MP's react to British Steel's decision to consult over future of Scunthorpe steelworks
Business minister Sarah Jones says Government staff are meeting workers in the town
British Steel has begun talks with unions, which could lead to the closure of its two blast furnaces in Scunthorpe and the loss of up to 2,700 jobs.
A number of MP's have raised concerns in Parliament today about the situation.
Reform UK deputy leader and Boston and Skegness MP Richard Tice has called on the Government to "take British Steel into public ownership".
He told the Commons: "We all know that steel is a critical national industry, in particular, the ability to make primary steel.
"The Chinese might be giving up on British steel but the British people do not want to give up on British steel, and nor should we allow the final two blast furnaces to close.
"So can I urge the minister, take this not as a negative but it's an opportunity to be positive, so take British Steel into public ownership and create a long-term 20 to 30-year positive plan to invest in steelmaking for British industry and for our defence industry."
Industry minister Sarah Jones replied: "We are very much through our plan for steel and the £2.5 billion that we have to invest in the steel industry aiming to do exactly that to keep the industry going.
"I would invite (Mr Tice) to go and see some of the other sites 'round the country where we have electric arc furnaces in operation as well, because they are not that different from blast furnaces. They're still massive buildings melting and making the steel but in a much more efficient way.
"The problem we have with Scunthorpe is that the blast furnaces are very old and they will need huge amounts of money spent on them."
The Government has a "cool head" in its talks with US counterparts over steel, industry minister Sarah Jones has said.
Conservative former minister Sir Edward Leigh said many of his Gainsborough constituents work in Scunthorpe and they will be "desperately worried" by the uncertainty over British Steel's future.
He told the Commons: "This is a vital national interest, a crisis.
"For the last 150 years wars have been won by states who can make virgin steel. So will the Government do anything - tariffs, the Secretary of State going up there now to Scunthorpe to negotiate directly with the company - to ensure we keep our vital national interest going, which means blast furnaces?"
Business minister Sarah Jones said negotiations will continue, adding: "There are many different ways of making steel and we are investigating on the primary steel point the merits of investing in DRI (direct reduced iron), which is where you use hydrogen instead of the old blast furnaces.
"The reality of the Scunthorpe blast furnaces is it is very old infrastructure, decades old and needs updating and we need to move to new technology and that's what we're trying to do with Jingye."
Business minister Sarah Jones said the Government "very much hopes" a deal can be reached with British Steel, adding in the Commons: "In the short-term, the DWP (Department for Work and Pensions) and the Department for Education will be there on the ground making sure that people get the immediate support they need.
"If the consultation continues and there is a closure, of course then there is much more intervention we need to kick in in terms of support for local people and we're already working on all manner of contingencies to make sure we support people in the same way that we're doing in Port Talbot.
"But our aim is not to get to that point."
Business Secretary Jonathan Reynolds has said issues over the future of the UK steel industry have been the "hardest" the Labour Government inherited.
It follows British Steel announcing that it is consulting on closing blast furnaces, after failing to reach an agreement over a support package from the UK Government.
Mr Reynolds told a conference held by think tank Chatham House that an "offer has been made about the transformation, and we haven't got an agreement as it stands".
"But it is a very, very challenging situation... I've got to make sure there's the right deal for the taxpayer.
"Obviously I need to know there's a viable business being created at the end of that. I need guarantees on jobs if I'm putting public money in."
The minister stressed that he wants "a strong future for the steel industry in the UK".
"Of all the industrial issues which I think the previous government neglected, I think this is probably one of, if not the, hardest that we've inherited."
Shadow trade minister Greg Smith told the Commons: "The world is becoming more dangerous and we need to bolster our defence industry. Without the ability to produce our own primary steel those efforts could be put in jeopardy."
He questioned what impact the news about British Steel would have on the UK defence industry and also what would be the impact if the site closes.
Mr Smith added: "It takes a special something to be able to offer someone £500 million and for them to reject it, but whatever it is I guess the Business Secretary (Jonathan Reynolds) has it."
Business minister Sarah Jones criticised the Conservatives' record in government before saying on trade relations with the US: "We're in a good position in this country in that the relationship that our Prime Minister has built up with president Donald Trump and his team means we're in active conversations about a potential trade deal.
"This is a good, positive thing and we're carrying on having those conversations. (Mr Reynolds) has been talking regularly with our American counterparts, as you'd expect.
"We will have cool heads in this space, we will navigate our way through and we are talking daily with British Steel, our officials are talking daily with British steel, we're talking with the trade unions, we're talking with all the players to try and make sure in this difficult landscape globally that we find ourselves in that we're doing right by the people of Scunthorpe."
Sarah Jones underlined the importance of a thriving steel sector in Britain, and said it was important blast furnaces were kept open.
The business minister responded to a question from Conservative MP for Brigg and Immingham Martin Vickers about whether the Government wanted to keep blast furnaces operational until arc furnaces were installed.
She said: "We would rather the blast furnaces remained open, (Mr Vickers) knows that if you close them before securing a supply of steel that is a very significant thing to do and quite hard in terms of customer confidence and what will happen to that customer base."
She said the significance of steel to the defence industry was shown by Russia's initial actions during the Ukraine invasion.
Ms Jones added: "There was a reason why the Russians bombed the blast furnaces first in Ukraine, you need your steelmaking capacity not just for defence itself, but for building the structures you need in a country."
She declined to say whether the Government would be willing to nationalise the plant. "Our preferred approach by far is that British Steel come back to the table with us, talk about the offer on the table, and that we have that private sector investment in the future," she said.
The Government has urged British Steel to reconsider its decision to reject a £500 million rescue deal for Scunthorpe steel works.
Business minister Sarah Jones said the company would need to accept the commitments required by the Government.
Ms Jones said: "It is regrettable that they have not yet done so, or accepted our offer. Therefore I call on the company to reconsider their plans to announce early closures, accept our conditions and accept our generous offer which remains on the table.
"I want to assure the House that we are working tirelessly to find a solution. We believe there is a bright future for steel making in the UK and we call on British Steel to work in partnership with a Government that cares deeply about the steel sector, to put the business on a sustainable footing for the future and an end to the years of uncertainty at Scunthorpe."
She said Department for Education and Department for Work and Pensions staff are meeting workers in Scunthorpe.
She said: "This Government inherited a steel sector in crisis, and resolving the longstanding uncertainty around the future of Scunthorpe has been a priority from our first day sin office. That is why when we committed up to £2.5 billion of investment to support our steel industry, we earmarked substantial funding to support British Steel."
Business Secretary Jonathan Reynolds acknowledged it was a "deeply worrying time" for Scunthorpe's steelworkers.
But he insisted there was a "bright future" for the industry despite the British Steel consultation on shutting Scunthorpe's blast furnaces.
Mr Reynolds said: "I know this will be a deeply worrying time for staff and, while this is British Steel's decision, we will continue working tirelessly to reach an agreement with the company's owners to secure its future and protect taxpayers' money.
"We've been clear there's a bright future for steelmaking in the UK.
"We've committed up to £2.5 billion to rebuild the sector and will soon publish a plan for steel setting out how we can achieve a sustainable future for the workforce, industry and local communities."
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