The Government has been urged to take action to support the “crisis-hit” steel industry as it battles with high energy prices and barriers to supplying goods for major projects.
The Business, Energy and Industrial Strategy Committee said the steel sector cannot continue to “lurch from crisis to crisis” without help.
MPs said action was needed if the UK is to retain a resilient and competitive domestic industry, and called on ministers to set up a steel sector deal.
Issues that need tackling include high energy prices and barriers to supplying steel for major public projects, in a bid to decarbonise the industry and protect jobs, said the committee’s report.
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The MPs also suggested that ministers should reflect on the “systemic” risks to the UK steel industry posed by such unusual corporate structures as those used by GFG Alliance.
“Liberty Steel owner Sanjeev Gupta put senior members of his staff in an unacceptable position by employing them with job titles associated with traditional executive functions in well run companies, without giving them the required access to information or decision-making powers necessary for them to perform their duties,” said the committee.
The report called for regulatory authorities to investigate King & King, the auditors of a number of GFG Alliance businesses, while adding that the Insolvency Service should consider whether Mr Gupta has breached his fiduciary duties as a company director.
Darren Jones, who chairs the committee, said: “Steel is a national strategic asset, a foundation industry, and a sector which the UK cannot afford to lose.
“There is an urgent need for Government support for the steel industry on long-standing issues including electricity costs and better use of public procurement to support steel in the UK.
“But the Government should go further by bringing forward a steel sector deal which helps UK producers compete internationally and provides the long-term, sustainable policy support necessary for the steel industry to transition to a low-carbon future.
“The systemic issues at the heart of GFG Alliance has highlighted the vulnerabilities of Liberty Steel and its place in the wider steel sector in the UK. We met with hard working and dedicated workers at Liberty Steel and want to ensure that the UK steel sector is able to continue to support their jobs.”
The report added that the Government lacks a clear road map for decarbonising steel.
A Government spokesperson said: “We are determined to secure a competitive future for the UK steel industry and in recent years have provided it with extensive support, including more than £600 million to help with the costs of energy and to protect jobs.
“We are working closely with the sector to support its transition to a low carbon future in a way that supports competitiveness, jobs and clean growth.
“We recognise the critical role the steel industry plays in all areas of the UK and in our economy and will carefully consider the report’s recommendations.”
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