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Tata steel crisis: Business secretary Sajid Javid has 'very productive' meetings - live Tata steel crisis: Business secretary Sajid Javid has 'very productive' meetings - live
(35 minutes later)
4.33pm BST
16:33
Javid: There's time to get a deal
Sajid Javid is meeting with the crowd workers outside the Port Talbot plant right now.
The business secretary starts by telling them that the government will work with all parties to get a deal, insisting that “we’re on your side”.
Q: So you’re not going to let us go to the wall, asks one steel worker.
Welsh secretary Alan Cairns replies that “We’re going to do everything we can”.
Q: Is there time, asks a second worker?
I think the time is there, Javid replies. Meetings today have been constructive -- as have meetings with Tata management in India.
They have shown in the past that they are responsible, when they have sold assets, says Javid:
I take confidence from that, and so should you.
Updated
at 4.34pm BST
4.25pm BST
16:25
Javid speaks at Port Talbot
Sky are now running an interview with the business secretary from Port Talbot.
Sajid Javid begins by saying the government has been “engaged with Tata for actually weeks on this particular issue”.
He says:
I was actually here a month ago, and I’m glad to be back here today to speak with Tata, with union representatives, with some of the workers, to get an update on the latest developments.
While there might be a surprise out there publicly, we’ve worked with Tata for a long time on this. We’re working really hard to save this plant, and make sure we can find a new buyer to give it a long-term future.
Q: But didn’t Tata tell you what they were going to do - and if they did tell you, why didn’t you realise what a devastating impact this would be?
We’ve discussed a lot with Tata, Javid replies, but we need to keep it commercially sensitive.
Q: But how did you fail to realise the impact?
We understand it’s very, very difficult news, especially for the local community, Javid insists.
Javid then admits that he was caught out by Tata’s decision to sell the plants quickly.
I got concerned about [that], and that’s why I rushed back here. Talk about three or four weeks isn’t what I had in mind.
I’m pleased to say there is an understand that this is actually a much longer process - that’s what’s needed to find a long-term buyer.
Updated
at 4.29pm BST
4.14pm BST
16:14
Some unedited footage of Sajid Javid’s meeting with workers has just arrived:
4.13pm BST
16:13
Workers in the car park at Port Talbot are holding ‘Save our Steel’ signs, and telling reporters that they want to hear concrete action from the government.
Promises, and claims that ministers are “doing all we can” won’t be enough.
3.55pm BST3.55pm BST
15:5515:55
The waiting might be over, reports my colleague Graham Ruddick who is with the workers at Port Talbot.The waiting might be over, reports my colleague Graham Ruddick who is with the workers at Port Talbot.
Expecting to hear from Sajid Javid in Port Talbot at any moment. There is an expectant crowd outside pic.twitter.com/cKz1ze2V5xExpecting to hear from Sajid Javid in Port Talbot at any moment. There is an expectant crowd outside pic.twitter.com/cKz1ze2V5x
3.52pm BST3.52pm BST
15:5215:52
Steel workers at Port Talbot have now been waiting almost two hours for Sajid Jabid to emerge from his meetings.Steel workers at Port Talbot have now been waiting almost two hours for Sajid Jabid to emerge from his meetings.
Steelworkers waiting behind the ministerial Jaguar at Port Talbot with business secretary Sajid Javid still inside pic.twitter.com/tHOXdUH5VDSteelworkers waiting behind the ministerial Jaguar at Port Talbot with business secretary Sajid Javid still inside pic.twitter.com/tHOXdUH5VD
Via Huw Silk of Wales Online.
UpdatedUpdated
at 3.52pm BST at 4.05pm BST
3.47pm BST3.47pm BST
15:4715:47
The Wall Street Journal has now confirmed that Tata is in talks with German engineering conglomerate Thyssenkrupp about merging their steel operations. The Wall Street Journal has now confirmed that Tata is in talks with German engineering conglomerate ThyssenKrupp about merging their steel operations.
And depressingly for UK workers, this deal is now possible because Tata is giving up on the UK.And depressingly for UK workers, this deal is now possible because Tata is giving up on the UK.
The WSJ says:The WSJ says:
Credit Suisse analysts....say Tata’s planned exit from the U.K. was a prerequisite to any potential deal with Thyssenkrupp.Credit Suisse analysts....say Tata’s planned exit from the U.K. was a prerequisite to any potential deal with Thyssenkrupp.
“This scenario in turn could lead to the creation of a 20 million tons high quality steel producer in Europe, and the eventual exit of steel for Thyssenkrupp, with arguably a strong synergy story,” they said.“This scenario in turn could lead to the creation of a 20 million tons high quality steel producer in Europe, and the eventual exit of steel for Thyssenkrupp, with arguably a strong synergy story,” they said.
Maybe the most symbolic UK industrial decline story ever. Welsh steel made unprofitable by China,owners sell up, invest in Germany instead.Maybe the most symbolic UK industrial decline story ever. Welsh steel made unprofitable by China,owners sell up, invest in Germany instead.
Updated
at 4.00pm BST
3.27pm BST3.27pm BST
15:2715:27
We had expected to hear from Sajid Javid around 2.45pm today, so the business secretary’s meeting are running 45 minutes late.We had expected to hear from Sajid Javid around 2.45pm today, so the business secretary’s meeting are running 45 minutes late.
Savid Javid was expected on air outside Port Talbot at 2.45 or so. Has his trip to South Wales not gone down so well?Savid Javid was expected on air outside Port Talbot at 2.45 or so. Has his trip to South Wales not gone down so well?
3.15pm BST3.15pm BST
15:1515:15
GMB: Tories want to get into in bed with communist ChinaGMB: Tories want to get into in bed with communist China
Tim Roache, general secretary of the GMB union, has thrown the (red?) book at David Cameron for blocking higher tariffs to prevent Chinese steel imports.Tim Roache, general secretary of the GMB union, has thrown the (red?) book at David Cameron for blocking higher tariffs to prevent Chinese steel imports.
“Never in our wildest dreams did we consider that the Tory Party would allow the Chinese Communist party to dictate the fate of vital industries like steel and energy in the UK.....“Never in our wildest dreams did we consider that the Tory Party would allow the Chinese Communist party to dictate the fate of vital industries like steel and energy in the UK.....
“There was a time when the Tories sought to root out the reds under the bed. Now they want to get into bed with them.”“There was a time when the Tories sought to root out the reds under the bed. Now they want to get into bed with them.”
UpdatedUpdated
at 3.15pm BSTat 3.15pm BST
2.58pm BST2.58pm BST
14:5814:58
Quite a crowd now:Quite a crowd now:
This is the demo awaiting Sajid Javid after his talks with Tata and unions in Port Talbot: pic.twitter.com/W1n19CmhSTThis is the demo awaiting Sajid Javid after his talks with Tata and unions in Port Talbot: pic.twitter.com/W1n19CmhST
2.45pm BST2.45pm BST
14:4514:45
Workers are continuing to gather outside the building in Port Talbot where business secretary Sajid Javid is meeting with managers:Workers are continuing to gather outside the building in Port Talbot where business secretary Sajid Javid is meeting with managers:
Video: Staff at the Port Talbot #TataSteel plant waiting outside of SoS Sajid Javid's meeting with bosses pic.twitter.com/pFQ4V7P2OiVideo: Staff at the Port Talbot #TataSteel plant waiting outside of SoS Sajid Javid's meeting with bosses pic.twitter.com/pFQ4V7P2Oi
2.43pm BST
14:43
We’ve gathered together the views of people who live in and around Port Talbot, as they watch their steel industry fight for survival.
It’s a sobering read, and a vital reminder of how crucial steel is to the area.
Kristian Watts, who works in Tata Steel’s energy department, explains that the town would ‘crumble’ if the industry shuts down:
I’ve lived in Port Talbot all my life. The steel works employs not only so many of my friends, but also my family. It means everything to not only Port Talbot, but West Glamorgan, Mid Glamorgan and beyond. I know lads who travel from Ebbw Vale, Newport, Swansea, Neath and even Haverfordwest. This industry is everything to South Wales.
Without it, the town would crumble. It’s the smaller things people don’t realise will be affected. Like paper shops, supermarkets, small businesses that rely on trade from workers from the plant. Without jobs to provide money for bills and mortgages, the workers would have to rely on the council for accommodation and benefits, which is already very high in this part of Wales.
My message to the government would be to take a look at what they have created by not lowering business rates and allowing the Chinese to dump massive amounts of steel without having to pay a great deal of tax. If they aren’t careful, they will have a economic crisis on they’re hands and they have only themselves to blame.
Tata’s Indian owners cannot be blamed – they pumped a huge amount of money into the works and for what they were asking for in help seemed a small penny compared to what it’s going to cost the government in the long run.
Here’s the full piece, by my colleague Elena Cresci:
Related: Here's what the steelworks mean to the people of Port Talbot
2.36pm BST
14:36
The cause of Britain’s steel crisis is simple, and chilling, according to Oxford economics professor Simon Wren-Lewis.
One set of producers [in China] are trying to eliminate their competitors by flooding the market at a loss because they have the ‘deep pockets’ of a state behind them.
And as Wren-Lewis explains in this blogpost, Britain’s government is complicit in it [as we reported this morning].
The EU have been trying to raise tariffs against Chinese steel producers for three years, but have been blocked by a coalition of countries led by the UK.
The UK Business minister Sajid Javid has been quite explicit about this: he prefers cheap steel because it helps other parts of UK industry. It may also have something to do with wanting to curry favour with China because of other matters (which was the point of John McDonnell’s Little Red Book stunt, if only he hadn’t started reading from it!).
This is not Javid upholding the principles of a free market, but instead allowing a large state to rig a market. The irony in this case is that the state in question is not the one he works for.
The big story behind Port Talbot https://t.co/QiuQ4t1WOm
2.20pm BST
14:20
Another photo of Sajid Javid’s welcoming committee:
Waiting for the business minister at Tata Steel in Port Talbot. #bbctheoneshow pic.twitter.com/WT5Ma72wlx
2.14pm BST
14:14
Crowds of steel workers have gathered at Port Talbot, as they wait for Sajid Javid to emerge from his meetings:
2.11pm BST
14:11
Two-thirds of the UK public think the Port Talbot steelworks should be nationalised, according to a poll of 1,001 people conducted by Sky News
2.08pm BST
14:08
Richard Tauwhare, a senior director at law firm Dechert, agrees that Europe needs stronger defences to ride out the steel crisis, without falling into full-blown protectionism.
Tauwhare says:
“EU trade measures alone cannot address all the challenges facing the steel industry. But unfair competition, in any sector, can and does seriously threaten EU producers.
The EU needs to streamline its procedures and sharpen its defences, while continuing to guard against the risks of veering into protectionism.”
Updated
at 2.08pm BST
2.01pm BST
14:01
Britain needs to urgently drop its opposition to imposing higher tariffs on Chinese steel, says Gareth Stace, director of UK Steel, the trade body.
Stace says that Europe could consider the ‘nuclear option’ of blocking steel imports into Europe, given the precarious state of the sector [under trade law, a country can impose emergency safeguards].
As Stace puts it:
“The Government must today change its position blocking the scrapping of the Lesser Duty Rule – removing the sign above Europe, saying ‘please dump here, you’re welcome’. We should follow the lead of our German counterparts who stand firmly behind their steel industry, manufacturing and consumers by backing the scrapping of the LDR.
“There are more tools in the Trade Defence Instrument box and if the UK Government and other members states now accept that steel making in the Europe is in ‘emergency measures’, then even the nuclear option of ‘safeguards’ must be on the table.
Enacting ‘safeguards’ would effectively halt the flood of imports into the EU, which is drowning us in full sight of the global sector. Such a bold move, would give us time to breathe, take stock and see light at the end of the tunnel..
It would also risk tit-for-tat moves from other countries. But that could still work in Europe’s interests, given the amount of steel coming in from China.
1.45pm BST
13:45
Another tweet from the business secretary, as his trip around Port Talbot continues:
Very productive meeting with @WG_EconomyMin at #PortTalbot. We're committed to working together
1.35pm BST
13:35
Steel workers and NHS staff have linked hands outside the Port Talbot steel works today in a show of solidarity:
1.28pm BST
13:28
Business secretary Sajid Javid has tweeted that he’s had a “good productive meeting” over the Port Talbot crisis.
Good productive meeting with @AlunCairns @SKinnock and @Rees4Neath @walesoffice on Port Talbot
That’s Welsh Secretary Alun Cairns and his officials, plus local Labour MPs Stephen Kinnock and Christina Rees.