Labour accused of abandoning Port Talbot steel plant while considering nationalisation for Scunthorpe
Emily Price
Plaid Cymru has hit out at the UK Government over reports that it is considering nationalising British Steel to prevent its collapse – a move not extended to the TATA plant in Port Talbot where 2,500 jobs were lost.
On Tuesday (April 8) Sir Keir Starmer said all options remain on the table for the future of British Steel’s Scunthorpe plant amid suggestions it could be taken into public ownership to keep the last UK steelmaker afloat.
British Steel has launched a consultation on the proposed closure of blast furnaces at its Scunthorpe plant and the Government has been talking to the company’s Chinese owner Jingye.
There have been calls for temporary nationalisation amid fears of thousands of job losses.
Importance
The Prime Minister said he understood the importance of the steel plant as he was quizzed by senior MPs at the Commons Liaison Committee.
“Therefore we will keep talking. We have made an offer, but all options are on the table in relation to Scunthorpe.
“I think it’s really important and we’re in the middle of those discussions.”
Asked what he meant by “all options”, Sir Keir replied: “I don’t want to be unhelpful to the committee, but as you can imagine these are ongoing discussions at the moment.
“I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe.
“But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can.”
The UK Government committed £500 million in September last year to help Port Talbot move to greener forms of steelmaking – though the deal will still lead to the loss of around 2,500 jobs.
‘No plans’
In December, Plaid Cymru Business and Trade spokesperson, Llinos Medi asked the Secretary of State for Wales, Jo Stevens, why the Government had estimated the cost of nationalising British Steel to safeguard Scunthorpe’s future while dismissing calls to nationalise Port Talbot.
Ms Stevens replied: “The Government have no plans to nationalise British Steel.”
A month later, Wales’ First Minister Eluned Morgan later mocked Plaid Cymru leader, Rhun ap Iorwerth, for suggesting the Port Talbot plant could be nationalised to prevent the loss of jobs, describing it as a “pipe dream”.
Ms Medi MP said: “When Plaid Cymru called for the nationalisation of Port Talbot to safeguard Welsh steel, Labour dismissed it without hesitation.
“Now, as the UK Government considers nationalising British Steel in Scunthorpe, Labour’s quiet acceptance of a Tory plan that cost 2,500 jobs in Port Talbot is nothing short of a betrayal.
“The people of Port Talbot will rightly ask why their jobs and community were not worth fighting for.”
UK Industry minister Sarah Jones has hosted a meeting of the Steel Council with the chief executives of Tata, Liberty and British Steel as well as trade union leaders and the trade association UK Steel.
Relief
She sought to reassure the industry as the first payments from an energy cost relief scheme for the industry are due to be paid next month.
The Network Charging Compensation scheme payments are expected to give businesses more than £15 million of relief in May and more than £300 million during 2025.
Ms Jones said: “We know this is a concerning time for our steel industry in the face of global challenges.
“That’s why we’re working in lockstep with industry to drive forward our steel plan so it can help the sector secure jobs, deliver growth and power the modern economy.
“This Government will always stand up for UK steelmaking, and where others may talk tough, we are acting, with money ready to go to back up British industry.
“With our steel plan we’re placing it at the heart of our growth mission, and we’ll keep all options on the table to help steel in the UK thrive and deliver on our Plan for Change.”
Conservative leader Kemi Badenoch said the Scunthorpe steel plant was “in peril” because of Labour’s “wrong choices”.
“Nationalisation has got to be a last resort,” she told reporters during a visit to Chemring Countermeasures in Salisbury.
She added: “We need steel production in this country. It is important for national resilience.”
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Lets see them lie their way out of this. Cymru and her people a second hand afterthought yet again! We need INDY now
Im not defending the current government in either the Senned or Westminster. Unfortunately Tata own Port Talbot Steelworks. Its a private business. They can run it however they see fit. The decision to close the blast furnaces was taken by them when the tories were in government. What did they do to prevent it happening? Nothing. The same as Labour. But then again no government can dictate how a company conducts it operations. If they aren’t breaking any laws.
That’s not correct because the government can compulsorily purchase anything they want to.
Nope you’re wrong.
The government can do whatever they want as long as they can convince a simple majority of MPs to pass the required law. That’s what sovereignty of Parliament means. Other states have checks and balances on absolute power but not here.
They ran it into the ground with lack of maintenance then offloaded the pension and claimed massive losses to do so . The only thing consistent about TATA is the the use of their begging bowl.
This was a plant with an 80 inch rolling
Suitable for making tanks and ships
TATA will be looking for a handout for their JLR car plant, if tariffs bite.
TATA will rob a handout from anybody. They appear to be masters of that dubious art. Classic Globalist antics.
They are a global company. Port Talbot and the rest of their UK steel operations are just a tiny part of the steel plants they run worldwide.
It isn’t some global conspiracy. If the UK government had blocked the sale and kept it British owned. Whoever had taken it over would take any handouts. Just the same as TATA.
What happened about their giga battery plant
More pie in the sky. They seem to expect the UK tax payer to fund their profits
British management cannot be as bad as them
Nationalising any large company or a utility is a romantic notion, but the reality is very different. The government would have to buy the works for a fair price, and by government, I mean us.
The government then becomes the payroll for the employees, and by government, I mean us.
In the end, government costs go up so they levy new taxes to pay for this new expense. Guess who gets than honour?
They could start by levying a proper carbon tax on imported steel to give domestic producers a fighting chance against unfair global competition.
Fair price is a pound if they are making a million pound a day loss as TATA claim
Bar steward bankers
It’s not only a choice between private or public ownership. There’s also the option for the state to own a share of anything that might be considered strategically importance.