Build the HS2 rail link with British steel
After £56bn project is approved, bosses demand . . .
MINISTERS are under pressure to ensure British steel is used to build the High Speed 2 rail link.
The Government has given the goahead to the £56bn scheme linking London with the Midlands and the North.
Industry chiefs and the unions are now demanding that a key contract to supply 2m tonnes of steel is not awarded to foreign producers.
The use of British steel would provide a lifeline for an industry that has been ravaged by a crisis claiming thousands of jobs and devastating communities.
The plea comes after last week’s revelation that a contact to supply steel for the next generation of nuclear submarines had been awarded to the French.
Dominic King, head of policy for UK Steel, said: ‘We need to move away from the pattern of public money being shifted straight abroad and instead keep it in our industry, protecting jobs and opportunities.
‘This is a great opportunity for both the Government and industry to ensure this project and future projects use British steel.’
Transport Secretary Chris Grayling yesterday insisted that the £56bn HS2 project would go ahead, with the first phase due to begin construction in 2017.
British firms are among those which have submitted bids for the first £8.6bn stage between London and Birmingham. Many, including Balfour Beatty, Kier and Carillion, have teamed up with French or Spanish firms, which have expertise in high speed rail projects.
The British steel industry has been suffering a decline in recent years, driven by cheap Chinese exports undercutting British producers.
Thousands of jobs have been axed, exacerbated by a combination of higher energy costs and heavier taxes than European rivals. The Government pledged in April that steel contracts would not go abroad ‘if the most competitive bid is British’, add- ing: ‘All departments must consider the social and economic impact of the steel they source across all major projects, including on HS2.’
But Government officials yesterday refused to say that British steel would be used in the project. Industry experts now want the Government to guarantee the use of homegrown steel, even if is not cheaper.
They warn that if British steel is not used in key projects such as HS2 and Trident, then the industry will not be able to maintain capability for the future.
A spokesman for steelworkers’ union Community said using foreign steel would be ‘another massive missed opportunity that puts UK steel jobs at risk in Scunthorpe’, adding: ‘It isn’t just about value for money, it’s about value for UK communities as well.
‘Given that HS2 is such a massive infrastructure investment, you should really maximise the benefits across the UK from the project. You can’t just look at price alone.’