TALKS to try to secure the future of the UK steel industry have led to calls that the Government should step in to safeguard jobs.
Yesterday’s meeting was called after 3,000 jobs at Corus Teesside Cast Products (TCP), in Redcar, were put at risk when a four-strong international consortium tore up a ten-year contract signed in 2004 to take nearly 78 per cent of the plant’s output.
The All Party Parliamentary Steel and Metal Related Industry Group held a summit to examine the short-term and long-term difficulties being faced during the economic downturn.
The group, including Kirby Adams, chief executive of Corus Steel, Michael Leahy, general secretary of community, and Ian Rodgers, director of UK Steel, met to express their concerns to Business Secretary Lord Mandelson.
They called for urgent action to stimulate demand for steel, assistance with trade credit insurance, security for energy purchases and prices, and the retention of skills within the industry.
Following last week’s developments at Corus, Lord Mandelson also confirmed the Government’s commitment to work with Corus through the challenges.
He said: “The steel industry is vital to our economy, but it faces very real challenges at this time. The Government has announced a number of measures for industry and discussed how best to face the future. We will work with the industry to take forward some of the key issues raised.”
The talks gave members the chance to speak directly to Lord Mandelson and express their concerns for the future.
Mr Adams said: “The steel industry’s consumer base has been decimated through the knock-on effects of a crisis in the financial markets. What we have emphasised to Lord Mandelson is the need for accelerated government investment to increase demand in steel consuming sectors.
“Another key requirement is that the Government should take immediate steps to restore access to credit for both our suppliers and our customers to normal levels.”
Mr Rodgers said: “The industry is not seeking a bail-out.
However, steel is vital to UK manufacturing, and we need to ensure a competitive and efficient industry remains in place and that can respond when the economy picks up.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here