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Tata Steel: Labour urges Parliament recall to discuss crisis Tata Steel: No 10 rejects Labour call to recall Parliament
(about 1 hour later)
Labour has called for the UK Parliament to be recalled to discuss the future of the Port Talbot steelworks, where thousands of jobs are at risk. The government has no plans to recall Parliament to discuss the crisis facing the UK steel industry, No 10 has said.
MPs should have the chance to debate "the future of steel and hold ministers to account for their failure to intervene", said leader Jeremy Corbyn. Labour has called for MPs to return to Westminster to discuss the future of the Port Talbot steelworks, after Tata Steel's decision to sell the business put thousands of jobs are at risk.
No 10 says it will "look at" the idea but its focus is on supporting workers. Jeremy Corbyn will visit the Welsh plant later to highlight its plight.
Business Secretary Sajid Javid is returning early from Australia to lead the government's response.Business Secretary Sajid Javid is returning early from Australia to lead the government's response.
Mr Javid had arrived in Sydney on Tuesday for what was due to be a three-day trade visit. Mr Javid, who arrived in Sydney on Tuesday for what was due to be a three-day trade visit, said it was vital that steelmaking continued at Port Talbot but played down talk of the business and Tata Steel's other remaining UK assets being taken into public ownership, saying there were "buyers out there".
Ministers say they are considering "all options" for the Port Talbot plant after owners Tata Steel said it is considering selling it and the rest of its loss-making UK business. Ministers say they are considering "all options" for the Port Talbot plant after owners Tata Steel said it wants to sell it and the rest of its loss-making UK business.
The Port Talbot plant employs 5,500 of Tata UK's current 15,000-strong UK workforce.The Port Talbot plant employs 5,500 of Tata UK's current 15,000-strong UK workforce.
The Welsh Assembly has been recalled to discuss the crisis, and will meet on Monday. Parliament is due to return on 11 April after the Easter recess.The Welsh Assembly has been recalled to discuss the crisis, and will meet on Monday. Parliament is due to return on 11 April after the Easter recess.
Late on Tuesday, after a board meeting in Mumbai, Tata Group said it planned to sell the UK steel business, asking its European holding company to "explore all options for restructuring".Late on Tuesday, after a board meeting in Mumbai, Tata Group said it planned to sell the UK steel business, asking its European holding company to "explore all options for restructuring".
The decision also affects workers at its other UK plants, including Rotherham, Corby and Shotton. There has been no specific mention of these plants from the government.The decision also affects workers at its other UK plants, including Rotherham, Corby and Shotton. There has been no specific mention of these plants from the government.
Ministers are concerned Tata could seek to close the Port Talbot plant within weeks if a buyer is not found.Ministers are concerned Tata could seek to close the Port Talbot plant within weeks if a buyer is not found.
It is understood the government is looking at offering loan guarantees to potential buyers and much tighter rules on procurement to ensure major British projects are obliged to buy british steel.It is understood the government is looking at offering loan guarantees to potential buyers and much tighter rules on procurement to ensure major British projects are obliged to buy british steel.
Recalling ParliamentRecalling Parliament
During times when MPs are not sitting, the Speaker can, if asked by the government, decide to recall the House of Commons. Recent examples include:During times when MPs are not sitting, the Speaker can, if asked by the government, decide to recall the House of Commons. Recent examples include:
Labour shadow business secretary Angela Eagle told BBC News the government should step in and buy the steel plant's strategic assets to ensure they are "kept for the nation" if no buyer can be found.Labour shadow business secretary Angela Eagle told BBC News the government should step in and buy the steel plant's strategic assets to ensure they are "kept for the nation" if no buyer can be found.
She insisted there "will be a recovery and British steel will be able to be made again".She insisted there "will be a recovery and British steel will be able to be made again".
"The government should know that if this industry is left to die it will cost a lot more in the long run… It will devastate those communities," she added."The government should know that if this industry is left to die it will cost a lot more in the long run… It will devastate those communities," she added.
'Failure to intervene''Failure to intervene'
Mr Corbyn, who is due to visit the Port Talbot plant later on Wednesday, said its proposed sale "puts thousands of jobs across the country and a strategic UK-wide industry at risk".Mr Corbyn, who is due to visit the Port Talbot plant later on Wednesday, said its proposed sale "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," he said in a statement."MPs must have the chance now to debate the future of steel and hold ministers to account for their failure to intervene," he said in a statement.
He accused the government of being "in disarray" over its response to the crisis, and said ministers "must act now" to safeguard the industry.He accused the government of being "in disarray" over its response to the crisis, and said ministers "must act now" to safeguard the industry.
Mr Javid insisted that he had been in contact with Tata Group executives and believed a buyer could be found for its UK business, hinting that the UK would be willing to provide "commercial support" to facilitate a deal.
No 10, meanwhile, said its focus was on "finding a long-term sustainable future for steel making at Port Talbot and across the UK" and Parliament would not be recalled.
"Ministers will continue to hold briefings to update representatives of other parties... but we have no plans to recall Parliament," a Downing Street spokesman said.
'Open-minded'
There are a growing number of Conservative MPs saying the government should step in and intervene if a buyer could not be found.There are a growing number of Conservative MPs saying the government should step in and intervene if a buyer could not be found.
Tom Pursglove - whose Corby constituency includes one of the Tata plants - said he was "one of the biggest free-market Conservatives you will find", but added: "I don't think we should rule anything out," saying the industry was of vital economic interest.Tom Pursglove - whose Corby constituency includes one of the Tata plants - said he was "one of the biggest free-market Conservatives you will find", but added: "I don't think we should rule anything out," saying the industry was of vital economic interest.
The MP said the UK needed to ensure it retained a steel industry for self defence, so in any future war the UK could manufacture its own armaments.The MP said the UK needed to ensure it retained a steel industry for self defence, so in any future war the UK could manufacture its own armaments.
David TC Davis, chairman of the Commons Welsh Affairs Select Committee and former British Steel worker, said he "wasn't against the idea at all".David TC Davis, chairman of the Commons Welsh Affairs Select Committee and former British Steel worker, said he "wasn't against the idea at all".
"We do need to have a viable steel industry in this country, it's very important from a defence point of view. I'm perfectly open-minded about that but it's got to be profitable in some way," he told Radio 4's World at One."We do need to have a viable steel industry in this country, it's very important from a defence point of view. I'm perfectly open-minded about that but it's got to be profitable in some way," he told Radio 4's World at One.
State aid
Speaking earlier to BBC Radio 4's Today programme, business minister Anna Soubry said: "We are, and have, and continue to look at all options, and I do mean all options."
But she said there was a limit to what the government could do: "We have to be very careful because we have these state aid rules, which have been established for well over 50 years."
She said the government was seeking assurances from Tata that it would allow time to find a buyer, saying it could "take months".
But the Department for Business later clarified her comments, saying the remarks should not be interpreted to mean temporary nationalisation was on the table.
The European Commission said the UK government had not been in contact regarding the possibility of state intervention.The European Commission said the UK government had not been in contact regarding the possibility of state intervention.
Cheap steel imports from other countries, such as China, have been partly to blame for the crisis. Tata Steel has also cited the high manufacturing costs in the UK.Cheap steel imports from other countries, such as China, have been partly to blame for the crisis. Tata Steel has also cited the high manufacturing costs in the UK.
Tata announced more than 1,000 job cuts, including 750 in Port Talbot, in January. Last October, it said nearly 1,200 jobs would go at plants in Scunthorpe and Lanarkshire.Tata announced more than 1,000 job cuts, including 750 in Port Talbot, in January. Last October, it said nearly 1,200 jobs would go at plants in Scunthorpe and Lanarkshire.