Steel sector in crisis says minister

MPs urge government to act to support industry at parliamentary debate

MPs have called on the government to act to help to support the steel industry following media reports that more 2,000 jobs are at risk at the country's second largest steelmaker SSI UK.

The reports claimed SSI UK, a unit of Thailand's Sahaviriya Steel Industries (SSI), had missed several debt repayments putting jobs at risk.

Anna Turley, Labour MP for Redcar – where SSI is based – told parliament that the UK steel industry is at breaking point and that the government could do much more to help.

Turley urged the government to:

• bring forward the energy intensive compensation package;

• bring business rates for capital intensive firms into line with EU counterparts;

• support the sector by backing anti-dumping – where products are sold at below fair value, depressing prices worldwide – measures at EU level;

• support the sector by ensuring 'local content' is a condition of contracts for major infrastructure projects.

In response Anna Soubry, minister of state for small business, industry and enterprise, agreed that the sector was in crisis. She said that the government was doing all it could to help, but that its hands were tied by strict European Union state-aid rules and commitments to produce electricity in an environmentally friendly way, not just as cheaply as possible.

However, she promised to raise the issue of “dumping” when she travels to China next week as part of a British trade delegation. “We want to talk to them about dumping, we want to talk to them about production and we want to talk to them about the future of their own steel industry,” she said.

Speaking after the debate, Roy Rickhuss, general secretary of trade union Community, said: "More warm words from government will be cold comfort to our members, their families and communities, who have increasing concerns about the future of their industry.

"The time for delay is over. The government must reflect quickly, then act, on the issues and the urgency that were so clearly and passionately articulated by MPs from all sides during today's debate. UK steel needs government action now," he added.