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| Stephen Kinnock: Tata Steel bosses 'felt let down' by government | Stephen Kinnock: Tata Steel bosses 'felt let down' by government |
| (35 minutes later) | |
| Senior figures at Tata Steel expressed frustration at the lack of action from the British government to support the steel industry, according to a Labour MP who met executives at the company on Tuesday. | |
| Stephen Kinnock, whose Aberavon constituency includes the Port Talbot plant, said company executive Koushik Chatterjee “made it clear that he wanted to see a British government doing more”. He met the delegation – which included Kinnock and Roy Rickhuss, the general secretary of the Community steelworkers’ union – twice, including at 1.30am after the board agreed the decision. | Stephen Kinnock, whose Aberavon constituency includes the Port Talbot plant, said company executive Koushik Chatterjee “made it clear that he wanted to see a British government doing more”. He met the delegation – which included Kinnock and Roy Rickhuss, the general secretary of the Community steelworkers’ union – 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 said. | 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 said. |
| 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. | 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 – and particularly George Osborne – 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 hock to China. Our commercial policy, our approach to trade and manufacturing, and our overall industrial strategy, is being dictated by Beijing.” | |
| He also criticised the government for agreeing to a multibillion pound defence contract late last year that will use Swedish steel. | |
| Kinnock said Tata Steel understood its investment in Port Talbot was not just about “pounds and pence” but “families and livelihoods” and had tried to keep the business going. | Kinnock said Tata Steel understood its investment in Port Talbot was not just about “pounds and pence” but “families and livelihoods” and had tried to keep the business going. |
| The MP travelled to Mumbai as part of a delegation, with union leaders, to present a plan of how the company could turn the situation around. | The MP travelled to Mumbai as part of a delegation, with union leaders, to present a plan of how the company could turn the situation around. |
| Related: The crisis in British steel has been 40 years in the making | Related: The crisis in British steel has been 40 years in the making |
| “We knew when we flew out that there were three scenarios,” he said, pointing to keeping the plants open, a “hard closure”, or looking for a buyer. “So I’m relieved they have gone for finding a buyer and no hard closure.” | “We knew when we flew out that there were three scenarios,” he said, pointing to keeping the plants open, a “hard closure”, or looking for a buyer. “So I’m relieved they have gone for finding a buyer and no hard closure.” |
| He said the situation was not just about the employees but all those linked to the plant in the supply chain. “If we don’t find a buyer … we are potentially looking down the barrel at 40,000 jobs. Sajid Javid [the business secretary] flew off to Australia. I’m sure that is important but Tata Steel has just taken the biggest decision to affect the British economy since Gordon Brown bailed out the banks,” he said. | |
| People in Port Talbot were “deeply worried, despondent, unsure about the future”, he said, but there was some relief that the company would be looking for a sale. | People in Port Talbot were “deeply worried, despondent, unsure about the future”, he said, but there was some relief that the company would be looking for a sale. |
| Kinnock travelled to Mumbai with Rickhuss, and two more representatives from Port Talbot. They put forward ideas to cut costs that had been drawn up by consultants, including “salami slicing” across the business. “It was always a long shot,” he said. But he added: “It is inconceivable for Britain to stop making steel.” | Kinnock travelled to Mumbai with Rickhuss, and two more representatives from Port Talbot. They put forward ideas to cut costs that had been drawn up by consultants, including “salami slicing” across the business. “It was always a long shot,” he said. But he added: “It is inconceivable for Britain to stop making steel.” |
| He said he found it frustrating that the government had not done more to support the delegation making the case in Mumbai, saying there had been barely any contact from officials. | He said he found it frustrating that the government had not done more to support the delegation making the case in Mumbai, saying there had been barely any contact from officials. |