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| Tata Steel: Government in disarray as PM chairs emergency meeting amid threat of 40,000 job losses in UK steel industry | |
| (about 1 hour later) | |
| David Cameron is under mounting pressure to intervene in the crisis threatening the future of the steel industry amid warnings that 40,000 jobs could be lost if Tata pulls the plug on its British operations. | David Cameron is under mounting pressure to intervene in the crisis threatening the future of the steel industry amid warnings that 40,000 jobs could be lost if Tata pulls the plug on its British operations. |
| Amid signs of disarray in Whitehall, Downing Street rejected demands for the recall of Parliament, but Mr Cameron will now chair an emergency meeting of ministers to discuss ways of keeping the embattled business afloat. | Amid signs of disarray in Whitehall, Downing Street rejected demands for the recall of Parliament, but Mr Cameron will now chair an emergency meeting of ministers to discuss ways of keeping the embattled business afloat. |
| Stephen Kinnock, Labour MP for the South Wales constituency of Aberavon, told Sky News on Thursday morning he was “flabbergasted by the incompetence” shown by the government over the crisis. | |
| "It’s a total shambles, and it’s been a shambles for years," he said. "It’s absolutely extraordinary that they’ve been asleep at the wheel for this long." | |
| Kinnock also said that the steel industry has been facing problems for five or six years, including the dumping of Chinese steel, expensive energy - and not enough action on public procurement. | |
| Sajid Javid, the Business Secretary, cut short a visit to Australia following criticism of his absence from the country when so many British jobs hang in the balance. | Sajid Javid, the Business Secretary, cut short a visit to Australia following criticism of his absence from the country when so many British jobs hang in the balance. |
| He has already been attacked for failing to join politicians and union leaders who flew to India to lobby Tata’s main board as it discussed the fate of its British operations. | He has already been attacked for failing to join politicians and union leaders who flew to India to lobby Tata’s main board as it discussed the fate of its British operations. |
| The conglomerate opted to pull the plug on its Tata Steel plants in Britain, which are losing nearly £1m a day, as soon as possible. It employs 15,000, including 4,000 at Port Talbot in south Wales where steel has been produced for more than a century. | The conglomerate opted to pull the plug on its Tata Steel plants in Britain, which are losing nearly £1m a day, as soon as possible. It employs 15,000, including 4,000 at Port Talbot in south Wales where steel has been produced for more than a century. |
| The IPPR think-tank calculated that a further 25,000 jobs depend directly on the company, including iron producers, coke and petroleum suppliers and machinery manufacturers. It said its calculations did not take into account the impact on local businesses of steel workers losing their livelihoods. Ministers pressed Tata to delay its plans to mothball the plants in order to identify potential buyers for its British business, but sent out conflicting signals over how best to rescue the steel jobs. | The IPPR think-tank calculated that a further 25,000 jobs depend directly on the company, including iron producers, coke and petroleum suppliers and machinery manufacturers. It said its calculations did not take into account the impact on local businesses of steel workers losing their livelihoods. Ministers pressed Tata to delay its plans to mothball the plants in order to identify potential buyers for its British business, but sent out conflicting signals over how best to rescue the steel jobs. |
| Business minister Anna Soubry refused to rule out nationalising parts of the ailing industry, insisting that “all options” were being considered by the government. But Mr Javid, who described the industry as “absolutely vital for the country”, later said he did not believe that nationalisation was “the solution” to the crisis. | Business minister Anna Soubry refused to rule out nationalising parts of the ailing industry, insisting that “all options” were being considered by the government. But Mr Javid, who described the industry as “absolutely vital for the country”, later said he did not believe that nationalisation was “the solution” to the crisis. |
| Mr Cameron flew back from his family holiday in the Canary Islands to hold talks with ministers and officials on the situation. | Mr Cameron flew back from his family holiday in the Canary Islands to hold talks with ministers and officials on the situation. |
| Thursday’s Downing Street meeting is expected to focus on providing short-term state aid to Tata to keep its UK plants operating while one or more buyers are sought, although ministers would have to operate within European Union rules over state aid. | Thursday’s Downing Street meeting is expected to focus on providing short-term state aid to Tata to keep its UK plants operating while one or more buyers are sought, although ministers would have to operate within European Union rules over state aid. |
| The rival camps in the EU referendum campaign clashed over where the blame lies for the crisis. | The rival camps in the EU referendum campaign clashed over where the blame lies for the crisis. |
| Vote Leave pointed to Britain’s inability to take unilateral action against cheap Chinese steel and to the bloc’s restrictions on state aid. | Vote Leave pointed to Britain’s inability to take unilateral action against cheap Chinese steel and to the bloc’s restrictions on state aid. |
| But a spokesman for Britain Stronger in Europe said: “Over half our steel exports go to the EU and leaving could actually make the situation worse.” | But a spokesman for Britain Stronger in Europe said: “Over half our steel exports go to the EU and leaving could actually make the situation worse.” |