Stand up for Steel debate is welcomed by industry bosses

Steel bosses have welcomed a campaign to protect the interests of the under-pressure industry.

On Wednesday Hartlepool MP Iain Wright led a parliamentary debate which called on the Government to protect local steelworkers, form a coordinated plan of action for the industry and recognise the importance of steel to the UK economy. Politicians urged ministers to introduce measures that would promote innovation in the sector, boost skills, reduce the tax burden and provide support for UK exporters.

The debate was triggered by concerns over the state of the industry, with steelmakers hit by falling demand, depressed global prices and rising taxes. On Teesside SSI UK revealed it would not make a profit until at least the end of this year, while the proposed sale of Tata’s Long Products Division has raised fears of job cuts on Teesside.

Both companies welcomed the debate for highlighting some of the major challenges facing UK steelmakers.

A Tata Steel spokesman said: “Steel is so critical for the success of the UK’s manufacturing sectors and needs to be at the heart of the UK’s industrial policy.

“We need a radical rethink of procurement policy to ensure the UK places the same emphasis as other European countries on retaining value from major strategic and infrastructure contracts.

“We also want to see targeted Government action to revitalise domestic supply chains for manufacturing sectors. The UK automotive industry, for instance, has been growing rapidly in recent years but its domestic supply chain is relatively weak. Only a third of parts that go into cars manufactured in the UK are made in this country; in Germany, two thirds of parts used to build cars are made in Germany.”

Creating a stronger link between manufacturing and domestic supply chains could generate an extra £30bn for the UK economy, according to a recent report by the CBI. In the parliamentary debate Mr Wright said steelmakers could add value to a host of sectors - including automotive, aerospace, construction and energy - and called on ministers to bring forward measures that would reduce the energy tax burden on heavy manufacturers.

Middlesbrough MP Andy McDonald, who attended the parliamentary debate, said ministers needed to act now to ensure the UK steel industry remained competitive.

He said: “The Government made a lot of noise about its compensation package for energy intensive industries but most of that will not be available until April 2016. This is too long to wait for UK steel, which is facing major challenges today, so mitigation is needed now.

“Steel is all around us and is the bedrock of our manufacturing base. The industry employs 30,000 people directly and for every steel job there are three more jobs supported in the wider economy.

“The future of the steel industry should be of concern to us all, which is why the Government needs to act now. In doing so, ministers need to make sure they harness the expertise and knowledge of the trade unions in metal industries, both here in the UK and globally, that makes them a key strategic partner in securing the future of steelmaking.”