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Tata steel crisis: David Cameron says nationalisation 'is not the answer' - live updates Tata steel crisis: David Cameron says 'no guarantee of success' - live updates
(35 minutes later)
10.09am BST10.09am BST
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David Cameron: no guarantee of successDavid Cameron: no guarantee of success
The prime minister has also given a short statement to the media following the steel crisis meeting.The prime minister has also given a short statement to the media following the steel crisis meeting.
Looking rather grim-faced, David Cameron says:Looking rather grim-faced, David Cameron says:
The situation at Port Talbot is of deep concern. I know how important those jobs are - those jobs are vital to workers’ families, vital to those communities.The situation at Port Talbot is of deep concern. I know how important those jobs are - those jobs are vital to workers’ families, vital to those communities.
The government will do everything it can, working with the company, to try and secure the future of steel-making in Port Talbot and across our country. It’s a vital industry.The government will do everything it can, working with the company, to try and secure the future of steel-making in Port Talbot and across our country. It’s a vital industry.
Q: Are you ruling out nationalisation in the long-term?Q: Are you ruling out nationalisation in the long-term?
Cameron replies that the government is “not ruling anything out”, before immediately adding that “I won’t believe nationalisation is the right answer” (which hardly rules it in).Cameron replies that the government is “not ruling anything out”, before immediately adding that “I won’t believe nationalisation is the right answer” (which hardly rules it in).
Q: In the short-term, are you going to push the European Union on tariffs, as it appears Britain has blocked tariffs that could have prevented steel dumping. Q: In the short-term, are you going to push the European Union on tariffs, as it appears Britain has blocked tariffs that could have prevented steel dumping?
I have had “teams of ministers working for months to help this industry”, to ensure we procure steel for our ships and other vital industries, Cameron declares.I have had “teams of ministers working for months to help this industry”, to ensure we procure steel for our ships and other vital industries, Cameron declares.
We’ve cut energy costs of British steel, and with others in Europe we have made sure there are proper penalties for those who dump steel.We’ve cut energy costs of British steel, and with others in Europe we have made sure there are proper penalties for those who dump steel.
But this industry is in difficulty right across the world. There’s been a collapse in prices, and massive over-capacity. We had been concerned Port Talbot could have closed outright, which is why we worked very hard with the company to ensure there will be a proper sales process.But this industry is in difficulty right across the world. There’s been a collapse in prices, and massive over-capacity. We had been concerned Port Talbot could have closed outright, which is why we worked very hard with the company to ensure there will be a proper sales process.
But Cameron then warned:But Cameron then warned:
This is a difficult situation. There’s no guarantee of successs. This is a difficult situation. There’s no guarantee of success.
Q: Why has the government been behind the curve on this issue?Q: Why has the government been behind the curve on this issue?
Cameron repeats his line about ‘teams of ministers’ working on the issue, which has ensured there will be a sales process rather than outright closure.Cameron repeats his line about ‘teams of ministers’ working on the issue, which has ensured there will be a sales process rather than outright closure.
And the prime minister also argues that the steel crisis is a reason to remain in Europe, rather than leave.And the prime minister also argues that the steel crisis is a reason to remain in Europe, rather than leave.
It is “vital” that European markets are open to us, rather than UK steelmakers facing tariffs of their own.It is “vital” that European markets are open to us, rather than UK steelmakers facing tariffs of their own.
And he concludes by warning that this is “a difficult situation. There can be no guarantee of success given the problems the steel industry faces worldwide”.And he concludes by warning that this is “a difficult situation. There can be no guarantee of success given the problems the steel industry faces worldwide”.
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David Cameron is tweeting about the steel crisis, following today’s emergency meeting with ministers.David Cameron is tweeting about the steel crisis, following today’s emergency meeting with ministers.
Today I have met with ministers to discuss the future of Port Talbot.Today I have met with ministers to discuss the future of Port Talbot.
Workers and their families face a worrying time, and our priority is to help those likely to be affected.Workers and their families face a worrying time, and our priority is to help those likely to be affected.
During this process, we are committed to working with the Welsh gov't and Tata on a long term sustainable future for British steel making.During this process, we are committed to working with the Welsh gov't and Tata on a long term sustainable future for British steel making.
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Cameron: Nationalisation is not the right answer to steel crisisCameron: Nationalisation is not the right answer to steel crisis
Newsflash from Downing Street:Newsflash from Downing Street:
The Government is “doing everything it can” to resolve the steel crisis but nationalisation is not the right answer, David Cameron has said.The Government is “doing everything it can” to resolve the steel crisis but nationalisation is not the right answer, David Cameron has said.
More on that shortly....More on that shortly....
9.40am BST9.40am BST
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Sky: Liberty House interested in some Tata Steel assetsSky: Liberty House interested in some Tata Steel assets
Metal processing company Liberty House have reportedly said they might be interested in some of Tata’s UK assets.Metal processing company Liberty House have reportedly said they might be interested in some of Tata’s UK assets.
International steel and non-ferrous metals group Liberty House says it is interested in buying some of the #Tata steel businessInternational steel and non-ferrous metals group Liberty House says it is interested in buying some of the #Tata steel business
According to Sky News, Liberty sees some value in Tata’s ‘rolling’ operations – which recycle steel.According to Sky News, Liberty sees some value in Tata’s ‘rolling’ operations – which recycle steel.
However, Liberty is apparently not interested in Tata’s blast furnaces (at Port Talbot and Scunthorpe), in the current economic climate.However, Liberty is apparently not interested in Tata’s blast furnaces (at Port Talbot and Scunthorpe), in the current economic climate.
9.37am BST9.37am BST
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Newsflash: Britain’s economy grew faster than previously thought in the last quarter of 2015.Newsflash: Britain’s economy grew faster than previously thought in the last quarter of 2015.
UK GDP rose by 0.6% in October-December, according to the Office for National Statistics, not 0.5% as earlier estimated.UK GDP rose by 0.6% in October-December, according to the Office for National Statistics, not 0.5% as earlier estimated.
The dominant service sector led the way, with growth of 0.8%. Industrial production shrank by 0.4%, with manufacturers only managing to expand by 0.1%.The dominant service sector led the way, with growth of 0.8%. Industrial production shrank by 0.4%, with manufacturers only managing to expand by 0.1%.
9.16am BST9.16am BST
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Labour's John McDonnell: Four-point plan to save steelLabour's John McDonnell: Four-point plan to save steel
Labour’s shadow chancellor, John McDonnell, has been outlining a four-point plan to save the UK steel industry.Labour’s shadow chancellor, John McDonnell, has been outlining a four-point plan to save the UK steel industry.
This plan has “emerged from discussions within the industry”, if an immediate buyer can’t be found. And it includes taking the steel industry under public ownership.This plan has “emerged from discussions within the industry”, if an immediate buyer can’t be found. And it includes taking the steel industry under public ownership.
Here’s the details:Here’s the details:
McDonnell tells Sky News:McDonnell tells Sky News:
On that four-point plan, we think there is a future for the steel industry and that we can protect the jobs and the local community.On that four-point plan, we think there is a future for the steel industry and that we can protect the jobs and the local community.
He also urges David Cameron to consider recalling parliament, so there can be a “proper debate” next week.He also urges David Cameron to consider recalling parliament, so there can be a “proper debate” next week.
MPs across the country want to know what the government’s plan is, and we need to debate it thoroughly.MPs across the country want to know what the government’s plan is, and we need to debate it thoroughly.
And on Radio 4’s Today Programme, McDonnell says that Labour could fund a recovery in the UK steel industry by reversing the corporation and capital gains tax cuts announced in this month’s budget.And on Radio 4’s Today Programme, McDonnell says that Labour could fund a recovery in the UK steel industry by reversing the corporation and capital gains tax cuts announced in this month’s budget.
Shadow Chancellor John McDonnell morning media round quotes: Scrap corporation tax cut to fund steel industryhttps://t.co/PBPrMuyYiD (£)Shadow Chancellor John McDonnell morning media round quotes: Scrap corporation tax cut to fund steel industryhttps://t.co/PBPrMuyYiD (£)
8.59am BST8.59am BST
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Ministers arrive for crisis meetingMinisters arrive for crisis meeting
The Steel crisis emergency meeting is underway now, as David Cameron tries to get to grips with the crisis.The Steel crisis emergency meeting is underway now, as David Cameron tries to get to grips with the crisis.
Several ministers have been spotted arriving at Number 10 this morning, including small business minister Anna Soubry, work and pensions secretary Stephen Crabb.Several ministers have been spotted arriving at Number 10 this morning, including small business minister Anna Soubry, work and pensions secretary Stephen Crabb.
According to Sky News, Welsh secretary Alun Cairns had to run up Downing Street to avoid being late.According to Sky News, Welsh secretary Alun Cairns had to run up Downing Street to avoid being late.
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Unite’s Len McCluskey then urges David Cameron to recall parliament to discuss the crisis, and set up a steel taskforce.Unite’s Len McCluskey then urges David Cameron to recall parliament to discuss the crisis, and set up a steel taskforce.
Q: Should we follow Scotland’s example and take temporary control of the steel industry?Q: Should we follow Scotland’s example and take temporary control of the steel industry?
Yes, McCluskey replies. The Scottish government sent a message that they take the crisis seriously*Yes, McCluskey replies. The Scottish government sent a message that they take the crisis seriously*
[* - by buying two steel works, and then quickly selling them onto a metals company called Liberty House][* - by buying two steel works, and then quickly selling them onto a metals company called Liberty House]
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at 9.50am BSTat 9.50am BST
8.46am BST8.46am BST
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Unite union: Cameron must take personal responsibilityUnite union: Cameron must take personal responsibility
Len McCluskey, head of the Unite union, is on the Today Programme now to discuss the steel crisis.Len McCluskey, head of the Unite union, is on the Today Programme now to discuss the steel crisis.
Q: Is there a direct analogy between what we did for the banks after the financial crisis, and what we could do for steel now?Q: Is there a direct analogy between what we did for the banks after the financial crisis, and what we could do for steel now?
Absolutely, McCluskey replies. The National Audit Office says we put one thousand billion pounds of taxpayers money into the banks to secure their survival, because the government felt they were so important to the economy.Absolutely, McCluskey replies. The National Audit Office says we put one thousand billion pounds of taxpayers money into the banks to secure their survival, because the government felt they were so important to the economy.
That’s precisely what we should do now for steel.That’s precisely what we should do now for steel.
We are appealing to David Cameron to take “personal responsibility” and recall parliament.We are appealing to David Cameron to take “personal responsibility” and recall parliament.
This is an industrial crisis of “enormous proportions”, McKluskey continues. It doesn’t just affect 40,000 workers, it affects our entire manufacturing base.This is an industrial crisis of “enormous proportions”, McKluskey continues. It doesn’t just affect 40,000 workers, it affects our entire manufacturing base.
It’s absolutely essential that a foundation industry like steel is protected in order that we can have the much-vaunted march of the makers that the government talks about.It’s absolutely essential that a foundation industry like steel is protected in order that we can have the much-vaunted march of the makers that the government talks about.
Q: But we couldn’t have functioned as a country without the banks. We can buy steel from 60 countries around the world, and it’s available cheaply. We don’t need a steel industry of its current size.Q: But we couldn’t have functioned as a country without the banks. We can buy steel from 60 countries around the world, and it’s available cheaply. We don’t need a steel industry of its current size.
That’s terribly short-sighted, says McCluskey. Industries such as automotive, aerospace, defence, engineering, all require steel.....That’s terribly short-sighted, says McCluskey. Industries such as automotive, aerospace, defence, engineering, all require steel.....
Q: And they can buy it cheaplyQ: And they can buy it cheaply
...That’s low-quality Chinese steel that most countries won’t take. Unfortunately Britain allows it in....That’s low-quality Chinese steel that most countries won’t take. Unfortunately Britain allows it in.
Other European countries protect their steel industry - Germany makes four times as much steel as the UK.Other European countries protect their steel industry - Germany makes four times as much steel as the UK.
And if we don’t have our own steel industry, it will cause serious knock-on effects to the rest of the economy.And if we don’t have our own steel industry, it will cause serious knock-on effects to the rest of the economy.
Q: But if we support steel, taxpayers will have to pay £1m per day... to support an industry of [just] 40,000 people.Q: But if we support steel, taxpayers will have to pay £1m per day... to support an industry of [just] 40,000 people.
Millions of people work in manufacturing... that sector is already stuttering along, McCluskey says. It will suffer further if the steel industry dies.Millions of people work in manufacturing... that sector is already stuttering along, McCluskey says. It will suffer further if the steel industry dies.
Q: But cheap steel is a good thing for many UK industries.Q: But cheap steel is a good thing for many UK industries.
There are different qualities of steel. We just used Swedish steel to build Royal Navy ships - that’s ludicrous. The government should use its procurement powers to ensure British steel is used for these projects.There are different qualities of steel. We just used Swedish steel to build Royal Navy ships - that’s ludicrous. The government should use its procurement powers to ensure British steel is used for these projects.
8.25am BST8.25am BST
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Speaking of shambles....it appears that business secretary Sajid Javid won’t be back in London until this afternoon (or later) to tackle the crisis despite cutting his trip to Australia short yesterday.Speaking of shambles....it appears that business secretary Sajid Javid won’t be back in London until this afternoon (or later) to tackle the crisis despite cutting his trip to Australia short yesterday.
The Times has the details:The Times has the details:
The business secretary had boarded a flight to Australia, where he was meeting Malcolm Turnbull, the prime minister, hours before a board meeting at Tata’s headquarters in Mumbai to decide the future of its British steel operation. He touched down during the Tata meeting on Tuesday evening.The business secretary had boarded a flight to Australia, where he was meeting Malcolm Turnbull, the prime minister, hours before a board meeting at Tata’s headquarters in Mumbai to decide the future of its British steel operation. He touched down during the Tata meeting on Tuesday evening.
Aides claim that they gave “serious consideration” to aborting the trip but he decided to continue because no firm decision had been made. Less than 24 hours later he decided to head home but missed the last flight and spent another night in Sydney. He will be back by mid-afternoon today at the earliest.Aides claim that they gave “serious consideration” to aborting the trip but he decided to continue because no firm decision had been made. Less than 24 hours later he decided to head home but missed the last flight and spent another night in Sydney. He will be back by mid-afternoon today at the earliest.
It also emerged that ten civil servants from the business department were attending a “resilience” training course at the Royal Academy of Dramatic Art yesterday.It also emerged that ten civil servants from the business department were attending a “resilience” training course at the Royal Academy of Dramatic Art yesterday.
More here: Chaotic steel crisis response puts 40,000 jobs at riskMore here: Chaotic steel crisis response puts 40,000 jobs at risk
Javid did at least attend a black tie dinner, before heading back to the airport.Javid did at least attend a black tie dinner, before heading back to the airport.
On @ITVEveningNews watch @sajidjavid attend black-tie dinner in Sydney (before he's told to return) #PortTalbot pic.twitter.com/HrN1QGRKOgOn @ITVEveningNews watch @sajidjavid attend black-tie dinner in Sydney (before he's told to return) #PortTalbot pic.twitter.com/HrN1QGRKOg
8.12am BST8.12am BST
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Stephen Kinnock also concedes that full-scale nationalisation of Tata UK could be ‘very difficult’.Stephen Kinnock also concedes that full-scale nationalisation of Tata UK could be ‘very difficult’.
But the government must “step up to the place” and make it clear that it will support the steelworks until a buyer is found, and give people a sense of hope.But the government must “step up to the place” and make it clear that it will support the steelworks until a buyer is found, and give people a sense of hope.
8.09am BST8.09am BST
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Stephen Kinnock: Government in 'total disarray'Stephen Kinnock: Government in 'total disarray'
Stephen Kinnock, Labour MP for the South Wales constituency of Aberavon, is discussing the steel crisis now on Sky News.Stephen Kinnock, Labour MP for the South Wales constituency of Aberavon, is discussing the steel crisis now on Sky News.
Kinnock says he “flabbergasted by the incompetence” shown by the government over the crisis.Kinnock says he “flabbergasted by the incompetence” shown by the government over the crisis.
He says:He says:
It’s a total shambles, and it’s been a shambles for years.It’s a total shambles, and it’s been a shambles for years.
Steel industry has been facing problems for five or six years, Kinnock continues, including dumping of Chinese steel, expensive energy, not enough action on public procurement.Steel industry has been facing problems for five or six years, Kinnock continues, including dumping of Chinese steel, expensive energy, not enough action on public procurement.
It’s absolutely extraordinary that they’ve been asleep at the wheel for this long.It’s absolutely extraordinary that they’ve been asleep at the wheel for this long.
Kinnock’s constituency includes the Port Talbot steel works, so he flew to Mumbai with union leaders this week to lobby the Tata board before it took its decision.Kinnock’s constituency includes the Port Talbot steel works, so he flew to Mumbai with union leaders this week to lobby the Tata board before it took its decision.
He’s disappointed that business secretary Sajid Javid wasn’t there too, as the government knew that 29 March was “D-Day for Tata Steel”.He’s disappointed that business secretary Sajid Javid wasn’t there too, as the government knew that 29 March was “D-Day for Tata Steel”.
A plan should have been put in place to provide Tata the help it needs, and squared with the European Commission to avoid state aid problems.A plan should have been put in place to provide Tata the help it needs, and squared with the European Commission to avoid state aid problems.
Instead, Kinnock concludes, David Cameron is behaving as if he didn’t see this crisis coming.Instead, Kinnock concludes, David Cameron is behaving as if he didn’t see this crisis coming.
They’re in total disarray. They either don’t care or they’re so incompetent that they simply don’t know what they’re doing.They’re in total disarray. They either don’t care or they’re so incompetent that they simply don’t know what they’re doing.
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Steel crisis: What the papers saySteel crisis: What the papers say
Today’s front page headlines make uncomfortable reading for David Cameron.Today’s front page headlines make uncomfortable reading for David Cameron.
The Mirror accuse the PM of betraying Britain’s steel workers:The Mirror accuse the PM of betraying Britain’s steel workers:
Thursday's Mirror front page:Betrayed - Government's abject failure puts 40,000 jobs at risk#tomorrowspaperstoday pic.twitter.com/G7PcUHBo1BThursday's Mirror front page:Betrayed - Government's abject failure puts 40,000 jobs at risk#tomorrowspaperstoday pic.twitter.com/G7PcUHBo1B
The Guardian reports Labour accusing the government of being in disarray:The Guardian reports Labour accusing the government of being in disarray:
Thursday's Guardian front page:Ministers in ‘disarray’ over steel industry#tomorrowspaperstoday #bbcpapers pic.twitter.com/kD7bwJwrigThursday's Guardian front page:Ministers in ‘disarray’ over steel industry#tomorrowspaperstoday #bbcpapers pic.twitter.com/kD7bwJwrig
The Financial Times says Cameron faces “acute political difficulty” over the crisis:The Financial Times says Cameron faces “acute political difficulty” over the crisis:
Thursday's FT:Battle to save UK steelmaking as Tata says business worth nothing#tomorrowspaperstoday #bbcpapers pic.twitter.com/aOI7ELxjSbThursday's FT:Battle to save UK steelmaking as Tata says business worth nothing#tomorrowspaperstoday #bbcpapers pic.twitter.com/aOI7ELxjSb
While Metro says Cameron’s decision to chair today’s meeting could be ‘too little, too late’:While Metro says Cameron’s decision to chair today’s meeting could be ‘too little, too late’:
Thursday's Metro front page: 40,000 jobs on the line #tomorrowspaperstoday #bbcpapers pic.twitter.com/XmrNz0oX8VThursday's Metro front page: 40,000 jobs on the line #tomorrowspaperstoday #bbcpapers pic.twitter.com/XmrNz0oX8V
7.43am BST7.43am BST
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The agenda: David Cameron chairs emergency meeting on steelThe agenda: David Cameron chairs emergency meeting on steel
Good morning.Good morning.
David Cameron’s hopes of a quiet Easter break have been shattered by the crisis gripping Britain’s steel industry.David Cameron’s hopes of a quiet Easter break have been shattered by the crisis gripping Britain’s steel industry.
Having dashed back from his family holiday in Lanzarote, the prime minister will chair an emergency meeting in Downing Street on the issue.Having dashed back from his family holiday in Lanzarote, the prime minister will chair an emergency meeting in Downing Street on the issue.
Top of the agenda: How to save 15,000 jobs at Tata UK’s steel operations, which are now up for sale, plus another 25,000 workers in associated industries.Top of the agenda: How to save 15,000 jobs at Tata UK’s steel operations, which are now up for sale, plus another 25,000 workers in associated industries.
What can the PM do? Ideally, the government wants to keep the steel mills running while a buyer is found. But with Tata UK’s losing £1m per day, that’s a difficult option - even though the Indian conglomerate is prepared to ‘give it away for nothing’, we hear.What can the PM do? Ideally, the government wants to keep the steel mills running while a buyer is found. But with Tata UK’s losing £1m per day, that’s a difficult option - even though the Indian conglomerate is prepared to ‘give it away for nothing’, we hear.
Temporary public ownership has been mooted, to help protect workers until the business is in new hands.Temporary public ownership has been mooted, to help protect workers until the business is in new hands.
Union leaders are pushing for full-scale nationalisation to be considered, but business secretary Sajid Javid has already signalled that it’s not an option.Union leaders are pushing for full-scale nationalisation to be considered, but business secretary Sajid Javid has already signalled that it’s not an option.
So, quite a mess, with industry insiders warning that there are just a few weeks to find a solution.So, quite a mess, with industry insiders warning that there are just a few weeks to find a solution.
Cameron is also playing political catch-up. Tata’s decision to sell up seems to have come as a shock to the government, forcing Sajid Javid to scramble back from Australia yesterday.Cameron is also playing political catch-up. Tata’s decision to sell up seems to have come as a shock to the government, forcing Sajid Javid to scramble back from Australia yesterday.
This left the stage clear for Labour; with Jeremy Corbyn telling Port Talbot workers last night that the PM must take immediate steps to guarantee steel’s future.This left the stage clear for Labour; with Jeremy Corbyn telling Port Talbot workers last night that the PM must take immediate steps to guarantee steel’s future.
Corbyn is also pushing for parliament to be recalled to discuss the crisis. Downing Street is refusing, but a petition set up by the labour leader has now attracted 87,000 signatures.Corbyn is also pushing for parliament to be recalled to discuss the crisis. Downing Street is refusing, but a petition set up by the labour leader has now attracted 87,000 signatures.
Also coming up today.....Also coming up today.....
A new estimate of UK GDP for the last three months of 2015 is released at 9.30am. That is likely to confirm that Britain remains dependent on its service sector for growth, with manufacturing stuck in recession.A new estimate of UK GDP for the last three months of 2015 is released at 9.30am. That is likely to confirm that Britain remains dependent on its service sector for growth, with manufacturing stuck in recession.
Chancellor George Osborne is in Paris for a meeting of G20 finance ministers.Chancellor George Osborne is in Paris for a meeting of G20 finance ministers.
And Bank of England governor Mark Carney is speaking in Toyko, at a session on financial stability. Maybe he’ll have some views on the steel crisis....And Bank of England governor Mark Carney is speaking in Toyko, at a session on financial stability. Maybe he’ll have some views on the steel crisis....
We’ll be tracking all the main events through the day....We’ll be tracking all the main events through the day....
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