Javid has backed a proposal by the Steel Council for new research looking at ways to ensure a long-term future for the industry.
Industry leaders also called on him to boost efforts to stop cheap imports of Chinese steel unfairly flooding the market in Europe by following the tough example set by the United States which has imposed high tariffs on steel sold below the cost of production. The industry specifically asked Javid to review whether trade defences are up to the job of tackling the rapid rise in Chinese exports.
UK Steel, the trade body representing the sector, said the Government hadmade important progress. But it warned: “The hard work starts now, to take the action that is needed to ensure the British steel sector not only survives, but has a long term sustainable future. A future where it can grow, invest and compete fairly in the global marketplace.”
Gareth Stace, director of UK Steel, said: “We have consistently called on Government to ensure that the steel sector in the UK can operate on a level playing field by removing the taxes which make energy costs so high for industry, and by encouraging the use of UK steel in major procurement projects. We still need to see tougher action to address unfair trade.
“I commend the Business Secretary for agreeing to a number of the recommendations that, once implemented have the ability to put us on a level playing field with our EU competitors. This is about holding a magnifying glass to business costs that our competitors don’t face and removing them.”
He added: “However, we must be cautious, as agreement to tackle sector concerns is the easy part. Now it is for government to work with industry and Trade Unions to actually turn objectives and recommendations into real and tangible actions that bring new investment into the industry.”
