BUSINESS Secretary Jonathan Reynolds refused to confirm yesterday whether the government can get sufficient raw material supplies in time to keep the blast furnaces at British Steel running, after it took control of the Chinese owned plant.
Emergency legislation was rushed through Parliament on Saturday to prevent owners Jingye shutting down the two blast furnaces in Scunthorpe.
Asked if he could guarantee the furnaces would remain open, Jonathan Reynolds said he would not comment ‘on the commercial aspect of supply’ but said the take-over gave an ‘opportunity’ to obtain the coal needed.
The government previously said Jingye had been selling off raw materials before officials took control of the plant.
Asked several times by Laura Kuenssberg on BBC TV yesterday morning whether he was sure he would be able to get the supply of coal before current stocks run out, Reynolds insisted: ‘I’m not going to get into that,’ but admitted that the take-over ‘was essential to maintaining steel production in the UK’.
He added that the situation remains ‘difficult and challenging’.
Saturday’s emergency legislation ‘enables’ the government to keep the blast furnaces working, he said.
Once a blast furnace is switched off, it becomes incredibly difficult to restart production.
‘If we hadn’t acted, the blast furnaces were gone and in the UK the primary steel production would have gone,’ he said.
‘If we hadn’t acted, you’d be asking how we support the thousands who’ve lost their jobs.’
Speaking to the BBC, Tory shadow business secretary Andrew Griffith argued that the government should fully nationalise British Steel to clear up any doubts about the future of the company.
The company has already ‘been nationalised’ in ‘substance’ by the emergency powers, he argued.
Following the announcement by prime minister Keir Starmer on British Steel coming under government control on Saturday, Unite general secretary Sharon Graham said: ‘I am pleased that the government has listened to representations by Unite and other steel unions over the future of British Steel.
‘Ministers could not have allowed a foundation industry to go under with the loss of more than 3,000 jobs and key skills. It is absolutely the right thing to do to begin the process of nationalisation.
‘Discussions have been positive and whilst a longer-term plan needs to be developed, this gives workers the reprieve we have been asking for.
‘It is essential that Scunthorpe receives the relevant infrastructure and kit to allow it to thrive as a modern steel producer long into the future.
‘Unite is also urging the government to consider making steel an area of critical national infrastructure and ensure that UK steel is used on all infrastructure projects. This move is needed to back the British steel industry as a whole.
‘It is also vital that the government tackles the issue of industrial energy costs.’
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