A member of the UK parliament (MP), Richard Tice, has called for the government to take a ‘strategic stake’ in British Steel to ensure the future of steelmaking in the country, Kallanish hears.
He made the comment as part of a five-point plan presented during a Commons debate on the steel industry.
“We need to take a strategic stake in British Steel to guarantee that the blast furnaces in Scunthorpe will not close,” Tice argues. “We cannot run that risk, because otherwise if the EAFs are not built, we’ve got nothing.”
He warns that the country is potentially within six to 12 months of having “zero general steelmaking capacity,” fearing the blast furnaces at Scunthorpe are very likely to close. The MP says that would be “an absolute disaster.”
Tice additionally notes the risks of high industrial electricity prices, which could mean that planned EAFs may not be viable and therefore will not be built. He says National Grid “[informed] us in Scunthorpe we can’t get you a grid connection for the electricity you need to run the EAF.”
His second recommendation is to avoid carbon taxes and the potential carbon border adjustment mechanism. A third suggestion is implementing tariffs or protectionism, if necessary, to “stop the dumping of cheap imports from nations like China.”
“America is doing it to protect their own steel industry. We should do the same,” the MP added.
His fourth recommendation is to buy more British material, citing the increased appetite for wind turbines by the secretary of state.
“If you want more turbines…make it a condition that we use British steel to grow our own economy,” Tice urges.
He claims these four recommendations are all deliverable by the current government, whilst admitting that his final recommendation of it scrapping its commitment to net zero is not going to happen. But he insists that it would be the fastest way to achieve cheaper electricity and increase competitiveness.
The debate comes just days after the government launched its new industrial strategy, and National Wealth Fund, with the Steel Strategy currently in progress. However, Tice says this should be published urgently and urges the government to have it out before Christmas.
In response to the parliamentary debate, industry association UK Steel tells Kallanish that it welcomes the commitments of support for the steel sector.
“We agree that UK-made steel is of critical importance to the future of a strong, resilient national economy, growth and jobs. The Steel Strategy is the best mechanism to take forward a bold, long-term plan to drive growth and investment for British steelmaking,” an association spokesperson states.
“We look forward to engaging with the government and supportive members of parliament to develop an approach that transforms our sector into an innovative and competitive industry, that underpins the strategic expansion of steelmaking, and supports well-paid jobs across the country,” the spokesperson adds.
Carrie Bone UK
