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Port Talbot: Javid meeting workers at threatened steel plant Port Talbot: Javid tells workers plant has a future
(about 1 hour later)
Sajid Javid is meeting steelworkers at the threatened plant in Port Talbot. Business Secretary Sajid Javid has told workers there is a future for steel production at Port Talbot, insisting the government is on "their side".
The business secretary, under fire for being in Australia when Tata announced plans to sell the site, said he wants to show he is on the side of workers, thousands of whose jobs are at risk. Hundreds of workers gathered to demand answers from Mr Javid as he left a meeting at the plant.
But one union leader complained Mr Javid "wasn't to be seen" at a time of crisis for the British steel industry. Holding a "Save our Steel" banner, workers asked him: "So you're not going to let us go to the wall?"
Chancellor George Osborne has insisted the UK was "leading the way" in Europe in trying to help the industry compete. He said he would be "fully involved" in talks over a possible sale and there were "viable buyers" out there.
The business secretary also defended his handling of the crisis and rejected claims the UK had been too easy on China over steel dumping.
Labour said ministers seemed "unaware" of the severity of the crisis.
'Time there'
Mr Javid has been under fire for being in Australia at the time that Tata announced its intention on Tuesday to sell Port Talbot and its other UK assets, putting at least 15,500 jobs at risk.
The minister, who returned on Friday morning, said he had "rushed back" amid concerns that there might only be weeks to safeguard the plant's future but had since been reassured by Tata that more time would be allowed to find a buyer.
Asked by workers if he would do everything he could to save their livelihoods, he did not give a firm guarantee but said: "We are on your side...There is time there."
Mr Javid said steel was "absolutely vital" to the UK's future industrial strategy, insisting that ministers had been in talks with Tata about the future "for a long time".
A crowd of workers chanted "save our steel" as Mr Javid was driven away from the site.
The government is facing claims that it has blocked an EU measure which would have tackled the "dumping" of cheap Chinese steel in Europe - one of main handicaps facing UK producers.The government is facing claims that it has blocked an EU measure which would have tackled the "dumping" of cheap Chinese steel in Europe - one of main handicaps facing UK producers.
Ministers opposed an European Commission proposal to lift the "lesser duty rule" cap, which would allow tougher tariffs to be imposed on cheap imported steel, arguing higher tariffs would hit other sectors such as the car industry.Ministers opposed an European Commission proposal to lift the "lesser duty rule" cap, which would allow tougher tariffs to be imposed on cheap imported steel, arguing higher tariffs would hit other sectors such as the car industry.
But Mr Javid said this could "not be further from the truth", telling workers that the UK had "been the leader in getting tariffs imposed where evidence exists" of unfair trade practices.
Tata Steel's UK business - which directly employs 15,000 workers and supports thousands of others - includes plants in Port Talbot, Rotherham, Corby and Shotton.Tata Steel's UK business - which directly employs 15,000 workers and supports thousands of others - includes plants in Port Talbot, Rotherham, Corby and Shotton.
Tata Steel UK: What are the options?Tata Steel UK: What are the options?
Call to 'take over' Tata's pension fundCall to 'take over' Tata's pension fund
What's going wrong with Britain's steel industry?What's going wrong with Britain's steel industry?
What next for Tata Steel workers?What next for Tata Steel workers?
Steel v banks - Why they're different when it comes to a government bail-outSteel v banks - Why they're different when it comes to a government bail-out
After a board meeting at its headquarters in Mumbai on Wednesday, Tata confirmed plans to sell its loss-making UK plants. Unless a buyer can be found, thousands of jobs are at risk.After a board meeting at its headquarters in Mumbai on Wednesday, Tata confirmed plans to sell its loss-making UK plants. Unless a buyer can be found, thousands of jobs are at risk.
The Port Talbot plant - which employs 4,100 people - is said to be losing £1m a day.The Port Talbot plant - which employs 4,100 people - is said to be losing £1m a day.
Dumping, duties and steelDumping, duties and steel
The EU is imposing financial penalties on 16 categories of Chinese steel imports which they believe are being "dumped" on overseas markets - effectively being sold at a loss.The EU is imposing financial penalties on 16 categories of Chinese steel imports which they believe are being "dumped" on overseas markets - effectively being sold at a loss.
The rate of these duties varies but, controversially, they are more often than not lower than the actual amount by which the products are under-priced.The rate of these duties varies but, controversially, they are more often than not lower than the actual amount by which the products are under-priced.
This is in, large part, down to the so-called "lesser duty" rule.This is in, large part, down to the so-called "lesser duty" rule.
This rule, which derives from World Trade Organisation regulations, states that it is desirable, although not necessary, for tariffs to be applied at a level "adequate" to remove the financial harm caused to competitors but "at a level lower than the margin of dumping".This rule, which derives from World Trade Organisation regulations, states that it is desirable, although not necessary, for tariffs to be applied at a level "adequate" to remove the financial harm caused to competitors but "at a level lower than the margin of dumping".
UK steel producers and unions argue the EU, by adhering to this rule, has effectively capped steel tariffs at 9% although the European Commission does not recognise this figure.UK steel producers and unions argue the EU, by adhering to this rule, has effectively capped steel tariffs at 9% although the European Commission does not recognise this figure.
Critics say tariffs are far higher in the US and totally ineffective when heavily-subsidised Chinese steel is sold at 66% of cost price.Critics say tariffs are far higher in the US and totally ineffective when heavily-subsidised Chinese steel is sold at 66% of cost price.
The UK has argued against higher tariffs, saying they would hit other sectors such as the car industry, which import a lot of foreign steel.The UK has argued against higher tariffs, saying they would hit other sectors such as the car industry, which import a lot of foreign steel.
But the European Commission is considering removing the rule from relevant legislation, a move reportedly backed by France and Germany.But the European Commission is considering removing the rule from relevant legislation, a move reportedly backed by France and Germany.
Mr Javid, who only returned to the UK on Friday morning after cutting short an official trip to Australia, has been criticised for his absence, and for taking his daughter on the trip.
He is meet workers and managers at the plant, along with members of the Welsh Government and trade unions.
Ahead of the meeting, Mr Javid tweeted that he had also held "productive" talks with the local Labour MP Stephen Kinnock and Welsh Secretary Alun Cairns about the way forward.
Both Mr Javid and Prime Minister David Cameron have said nationalisation is "not the answer" for British steelworks but union and opposition figures have criticised the government for failing to do enough to respond to the issue.Both Mr Javid and Prime Minister David Cameron have said nationalisation is "not the answer" for British steelworks but union and opposition figures have criticised the government for failing to do enough to respond to the issue.
'Shoulder to shoulder''Shoulder to shoulder'
Roy Rickhuss, the general secretary of the trade union Community which represents many steelworkers in Port Talbot, says Mr Javid had been slow to react.Roy Rickhuss, the general secretary of the trade union Community which represents many steelworkers in Port Talbot, says Mr Javid had been slow to react.
"He must have known there was a potential for there to be a closure announcement last week and he wasn't to be seen."He must have known there was a potential for there to be a closure announcement last week and he wasn't to be seen.
"You need to know that your government is standing behind you and standing shoulder to shoulder so they're there supporting you. The government should have been prepared for that announcement so that immediately they had things in place to give confidence to the workforce. "You need to know that your government is standing behind you and standing shoulder to shoulder so they're there supporting you. The government should have been prepared for that announcement so that immediately they had things in place to give confidence to the workforce."
And Labour leader Jeremy Corbyn said public ownership may be the only answer to guarantee the industry's future if no buyer came forward.
"I would advocate some form of public intervention, if necessary full public ownership, the crucial thing is to preserve the steel industry in Britain as a basis for our economic growth," he said.
Charles De Lusignan, from the European Steel Association, told BBC Radio 4's Today programme that the UK had not done all it could and, indeed, had been instrumental in blocking a European Commission proposal from 2013 to remove restrictions on higher tariffs.Charles De Lusignan, from the European Steel Association, told BBC Radio 4's Today programme that the UK had not done all it could and, indeed, had been instrumental in blocking a European Commission proposal from 2013 to remove restrictions on higher tariffs.
"European Steel and UK steel is viable so there is no fundamental reason why it shouldn't go on for the foreseeable future."European Steel and UK steel is viable so there is no fundamental reason why it shouldn't go on for the foreseeable future.
"But action should have been taken already. We find ourselves discussing a problem which should never have arisen and would not have arisen had we modernised trade defence instruments when we had the chance.""But action should have been taken already. We find ourselves discussing a problem which should never have arisen and would not have arisen had we modernised trade defence instruments when we had the chance."
But Mr Osborne dismissed claims of inaction.But Mr Osborne dismissed claims of inaction.
"Both at home, where we are cutting taxes on energy and internationally, where we are working with others to make sure there are tariffs on unfairly cheap steel, you have got a government doing everything it can to help the steel industry," he said."Both at home, where we are cutting taxes on energy and internationally, where we are working with others to make sure there are tariffs on unfairly cheap steel, you have got a government doing everything it can to help the steel industry," he said.
Meanwhile, some have raised concerns about Mr Javid's trip with his daughter.Meanwhile, some have raised concerns about Mr Javid's trip with his daughter.
Labour MP Anna Turley said it gave the impression of the trip "being a jolly", while fellow MP Stephen Kinnock said Mr Javid should have travelled to Mumbai for Tata's crunch board meeting on Tuesday "but instead he chose to jet off to Australia".Labour MP Anna Turley said it gave the impression of the trip "being a jolly", while fellow MP Stephen Kinnock said Mr Javid should have travelled to Mumbai for Tata's crunch board meeting on Tuesday "but instead he chose to jet off to Australia".
A source from the Department for Business, Innovation and Skills said Mr Javid's daughter "was there to spend time with her father" and "he paid for everything" - and dismissed Mr Kinnock's calls for him to consider his position as "ridiculous".A source from the Department for Business, Innovation and Skills said Mr Javid's daughter "was there to spend time with her father" and "he paid for everything" - and dismissed Mr Kinnock's calls for him to consider his position as "ridiculous".
David Cameron has said ministers had been working "for months" to save the industry - but warned there were "no guarantees of success".David Cameron has said ministers had been working "for months" to save the industry - but warned there were "no guarantees of success".
Steel production makes up 1% of Britain's manufacturing output and 0.1% of the country's economic output.Steel production makes up 1% of Britain's manufacturing output and 0.1% of the country's economic output.
It is understood the government is looking at offering loan guarantees to potential buyers and tighter rules on procurement to make sure major British projects are obliged to buy British steel.It is understood the government is looking at offering loan guarantees to potential buyers and tighter rules on procurement to make sure major British projects are obliged to buy British steel.
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.
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