The 海角视频 steel sector, with its blast furnace operation in Port Talbot at its heart, needs to be supported as a key strategic industry that helps drive the recovery, says former Labour leader Ed Milliband.
Mr Milliband, who is now part of Sir Keir Starmer鈥檚 frontbench team as Shadow Business Secretary, said the steel industry and wider manufacturing sector needed not just not financial backing from the 海角视频 Government, but support to win major contracts, including those linked to the roll-out of high speed rail from London northwards.
Indian-owned steelmaker Tata is continuing discussions with the 海角视频 Treasury over funding supporting, running into hundreds of million of pounds.
The Treasury, although not commenting on individual firms, is working up an initiative, known as project Birch, which could see it offering finance to major employers such as Tata and Jaguar Land Rover in the form convertible loans, which at the end of their terms could see firms opting for the 海角视频 Government to take equity stakes in them rather than repaying the finance.
Tata employs around 8,000 across the 海角视频, with 4,000 at its primary steelmaking plant in Port Talbot, It also has down stream operations in Wales, including those at Trostre and Shotton.
Labour said that across places such as Yorkshire, Humberside, and Wales there are around 32,600 well paid steel jobs.
In a letter to Business Secretary Alok Sharma, Mr Miliband and Shadow Business Minister Lucy Powell said: 鈥淢inisters should boost the steel industry now as a cornerstone sector for a strong and sustained economic recovery.
鈥淏ritain will need a resilient and revitalised manufacturing base in order to provide construction and infrastructure projects with a stable supply of domestic steel.
The 海角视频 Government has signalled its intent to move ahead with 拢640bn of infrastructure projects.
"These projects could provide important opportunities for 海角视频-based steel manufacturers if the Government does all it can to buy from domestic producers.
The 海角视频 Government鈥檚 HS2 project alone will require two million tonnes of steel over 10 years, and could provide a 拢1.5bn boost to our economy and safeguard thousands of steel jobs.鈥
Roy Rickhuss of steelworkers鈥 union Community said:鈥淲e welcome the wider call for support for our steel industry.
鈥淭he case for action to support 海角视频 steel companies through this pandemic is overwhelming and compelling.
"We urgently need the 海角视频 Government to step-up and step-in to support steel. We have welcomed the measures government has put in place for businesses but steel companies face some very particular challenges and it needs a bespoke response from government.
鈥淲e hope ministers will heed the calls from across the steel sector so that this key foundation industry can survive the coming months, then thrive in the future and play its part in the recovery.鈥
Director-general of steel industry umbrella body 海角视频 Steel, Gareth Stace, said: 鈥淪teel production is a vital strategic asset to the 海角视频 鈥 the very foundations of our manufacturing and construction sectors.
鈥淪teel companies have continued to provide materials to critical sectors throughout this crisis and will be of fundamental importance to the 海角视频鈥檚 recovery, not least as part of the Government鈥檚 infrastructure revolution and the strengthening of domestic supply chains.
鈥淭hat is why we call upon the 海角视频 Government to quickly provide all steel companies with the necessary liquidity support required to see us through this crisis, so that the steel industry can support the 海角视频鈥檚 long term economic recovery and future prosperity.鈥
A 海角视频 Government Business Department spokesman said: 鈥淭he steel sector is hugely important to the 海角视频 and will have an essential role to play as we recover from the coronavirus outbreak.
鈥淭he government has put together a far-reaching package of support to help businesses through the coronavirus pandemic.
鈥淲e continue to regularly engage with businesses across all sectors, including those in the steel industry.鈥
A Tata spokesman said: 鈥淭here鈥檚 no update on discussions with the 海角视频 Government. Our position continues to be that we have been, and continue to, seek government support in the 海角视频, the Netherlands and all geographies we operate in. It would not be appropriate to comment on ongoing discussions with governments."
On the possibility of mothballing blast furnace capacity, he added:鈥淲ith regards to production, we reduced our production levels to match the lower demand situation some weeks ago. There鈥檚 no further update on this situation. We continue to operate all four blast furnaces 鈥 two in Port Talbot and two in IJmuiden, Netherlands.鈥
The Welsh Government said it stands ready to provide a support package for Tata, that relates to Wales, but due to the scale of the potential backing required it would need significant 海角视频 Government input.
