Chair and Secretary of the All Party Parliamentary Group for Steel and Metal Related Industry, Tom Blenkinsop and Anna Turley have today (15th March 2016) called for transparency as reports have emerged that the Government may provide a loan to fund Greybull’s takeover of Tata’s long products division, including sites on Teesside.
According to reports, the Department for Business, Innovation and Skills is likely to provide a loan of around £70m to £80m to Greybull as part of the sale which is estimated to cost £400m in total.
Commenting on the reports, Tom said:
“Securing this deal could prove vital to protecting thousands of jobs in the steel industry but transparency around the deal is vital.
“I would like to know what are the intentions of both companies for Teesside Beam Mill, the grove and the site in Hartlepool? Furthermore, have the government assessed the impact upon the former SSI site and would Tata land there be part of the sale? This could have serious implications for the regeneration of the former Redcar steelworks site.
“If the UK steel industry is to survive then deals like this need to be scrutinised to ensure they are in the best interest of UK taxpayers.”
Anna added:
“There is still a future for the steel industry on Teesside with the remaining Tata assets, including the site at Lackenby in Redcar, continuing to provide highly skilled jobs. The progression of the Greybull deal to secure the future of Tata’s long products division is promising but we needs some clarity about what this means for jobs locally.”