04 September 2023 , 12:33
573
0
Ministers are under mounting pressure to strike a deal to save Britain’s biggest steelworks. The Tata plant in Port Talbot, South Wales, employs about 4,000 workers but is one of the country’s biggest industrial polluters. Bosses from its Indian parent company have been locked in tense talks for months with top Tories and senior Whitehall officials over a £500million, taxpayer-funded injection to help the site switch to more environmentally-friendly production.
Reports suggest an agreement could be edging closer, involving government cash alongside new investment of about £700million from Tata to create electric arc furnaces - less polluting than traditional, coal-fired blast furnaces. But insiders admit thousands of workers could still lose their jobs in the coming years because the new production process would need fewer staff.
Shadow Business Secretary Jonathan Reynolds said: “The Government must urgently provide reassurance to workers in the Port Talbot plant and clarify what exactly their plan for UK steel is. Endless sticking plasters from the Conservatives have left our UK steel sector on the brink. Instead of finding a long-term solution, successive Conservative governments have lurched from crisis and bailouts with no plan to keep UK steel internationally competitive or deliver a return on taxpayers' investment.”
He added: “Labour has a plan for steel, investing in the future alongside industry over the next 10 years to deliver green steel. Steelworkers need a government on their side and industry needs a partner that can provide stability and a bright future for steelworkers for decades to come.”
Prime Minister Rishi Sunak’s spokesman said: “Negotiations are ongoing as we look to secure the decarbonised, sustainable and competitive future for our UK steel sector. Tata themselves have talked about discussing the continuity and decarbonisation of steelmaking in the UK, and the challenging sector.”
Teachers, civil servants and train drivers walk out in biggest strike in decade
Quizzed about long-term job cuts at the plant, the spokesman added: “Jobs are a matter for the individual companies involved. Ministers are working with a sense of urgency, understanding the importance of the UK steel sector.” Hopes of a breakthrough come as the industry prepares for Tuesday's UK Steel Charter reception in Parliament, where sector bosses, unions and MPs gather to make further commitments to buying British steel.
Industry chiefs have repeatedly told the Mirror about the urgency of securing a deal because the blast furnaces are nearing the ends of their lives. A Tata Steel spokesman said: “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 end of life. Given the financially constrained position of our UK business, any 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.”
The Mirror has been campaigning to Save Our Steel since 2015.
* Follow Mirror Politics on Snapchat, Tiktok, Twitter and Facebook