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Tata Steel warns Europe 'sleepwalking to greater crisis' Ministers 'blocking higher Chinese steel tariffs'
(about 1 hour later)
Europe is "sleepwalking into an even greater steel crisis", a senior Tata Steel Europe executive has warned AMs. UK ministers were among the "ringleaders" blocking higher tariffs on Chinese steel, the body representing the UK steel industry has told AMs.
Tim Morris was one of a number of leading figures from steel sector giving evidence to a committee on the precarious state of the industry. UK Steel policy chief Dominic King also accused the EU of saying to Chinese producers "please dump here".
In January, Tata announced it was cutting 750 jobs in Port Talbot, out of more than 1,000 going in the UK. In January, Tata announced it was cutting 750 steel jobs in Port Talbot, out of more than 1,000 going in the UK.
Letters are expected to be sent to workers losing their jobs next week, the committee heard. Welsh Secretary Stephen Crabb said the UK government would continue to do "all it can" to help the industry.
Tony Brady, regional officer for the union Unite, said morale was "understandably very low". Leading figures from the steel sector were giving evidence to the Welsh assembly's Enterprise and Business Committee on Thursday.
Dominic King, from trade body UK Steel, said without further action to help the sector the situation would become "quite bleak". Mr King compared a new 266% tariff on Chinese coiled steel into the United States, with a 16% tariff for Chinese imports into the EU.
The steel industry has been calling for government action to tackle cheap imports and high energy costs. "We see the European Commission as not really having the teeth to deal with the flooding of Chinese exports into not just the UK, but Europe as a whole," he said.
Enterprise committee chairman William Graham said the industry's challenges were "very real and very concerning" for workers and their families. "The UK has a perfect storm but the rest of Europe is starting to be hit as well."
"The steel industry is an important part of the Welsh economy, accounting for billions of pounds in revenue and supporting thousands of jobs directly and indirectly," he added. In relation to levels of UK government support, Chris Hagg, head of external affairs for Celsa Steel, which has a major operation in Cardiff, said: "It has taken them quite a long time to come to the party."
"The committee has taken the decision to ask the steel producers, unions and the Welsh government where we are, what is being done to support it and what lies in store for the future of Welsh steel." He welcomed the introduction of an energy compensation package from ministers at Westminster, but he also described delays by the Welsh government on changes to business rates as a "key concern."
In February, Stuart Wilkie, director of Tata Strip Products UK, told MPs there was no guarantee further steel job losses could be avoided, calling for action at EU level. A director of Liberty Steel, which has re-opened a mill in Newport and is looking to create 1,000 jobs, said the outlook was "not particularly bright".
In written evidence to the committee, Welsh secretary Stephen Crabb said: "The UK government has taken significant action in response to industry asks and will continue to do all it can in the coming weeks and months to ensure a healthy and sustainable future for the industry.
"There is clearly more to be done and I recognise this is a vital economic issue for Wales, and will continue to work closely with the Welsh government."