LONDON - In response to the looming crisis threatening the nation's last steel plant producing steel from raw materials, the UK government convened an extraordinary parliamentary session this Friday. This action follows widespread calls for intervention since the imposition of tariffs on imported steel by the United States.
Prime Minister Keir Starmer's office announced that Members of Parliament are summoned back from their Easter recess to deliberate on legislation that would place British Steel, including its Scunthorpe plant in northern England, under public control, at least temporarily.
According to the statement, the proposed bill empowers the government to manage steel companies in England to safeguard the Scunthorpe site, ensuring the preservation of crucial capabilities and maintaining public safety.
While the term 'nationalization' remains unstated, the center-left administration of Starmer is poised to assume operational oversight of British Steel from the Jingye Group, its Chinese owner since 2020. Jingye cites 'challenging market conditions,' tariffs, and rising environmental costs as reasons for the Scunthorpe plant's financial instability.
The imposition of a 25% tariff on all imported steel and aluminum by the US last month has further jeopardized British Steel's future. Starmer has expressed his dissatisfaction with the tariffs but has chosen negotiation over retaliation.
The steelworks, which employs approximately 2,700 individuals directly, faces the risk of depleting its supply of iron pellets vital for its two blast furnaces, a consequence of Jingye's decision to halt orders for these essential materials.
Unions are advocating for immediate support.
Roy Rickhuss, general secretary of the Community union, emphasized the national importance of securing British Steel's future as a strategically vital enterprise. He cautioned against Britain becoming the only G-7 nation without the capacity for primary steelmaking.
British steelmaking was once a global leader, employing over 300,000 people. However, the sector has been impacted by cheaper alternatives from China and other nations. Currently, it employs approximately 40,000 individuals directly and accounts for only 0.1% of the UK economy.
The remaining steel manufacturers in Britain face escalating pressure to curtail carbon emissions amid climate change concerns. Most have transitioned to electric arc furnaces that utilize recycled materials. Scunthorpe remains the sole plant equipped with blast furnaces capable of producing virgin steel from iron ore.
This marks the first time since the Falkland Islands crisis in 1982 that Parliament has been recalled for a Saturday session.