Representatives of steelworkers on Teesside were among those due to ‘stand up for steel’ at the Opposition Day debate on foundation industries..
Tata Steel, which employs hundreds on Teesside, says the industry faces a ‘number of urgent, critical challenges’ including low steel demand and the lack of a level playing field on costs.
It has urged MPs to ‘seriously consider’ the issues raised in a special report from the company, when they meet later today.
The report says: “The steel industry is a vital strategic foundation for the UK economy.
“Steel is fundamental to the country’s strategic sectors like automotive, construction and energy.
“It has the ‘potential to enjoy a long, sustainable, innovative and productive future in the UK.
“A meaningful partnership between the industry and Government is required to overcome these challenges and make it more sustainable. This would enable the value the sector contributes to the UK to be not just maintained but grow in future.”
The three key areas of action the company has outlined are:
* Maximising value capture for the UK.
Tata Steel claims the UK must review its strategic approach to supply chains to ensure that activity in ‘end use’ sectors like automotive or aerospace is robustly considered through to the foundation industries, like steel and chemicals.
* Providing a level playing field - on things like business rates and energy costs.
“Cost competitiveness is an essential prerequisite for success, both domestically and in exporting,” the Tata Steel report says. “The current focus on corporation tax rates is welcome but very narrow. Competitive, flexible employment frameworks are an advantage for the UK. But for asset and energy intensive businesses like steel these advantages alone will not be sufficient. The disadvantages in areas such as energy costs have been acknowledged by the Government.”
* Building the right conditions for long-term investment - including innovation, better national and Euro technology frameworks, reversing the Autumn Statement announcement to stop raw materials commercialisation, skills, sustainability, and ‘fundamental reform’ of the EU Emissions Trading Scheme.
Middlesbrough South and East Cleveland Labour MP, Tom Blenkinsop, who is chair of the All Party Parliamentary Steel Group, welcomed the event.
He said: “Steel in the UK without a proper state economic strategy for growth and industrial development will continue to drift.
“The industry is under pressure and yet it is fundamental to many of the UK’s strategically important supply chains.
“I will be proud to speak on behalf of Community’s steelworkers as I stand up for steel in Parliament on Wednesday.”
Roy Rickhuss, General Secretary of Community, said: “We have been making the case for some time to government that the UK steel industry needs more than warm words from ministers to overcome the challenges it currently faces.
“We are pleased that the Labour Party has chosen to make foundation industries the focus of an Opposition Day debate and we look forward to attending and lobbying MPs.”
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