Calls to save British Steel as 5,000 jobs in jeopardy
BRITISH STEEL must be nationalised if a deal cannot be reached to avoid it collapsing, ministers were urged yesterday.
The call was made after it emerged the steelmaker was on the verge of administration following a failure to secure millions in financial support.
About 5,000 workers are employed by the company, mainly in Scunthorpe, while another 20,000 work in the supply chain.
Unions warned of an ‘economic catastrophe’ if it went out of business.
Assistant general secretary of Unite, Steve Turner, said: ‘If a deal cannot be struck to secure the long-term future of the steelmaker under private ownership, the government must bring it under public control in the national interest.
‘British Steel’s success is key to any future UK industrial strategy. It supplies other UK steelmakers and provides 95 per cent of the UK’s rail tracks.
‘It is a national asset that cannot simply be left to the market.’ He said Unite was in ‘continuing dialogue’ with British Steel and the government.
Business minister Andrew Stephenson told MPs: ‘Subject to strict legal bounds, the government will leave no stone unturned in its support for the steel industry.’ Gill Furniss, shadow minister for steel, said: ‘The government must intervene. Administration would be devastating for thousands of workers and their families who rely on this industry.’
It was reported that British Steel had asked for £30million to tackle ‘Brexitrelated issues’.