UK business secretary Kwasi Kwaten said the next Prime Minister of the UK needs to decide that the Tata Group will demand £ 1.5 billion in government subsidies to protect the future of the Port Talbot steelworks. rice field.
Kwasikwaten’s allies say the minister wants to help steelmakers, including: TataThe owner of Britain’s largest steel mill, decarbonizes the sector, but believes that future subsidy decisions must be made by the new Conservative leader and prime minister.
After two years of talks, Tata was caught up in a series of crises and was unable to reach an agreement with the British government, which is now distracted by the competition to replace the retiring Prime Minister Boris Johnson.
Tata Group Chairman Natara Jan Chandra Sekaran told the Financial Times this week that it could be enforced without a decision in the next 12 months to raise funds to help reduce carbon emissions. Shut down the operation..
A colleague with a business secretary said: This is a matter of the new administration. “
Kwasi Quarten’s stance is important. That’s because if Foreign Minister Liz Truss becomes prime minister when a new Tory leader is appointed on September 5, he will be converted as future prime minister.
Kwasi Kwaten is a strong supporter of the truss who fought against former Finance Minister Rishi Sunak as a leader of the Conservative Party, but both candidates are considered instinctive supporters of large industrial subsidies. Is not …
Truss campaigned for the need to reduce the size of the state and cut taxes, but snacks promised to cut taxes when inflation was subdued.
Both claim to be “thatcharite”. Margaret Thatcher is associated with the government’s refusal to bail out struggling heavy industries such as coal mining and steel production in the 1980s.
Truss and snacks are sitting in cabinets that have made significant investments in the transition to green energy, promising to reach the UK’s net zero-carbon reduction target.
If Tata received the subsidy he was looking for, he would build two new electric arc furnaces in Port Talbot, close two blast furnaces and shut down primary steelmaking, detailed people said. Arc furnaces recycle scrap and build and are less carbon intensive than blast furnaces.
The Ministry of Business said Tata was “a valuable steel producer and important employer in the UK.” The company operates a Port Talbot factory and employs nearly 8,000 people throughout its business.
The government said: “Continuous support for the sector’s low-carbon transition includes the £ 289 million Industrial Energy Transformation Fund and over £ 1 billion to support energy efficiency, decarbonization, low-carbon infrastructure, and R & D. It is included.”
Tata’s £ 1.5bn request has not been referred by Quarten to the Treasury, but the business unit expected such a request.
Labor lawmaker Stephen Kinnock, whose constituency includes Portalbot, urges the government to take action, but said “the cavalry is coming” and said future Labor governments will invest in the site.
“Why have Rishi Sunak, Liz Truss and other cabinets been stalled for so long when there is no steel industry in the world that can be decarbonized without substantial government support?” Said.
“The Labor Party has planned a £ 3bn Steel Renewal Fund, which will partner with Tata Steel and other UK-based steel makers to build a strong and resilient zero-carbon steel industry. By doing so, we will contribute to the UK steel industry. “
Peter Hughes, Regional Secretary of the Union Group Unite, said: “Steel is a strategic industry and must be at the heart of Britain’s economic strategy. The British government has urgently refocused on who the next leader will be, workers here in Wales. We need to focus on maintaining a well-paid steel industry with our support and advanced skills. “
A spokesperson for the Government of Wales said: This goal is perfectly possible, but it requires the action and grip of the British Government. “