UK Government ‘in talks with Tata Steel to provide £500m funding package’ at cost of thousands of jobs
The Government is reportedly in advanced talks with Tata Steel to provide a £500 million funding package aimed at safeguarding the long-term future of a key part of Britain’s steel industry.
The deal would secure £1 billion for the group’s Port Talbot steelworks but could lead to as many as 3,000 job losses, according to Sky News.
Under draft plans, the Government would commit approximately £500 million of public funding, while Tata Steel’s Indian parent company would agree £700 million of capital expenditure over a multi-year period, the report said.
The company would reportedly commit to building electric arc furnaces, which offer greener, less labour-intensive ways of producing steel than traditional blast furnaces.
Industry sources close to the negotiations told Sky that as many as 3,000 of the company’s staff based in the UK could lose their jobs.
Port Talbot is thought to employ about 4,000 workers.
Challenging conditions
A Tata Steel spokesman said in a statement issued to Sky News: “Tata Steel is continuing to discuss with the UK Government a framework for continuity and decarbonisation of steelmaking in the UK amidst very challenging underlying business conditions, given that several of its heavy-end assets are approaching the end of life.
“Given the financially constrained position of our UK business, such significant change is only possible with Government investment and support, as also seen in other steelmaking countries in Europe where governments are actively supporting companies in decarbonisation initiatives.”
Unite general secretary Sharon Graham criticised the reported plans and said the union would be “mounting a significant campaign” to protect jobs.
“This Government could make us the green steel capital of Europe – instead they are choosing to follow a job cuts agenda,” she said.
“Unite will leave no stone unturned in the fight for jobs. We will now be mounting a significant campaign on this issue and we fully expect the Labour Party to make a serious commitment to a better future for UK Steel.”
The Treasury and the Department for Business and Trade have been contacted for comment.
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Our not-fit-for-purpose Welsh Secretary will sort it out…….. not!!!! By the way, what’s he for?
The Tory Party and Westminster has lacked an industrial policy for decades and this is another step down on the total destruction of the UK economy.
Why is all evil caused by the Tories? Most of it is of course, but ap Kenneth needs to be reminded that the Welsh economy has been the responsibility of the Senedd since day one.
We are still waiting for an “industrial policy” from the Labour Welsh government.
Macro-economicpolicy, money creation, tariffs on imports are mostly dealt with in London. Labour have been fairly poor but control of the economy falls in London where most of the levers to control it have been retained.
The sly Tories are electioneering as usual. Basically this is effectively turkeys voting for Christmas seeing this £500 million government aid to Tata investing £700 million mto building these new electric arc furnace in Port Talbot requires less labour meaning the byproduct is the loss of hundreds of not thousands of jobs the sting in the Tory/Tata tail.
Can we have less hysterics about the Tories? Port Talbot steelworks has lacked serious investment for years. When the rest of the world was investing in more efficient electric arc furnaces (which are not new!!), Port Talbot struggled on with aging blast furnaces.
If you want some one to blame, look to those who failed to invest when the rest of the steel making world was advancing.
3000 jobs will be lost, with Trostre closing. What a major success for those climate hysterical activists. Who cares about the people who will lose their jobs as long as we hit the chimerical ‘Net Zero’? But at least Drakeford, Julie James and Lee Waters will be cracking open the champagne.