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| Tata steel crisis: Business secretary Sajid Javid has 'very productive' meetings - live | |
| (35 minutes later) | |
| 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 | 1.35pm BST |
| 13:35 | 13:35 |
| Steel workers and NHS staff have linked hands outside the Port Talbot steel works today in a show of solidarity: | Steel workers and NHS staff have linked hands outside the Port Talbot steel works today in a show of solidarity: |
| 1.28pm BST | 1.28pm BST |
| 13:28 | 13:28 |
| Business secretary Sajid Javid has tweeted that he’s had a “good productive meeting” over the Port Talbot crisis. | 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 | 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. | That’s Welsh Secretary Alun Cairns and his officials, plus local Labour MPs Stephen Kinnock and Christina Rees. |
| 1.26pm BST | 1.26pm BST |
| 13:26 | 13:26 |
| At least one Conservative MP is sanguine about the troubles in UK steel, reports Jim Pickard of the Financial Times: | At least one Conservative MP is sanguine about the troubles in UK steel, reports Jim Pickard of the Financial Times: |
| Tory MP: "Free markets are like gravity - they sometimes do things you don't like. There is a natural end point to British heavy industry." | Tory MP: "Free markets are like gravity - they sometimes do things you don't like. There is a natural end point to British heavy industry." |
| 1.11pm BST | 1.11pm BST |
| 13:11 | 13:11 |
| China 'imposes anti-dumping tariffs' on EU suppliers! | China 'imposes anti-dumping tariffs' on EU suppliers! |
| In a development that will not improve the mood in Port Talbot, China has apparently slapped new anti-dumping tariffs on steel imports from Europe. | In a development that will not improve the mood in Port Talbot, China has apparently slapped new anti-dumping tariffs on steel imports from Europe. |
| Reuters has some details: | Reuters has some details: |
| China, accused of flooding world markets with cheap steel, has imposed anti-dumping duties as high as 46.3% on electric steel products imported fromJapan, South Korea and the European Union, the Ministry of Commerce said on Friday. | China, accused of flooding world markets with cheap steel, has imposed anti-dumping duties as high as 46.3% on electric steel products imported fromJapan, South Korea and the European Union, the Ministry of Commerce said on Friday. |
| The overseas suppliers include JFE Steel Corp, Nippon Steel and Sumitomo Metal Corp and POSCO, the ministry said in a notice posted on its website. | The overseas suppliers include JFE Steel Corp, Nippon Steel and Sumitomo Metal Corp and POSCO, the ministry said in a notice posted on its website. |
| The ministry did not identify any EU supplier. | The ministry did not identify any EU supplier. |
| The announcement is in Chinese, so I’m afraid I can’t add much details... | The announcement is in Chinese, so I’m afraid I can’t add much details... |
| ...but Sky’s Faisal Islam has done some digging, and uncovered that this will cover steel products made in Wales (!). | ...but Sky’s Faisal Islam has done some digging, and uncovered that this will cover steel products made in Wales (!). |
| New tariff announced today re Chinese steel. 46%.By China. On EU. hi-tec "Grain Oriented Electrical Steel". Made by...Tata Steel in Newport | New tariff announced today re Chinese steel. 46%.By China. On EU. hi-tec "Grain Oriented Electrical Steel". Made by...Tata Steel in Newport |
| This does not appear to be an April Fool’s joke. | This does not appear to be an April Fool’s joke. |
| 1.01pm BST | 1.01pm BST |
| 13:01 | 13:01 |
| Sajid Javid’s ministerial limo has been spotted in South Wales: | Sajid Javid’s ministerial limo has been spotted in South Wales: |
| Sajid Javid arrives at Port Talbot to face steel workers https://t.co/G7Hizu2R3S pic.twitter.com/VVW2ii9ZXe | Sajid Javid arrives at Port Talbot to face steel workers https://t.co/G7Hizu2R3S pic.twitter.com/VVW2ii9ZXe |
| 12.57pm BST | 12.57pm BST |
| 12:57 | 12:57 |
| Lord Mandelson: Don't rule out temporary nationalisation | Lord Mandelson: Don't rule out temporary nationalisation |
| Peter Mandelson, the former EC trade commissioner, is urging the UK government not to close its ears to the idea of temporary state ownership of the steel industry. | Peter Mandelson, the former EC trade commissioner, is urging the UK government not to close its ears to the idea of temporary state ownership of the steel industry. |
| Mandelson, an architect of Tony Blair’s New Labour and a former UK business secretary (among other roles punctuated by occasional resignations), says Britain’s manufacturing sector has reached an “existential moment”: | Mandelson, an architect of Tony Blair’s New Labour and a former UK business secretary (among other roles punctuated by occasional resignations), says Britain’s manufacturing sector has reached an “existential moment”: |
| The closure of Port Talbot’s blast furnace would mean we no longer make steel as opposed to processing and recycling steel. | The closure of Port Talbot’s blast furnace would mean we no longer make steel as opposed to processing and recycling steel. |
| If we allow this to happen we will lose the modern, high productivity infrastructure and skills we have there and offer steel imports a big opening to the UK market. | If we allow this to happen we will lose the modern, high productivity infrastructure and skills we have there and offer steel imports a big opening to the UK market. |
| Mandelson wants to see a “strong” government intervention, and a pan-European strategy to help the steel industry across the region. | Mandelson wants to see a “strong” government intervention, and a pan-European strategy to help the steel industry across the region. |
| And temporary nationalisation could be pat of the answer, he adds, while a buyer is found. | And temporary nationalisation could be pat of the answer, he adds, while a buyer is found. |
| The governments in London and Cardiff must continue their search for a new private sector investor in Port Talbot and use their convening power to encourage restructuring or cancelling of debt. That will enable potential new investors to assess the true value of the technology, skills and capital investment which in any sensible valuation are far from ‘worthless’. Tata UK needs to recognise its responsibilities to its pensioners and its sites and should co-operate fully with the UK government in the search for solutions. | The governments in London and Cardiff must continue their search for a new private sector investor in Port Talbot and use their convening power to encourage restructuring or cancelling of debt. That will enable potential new investors to assess the true value of the technology, skills and capital investment which in any sensible valuation are far from ‘worthless’. Tata UK needs to recognise its responsibilities to its pensioners and its sites and should co-operate fully with the UK government in the search for solutions. |
| In principle, I would not rule out temporary government ownership of the Port Talbot plant as a step towards finding new long term owners. | In principle, I would not rule out temporary government ownership of the Port Talbot plant as a step towards finding new long term owners. |
| Mandelson also argues that EU state aid rules needn’t be a barrier to a rescue - especially if Brussels is co-operative. | Mandelson also argues that EU state aid rules needn’t be a barrier to a rescue - especially if Brussels is co-operative. |
| EU state aid rules can support a serious plan to restructure around new specialised technology and long term viability. The European Commission should be urged to use the ‘critical infrastructure’ public interest case for steel and establish collective rules to provide state aid for restructuring plans, bridging finance and future investment.” | EU state aid rules can support a serious plan to restructure around new specialised technology and long term viability. The European Commission should be urged to use the ‘critical infrastructure’ public interest case for steel and establish collective rules to provide state aid for restructuring plans, bridging finance and future investment.” |
| Updated | Updated |
| at 1.15pm BST | at 1.15pm BST |
| 12.40pm BST | 12.40pm BST |
| 12:40 | 12:40 |
| The campaign to ban selfies gets an unexpected boost: | The campaign to ban selfies gets an unexpected boost: |
| I want to see this George Osborne Asda selfie. pic.twitter.com/Pbso7gtOwc | I want to see this George Osborne Asda selfie. pic.twitter.com/Pbso7gtOwc |
| 12.35pm BST | 12.35pm BST |
| 12:35 | 12:35 |
| Tata steel's pensions problems | Tata steel's pensions problems |
| Graham Ruddick | Graham Ruddick |
| More than 130,000 steel worker and former steel workers have been left in the dark about the future of their pension as a result of the crisis. | More than 130,000 steel worker and former steel workers have been left in the dark about the future of their pension as a result of the crisis. |
| The British Steel Pension Scheme (BSPS), which was inherited by Tata when it bought Corus in 2007, has £14.5bn of liabilities, making it one of the biggest pension schemes in the UK. | The British Steel Pension Scheme (BSPS), which was inherited by Tata when it bought Corus in 2007, has £14.5bn of liabilities, making it one of the biggest pension schemes in the UK. |
| However, members of the pension scheme, which has a deficit of £485m, face an uncertain future if Tata sells the business. | However, members of the pension scheme, which has a deficit of £485m, face an uncertain future if Tata sells the business. |
| Tata sources say the cost of the pension scheme is one of the main issues facing the steel business in the UK. Accounts for the business show that last year Tata pumped £129m into the scheme last year and will spend even more in 2016. | Tata sources say the cost of the pension scheme is one of the main issues facing the steel business in the UK. Accounts for the business show that last year Tata pumped £129m into the scheme last year and will spend even more in 2016. |
| John Ralfe, a pensions expert, said Tata Steel’s UK operations are a “pension fund with a business tagged on”. | John Ralfe, a pensions expert, said Tata Steel’s UK operations are a “pension fund with a business tagged on”. |
| He warned that Tata could be forced to pay more than £2bn into the scheme if it sells the business. | He warned that Tata could be forced to pay more than £2bn into the scheme if it sells the business. |
| He said: | He said: |
| There is a complete vacuum, Tata Mumbai needs to come out and say exactly what is happening to the BSPS. | There is a complete vacuum, Tata Mumbai needs to come out and say exactly what is happening to the BSPS. |
| Tata hasn’t addressed annual pension costs early enough. They should have closed to existing members a long time ago. They took the easy option. | Tata hasn’t addressed annual pension costs early enough. They should have closed to existing members a long time ago. They took the easy option. |
| They could have to pay more than £2bn to keep the regulator happy. | They could have to pay more than £2bn to keep the regulator happy. |
| If the business did collapse into administration the pension scheme would enter the Protection Pension Fund. | If the business did collapse into administration the pension scheme would enter the Protection Pension Fund. |
| Updated | Updated |
| at 12.40pm BST | at 12.40pm BST |
| 12.23pm BST | 12.23pm BST |
| 12:23 | 12:23 |
| Tata won't comment on German tie-up reports | Tata won't comment on German tie-up reports |
| Graham Ruddick | Graham Ruddick |
| Tata Steel is declining to comment on those reports that it is planning a tie-up with Germany’s Thyssenkrupp, once it has shed its UK operations. | Tata Steel is declining to comment on those reports that it is planning a tie-up with Germany’s Thyssenkrupp, once it has shed its UK operations. |
| Asked about the story, Tata would only say: | Asked about the story, Tata would only say: |
| We do not comment on media speculation. | We do not comment on media speculation. |
| Tata also confirmed that it has appointed PwC to advise it about the restructuring of its UK business, but won’t give further details. | Tata also confirmed that it has appointed PwC to advise it about the restructuring of its UK business, but won’t give further details. |
| A spokesperson in Port Talbot says: | A spokesperson in Port Talbot says: |
| Like all large firms we use a range of professional advisors for tasks where they have particular expertise. We don’t make public statements on the details of such advisory relationships. | Like all large firms we use a range of professional advisors for tasks where they have particular expertise. We don’t make public statements on the details of such advisory relationships. |
| 12.17pm BST | 12.17pm BST |
| 12:17 | 12:17 |
| Osborne: We're doing everything we can | Osborne: We're doing everything we can |
| George Osborne has just hit back at the stinging criticism that the government has been pandering to China rather than protecting the UK steel industry. | George Osborne has just hit back at the stinging criticism that the government has been pandering to China rather than protecting the UK steel industry. |
| Speaking in Manchester, the chancellor declared: | Speaking in Manchester, the chancellor declared: |
| Internationally we are working to make sure that there are tariffs on unfair cheap exports. | Internationally we are working to make sure that there are tariffs on unfair cheap exports. |
| Domestically we are doing everything we practically can, everything we possibly can to help the steel workers, help the steel industry. | Domestically we are doing everything we practically can, everything we possibly can to help the steel workers, help the steel industry. |
| That’s why the business secretary is is there in Port Talbot today, looking for long-term solutions. | That’s why the business secretary is is there in Port Talbot today, looking for long-term solutions. |
| That may come as a surprise to the European Steel Association, who insist that Britain has NOT been been doing everything it can, and has been the ringleader in blocking higher Chinese tariffs. | That may come as a surprise to the European Steel Association, who insist that Britain has NOT been been doing everything it can, and has been the ringleader in blocking higher Chinese tariffs. |
| Osborne was sporting a high-visibility jacket but ditched the hard hat that he often wears for photo ops: | Osborne was sporting a high-visibility jacket but ditched the hard hat that he often wears for photo ops: |
| Maybe he has lent the hat to Sajid Javid, for protection against irate steel workers.... | Maybe he has lent the hat to Sajid Javid, for protection against irate steel workers.... |
| Updated | Updated |
| at 12.41pm BST | at 12.41pm BST |
| 11.37am BST | 11.37am BST |
| 11:37 | 11:37 |
| UK taxpayers could be forced to stump up £1.5bn per year if the government bites the nationalisation bullet and takes Tata UK’s operations into public hands. | UK taxpayers could be forced to stump up £1.5bn per year if the government bites the nationalisation bullet and takes Tata UK’s operations into public hands. |
| That’s clearly not-insignificant sum of money. So what else could we do with it? Well, you can get half an aircraft carrier -- although that wouldn’t stretch to any planes. | That’s clearly not-insignificant sum of money. So what else could we do with it? Well, you can get half an aircraft carrier -- although that wouldn’t stretch to any planes. |
| And it’s only a fifth of the cost of a new nuclear sub, or just 3% of the bill for building the HS2 railway link... | And it’s only a fifth of the cost of a new nuclear sub, or just 3% of the bill for building the HS2 railway link... |
| For more neat comparisons, click here: | For more neat comparisons, click here: |
| Related: What the UK could buy for £1.5bn (instead of spending it on Tata Steel) | Related: What the UK could buy for £1.5bn (instead of spending it on Tata Steel) |
| Updated | Updated |
| at 11.53am BST | at 11.53am BST |
| 11.23am BST | 11.23am BST |
| 11:23 | 11:23 |
| In another potential embarrassment for the UK government, Tata is reportedly considering taking a stake in the steel unit of Germany’s Thyssenkrupp. | In another potential embarrassment for the UK government, Tata is reportedly considering taking a stake in the steel unit of Germany’s Thyssenkrupp. |
| German business paper Rheinische Post reports that talks between the two parties are at an “advanced stage”. | German business paper Rheinische Post reports that talks between the two parties are at an “advanced stage”. |
| One option is that they could create a joint venture, with Tata Steel holding an option to increase the stake at a later date, apparently. | One option is that they could create a joint venture, with Tata Steel holding an option to increase the stake at a later date, apparently. |
| Tata Steel have declined to comment on the claims to Reuters. | Tata Steel have declined to comment on the claims to Reuters. |
| If it’s true, it shows that Tata remains interested in European steel operations despite the problems in the UK. | If it’s true, it shows that Tata remains interested in European steel operations despite the problems in the UK. |
| Shares in ThyssenKrupp have jumped by almost 5% this morning. Analysts have already speculated that a merger between the German and Indian firms makes sense, given the tough conditions in the global steel market. | Shares in ThyssenKrupp have jumped by almost 5% this morning. Analysts have already speculated that a merger between the German and Indian firms makes sense, given the tough conditions in the global steel market. |
| Tata Steel, Thyssenkrupp in steel unit talks: Report https://t.co/xePinuslT0 pic.twitter.com/H311rV0HCs | Tata Steel, Thyssenkrupp in steel unit talks: Report https://t.co/xePinuslT0 pic.twitter.com/H311rV0HCs |