Latest news with #SteelIndustry(SpecialMeasures)Bill
Sky News
14-04-2025
- Business
- Sky News
Govt 'confident' enough raw materials secured to keep blast furnaces going after steel industry rescue
The government is confident it can secure the raw materials needed to keep blast furnaces going after taking control of British Steel from a Chinese company, Downing Street said. There was concern the government would not be able to obtain enough iron and coal to keep the furnaces going because if they cool down too much it is difficult to get them going again. However, Sir Keir Starmer's spokesman said the raw materials will reach the plant "in the coming days", with two ships containing iron ore docked at Immingham already and another with coking coal "en route" off the Libyan coast. It is understood the iron ore has come from the United States and the coking coal from Australia. The materials were already on their way as part of an order by Jingye, the Chinese company running Scunthorpe that the British government took control of at the weekend through emergency legislation. Sir Keir's spokesman said: "A ship is currently en route with raw materials, and we are now confident in the supply of these materials." He added the government is "working with management" to ensure more raw materials can be obtained to keep the furnaces burning. Urgent legislation rushed through the House of Commons and House of Lords on Saturday gave ministers the power to instruct British Steel - owned by Chinese company Jingye - to keep the plant in Scunthorpe open. The Steel Industry (Special Measures) Bill essentially allows the government to take control of British Steel "using force if necessary", order materials for steelmaking and instruct that workers be paid. It also authorises a jail sentence of up to two years for anyone breaching this law. Jonathan Reynolds told Sunday Morning With Trevor Phillips that he would not "personally bring a Chinese company into our steel sector" again, describing steel as a "sensitive area" in the UK. The business secretary agreed there is now a high trust bar for Chinese companies to be involved in the UK economy. He said: "I think steel is a very sensitive area. I don't know... the Boris Johnson government when they did this, what exactly the situation was. But I think it's a sensitive area." Jingye stepped in with a deal to buy British Steel's Scunthorpe plant out of insolvency in 2020, when Mr Johnson was prime minister. But the company recently cancelled orders for supplies of raw materials needed to keep blast furnaces running at the site - the last in the UK capable of producing virgin steel. This threw the future of the steel industry into question, and ultimately led to MPs and peers being recalled from parliamentary recess to take part in a rare Saturday sitting when negotiations with Jingye appeared to break down. An emergency bill to save the plant became law later that day. Public ownership currently 'likely option' It stops short of full nationalisation of British Steel, but Reynolds told Sky News that public ownership remains the "likely option" for the future. He said: "Well that remains an option. And to be frank, as I said to parliament yesterday, it is perhaps at this stage the likely option." However, the minister said he believes there is "potential" for a commercial private sector partner. He said: "That is my preference, but I feel we've got to find a bridge to that. The kind of investments required for the transition to new steel technology, whichever technology that is, it's a lot of money, a lot of capital." Andrew Griffith, the shadow business secretary, said the government's emergency bill amounts to a "botched nationalisation". He told Sky News the Conservatives supported the "least worst" option in the Commons on Saturday. "There's clearly still more work to do because the taxpayer is now picking up the bills for a business that is still owned by its Chinese owner," the Tory frontbencher said.
Sky News
13-04-2025
- Business
- Sky News
Minister says he wouldn't bring China into 'sensitive' steel industry again
The business secretary has told Sky News he would not bring a Chinese company into the "sensitive" steel sector again - after the government was forced to take control of British Steel. Urgent legislation rushed through the House of Commons and House of Lords on Saturday gave ministers the power to instruct British Steel - owned by Chinese company Jingye - to keep the plant open. The Steel Industry (Special Measures) Bill essentially allows the government to take control of British Steel "using force if necessary", order materials for steelmaking and instruct that workers be paid. It also authorises a jail sentence of up to two years for anyone breaching this law. Jonathan Reynolds told Sunday Morning With Trevor Phillips that he would not "personally bring a Chinese company into our steel sector" again, describing steel as a "sensitive area" in the UK. The business secretary agreed there is now a high trust bar for Chinese companies to be involved in the UK economy. He said: "I think steel is a very sensitive area. I don't know... the Boris Johnson government when they did this, what exactly the situation was. But I think it's a sensitive area." Jingye stepped in with a deal to buy British Steel's Scunthorpe plant out of insolvency in 2020, when Mr Johnson was prime minister. But the company recently cancelled orders for supplies of raw materials needed to keep blast furnaces running at the site - the last in the UK capable of producing virgin steel. This threw the future of the steel industry into question, and ultimately led to MPs and peers being recalled from parliamentary recess to take part in a rare Saturday sitting when negotiations with Jingye appeared to break down. An emergency bill to save the plant became law later that day. Public ownership currently 'likely option' It stops short of full nationalisation of British Steel, but Reynolds told Sky News that public ownership remains the "likely option" for the future. He said: "Well that remains an option. And to be frank, as I said to parliament yesterday, it is perhaps at this stage the likely option." However, the minister said he believes there is "potential" for a commercial private sector partner. He said: "That is my preference, but I feel we've got to find a bridge to that. The kind of investments required for the transition to new steel technology, whichever technology that is, it's a lot of money, a lot of capital." Andrew Griffith, the shadow business secretary, said the government's emergency bill amounts to a "botched nationalisation". He told Sky News the Conservatives supported the "least worst" option in the Commons on Saturday. "There's clearly still more work to do because the taxpayer is now picking up the bills for a business that is still owned by its Chinese owner," the Tory frontbencher said.
Yahoo
12-04-2025
- Business
- Yahoo
Redcar steelworks 'could have been saved' if legislation was passed earlier, say MPs
Redcar's steelworks "could have been saved" if new "bittersweet" legislation passed today had been implemented a decade earlier, politicians across the North East have stressed. Crucial legislation to protect British steelmaking that Prime Minister Keir Starmer "hangs in the balance" has been passed by MPs in an unprecedented Saturday sitting in the Commons. MPs from across the country were summoned to Westminster today (April 12) after being unexpectedly recalled from recess to debate emergency legislation to protect the future of British Steel's Scunthorpe plant in North Lincolnshire. MPs debate in the commons. (Image: PA) The debate was called after negotiations with British Steel's Chinese owners, Jingye, appeared to break down. Owner Jingye's plans to close the blast furnaces and switch to a greener form of production would also have an impact on the steel fabrication and supply chain in Teesside at Lackenby and Skinningrove. But, the Steel Industry (Special Measures) Bill, which was passed today by MPs, gives the Government the power to instruct steel companies in England to keep facilities open, with criminal penalties for executives if they fail to comply. The bill has now passed through the House of Lords, and Royal assent was granted to the now Steel Industry (Special Measures) Act. Ministers said these measures were necessary to keep the Scunthorpe blast furnaces open and protect both the UK's primary steelmaking capacity and the 3,500 jobs involved. However, whilst this is welcome news for the region's MPs, it is "bittersweet". Some have reiterated that if similar steps had come into force ten years ago, Redcar's Basic Oxygen Steelmaking (BOS) plant that closed in 2015 and was demolished in 2023 may not have been lost. Redcar MP Anna Turley. (Image: HOUSE OF COMMONS) Before heading down to Westminster today, Redcar MP Anna Turley said: "The action taken by the Labour government today is vital to securing the future of British Steels' blast furnaces. "It is quite a bittersweet day of course because it's hard not to think about how different things would have been if David Cameron implemented these powers ten years ago and intervened to save the Redcar blast furnaces." Referring back to 2015, she told The Northern Echo: "We declared wanted the government to intervene and take control of the assets - the blast furnace and the coke ovens. "The government refused to intervene and let SSI go to the wall. Emergency powers like this world have saved our blast furnace, steel making on Teesside and crucially the 2,300 jobs that were lost." Middlesbrough MP Andy McDonald added: "We do remember 2015 very, very well and one of the issues that we are talking about at Scunthorpe is the quality of the coke that is being provided. Middlesbrough MP Andy McDonald. "I can't help thinking that in 2015 we had the best coke ovens in the country. But that was then, this is now. We've got to make sure that we preserve our core industries." Recommended: Calls to nationalise British Steel could affect Teesside MPs face choice on British Steel as ministers aim to 'take back control' Darlington MP Lola McEvoy added: "Where the Tories passed the buck year after year, I'm proud we've got a Labour Government that has stepped up to protect thousands of jobs and save steelmaking for our nation. "Steel is a critical industry for the UK and one that really should be thriving. Instead it has been neglected for years, passed from pillar to post. As my neighbour Anna Turley said: if David Cameron had stepped up like Keir Starmer has today, we could have saved Redcar too. "Today I am feeling hopeful with this bold action that we can restore that pride once again."
Sky News
12-04-2025
- Business
- Sky News
Emergency bill to protect British Steel becomes law
An emergency bill to save British Steel's Scunthorpe blast furnaces has become law. The urgent legislation gives ministers the power to instruct British Steel to keep the plant open. The bill was rushed through the House of Commons and House of Lords in one day, with MPs and peers being recalled from recess to take part in a Saturday sitting for the first time in over 40 years. Emergency bill becomes law - follow the latest reaction here After passing through both houses of parliament, the Steel Industry (Special Measures) Bill was granted royal assent by the King. 2:18 The bill gives the government the power to take control of British Steel - or any other steel asset - "using force if necessary", order materials for steelmaking and instruct that workers be paid. It also authorises a jail sentence of up to two years for anyone breaching this law. It will mean the steel plant in Scunthorpe will continue to operate as the government decides on a long-term strategy, and steelmaking in the UK more broadly. Ministers took the unusual step of recalling parliament from its recess to sit on Saturday after negotiations with British Steel's Chinese owners, Jingye, appeared to break down. 2:13 Business Secretary Jonathan Reynolds said the measures within the bill were "proportionate and necessary" to keep the Scunthorpe blast furnaces open and protect both the UK's primary steelmaking capacity and the 3,500 jobs involved. The emergency legislation stops short of full nationalisation of British Steel, but Mr Reynolds told MPs that public ownership remained the "likely option" for the future. During the debate, several Conservative MPs, Reform UK's deputy leader Richard Tice and the Liberal Democrats' deputy leader Daisy Cooper all spoke in favour of nationalisation. MPs had broken up for the Easter holidays on Tuesday and had not been due to return until Tuesday 22 April. The business secretary accused Jingye of failing to negotiate "in good faith" after it decided to stop buying enough raw materials to keep the blast furnaces at Scunthorpe going. But the Conservatives said the government should have acted sooner, with shadow leader of the house Alex Burghart accusing ministers of making "a total pig's breakfast" of the situation regarding British Steel. The government was also criticised for acting to save the Scunthorpe plant but not taking the same action when the Tata were threatened with closure.
Yahoo
12-04-2025
- Politics
- Yahoo
MPs offer support and warnings over steel measures
MPs from around the region were among those spoke in the House of Commons on Saturday during the debate on saving British Steel's Scunthorpe plant from closure. The steelworks, where 2,700 workers face an uncertain future, have become a bit of a political football. The speeches were made during a rare Saturday sitting in Parliament to debate the Steel Industry (Special Measures) Bill. Reform UK's Richard Tice said he wanted British Steel to be privatised, Conservative MP Victoria Atkins said she was worried about the cost to the taxpayer, and Labour's Melanie Onn said the bill was just a "sticking plaster". The government said the legislation would allow ministers to "take control" of the Lincolnshire site and stop its Chinese owner from closing the blast furnaces. Tice, the MP for Boston and Skegness, told the Commons: "Given the secretary of state has inferred that actually the owners Jingye are not acting and have not acted in good faith, surely the right thing to do is to seize this great opportunity now this weekend and nationalise British Steel." Sir David Davis, a Conservative former minister and MP for Goole and Pocklington, said MPs were debating a "nationalisation in all but name" bill, adding: "I would have voted for nationalisation. I will vote for this Bill for a simple reason - this buys us time. "It's a reprieve, not a rescue. I think that's what people have to understand." Atkins, shadow environment secretary and Conservative MP for Louth and Horncastle, accused the government of recalling Parliament in a panic. Speaking outside the Commons after the debate, she said the legislation didn't contain the detail needed to "safeguard jobs and to protect the steel industry". She argued that taxpayers had not been told what the cost would be, and questions remained around what the future liabilities would be. "What are the prospects of the private sector becoming involved again?" she asked. Onn, the Labour MP for Great Grimsby and Cleethorpes, warned that the legislation should not be just a temporary solution. "The measures today are not without risk, and unless we set a course for steel in the UK that closely aligns with our industrial strategy, this will only be another sticking plaster for a site that has already been put through the wringer too many times over the years," she said. She called for a carbon tariff to be introduced, as the EU has, to stop cheaper steel being dumped in the UK. Martin Vickers, the Conservative MP for Brigg and Immingham, accused the government of acting slowly on the issue, and pointed out that he had first raised the issue last year. "I appreciate that ministers cannot give away their negotiating position, but having made that point as long ago as September, surely the government were beginning to realise that the negotiations with Jingye were going nowhere," he said. Father of the House Sir Edward Leigh called on the government to "get real" over the energy costs of running the Scunthorpe steelworks. The Conservative MP for Gainsborough asked: "Why are we loading the most expensive energy costs on our own steel production?" He later added: "We have to stop these green energy costs. We have to be realistic." When the bill reached the House of Lords, the Bishop of Lincoln, the Right Reverend Stephen Conway, said: "I encourage the government to remember the pastoral issues alongside the practical measures it is outlining today. "The two are linked and getting this right will require the government to engage with local partners on the ground... to ensure that we are able to respond together to the impact of what is happening to a resilient but fragile community. "My prayers are with the many people who will feel uncertainty and anxiety about the present and the future, who will require from us a response that is pastoral as well as practical," he said. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. We want our steel back, say Scunthorpe's workers Why is British Steel in trouble and who owns it? Government aims to take control of British Steel
