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Steel crisis: David Cameron urged to take personal charge of talks | Steel crisis: David Cameron urged to take personal charge of talks |
(about 3 hours later) | |
Union leaders are calling on David Cameron to take personal charge of talks to prevent the closure of Tata Steel's Port Talbot plant. | Union leaders are calling on David Cameron to take personal charge of talks to prevent the closure of Tata Steel's Port Talbot plant. |
They have accused Business Secretary Sajid Javid of "taking his eye off the ball" and say the PM needs "to get a grip" of the negotiations. | They have accused Business Secretary Sajid Javid of "taking his eye off the ball" and say the PM needs "to get a grip" of the negotiations. |
It comes amid emergency talks in London between unions and representatives of at risk Tata plants. | |
The government has said it will offer financial support to help find a buyer. | The government has said it will offer financial support to help find a buyer. |
Tycoon Sanjeev Gupta, founder of commodities firm Liberty House, has had initial talks over a potential purchase of the south Wales plant. | Tycoon Sanjeev Gupta, founder of commodities firm Liberty House, has had initial talks over a potential purchase of the south Wales plant. |
Liberty House said the talks had been "positive" and ministers were "keen to find solutions". Mr Gupta will return to London on Monday evening to continue the negotiations. | Liberty House said the talks had been "positive" and ministers were "keen to find solutions". Mr Gupta will return to London on Monday evening to continue the negotiations. |
Mr Javid is to meet Tata's chief finance officer while investment firm Greybull has been in talks with the company regarding a buy-out of its Scunthorpe operation. | |
UK steel crisis | UK steel crisis |
Who might buy Tata in Port Talbot? | |
Welsh Assembly to grill first minister over Tata | Welsh Assembly to grill first minister over Tata |
What's going wrong with Britain's steel industry? | What's going wrong with Britain's steel industry? |
Tata Steel UK: What are the options? | Tata Steel UK: What are the options? |
Is China to blame for steel woes? | Is China to blame for steel woes? |
Mr Javid is also due to meet union representatives on Tuesday. | |
Speaking outside the union talks in London, Unite general secretary Len McCluskey told the BBC Tata had expressed a desire to complete the sale "speedily", adding: "That's not really good enough if they want to be a responsible company." | |
He said Tata was "under some pressure from ourselves to do the right thing, not to just rush away in a matter of weeks" and called on the government to "put a protective arm around the industry". | |
Tata Steel announced last week it was selling its loss-making UK businesses and would close its plant at Port Talbot unless a buyer is found. | Tata Steel announced last week it was selling its loss-making UK businesses and would close its plant at Port Talbot unless a buyer is found. |
The company directly employs 15,000 workers in the UK and supports thousands of others, across plants in Port Talbot, Rotherham, Corby and Shotton. | The company directly employs 15,000 workers in the UK and supports thousands of others, across plants in Port Talbot, Rotherham, Corby and Shotton. |
Pensions liabilities | Pensions liabilities |
It is understood Liberty House would be unlikely to buy Port Talbot's blast furnace and is primarily interested in the company's rolling mills and other steel processing plants, said BBC assistant political editor Norman Smith. | It is understood Liberty House would be unlikely to buy Port Talbot's blast furnace and is primarily interested in the company's rolling mills and other steel processing plants, said BBC assistant political editor Norman Smith. |
A source involved with the talks said the company and other potential buyers would regard taking on Tata's pension liabilities as "too big an ask". | A source involved with the talks said the company and other potential buyers would regard taking on Tata's pension liabilities as "too big an ask". |
There are around 140,000 steel workers eligible for pensions under the Tata scheme - also including the old British Steel pension scheme. | There are around 140,000 steel workers eligible for pensions under the Tata scheme - also including the old British Steel pension scheme. |
Mr Javid, under pressure over his handling of the crisis, signalled on Sunday that ministers were working on plans to take on some of the pension liabilities and to reduce energy costs to make a purchase more attractive to investors. | Mr Javid, under pressure over his handling of the crisis, signalled on Sunday that ministers were working on plans to take on some of the pension liabilities and to reduce energy costs to make a purchase more attractive to investors. |
But Norman Smith said there was concern that a government move to cover workers' pensions could flout EU state aid rules. | But Norman Smith said there was concern that a government move to cover workers' pensions could flout EU state aid rules. |
'Deeply troubling' | 'Deeply troubling' |
Unions say they wrote to Mr Cameron last week seeking a meeting and have not received a reply - but Downing Street said no correspondence had been received. | |
Roy Rickhuss, leader of the Community union, said: "By now, no-one underestimates the scale of the challenge we face. We have an entire industry to save and not a lot of time to save it. | |
"We must also ensure that we hold Tata to a commitment to be a responsible seller and honour its moral and social duties to UK steel communities." | "We must also ensure that we hold Tata to a commitment to be a responsible seller and honour its moral and social duties to UK steel communities." |
Speaking on a visit to Tata's plant in Rotherham, Business Minister Anna Soubry said the government "will talk to anybody who has a genuine reputation and is genuinely interested" in the company's UK interests. | |
She said the government would do everything possible to secure the future of the industry in the UK. | |
Business rates | Business rates |
Tata Steel has said there is "no fixed timeline" for the sale process but stressed that urgency is needed to avoid "a long period of uncertainty" for employees and customers. | Tata Steel has said there is "no fixed timeline" for the sale process but stressed that urgency is needed to avoid "a long period of uncertainty" for employees and customers. |
Labour says the government should be prepared to take the Port Talbot plant - which Tata says is losing £1m a day - into public ownership to safeguard its future until a buyer can be found. | Labour says the government should be prepared to take the Port Talbot plant - which Tata says is losing £1m a day - into public ownership to safeguard its future until a buyer can be found. |
Meanwhile Wales' First Minister Carwyn Jones has been facing questions from assembly members over the steel crisis later in a hastily reconvened meeting. He is expected to hold talks with Mr Cameron in Downing Street on Tuesday. | |
The Welsh Assembly has been recalled from its Easter recess to discuss the crisis, amid calls from its members for the UK and Welsh governments to work together to reduce business rates. | The Welsh Assembly has been recalled from its Easter recess to discuss the crisis, amid calls from its members for the UK and Welsh governments to work together to reduce business rates. |