British Steel’s opportunity to flourish once more “though not certain, is certainly within grasp”, Business Secretary Greg Clark has told, stating how recent increased production set a precedent in his experience for a business in such a crisis.
Uncertain of his own future, as Boris Johnson takes over from Theresa May as Prime Minister and assembles his own Cabinet, the cross party-praised Mr Clark told MPs that it would require the “active participation” of everyone.
He added: “And in particular to whoever stands at this despatch box to devote themselves unstintingly to achieve a great outcome for everyone concerned with British Steel, which I believe, though not certain is certainly within grasp and that is the flourishing of British Steel’s operations for many years to come.”
Mr Clark said that although all decisions are for the Official Receiver “I’ve been active as members know in visiting prospective buyers in many parts of the world to make it clear that the UK Government will, within its legal powers, work with a good long term owner of these important assets to see how we can help them realise their vision for the company.”
His comments came in response to Labour’s Anna Turley’s (Redcar) urgent question on the sale of British Steel. While headquartered in Scunthorpe, there are also plants in Lackenby an Skinningrove in the North East.
Mr Clark said the British Steel Support Group, which he chairs, and features constituency-affected MPs, had met eight times.
He said: “The confidence that the support group has built, coupled with a Government indemnity to the Official Receiver, has allowed trading to continue, orders to be won and production to increase. This is without precedent in my experience.”
He added: “I’m pleased to say that the Official Receiver has said that he is encouraged by the level of interest in purchasing British Steel and his special managers EY are currently in further discussions with potential buyers.
“The Official Receiver has made it clear that given the complex nature of the operations any potential sale will take time to deliver.”
Debts of £880 million were revealed at a High Court hearing two months ago, leading to the compulsory liquidation order. Greybull, having bought the business for £1 in 2016, was removed from control, with th Business Secretary refusing any loans.
Mr Clark added: “I said in May that I was determined to see the proud record of steel-making excellence continue. The world needs steel and British steel is amongst the best in the world.”
“To secure that will require in my experience the continued active participation of everyone that I mentioned earlier without interruption during the critical weeks ahead.”
