South Yorkshire MP calls on ministers to ‘step up’ and help steel industry after Tata blow

South Yorkshire MP calls on ministers to ‘step up’ and help steel industry after Tata blow

South Yorkshire MPs have urged Government ministers to ‘step up’ or face losing the region’s steel industry.

The calls come a day after Tata Steel announced plans to sell off all of its UK steelworks, including those in Stocksbridge and Rotherham.

Read on… http://www.thestar.co.uk/business/south-yorkshire-mp-calls-on-ministers-to-step-up-and-help-steel-industry-after-tata-blow-1-7823987

Fresh doubt over future of steelworks

HUNDREDS of jobs could be at risk at Rotherham’s Tata Steel factory after the company announced plans to sell its UK assets.

The company’s board decided at a meeting in Mumbai last night (Tuesday) that it would “explore all options for restructuring”, including the partial or full sale of its UK factories.

It casts fresh doubt over the future of hundreds of jobs at Tata’s plants at Aldwarke, Moorgate and Templeborough.

Read on… http://www.rotherhamadvertiser.co.uk/news/102473/fresh-doubt-over-future-of-steelworks.aspx

Steel giant Tata confirms UK sale plans

TATA Europe issued the following statement today under the title Review of European Portfolio of Tata Steel which reveals £2 billion in asset impairment in the past five years and confirms its decision to “divest” with its UK operations, including three sites in Rotherham:

Read on… http://www.rotherhamadvertiser.co.uk/news/102472/steel-giant-tata-confirms-uk-sale-plans.aspx

1 thought on “South Yorkshire MP calls on ministers to ‘step up’ and help steel industry after Tata blow

  1. National subsidies are against EU law.

    EU state aid rules only allow competitiveness enhancing support to viable steel companies and do not allow public aid to steel manufacturers in financial difficulties.
    Under EU rules, public investment in companies carrying on economic activities can be considered free of state aid provided the investment is made on terms which would be acceptable to a private investor operating under normal market conditions (the market-economy investor principle – MEIP). Public investment that fails to comply with the MEIP constitutes state aid under EU law (Article 107 of the Treaty on the Functioning of the European Union – TFEU) as it gives the beneficiary an economic advantage over its competitors.
    At the same time, EU State aid rules do allow Member States to grant state aid to enhance the global competitiveness of European steelmakers, such as for research & development, training aid and support for energy-intensive users. In recent years, several Member States have adopted measures aiming to compensate energy-intensive users, including steelmakers, for their high energy costs. Whilst these measures affect competition in the steel sector, they promote important common interest objectives. Moreover, clear limitations are set on the level of state aid that can be granted.
    http://europa.eu/rapid/press-release_IP-16-113_en.htm

    The EU concept is wholly supported by the Labour party and Trades Unions and both know full well what is allowed and what isn’t. The cries from South Yorks.MP’s are based on appealing to the voters because they have to be seen to ‘do and say something’ but they are aware subsidies and re-nationalisation are not allowed under current EU laws.
    Instead of calling for the recall of parliament for a word scoring debate (from whichever side) Corbyn would score more brownie points if he set his MP’s the task of trying to find and encourage other buyers and investors and at the same time admit that Miliband’s ‘Green Taxes’ had a devastating effect on high energy users like the steel industry.
    Cameron is not blameless either. We have heard nothing from him about securing further investment for the steel industry or what plans he and the Tory party have to minimise the effect of steel plant closures.
    I think the phrase ‘Between a Rock and a Hard Place’ might be apt………

    Like

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