Tories vote down action to support steel industry

The Conservatives have voted down action to support the steel crisis across the UK.

The Tories voted 288 to 239 a Labour motion to support EU action, allow higher tariffs on steel imports and publish a strategy for the struggling industry in an Opposition Day debate yesterday.

Angela Eagle, shadow Business Secretary, condemned the Tories’ inaction.

“Britain’s steel industry is in crisis, and despite the warning signs flashing red, the Tories have had to be dragged kicking and screaming to come up with any kind of response.

“More than 5,000 UK steel jobs have been lost over the past 12 months. Redcar has been abandoned, the blast furnace and the coke ovens destroyed by this Government’s shameful complacency and inaction. Tata Steel has announced the loss of 1,050 jobs this year alone, and there are worrying signs that the entire industry in the UK is hanging by a thread.”

She went on to highlight the crucial role the steel industry plays for UK business:

‘Steel production is worth £9.5 billion to our economy, £5 billion of that in exports, at a time when we have a deteriorating trade deficit.”

Stephen Kinnock, Labour MP for Aberavon, where Tata steel is located, called for “regulation” and a government strategy:

“The underlying cause of many of the government’s failures is the lack of a long-term industrial strategy for steel, with a commitment to a strategic approach to skills, investment, regulation and industrial relations.”

The price of UK steel has plummeted as a result of “steel dumping” by China, who sells steel at much lower prices than European producers. China has been accused of selling steel at a loss, keeping its population employed and undercutting other producers.

This follows an announcement from the Chinese government yesterday that they expect to lay off 500,000 from the steel industries – or roughly 5 per cent of their workforce – as part of efforts to reduce industrial overcapacity.