The government plans to lose money that manages British steel, says the commercial secretary – Live Politics UK | British steel
The government plans to lose money that manages British steel – commercial secretary
Reynolds also spoke to the Sunday morning program of Sky News with Trevor Phillips. He was asked how much he could cost the taxpayer if the government takes the property and control of British steel.
Reynolds said that the government plans to lose money that manages British steel, but allowing him to collapse would have cost £ 1 billion. There has not yet been any confirmation of the plans to nationalize the plant in Scunthorpe, but the public property seems increasingly probable.
Speaking with Sky News, Reynolds said:
The losses, annual losses, net losses, in the last series of accounts were £ 233 million. In reality, this can be improved, but I am accepting your point that we would expect to lose money on this.
I would ask the public to compare it with the option to spend a lot more money to reach an agreement that would have seen many working losses and Jingye remains as a partner.
Or the cost of the complete collapse of the British steel, easily of over £ 1 billion in terms of need to respond by the government, to remedy the land, to take care of the workforce.
The commercial secretary said that, since the money had already been put aside for the steel industry to the budget, the government should not have borrowed more following the acquisition.
He added: “To be absolutely sincere, I think that supporting British steel at this moment, in this way, is better than spending a greater agreement for the complete loss of the company or in a transition agreement”.
Jingye still has the site in Scunthorpe, but the bill of the steel industry published on Saturday gives the government the power to instruct the steel companies in England to keep the structures open, with criminal penalties for managers if they cannot respect.
Key events
THE UK reform leader Nigel Farage supports the nationalization of the plant. Here are some of the main takeaways of what Laura Kuensbergg said this morning:
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He believes that the nationalization of the Sciathorpe plant is the right move because he claims that the Chinese owners of the plant, Jingye, are a “bad actor”.
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Farage accused the Chinese Communist Party (CCP) of deliberately sabotage British steelBut he did not provide evidence for his request. “This is a great strategic decision by the PCC,” he said. Asked for his tests to take this statement, Farage said: “You can call him intuition if you want”.
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Farage said, once again without evidence that it was “certainly 100% of having purchased the British steel to close the British steel”.
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Farage states that it is difficult to estimate how much the taxpayer would cost nationalize the British steel “because we cannot trust Jingye’s figures” and that the company has “inflated artificially” its losses and has not opened its accounts up to adequate control.
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Farage said that we are experiencing an “industrial massacre” and a “complete rethinking” on the British industry is necessary to protect internal production and interests.
The government plans to lose money that manages British steel – commercial secretary
Reynolds also spoke to the Sunday morning program of Sky News with Trevor Phillips. He was asked how much he could cost the taxpayer if the government takes the property and control of British steel.
Reynolds said that the government plans to lose money that manages British steel, but allowing him to collapse would have cost £ 1 billion. There has not yet been any confirmation of the plans to nationalize the plant in Scunthorpe, but the public property seems increasingly probable.
Speaking with Sky News, Reynolds said:
The losses, annual losses, net losses, in the last series of accounts were £ 233 million. In reality, this can be improved, but I am accepting your point that we would expect to lose money on this.
I would ask the public to compare it with the option to spend a lot more money to reach an agreement that would have seen many working losses and Jingye remains as a partner.
Or the cost of the complete collapse of the British steel, easily of over £ 1 billion in terms of need to respond by the government, to remedy the land, to take care of the workforce.
The commercial secretary said that, since the money had already been put aside for the steel industry to the budget, the government should not have borrowed more following the acquisition.
He added: “To be absolutely sincere, I think that supporting British steel at this moment, in this way, is better than spending a greater agreement for the complete loss of the company or in a transition agreement”.
Jingye still has the site in Scunthorpe, but the bill of the steel industry published on Saturday gives the government the power to instruct the steel companies in England to keep the structures open, with criminal penalties for managers if they cannot respect.
Laura Kuenssberg asks Jonathan Reynolds because the government was so slow in making emergency laws save British steel (When weeks ago – On March 25 – British Steel said it may have to close the furnaces).
Q: “Why did you let it get to this Thursday when the coal is about to end that you actually made this decision? “
A:
Since I do not believe in any job, in any role in the government, take emergency powers of the scale that occurred yesterday until you have that emergency situation.
We have negotiated in good faith. We expected, since I think it is reasonable, an economically rational partner on the other side.
When this became evident that this was not possible, this required the type of significant and dramatic emergency action that was undertaken yesterday.
For a certain context: Reynolds accused the Chinese owners of British Steel, Jingye, of not having negotiated “in good faith” after deciding to stop buying enough raw materials to keep the Altiforni of Scunthorpe in progress.
By opening the debate on Saturday, Reynolds said that the work was engaged in negotiations with Jingye since the party risen to power last July and offered “substantial” support.
The government recently claimed to have offered to buy the raw materials necessary for the Blast Furnaces, but this had been welcomed with a counter-offer of Jingye who asked for “excessive quantity” of support.
Reynolds said yesterday:
In the last few days, it has become clear that Jingye’s intention was to refuse to buy sufficient raw materials to make the Blast Furnaces work – in fact, their intention was to cancel and refuse to pay the existing orders.
The company would therefore irrevocably and unilaterally closed the production of primary steel at British Steel.
Everyone would have been lost without emergency legislation being approved – Commercial Secretary
Commercial Secretary Jonathan Reynolds He is questioned by the BBC Laura Kuenssberg in his Sunday policy program.
He said yesterday was “dramatic” but it was necessary to protect the “economic security” of Great Britain. He said that if nothing had been done, the explosions and the production of steel in the United Kingdom would go “. His officials are on site right now, added the commercial secretary.
Kuenssberg pressed the minister, asking him if he was sure he had the supplies he needed to keep the pitch of the plant in flames. Reynolds has refused to be drawn on commercial specifications.
“Without the decisive action of the government yesterday it was lost,” Reynolds insisted.
Why should British Steel be saved by the government?
My colleague Philip Inman wrote a useful explanation On why British Steel – an important provider of construction companies and network railway – had to be saved by the government and explores what the next steps could be, with the nationalization that seems increasingly likely. Here is an extract from its piece:
The ministers wanted to develop an industrial strategy – which includes the steel produced at national level – before assigning any money to the individual sectors. But the crisis of the British Steel Scarthorpe plant carried out a decision on the type of steel industry that the United Kingdom needs.
The system, which is the last manufacturer left of virgin steel produced in series in England and produces a wide range of products, from the beams for the construction sector to form rails, requires raw materials in the next two weeks, including iron balls, or faces the perspective of the furnaces that are cooling at a point where it is neither easy nor cheap to bring them back.
The new legislation, approved by Parliament Saturday, it will prevent mass layoffs and will manage a transition from the steel produced by explosion to electric arc furnace, which can work on renewable energy.
The commercial secretary provides instructions to the British steel after the emergency law has been approved to keep it operational
Good morning and welcome back to our rotating coverage of the UK policy.
An emergency invoice aimed at saving British steelThe Scunthorpe plant became the law yesterday after the parliamentarians and peers were recalled by recreation to participate in a Saturday for the first time for decades.
They had approved the emergency legislation without opposition, giving the commercial secretary, Jonathan Reynoldsthe power to request British steel To maintain the Scarthorpe plant after the talks with its Chinese owner, DumpyIt broke.
For now it has prevented the imminent collapse of the steel mills and the loss of thousands of jobs.
A government source confirmed to the PA Agency that Reynolds had given indications to Jingye after yesterday’s session, but did not specify what those indications were.
Jingye had said that the plant “was no longer financially sustainable” and was losing about £ 700,000 per day.
While there is a general consensus on the transversal party for the government move to take control of the British steel, the conservatives said that the ministers should have acted before, with the shadow leader of the Chamber Alex Burghart who accused the government of making “a total pork breakfast of all this agreement”.
Saturday’s legislation stopped in short to fully nationalize the British steel, instead allowing Reynolds to instruct the company to keep the altiforni, maintain the staff employed and continue to buy the raw materials necessary to make steel, with criminal sanctions for the managers if they refuse.
Although the ministers still hope to guarantee investments in the private sector to save the system, there are no companies that offer to deal with it and the commercial secretary has granted the parliamentarians that public property was “the probable option”.
It is Yohannes Lowe here with you today. Please send me an E -mail on yohannes.lowe@theguardian.com if it identifies clamping or omissions errors.
