Business secretary says Jingye wanted ‘excessive amount’ from the government
Jonathan Reynolds said the government had been negotiating with Jingye in good faith, but said the Chinese company wanted an “excessive amount” from the government.
The PA news agency reports that the business secretary said:
As honourable members will know, since taking office this government has been negotiating in good faith with British Steel’s owners Jingye.
We have worked tirelessly to find a way forward, making a generous offer of support to British Steel that included sensible, common sense conditions to protect the workforce, to protect taxpayers’ money and create a commercially viable company for the future.
Despite our offer to Jingye being substantial, they wanted much more. Frankly, an excessive amount. We did however remain committed to negotiation.
But over the last few days it became clear that the intention of Jingye was to refuse to purchase sufficient raw material to keep the blast furnaces running, in fact, their intention was to cancel and refuse to pay for existing orders.
The company would therefore have irrevocably and unilaterally closed down primary steel making at British Steel.”
Earlier Reynolds opened the second reading of the steel industry (special measures) bill, by saying:
We meet under exceptional circumstances, to take exceptional action, in what are exceptional times.
Our request to recall parliament was not one we have made lightly, and I am grateful, genuinely grateful to honourable members on all sides of this house for their cooperation and for being here today as we seek to pass emergency legislation that is unequivocally in our national interest.”
Key events
Business secretary Jonathan Reynolds described the legislation as a “proportionate and necessary step”, telling MPs:
It allows us to take control of British Steel’s blast furnaces, maintaining steel production and by extension protecting the company’s 3,500-strong workforce.
The bill does not transfer ownership to the government. We’ll have to deal with this matter at a later date. I took the decision that given the exceptional nature of a recall, it would be better to limit the powers in this bill, which are still significant, rather than introduce more complex matters of property rights and public ownership at this time.”
Conservative former minister Jeremy Wright warned the Government risked “creating some considerable legal complexity” in terms of the operation of steel companies.
Reynolds, in his reply, said:
I want this to be a temporary position, I do not want these powers any minute longer than is necessary but I do need these powers to rectify and save this situation.”
