Government rules out steel industry nationalisation

David Cameron chaired a brief meeting of ministers in Downing Street to discuss the shock decision by Indian conglomerate Tata to sell its UK assets, including the giant steelworks at Port Talbot in South Wales.

The leader of the Community union said he was “underwhelmed” by the Government’s response, accusing ministers of not doing enough to lobby Tata before it made its decision.

A Labour petition calling for Parliament to be recalled has passed the 100,000 mark in just one day, with a new signature every second.

Business Secretary Sajid Javid was not at the meeting as he was travelling back from Australia after cutting short a business trip because of the unfolding crisis.

Workers at Port Talbot had been told Mr Javid was visiting the plant on Thursday but he will not be arriving back in the UK until late in the afternoon.

Mr Cameron said the Government was “doing everything it can” to resolve the steel crisis but nationalisation was not the right answer.

The situation in Port Talbot was of “deep concern” and there were “no guarantees of success”, the Prime Minister said.

Mr Cameron defended the way the crisis had been handled, insisting the intervention had stopped an outright closure.

“The situation at Port Talbot is of deep concern,” he said.

“I know how important those jobs are.

“Those jobs are vital to workers’ families, vital to those communities and the Government will do everything it can working with the company to try and secure the future of steelmaking in Port Talbot and across our country, it’s a vital industry.”

Mr Cameron said energy costs in the industry had been cut and the Government had helped to make sure there were penalties for steel dumping.

“We are not ruling anything out. I don’t believe nationalisation is the right answer.”