Ministers meet to discuss steel sale

Last week Tata Steel said it would “explore all options” for its loss-making UK business, which could affect thousands of jobs in the UK. Many could go at Port Talbot, where over 1,000 job cuts have already been announced.

We all agreed the importance of doing everything we can to secure a sale for the Port Talbot plant

Alun Cairns, secretary of state for Wales

In a meeting with Wales’ first minister Carwyn Jones yesterday, Cameron was “clear” that steelmaking in the UK must be secured, and that a buyer must be found who can provide a long-term, sustainable future for the Port Talbot plant, a Downing Street spokesman said.

Alun Cairns, secretary of state for Wales, said: “It was a constructive meeting with the Prime Minister and First Minister where we all agreed the importance of doing everything we can to secure a sale for the Port Talbot plant.”

Business secretary Sajid Javid also met with Welsh ministers, and is meeting Tata Group chairman Cyrus Mistry in India today.

The meeting’s purpose is to discuss the sale process of Tata Steel’s UK operations, which the government expects to be conducted “responsibly”.

The government said it is using “all possible ministerial, official and diplomatic levers to help secure the long-term future of the steel industry in the UK”.

It has also convened a Steel Council, which brings together industry, unions, government and ministers from the Devolved Administrations, to map the steel sector’s long-term future.

There is no time for further delay from this government. They need to be loud and clear to instil confidence in customers and steelworkers that this business will have a future

Dave Hulse, GMB national officer

Meanwhile, on Monday steelworkers and union representatives met in London to outline demands to secure UK steelmaking.

They called on the government to:

• Take immediate action to guarantee the production of Tata’s UK steel operations so that customers are not lost following Tata Steel’s announcement.
• And to work to ensure the integrity of the business is guaranteed. Sahaviriya Steel Industries has shown that a blast-furnace only operation in the UK is not sustainable. Allowing Tata or other investors to cherry-pick assets will put steel making at risk.

The also said UK plants are viable but require investment. Representatives said “the issue isn't competing on cost but the attractiveness of the product range. This means the business needs the investment originally planned by Tata – understood to be £1.5bn over 10 years. This level of investment should be achievable given that any buyer would be gaining control of assets worth £4bn".

However, government support is needed to bridge the 2-3 years it will take to get back to self-sustainability, steelworkers added.

Within European rules, the government can support the business with investment in ‘green’ technology, investment in research and development and investment in skills.

Dave Hulse, GMB national officer, said: “There is no time for further delay from this government. They need to be loud and clear to instil confidence in customers and steelworkers that this business will have a future.”