Steel: support at last

Unite welcomed today’s (April 21) announcement by the UK and Welsh governments to provide a support package worth hundreds of millions of pounds to potential buyers of Tata Steel UK and to take a minority stake of 25 per cent in a new venture, if needed.

Thanks to steelworkers’ and their unions’ relentless campaigning, the UK government bowed to pressure and said that, in addition to taking a potential minority stake in the business, it is willing to consider grant funding support for the development of power plant infrastructure, energy efficiency and environmental protection measures, and R&D and training.

The government says it will also offer debt relief.

First minister of Wales Carwyn Jones, who worked with the UK government to put together the financial package, said that they are “committed to supporting any credible bid to secure steel making in Wales.

“We have worked with the UK government to put in place this significant package of support and we believe that this will help secure a successful sale of Tata Steel’s operations in Wales and the rest of the UK,” he added.

Positive news

“This is positive news for the Tata Steel workforce and starts to gives them, their families and communities the assurance that serious effort is being made to secure a new owner as the unions have demanded,” said Unite assistant general secretary Tony Burke.

“In pledging to take a stake, government ministers have responded to the calls of the steel unions, politicians, industry and the public alike, who all recognise that we need a successful steel industry or we will cease to be a manufacturing power house.

“We hope that today’s commitment will reassure Tata Steel’s customers and the hundreds businesses in the supply chain and convince them to hold their nerve and keep their faith in a world class workforce,” he added.

“Today’s announcement though is only part of the solution,” Burke went on to say. “The task now is to secure a buyer who is committed to purchasing the whole of Tata Steel UK and securing the long term future of steel making in the UK.

“Our members will also need strong commitments during the sales process about their pensions and assurances that none of them will suffer an adverse impact.”

The business secretary said that several investors have expressed interest, but so far metals firm Liberty House has been most vocal.

It is also understood that another outcome could be a management buyout, after senior staff at Tata’s Port Talbot site expressed interest.

Not yet out of woods

Unite rep and Port Talbot steelworker Mark Turner welcomed the government’s announcement that it would lend its support but added that the steel workers and their communities were not yet out of the woods.

“Its great news that the government is finally putting words into action,” he said. “But we need to see the detail of the plans that they’ve announced.

“Our biggest concern is the long-term future of the business,” Turner added. “The government’s tentative announcement that it’s prepared to take a 25 per cent stake in the business, in addition to other support measures, will definitely make Tata Steel UK much more attractive to potential buyers.

“It gives us more than hope – it gives us a future. But what we need is a sustainable future, not just a short-term one.”

Burke added that the UK government’s job is far from finished.

“The UK government still has a lot to do too in ensuring that steelmaking can thrive and that British steelworkers can compete with their global competitors on an even playing field,” he said.

“This means going further on procurement for defence and infrastructure projects by compelling the use of British steel, as well as going further in tackling the dumping of cheap imports and high energy costs.”

Unite has nearly half a million members working in manufacturing industries across the UK. Unite had called on the UK government to intervene to stabilise and secure the UK steel industry through a series of measures.

These included ministers throwing UK steel a financial lifeline and backing investment to get it through these tough times and creating an even playing field by dropping opposition to European Commission proposals to slap higher tariffs on cheap Chinese steel.

Unite also wants ministers to taking swift action on sky high energy costs so that UK steelworkers can compete on a level playing field with their European counterparts, as well as compelling British steel to be used in British infrastructure such as HS2 and defence projects.