Steve Morley, President of the Confederation of British Metalforming (CBM), which represents the interests of 200 members, employing 40,000 people in the UK.
“The Confederation of British Metalforming (CBM), along with many downstream stockholders and manufacturers, have always been supportive of the need to recreate a strong, vibrant UK steelmaking industry.
In that respect and the forthright ambition to radically increase British steelmaking and domestic consumption of its output, this long overdue Steel Strategy is welcome.
Government now needs to ensure the steel companies are fully accountable in delivering against investment targets and the much-needed upscaling of production. Starmer and co must demand that UK infrastructure projects source domestically and that these same steelmakers are fit and able to deliver the required volume of product on time.
Whilst all those involved in the Steel Council will welcome the content of the strategy, it must be recognised that it follows a backdrop of many years of underinvestment and successive Government’s that have failed to consistently back industry. In fact, the ‘powers that be’ have actually made it worse by failing to address rising energy costs and employment policies that are strangling the economy.
As the CBM has consistently requested, had representatives from downstream manufacturers, stockholders and consumers of steel been included in earlier discussions, respective Governments would have received a far more balanced and rounded perspective of the entire British steel supply chain.
The fact these voices have been omitted means it is no surprise that the Strategy now plans sweeping and draconian trade measures that will only harm British manufacturing, employment and the economy – until domestic steelmakers are truly fit and able to effectively support their customers.
It’s a crazy decision when you consider the downstream supply chain employs ten times as many workers (many with decades of acquired skills) than UK steel producers. Thanks to decisions made to supposedly boost British industry, hundreds of firms now face severe disruption in the form of highly restrictive quotas, and potentially fatal cost increases driven by 50% tariffs.
These costs will cascade throughout the economy and will ultimately harm UK consumers. Moreover, British manufacturers, who contribute hugely to UK export earnings, will be rendered completely uncompetitive in global markets.
This is a sector already under intense pressure from increasing labour, energy and business rate costs, with the introduction of the Employment Rights Bill set to rob businesses of essential labour agility. Again, more decisions taken with growth in mind, yet decisions that end up doing more harm than good.
The CBM, together with other interested parties, will seek concrete assurances from the UK Government that the implementation of these trade measures will accurately reflect the current capabilities, and not future aspirations, of British steelmakers.
The reintroduction of quota carryover is welcome in providing some additional flexibility, but individual quotas must be set at levels that reflect the reality of critical input availability.
Ministers must also be acutely alert to any signs that restrictive quotas are doing serious damage to downstream businesses, well before they are either driven out of business or out of the country.
The CBM will now actively seek support to introduce similar protections against imports of steel derivatives that have the potential to pose even greater threats to British manufacturers.”
