despite being in Australia, according to a government source.The business secretary is “monitoring the situation closely and getting regular updates” despite being in Australia, according to a government source.
12.43pm BST12.43pm BST
12:4312:43
The IPPR think tank has calculated that at least 40,000 jobs are at risk across the steel industry, and in industries that rely on it.The IPPR think tank has calculated that at least 40,000 jobs are at risk across the steel industry, and in industries that rely on it.
That includes 15,000 employed by Tata Steel in the UK, and 25,000 jobs in the supply chain -- at manufacturers and suppliers of iron, coke, petroleum, and machinery used at steel works.That includes 15,000 employed by Tata Steel in the UK, and 25,000 jobs in the supply chain -- at manufacturers and suppliers of iron, coke, petroleum, and machinery used at steel works.
12.37pm BST
12:37
Corbyn: Ministers must act now to save steel
In his letter to David Cameron, Jeremy Corbyn urges the government to take urgent action to protect the UK steel industry.
The Labour leader says:
“The news that Tata is preparing to pull out of steel-making in Britain puts thousands of jobs across the country and a strategic UK-wide industry at risk. MPs must have the chance now to debate the future of steel and hold ministers to account for their failure to intervene.
“Steelworkers and their families will be desperately worried about the uncertainty. The Government is in disarray over what action to take. Ministers must act now to protect the steel industry, which is at the heart of manufacturing in Britain and vital to its future.”
Jeremy Corbyn has written to PM to demand that Parliament be recalled to discuss #steelcrisis.
Updated
at 12.51pm BST
12.28pm BST
12:28
Corbyn: parliament should be recalled to debate steel crisis
Labour party leader Jeremy Corbyn has called for the UK parliament to be recalled to debate the steel crisis.
That’s via Seumas Milne, Labour’s executive director of strategy and communication:
Jeremy Corbyn has written to the Prime Minister to press for the recall of parliament to debate the threat to the British steel industry
As covered earlier, Wales’s first minister has already asked for the Welsh Assembly to be recalled, for a debate next Monday.
The Houses of Parliament are currently on Easter recess, with MPs not due back at their desks until 11 April.
But Corbyn has now cut his own holiday short -- he’s been visiting Exmouth, in Devon, where he apparently enjoyed a slice of cake for breakfast.
Jeremy Corbyn has his cake and eats it during Exmouth holiday
Jeremy Corbyn cuts short his holiday and calls for recall of Parliament to discuss crisis engulfing steel industry.
Updated
at 12.33pm BST
12.18pm BST
12:18
The GMB union has also backed the idea of temporary nationalisation, to protect steel from the current crisis.
Dave Hulse, national officer of the GMB, said:
We have to look at nationalising the steel industry, even over a short period of time, to protect the assets. Otherwise, we will end up with the same situation we had with SSI in the North East where the Government badly let everyone down.
The SSI steelworks in Redcar, Teesside, shut last autumn after its owner went into liquidation, with the loss of 1,700 jobs.
12.09pm BST
12:09
The European Commission says Britain hasn’t been in touch about potential support for the steel industry.
At midday presser, @EU_Commission says there's been no contact with #UK govt on state aid for @Tatasteelltd.
.@EU_Commission says no contacts yet from British govt on support for British steel
The EC’s official position is that governments may not use public money to rescue and restructure failing steelmakers. However, EU countries are allowed to boost the global competitiveness of steel companies, by funding research and development or helping with high fuel costs.
In January, the EC ordered Belgium to recover €211m in aid handed to steelmaker Duferco. It also opened a formal probe into claims that Italy had wrongly provided €2bn to help its Ilva steelworkers to modernise itself.
12.01pm BST
12:01
Shadow government minister John Healey has urged business secretary Sajid Javed to cut his trip to Australia short, and head home.
Mr Healey said (via the Yorkshire Post):
“I want to see the Business Secretary back from Australia to get a grip on the Government’s response and I want to see the Prime Minister saying to the Community union, which has led the charge in this: ‘yes, I will meet you, yes, I will discuss the future of steelmaking in this country,’ because it is too important for us to lose.”
More here.
11.55am BST
11:55
The chief executive of Neath Port Talbot Council has also backed the nationalisation of the local steel works, following Tata’s decision not to support its turnaround plan.
Interviewed by the Municipal Journal (the MJ), Stephen Phillips said urgent action was needed to preserve jobs at the site, and the surrounding area.
Phillips said.
‘I would support a government acquisition. Frankly, we’re not in a position to pick and choose.
If there is a prospect of a sustainable disposal to a third party so be it, if that requires the Government to intervene on a temporary or permanent basis so be it.
More here: Chief backs steel plant nationalisation
My #tatasteel EXCLUSIVE: #localgov chief backs nationalisation at Port Talbot steel plant & calls for urgent action https://t.co/PoV4HSmc0I
Updated
at 12.14pm BST
11.46am BST
11:46
The Unite union is calling for full-scale nationalisation:
Time for Cameron to recall MPs to Westminster and #SaveOurSteel | Renationalise steel now https://t.co/aG7eAT6uOm
Updated
at 11.46am BST
11.42am BST
11:42
The FT’s chief political correspondent, Jim Pickard, reckons there are four options on the table to save Britain’s steel industry, and only a few weeks in which to do it.
Easing the path to a private sale.
This is what happened in Scotland, where the government agreed to briefly own two Tata steel plants before immediately selling them to a new owner.
Business minister Anna Soubry has already indicated this option is on the table (despite some initial haziness about the details). However any buyer would need convincing that the steel industry has a bright future, despite Tata warning that conditions have deteriorated.
Full nationalisation.
Unions and some opposition MPs would support this plan, but it runs against David Cameron’s free-market ethos.
But as Jim points out, there is precedent...
Supporters of the idea say that it would be no different to the rescue of the big banks after the credit crunch of 2008: the business could be sold on once steel prices recover at some point in the future, they argue.
It could also fall foul of EU state aid rules, which prevent government from propping up failing businesses.
Part-nationalisation.
Taking a stake in Tata UK would provide capital to cover its current losses. It could also potentially help a management/workers buyout. However, Brussels state rules could be problematic.
Allow Britain’s steel industry to fail.
The government could conclude that steel-making is no longer profitable. This would destroy thousands of jobs across the country, both at steel works and related industries.
It would also be politically damaging. As Jim puts it:
For the Tory government, the political consequences would be obvious: critics would see it as further proof of its apparent callousness in the face of Britain’s decline in conventional manufacturing.
Four options open to the government to help Tata Steel UK: my explainer for @FT https://t.co/uRG3xKPjMp
Updated
at 11.46am BST
11.03am BST
11:03
Wales first minister, Carwyn Jones, has called for the Welsh Assembly to be recalled to discuss the crisis.
Jones has written to Rosemary Butler, president officer of the Assembly, formally asking for a debate next Monday.
First Minister @fmwales formally requests National Assembly to be recalled #tatasteel https://t.co/LsbwGueBUB pic.twitter.com/Rs6LkAxbXc
The Assembly is currently on its Easter recess.
10.55am BST
10:55
Business minister Anna Soubry is hitting back at critics of her Today Programme interview, via Twitter.
As covered earlier, she was asked why Westminster couldn’t copy the Scottish example of buying steel assets from Tata and selling them onto another buyer.
Soubry is defending her claim that the Scottish government didn’t actually buy the two plants, because they are being immediately sold on to metals firm Liberty House.
1/2 To be clear @BBCr4today @bbcnickrobinson sale of Scottish steel plants has not been completed.
2/2 the plan is for a technical back to back. Not accurate to claim Scottish Govt has bought them.
The important point, I think, is that the Scottish deal gave Tata reassurance that it would sell the assets, and also allowed Liberty House to avoid a long-winded due diligence process.