MPs debate emergency law to take control of British Steel after Chinese owners’ ‘excessive’ demands – live | Politics
- Politics
- April 12, 2025
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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
Edward Leigh has called on the government to “get real” over the energy costs paid to run steelworks in Scunthorpe.
The Conservative MP for Gainsborough in Lincolnshire asked:
Why are we loading the most expensive energy costs on our own steel production?”
He later added:
We have to stop these green energy costs. We have to be realistic.”
Leigh added he supported the bill and that he wanted a sunset clause to business secretary Jonathan Reynolds’ powers, and told the Commons:
We have to get real about China, too.
Was it not obvious for weeks, indeed for months, that this company, this so-called private company – there is no such thing as a private company in China, they’re under the cosh of the government under an autocratic regime – what do they care about the steelworkers in Scunthorpe?”
Labour MP Diane Abbott had earlier said “some of us hope that moving on to nationalisation will not be ruled out”.
The MP for Hackney North and Stoke Newington said:
British Steel supplies Transport for London (TfL) with the power rail London uses on the transport network, which is not currently manufactured anywhere else in the country.
For railways like the underground, power rail from British Steel is essential to the everyday operation of the service, which supports up to four million customer journeys each day.
The closure of British Steel would have a very serious adverse effect on TfL services, as it would have a serious effect on projects up and down this country.”
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