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Tata Steel jobs: David Cameron chairs crisis meeting | Tata Steel jobs: David Cameron chairs crisis meeting |
(35 minutes later) | |
Prime Minister David Cameron is hosting crisis talks on the UK steel industry amid mounting pressure on ministers to guarantee the future of the Port Talbot steelworks and its 5,500 staff. | Prime Minister David Cameron is hosting crisis talks on the UK steel industry amid mounting pressure on ministers to guarantee the future of the Port Talbot steelworks and its 5,500 staff. |
Ministers meeting in Downing Street will agree a response to Tata Steel's plan to sell the plant in south Wales. | Ministers meeting in Downing Street will agree a response to Tata Steel's plan to sell the plant in south Wales. |
It is understood the government wants reassurance Tata Steel will not close its plants before a buyer is found. | It is understood the government wants reassurance Tata Steel will not close its plants before a buyer is found. |
Labour has urged ministers to "get a grip" and act now to help the industry. | |
Tata Steel's UK business - which directly employs 15,000 workers and supports thousands of others - also includes plants in Rotherham, Corby and Shotton. | |
The Port Talbot plant is said to be losing £1m a day. | |
Analysis: Warning over defence impact | Analysis: Warning over defence impact |
What next for Tata Steel workers? | What next for Tata Steel workers? |
Port Talbot closure 'could hit 15,000' | Port Talbot closure 'could hit 15,000' |
What's going wrong with Britain's steel industry? | |
Talk of nationalising the works has been downplayed but the government, which says it is considering "all options", may offer to help to engineer a sale. | |
BBC assistant political editor Norman Smith said there was anxiety in government that Tata Group, the plants' Indian parent firm, wants to shut down its plants rather than sell them to a competitor, and ministers have been unable to secure a promise from the firm over how long it will allow the plants to remain open. | |
'Human cost' | 'Human cost' |
He said options open to the government include a "mystery buyer" coming forward, a workforce buyout which would cost about £300m, mothballing the plant, nationalisation or allowing the plant to close. | |
Speaking on BBC Radio's Today programme Unite general secretary Len McCluskey said the UK was in the grip of an "industrial crisis of enormous proportions". | |
He called for the creation of a steel taskforce and for the government to intervene to save the steel industry like it did the banks during the financial crisis. | |
Mr McCluskey also warned Tata against a "fire sale" of its UK steel plants. | |
Shadow chancellor John McDonnell said the government "should nationalise to stabilise" saying this would involve covering the plant's costs in the short term to help a new buyer turn it around. | |
Business Secretary Sajid Javid, who has cut short an official visit to Australia to return to the UK, said nationalisation was "not a long-term solution". | |
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. |
Steel production makes up 1% of Britain's manufacturing output and 0.1% of the country's economic output. | |
Mr Cameron, who returned to London on Wednesday following an Easter break in Spain, has spoken to Welsh First Minister Carwyn Jones to offer his support at an "extremely worrying time". | Mr Cameron, who returned to London on Wednesday following an Easter break in Spain, has spoken to Welsh First Minister Carwyn Jones to offer his support at an "extremely worrying time". |
A government spokesman said Thursday's meeting - being attended by ministers and senior officials from the Treasury, Department for Business, Cabinet Office and Welsh Office - would focus on providing a "sustainable long-term future" for the steel sector. | |
Mr McDonnell also said the government should "bring forward the support that was expected in this budget and didn't happen" about reducing business rates, which he said were "five to seven times" higher in the UK than Europe. | |
He said the government had been in "disarray" and "chaos" and needed to "get a grip", repeating calls for MPs to be called back from the Easter recess. | |
Labour MP Stephen Kinnock has called for an immediate injection of government money to ensure the Port Talbot plant - which is in his Aberavon constituency - keeps going while its future lies in the balance. | |
A number of Eurosceptic Conservative MPs have said the government should not rule out subsidising the industry. This would be in contravention of EU rules restricting so-called state aid. | A number of Eurosceptic Conservative MPs have said the government should not rule out subsidising the industry. This would be in contravention of EU rules restricting so-called state aid. |
Venture capitalist Jon Moulton, who tried to rescue MG Cars when it was put up for sale by BMW, told BBC Radio 4's Today programme that saving the plants was "probably mission impossible" as a "very, very large amount of money would need to go in to come up with any chance of a way forward". | Venture capitalist Jon Moulton, who tried to rescue MG Cars when it was put up for sale by BMW, told BBC Radio 4's Today programme that saving the plants was "probably mission impossible" as a "very, very large amount of money would need to go in to come up with any chance of a way forward". |
There are also warnings that the end of steel production in Port Talbot would severely undermine Britain's defence capability and its status as a leading military power. | There are also warnings that the end of steel production in Port Talbot would severely undermine Britain's defence capability and its status as a leading military power. |
Lord West, a former First Sea Lord, has argued that all countries that are members of the UN Security Council have major steel plants to support their defence industry. | Lord West, a former First Sea Lord, has argued that all countries that are members of the UN Security Council have major steel plants to support their defence industry. |
"I cannot think of another major military power that doesn't have its own indigenous steel production capabilities," he told the BBC. | "I cannot think of another major military power that doesn't have its own indigenous steel production capabilities," he told the BBC. |
Do you work at the Port Talbot steel plant? How will the plans to sell it affect you and your family? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories. | Do you work at the Port Talbot steel plant? How will the plans to sell it affect you and your family? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories. |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
Or use the form below | Or use the form below |