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Steel crisis: Jeremy Corbyn demands recall of parliament - live updates Steel crisis: Jeremy Corbyn demands recall of parliament - live updates
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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.
12.46pm BST
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Anushka Asthana
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.
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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.
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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.
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Corbyn: parliament should be recalled to debate steel crisisCorbyn: 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.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: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 industryJeremy 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.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.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.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 holidayJeremy 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.Jeremy Corbyn cuts short his holiday and calls for recall of Parliament to discuss crisis engulfing steel industry.
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The GMB union has also backed the idea of temporary nationalisation, to protect steel from the current crisis.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: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.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.The SSI steelworks in Redcar, Teesside, shut last autumn after its owner went into liquidation, with the loss of 1,700 jobs.
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The European Commission says Britain hasn’t been in touch about potential support for the steel industry.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.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.@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.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.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.
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Shadow government minister John Healey has urged business secretary Sajid Javed to cut his trip to Australia short, and head home.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):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.”“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.More here.
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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.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.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.Phillips said.
‘I would support a government acquisition. Frankly, we’re not in a position to pick and choose.‘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.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 nationalisationMore 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/PoV4HSmc0IMy #tatasteel EXCLUSIVE: #localgov chief backs nationalisation at Port Talbot steel plant & calls for urgent action https://t.co/PoV4HSmc0I
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The Unite union is calling for full-scale nationalisation: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/aG7eAT6uOmTime for Cameron to recall MPs to Westminster and #SaveOurSteel | Renationalise steel now https://t.co/aG7eAT6uOm
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at 11.46am BSTat 11.46am BST
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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.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.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.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.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.Full nationalisation.
Unions and some opposition MPs would support this plan, but it runs against David Cameron’s free-market ethos.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...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.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.It could also fall foul of EU state aid rules, which prevent government from propping up failing businesses.
Part-nationalisation.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.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.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.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: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.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/uRG3xKPjMpFour options open to the government to help Tata Steel UK: my explainer for @FT https://t.co/uRG3xKPjMp
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Wales first minister, Carwyn Jones, has called for the Welsh Assembly to be recalled to discuss the crisis.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.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/Rs6LkAxbXcFirst 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.The Assembly is currently on its Easter recess.
10.55am BST10.55am BST
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Business minister Anna Soubry is hitting back at critics of her Today Programme interview, via Twitter.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.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.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.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.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.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.
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Government sources: We want to help
Anushka Asthana
Political editor Anushka Asthana has the latest word from Westminster about the steel crisis:
One option that is likely to be considered is stepping in temporarily with financial support that could keep the site open if a sale looks likely. However, fuller nationalisation is not thought to be under consideration.
A Government source said that Tata Steel’s decision to look for a seller did provide more options. “We will now want to work very hard to support that process. We want to look at ways we ways that we can continue to support Port Talbot.”
Ministers do not accept that they have been too soft when it comes to blocking Chinese steel dumping. Officials have argued that granting China market status economy does not stop Europe increasing tariffs on Chinese steel, and claimed that its action in the EU has been to stop changes to a ruling that could harm British consumers in areas other than steel.
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Britain’s business secretary has been spotted, just 10,000 miles away from Port Talbot.
Sajid Javid has been meeting with Australia’s prime minister, Malcolm Turnbull, in Sydney to discuss economic ties between the two countries.
Important stuff, but thousands of steel workers would probably rather see Javid back home - or lobbying Tata in Mumbai like opposition MP Stephen Kinnock.
Building on UK/Australia modern partnership. @sajidjavid @bisgovuk with PM @TurnbullMalcolm in Sydney today pic.twitter.com/bojat1QkJu
Not a great look for the Business Secretary when the UK steel industry is heading down the stank ... https://t.co/zO0HjifUr6
Javid’s absence leaves the stage free for the prime minister and chancellor of the exchequer to step in....
We should start a sweepstake - who will reappear first to talk about steel - David Cameron, George Osborne or Sajid Javid?
10.21am BST
10:21
BCC: Clear case for government intervention
The British Chambers of Commerce has urged Britain’s government to pull out all the stops to save the steel industry.
Dr Adam Marshall, the BCC’s acting Director General, argues that other countries would do everything in their power to save such a vital industry. The steel crisis, he says, also shows the downside of globalisation.
“Assuring domestic production of steel is hugely important to the UK’s future growth prospects, and to our aspirations for the manufacturing and construction sectors, which are having a hard enough time in an uncertain global market as it is.
“The price the UK pays for dependence on overseas suppliers is often high, particularly in manufacturing and energy. There’s nothing wrong with being part of global supply chains, but there is something very wrong with losing domestic production and skills in a strategically-important industry. The loss of steelmaking would leave the UK vulnerable to global shocks, with dangerous consequences across the economy.
“The mistakes made in the nuclear industry decades ago must not be repeated in the steel industry today. There is a clear case for further government action to protect British steelmaking capacity, as it underpins so much of British manufacturing and construction. Our global competitors would not hesitate on an issue like this.”
One example could be America’s bailout of its auto industry in 2008. Around $80bn was poured into the US car giants, once they fell foul of economic forces following the financial crisis.
10.05am BST
10:05
Our Brussels correspondent, Jennifer Rankin, points out that Britain has been blocking efforts to stop Chinese steel-makers undercutting the UK industry.
Those talking of EU dithering over #steel shd remember UK is the main opponent of punitive, US-level tariffs against cheap Chinese imports.
Last month, the UK repelled efforts to scrap the “lesser duty rule”, allowing EU members to block cheaper steel imports from China.
Business secretary Sajid Javid argued that UK consumers and businesses would suffer if higher tariffs were imposed on Chinese steel - hurting UK growth, jobs and exports.
Unions, though, warned, that allowing Chinese firms to ‘dump’ steel at unfairly cheap prices risked killing off the British steelmaking sector.....
More here:
Related: David Cameron accused of failing UK steel after EU proposal rejected
9.57am BST
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One of Britain’s top actors has urged the government to deliver on its promises, and keep the steel industry running.
Michael Sheen, who grew up in Port Talbot, says the area has already suffered from the economic crisis over the last eight years.
The steel industry was shaken hard by the financial crisis in 2008. The banking industry was helped enormously to recover from that. I hope that we can see as much support for the steel industry and its workers now that they face their time of greatest need. Steel has been at the very foundation of our national identity for generations.
It has given so much to us a country. Now is the time to honour that contribution.
More here:
Related: We bailed out the bankers. Welsh steelworkers deserve no less | Michael Sheen
9.47am BST
09:47
Eight years ago, Britain’s government poured tens of billions into the banking sector. Should it now give steel a bailout?
Or should we accept that steel is a declining industry, and focus on developing cutting edge technology instead? And what about the European angle - is it right that state aid rules enforced by Brussels could determine UK steel’s future?
Let us know what you think here:
Related: What are your views on the future of the British steel industry?
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09:40
A “Save Our Steel” sign has been set up outside the Port Talbot plant.
Timelapse outside #tatasteel plant in Port Talbot. Large banner has been placed outside reading "Save Our Steel". pic.twitter.com/ZdzHjGKX1M
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09:35
Kinnock: Tata wanted UK government to do more
Senior figures at Tata Steel have expressed frustration at the lack of action from the British government to support the steel industry, according a Labour MP who met with senior executives at the company yesterday.
Stephen Kinnock, the local MP for Port Talbot, says company executive Koushik Chatterjee “made it clear that he wanted to see a British Government doing more”.
Our political editor, Anushka Asthana, spoke with Kinnock and reports:
Chatterjee met with the delegation - which included Kinnock and union leader Roy Rickhuss - twice, including at 1.30am after the board agreed the decision.
The MP, who was speaking from Mumbai after the meeting, said no one would criticise Tata Steel because it had been investing in its British arm for seven or eight years. “We appreciate that Tata steel is not a charity but a business,” he told the Guardian.
But he accused the Government of “abject failure” when it came to protecting the steel industry, arguing that it had not only failed to tackle Chinese dumping, but had been a “ringleader” in trying to prevent the European Commission from being given more powers to tackle the situation.
“We are rolling out the red carpet for Beijing,” he added, arguing that Britain was pushing for China to get market economy status at the World Trade Organisation despite the fact that 80% of its steel industry was state owned. “They are in hoc to China. Our commercial policy, our approach to trade and manufacturing, and our overall industrial strategy, is being dictated by Beijing.”
.@SKinnock accused Government of "rolling out the red carpet" to Beijing and failing to support attempt to save Port Talbot in his patch
Tata Steel exec told MPs in Feb it was "deeply concerned abt Europe sleepwalking into greater crisis" by giving China market economy status
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09:29
Guardian photographer Gareth Phillips has visited Port Talbot, to capture these images of a town built around its steel works:
Related: Port Talbot: a community forged in steel – in pictures
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09:18
Here’s more reaction to business minister Anna Soubry’s interview on Today.
The Huffington Post’s Graeme Demianyk reckons Soubry’s comments on temporary nationalisation are significant:
Soubry on #r4today batting for government on Tata: says it is "an option" to temporarily nationalise firm to find buyer. Big step
Soubry says "what I'm trying not to do is overly speculate" as ducks detailling how state ownership might work #r4today
James Wright of the Co-operatives UK argues that a management buyout could be the answer:
@BBCr4today interview with @Anna_Soubry too narrowly focused on state buyout as THE intervention, more discussion of employee buyout needed!
Rory Broomfield, director of the Better Off Out campaign, argues that steel could get more support if Britain leaves the EU:
Govt Minister Anna Soubry admits #EU state aid rules have to be considered. Let's be clear, means #EU Commission can define steel's future.