UK steel association director Gareth Stace, tells Kallanish that it is now vital that the UK government converts rhetoric over the plight of the domestic steel industry into action.

In an interview with Kallanish, Stace says that the UK steel sector now requires “… more than warm words” from political leaders. He says there are five key areas upon which the UK government should now act to create “… a level playing field” for the sector in the international market.

These include restructuring business rates to support heavy industry, taking a stronger position on unfair trade practices to combat steel dumping and ensuring that UK companies have priority of supply in government-funded projects.

The two main areas where steel would benefit from immediate government action are both related to climate change taxation. Support measures for UK Energy Intensive Industries (EII) have long been announced by the UK government (since 2011…) but the agreed full compensation package remains unprocessed. Industry is still paying 70% of the cost of climate change taxes, Stace says. The delay in processing the support is due simply to an administrative hold-up in the EU, he adds.

UK steel companies (along with all other electricity consumers) still continue to pay the enormous costs of subsidising investment in renewable energy generation. Most continental steel companies on the other hand, have long been shielded from such costs.

“We have always encouraged our [… UK Steel] members to engage with local members of parliament over steel industry issues”, Stace confirms. He says that Anna Soubry, the government minister responsible for the steel sector, has shown a willingness to both engage and listen since her appointment in May. “We appreciate her help, but need to see direct government action today”, he emphasises.

Troubled Redcar steelmaker SSI UK meanwhile confirms to Kallanish that it has been able to pay September salaries for the workforce. This, according to media reports, is thanks to the UK government having arranged for a tax repayment to be brought forward. A small step for sure, but it shows what can be done, even by government, if there is the fundamental will to do it, Kallanish observes.