The Parliament will be called back tomorrow (Saturday), to discuss an emergency law that would save British Steel’s Scunthorpe plant from closing.
The bill gives the Prime Minister the authority to “direct” steel companies in England.
This week, talks have taken place to ensure that production continues at the company, after Jingye’s Chinese owner said their blast furnaces “were no longer financially viable”.
Ministers are seeking immediate control of the site to ensure that it has enough raw material to continue operating.
Andy Prendergast is the national secretary of GMB. He said, “We’re currently racing against the clock when it comes to blast furnaces. They are gone if they explode.
Sources within the government have stated that production at the plant could stop in a matter of weeks if raw materials for the two blast furnaces used to make steel are not paid soon.
Downing Street claims that legislation will give ministers the power to “protecte” the site which employs 2700 people.
The MPs returned to Westminster on 22 April after their Easter break.
After Easter, the parliament could be asked if it would give the government power to nationalise a company.
BBC reported this week that China had offered to pay the cost of coal to keep blast furnaces running. The Chinese owners are believed to have considered the written offer.
Sources say that the issues discussed in the meeting held between Jingye and government officials on Thursday were not resolved.
A Downing Street spokeswoman said that the Steel Industry (Special Measures Bill) would allow the government “to preserve capability and ensure public security” at the site.
They added that “it also ensures that all options are viable for the future and livelihoods of the plant.”
The GMB union has also expressed concerns over Jingye’s management of Jingye’s plant.
Jingye has suffered financial losses of approximately PS700,000.00 per day since 2020 when it bought British Steel.
Last month, the mandatory 45-day consultation period on plans to cut jobs was launched. The reason given for this is “highly challenging market conditions”, tariffs, and costs associated with low-carbon production methods.
UK Steel, a trade body, has warned the UK that if production is stopped at Scunthorpe, where 2,700 people are employed, the UK will lose its strategic steelmaking capability.
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