GORDON BROWN was urged to “pick up the phone” to save the Corus steelworks yesterday, as the region’s MPs joined forces to condemn the feeble response.
Ratan Tata, chairman of the Tata Steel Group which owns Corus, is willing to fly to London for rescue talks with the Prime Minister, a Commons debate was told.
But Mr Tata will only respond to a personal invitation to meet Mr Brown face-to-face in Downing Street – an invitation that has yet to be offered.
The claim was made by Ashok Kumar, the Middlesbrough South and East Cleveland MP, who criticised the lack of Government action, in sharp contrast to last year’s swift and expensive efforts to rescue the banks.
Mr Kumar used to work at the Redcar complex – the closure of which will cost about 4,000 jobs – and enjoys close links with the Tata Group.
He told Business Minister Pat McFadden: “The Government’s response is not enough. We must keep the plant open.
“Even at this late stage, can I urge the Prime Minister to pick up the telephone, call Ratan Tata and Mr Muthuraman, the vice-chairman, and invite them to a steel summit at No 10.
“We need to approach this meeting as we did the bankers, asking Mr Tata what the Government can do to keep the plant open – and do it for the sake of all those on Teesside whose livelihoods are threatened.”
Speaking after the debate, Mr Kumar said: “Ratan Tata has told me he is willing to fly eight hours from Mumbai to Downing Street, but only if he is asked personally by the Prime Minister.”
In reply, Mr McFadden ducked the suggestion, but – surrounded by North-East MPs outside afterwards – he agreed to pass it on to Downing Street.
At the root of the MPs’ optimism that rescue is possible is a belief in a very different Indian approach to business decisions, which places far more weight on personal pleas by political leaders.
Meanwhile, it was revealed that Business Secretary Lord Mandelson plans to meet Tata bosses when he flies to India next week.
The debate came after a week of growing criticism of the £60m aid package announced for Teesside, which focuses on retraining and research into new technologies – rather than on keeping steelworkers in their jobs.
But Mr McFadden described the Government’s response as “swift and significant in scale”, insisting Corus had not asked for direct aid, which would be illegal under EU rules.
He defended the closure decision, saying: “They can’t, under current conditions, run a plant without contracts and without demand for the product it makes.”
The debate was attended by Vera Baird (Redcar), Dari Taylor (Stockton South), Iain Wright (Hartlepool) and Dave Anderson (Blaydon), and was chaired by Frank Cook (Stockton North).
Union boss and MP meet Mandelson
REDCAR MP Vera Baird and Michael Leahy, general secretary of the Community Union, met Business Secretary Peter Mandelson in London yesterday to discuss various options which could provide a future for the Corus complex.
Mr Mandelson has said the Government stands ready to help the plant find new orders and investors and will not “walk away”, while taking steps to boost the Teesside economy.
Mr Leahy said they had stressed the need for a solution on behalf of the affected Corus workers, adding: “I know these discussions will be ongoing and together we will do everything we can to save jobs and Save our Steel.
“Now – as ever – the ball is firmly in Tata’s court. They still need to honour their moral and social obligations to Teesside by looking again at all opportunities to give the plant a future.”
Mrs Baird said: “Together, we made it clear that there is still a fight to save the plant.
“The meeting was extremely productive, but there are no quick wins.”
Meanwhile, Mrs Baird has said she will meet Middlesbrough Mayor Ray Mallon today following his criticism of Labour MPs and the Government’s efforts to save the plant.
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