Tories ‘content to let the steel industry fail’ as thousands more jobs set to go

1,700 more jobs are at risk as the crisis in the UK’s steel sector worsens, and the Conservative Government “seems content to let the industry fail”, according to Labour’s business spokesperson. The news today that Caparo Industries is to file for administration follows the loss of almost 2,000 jobs at SSI in Redcar, with Tata Steel expected to announce a further 1,000 will go in Scunthorpe later this week.

Shadow Business Secretary Angela Eagle has demanded that the Government take action, “rather than setting up more talking shops” which so far appear to have done little to limit job losses. Both Eagle and Shadow Scotland Secretary Ian Murray have called on David Cameron to bring up the issue of ‘dumping’ with Chinese President Xi JinPing, with Murray saying steelworks are struggling to compete with cheap imports from China’s steel mills.

Eagle said the Government must now look at temporary measures, including current levels of business rates, in order to help stabilise the industry:

“This is a further blow to the steel industry which is now on its knees, and my thoughts are with the 1,700 employees of Caparo who are facing uncertainty over their future.

“The industry needs urgent action from the Government, however this Government seems content to let the industry fail.

“Rather than setting up more talking shops the Government should be taking action to tackle higher energy prices, they should be providing export and procurement support and be looking at what temporary measures could help the industry, including looking again at business rates.

“With the Chinese President in the UK this week, I hope the Government will raise the issue of anti-competitive dumping which is driving down steel prices.”

Murray also called on the Scottish Government to step in and provide support to the secure jobs in Scottish mills:

“We need to do everything we can to protect the jobs at Clydebridge and Dalzell. Today, the Chinese President flies into the UK for a high profile visit, but in recent months, the UK has been flooded by Chinese steel which has made it more and more difficult for our steelworks to compete.

“Some Chinese steel mills are selling at a loss in Europe in order to keep their own industry afloat. In the first six months of this year, steel exports from China have increased by 28%.

“Other countries have taken action to protect their steel industry from dumping, and the UK Government needs to do the same, in partnership with the rest of Europe. The Prime Minister should be raising the issue of dumping with the Chinese President this week, and taking action to protect the Scottish and UK industry.

“We also need action from the Scottish Government. When Grangemouth, Fergusons and Prestwick Airport were at risk, the Scottish Government stepped in to provide support and to secure jobs. They need to do the same now – anything less will not be acceptable.”