The Assistant Chief Executive Legal and Regulatory Services and Monitoring Officer submitted a report, to inform the debate on the impact and causes of recent announcements of redundancies within the steel industry. The report also provided information on what are thought to be the main causes of the present situation within the domestic steel industry, for example:

• Energy costs
• Business rates
• Strength of Sterling
• Cheap imports particularly from China
• Over-supply

The report gave some background information, then gave a resume of each of the above problems, and how they were impacting in a detrimental way on the steel industry.

The remainder of the report, outlined responses received in relation to the impact of the problems on the Steel Industry, including from the Business Minister (Westminster) and Welsh Government.

The report finally advised that the Leader on behalf of the Authority issued a press conference on 22 January this year, calling for swift action on the national steel crisis, and he had also written to the Prime Minister and the First Minister in the Welsh Assembly.

Members debated the report, following which the following motion was made, which was duly seconded and carried unanimously:-

“That Council notes with deep concern the recent announcements by Tata Steel of the loss of jobs across South Wales and across the UK steel industry.

The Council urges Tata Steel the trade unions, Welsh and UK Government and the European Union to work together to help build a sustainable future for the steel industry in Wales and the UK.

The Council believes that all levels of Government should support the UK steel industry, not only as a source of tens of thousands of jobs, but also given its role as a foundation industry of key strategic importance to the wider and local economy.

The Council recognises that  a sharp slowdown in the Chinese  economy has sapped domestic demand, and that Chinese source steel is sold on the world market at low prices. Equally, the cost of energy and European rules on carbon emissions makes the UK a challenging climate in which to produce steel.

The Council are concerned that the impact on the steel industry if China was to be granted Market Economy Status, would result in the European Union, would be unable to impose tariffs on goods from China, if it was found that they had been dumped at below market prices and this would result in the increase in Chinese imports of steel into the European Union.

The Council, therefore, resolves to support the ‘Charter for Sustainable British Steel’ as promoted by the ‘UK Steel’ organisation. The Council also supports the proposals of UK Steel and Community regarding the EU Emissions Trading System proposals, which call for the steel sector to be helped to decarbonise in a way that ensures its future and the many thousands of valuable jobs it provides.”

This motion was supplemented as follows, and Members agreed unanimously to this being added to the above motion:-

“That BCBC contact local MEP’s, in order to utilise trade defence instruments available, so as to prohibit the dumping of Chinese steel below cost price in the UK”

RESOLVED:                      That Council debated the issue and proposed the above Notice of Motion (as supplemented)  as a response to Central and Welsh Government on the Steel Industry crisis.