Angela Eagle MP, Labour’s Shadow First Secretary of State and Shadow Business Secretary, has today written to Sajid Javid asking him to:

·                 Urgently ‘pick up the phone to Beijing’ to discuss reports of proposed Chinese tariffs on British steel

·                 Set out how many weeks there are to save the British steel industry

·                 Set out what interventions the Government has made to help British steelworkers

·                 Clarify a range of other issues surrounding the Government’s handling of the steel crisis

Angela Eagle said: 

“Over twenty four hours have now passed since the Prime Minister convened the so-called emergency meeting, but so far we have heard more warm words from the Government but no concrete action.

"Despite all the talk there have been no new proposals to safeguard our steelmaking capacity; no evidence of action to reassure workers; and no proof that the Government is going all out to find a potential buyer.

"For the sake of steel workers and their families who are worried sick and for the future of our economy, it’s time the Government got a grip of the situation and came up with concrete steps to help save our steel industry.”

Text of the letter sent from Angela Eagle to Sajid Javid today:

Dear Sajid,

Over twenty four hours have now passed since the Prime Minister convened the so-called emergency meeting at Number 10. So far we have heard more warm words from the Government but no concrete action.

You will be aware of the grave seriousness of the situation, given that Tata Steel have been unable to give a categorical commitment to keeping their operations open while buyers are found. This means that the future of steel making in the UK and the high-skilled, well-paid jobs of those directly employed by Tata and many more in the supply chain are hanging by the thinnest of threads.                

Against that backdrop I am deeply concerned that despite all the talk from the Prime Minister there have been no new proposals to safeguard our steelmaking capacity; no evidence of action to reassure workers; and no proof that the Government is going all out to find a potential buyer. 

The danger signs have been flashing red for some time, yet these have been largely ignored by a Government whose neglect of the steel industry is putting our manufacturing base at risk. As you well know, foundation industries like steel are vital to our manufacturing, construction and defence industries.

That is why Labour has dragged the Government kicking and screaming to take action to help the steel industry, for example by demanding action on vital reform to trade defence instruments, business rates and procurement. 

The indifference shown by the Government suggests that it seems content to manage decline, rather than take the tough and necessary action needed to defend jobs and put the industry on a sustainable footing for the future.  

I therefore have a number of specific questions which I hope you will be able to answer fully and in a timely fashion.

Tata Steel:

·                  When was your office first made aware of the Tata Steel board meeting in Mumbai; and when and why did you not see fit to go to Mumbai to lobby the board?

·                  What communication have you personally had with the board of Tata Steel in the weeks leading up to their meeting in Mumbai and what communication have you had with them subsequent to the decision they made on Tuesday 29 April?

·                  After the so-called emergency meeting in Number 10, the Prime Minister spoke of the interventions he had made. Can you inform me what these interventions consisted of?

·                  It is still unclear how long Tata Steel plan to keep Port Talbot steelworks open for while a buyer is found. Can you confirm how long is left to save the plant?

·                  Tata Steel are believed to have appointed PwC to advise it on the restructuring of its UK business. Can you shed any light on what options are being looked at by PwC, and what involvement the Government is having in these discussions?

China and Trade Defence Reform:

·         I have repeatedly called on the Government to support tougher EU action to ensure a level playing field and prevent the dumping of Chinese steel, specifically to support scrapping the Lesser Duty Rule which prevents higher tariffs being imposed. So far the Government have blocked this at EU level. Given that the future of Britain’s steel industry is now under threat, do you agree with me that the UK should now change its position on the Lesser Duty Rule?

·         Referring to the Lesser Duty Rule earlier today, Charles de Lusignan, a spokesman for Eurofer which represents steel production in the European Union, said: “The fact is that the UK has been blocking this. They are not the only member state, but they are certainly the ringleader in blocking the lifting of the Lesser Duty Rule.” Can you explain why the UK has seen fit to block this vital reform which could have prevented the current crisis in the steel industry?

·         If the Government and other EU members states now accept that steel making in the Europe is in ‘emergency measures’, then it would be possible to apply ‘safeguards’ to effectively halt the flood of imports into the EU. Do you believe that this would be appropriate?

·         Granting market economy status to China in the absence of important safeguards would significantly diminish the capacity of the EU to guard against Chinese dumping which has the potential to destroy the UK steel industry. And at the same time China are saddling British exports of steel with exorbitant tariffs. Given recent developments in the UK steel industry, do you agree that China should not be granted Market Economy Status at any cost and will you commit to picking up the phone to Beijing as a matter of urgency to discuss these proposals?

Business Rates:

·         The recent Budget contained nothing in it to help the UK steel sector, and at the eleventh hour the Government dropped plans to reform business rates for the steel industry. I would be grateful if you could explain why Government decided against business rate reform for manufacturing industries such as steel, and when this decision was taken?

·         UK business rates are up to 10 times higher than those of many of our European competitors. Given recent developments, will you commit to looking again at reforming business rates for the steel industry?

Procurement:

·         Last October the Government published new guidelines for departments to use for major projects when buying steel, with the aim of ensuring that contracts are more likely to be awarded to UK steel firms. I of course welcome this change, although remain concerned about its limited scope. Can you confirm which, if any, public contracts have been awarded to UK firms under the new guidelines?

·         The recent BIS Select Committee report on the steel industry concluded that the Government needs to do more to “actively champion the use of domestic steel in large public infrastructure projects.” Can you confirm what action the Government is taking to actively champion the use of UK steel for large-scale infrastructure projects?

Thank you for your attention to this matter, and I look forward to hearing from you urgently. 

Yours sincerely,

Angela