Minister grilled over steel help

A view of the Tata Steel Plant in Scunthorpe, as fears about fresh job losses in the steel industry have been confirmed after Tata announced plans to cut 1,200 posts. PRESS ASSOCIATION Photo. Picture date: Tuesday October 20, 2015. Around 900 jobs will be cut from the firm's giant plant in Scunthorpe, with 270 in Scotland and a small number in other sites. See PA story INDUSTRY Steel. Photo credit should read: Anna Gowthorpe/PA WireA view of the Tata Steel Plant in Scunthorpe, as fears about fresh job losses in the steel industry have been confirmed after Tata announced plans to cut 1,200 posts. PRESS ASSOCIATION Photo. Picture date: Tuesday October 20, 2015. Around 900 jobs will be cut from the firm's giant plant in Scunthorpe, with 270 in Scotland and a small number in other sites. See PA story INDUSTRY Steel. Photo credit should read: Anna Gowthorpe/PA Wire
A view of the Tata Steel Plant in Scunthorpe, as fears about fresh job losses in the steel industry have been confirmed after Tata announced plans to cut 1,200 posts. PRESS ASSOCIATION Photo. Picture date: Tuesday October 20, 2015. Around 900 jobs will be cut from the firm's giant plant in Scunthorpe, with 270 in Scotland and a small number in other sites. See PA story INDUSTRY Steel. Photo credit should read: Anna Gowthorpe/PA Wire
THE steel minister has been accused of not being in the ‘driving seat’ on plans to rescue the failing industry, after she revealed she only found out the Redcar plant had gone into administration via a Tweet.

In an attempt to illustrate the chaos surrounding the liquidation of the Thai-owned SSI plant on Teesside, Anna Soubry, the Government’s Minister for Small Business, Industry and Enterprise told the a Government select committee that she found out SSI had collapsed via social media in her bedroom in Redcar.

However Peter Kyle, Labour MP for Hove, who challenged the minister during the Business, Innovation and Skills select committee on the UK steel industry said her comments did not describe a minister or Government in control of the industry and there had not been a proactive enough approach to support UK steel production.

Hide Ad
Hide Ad

She told the committee the situation at SSI had been a ‘nightmare’ in relation to their debt and them not paying bills - which they had not known about previously.

She said they couldn’t have acted quicker, because ‘nobody knew the full extent’ of SSI’s financial problems.

And to reiterate how difficult communication had been surrounding the company’s affairs, she said: “Do you know how people knew that the Thai company had gone into effectively, administration? A tweet was sent out that we happened to get because we were on social media in my bedroom in Redcar. A Tweet!”

During the meeting committee chair, Hartlepool MP Ian Wright, asked her to account for the actions she had taken since trouble in the steel industry first emerged.

Hide Ad
Hide Ad

She said the Government’s work to combat the global dumping of steel had been unprecedented and conversations had also taken place about energy prices for electricity hungry steel plants.

Using British steel is also a priority, she added, and she had discussed with Energy Minister Andrea Leadsom on how wind turbine blades could be made in the UK.

However despite pledges the Government will ensure more British steel is used in infrastructure projects, she was told during the meeting by select committee member, Paul Blomfield, Labour MP for Sheffield, that the Hinkley Point nuclear power station plant in Somerset will not accept tenders from British companies.

She said that was a very serious allegation and would look into it urgently.

Hide Ad
Hide Ad

Her session giving evidence to the select committee comes as the Business Secretary Sajid Javid is calling for an emergency EU meeting to discuss the state of the steel industry and unfair trade practices.

He is in Brussels to raise UK concerns over unfair international trading with the EU Trade Commissioner Cecilia Malmström and Internal Market Commissioner Elżbieta Bieńkowska.

Mr Javid said: “I want to see steel top of the EU agenda.

“We cannot stand by while the steel industry across Europe, not just in the UK, faces such unprecedented challenges.

“There are no straightforward solutions to the complex global challenges but the UK government wants to work with the EU and our European partners to do all we can to support our steel industry.”

Today the Government will also convene a working group of steel industry experts to discuss dumping practices to put forward to the EU.

Related topics: