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The UK government has recently won royal assent for legislation aimed at preserving the blast furnaces at British Steel’s Scunthorpe facility, following an unscheduled parliamentary session held on Saturday, a move indicative of the severe urgency surrounding the situation.
The emergency bill, which empowers the government to mandate British Steel to maintain operations, was rapidly passed through both the House of Commons and the House of Lords without opposition.
This parliamentary recall, stemming from the collapse of negotiations between the government and British Steel’s parent company, Jingye, was a rare measure. Business Secretary Jonathan Reynolds expressed frustration over Jingye’s actions, claiming they did not engage in “good faith” talks, particularly criticizing their decision to halt the procurement of sufficient raw materials essential for the Scunthorpe operations.
Reynolds stated to MPs, “We cannot remain passive while the UK’s remaining blast furnaces face closure without proper planning or consideration of the implications.”
However, members of the Conservative Party criticized the government for perceived delays, with accusations from acting shadow leader Alex Burghart that the situation had been mismanaged. Shadow Business Secretary Andrew Griffith voiced concerns that the government’s request for broad financial support was akin to a “blank cheque,” while Tory leader Kemi Badenoch suggested that previous negotiations she had led as business secretary were more favorable. Yet, she was vague about the specifics, indicating ongoing discussions at the time of last year’s elections.
During the opening discussion of the emergency bill, Reynolds explained that the Labour government had been negotiating with Jingye since taking power last July, proposing significant assistance. Lately, the government had suggested purchasing necessary raw materials for the Scunthorpe furnaces, which represent the last primary steel-making facilities in the UK. However, this offer was met with a counter-offer from Jingye demanding excessive support.
Reynolds continued, “In recent days, it became evident that Jingye intended to stop purchasing enough raw materials, which would have resulted in the irreversible closure of primary steel-making at British Steel.”
As the legislative debate unfolded, reports from the Times highlighted that workers at the Scunthorpe plant had prevented Chinese executives from accessing key areas of the plant.
The newly introduced steel industry bill grants the government authority to direct steel companies in England to maintain their operations and stipulates criminal penalties for executives failing to comply. This legislation aims to protect the vital primary steel-making capacity in the UK, along with safeguarding the 3,500 jobs associated with the Scunthorpe facility.
Reynolds described the emergency measures as both necessary and proportionate, expressing a desire for these powers to be temporary and not extended longer than necessary.
Meanwhile, Labour leader Keir Starmer met with steelworkers near Scunthorpe to outline his government’s vision for the plant. He emphasized the essential role of the workforce, stating, “You are the backbone of British Steel, and it’s crucial we acknowledge your contributions.”
Saturday’s emergency legislation stops short of fully nationalizing British Steel. While ministers aspire to secure private investment, the business secretary conceded that public ownership remains the most likely outcome.
During discussions, Richard Tice, deputy leader of Reform UK, urged the government to consider complete nationalization without delay. Several Conservative MPs echoed this sentiment, and Liberal Democrat Treasury spokesperson Daisy Cooper remarked that the decision to recall parliament was entirely justified.
The government has faced criticism for prioritizing the Scunthorpe plant while previously neglecting the Tata steelworks in Port Talbot, where significant job losses were also threatened. Liberal Democrat spokesperson David Chadwick highlighted the disparity, questioning how such inequities could exist.
Industry Minister Sarah Jones explained the differing responses by noting Tata’s willingness to invest in Port Talbot and the evolving global circumstances impacting the UK’s steel-making landscape.
TUC General Secretary Paul Nowak praised the new bill but pressed for a more ambitious approach, suggesting that it be complemented with measures to modernize and decarbonize steel production in the UK. He argued for the importance of using British Steel in domestic infrastructure projects as a means to support local economies and sustain jobs within the steel industry.
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www.theguardian.com