GFTU BGCM 2019 Minutes

agreed to give them, but it would be done in two tranches. It would be £120

million in the first tranche and then there would be a further £75 million following by 10 th May. These are loans at commercial rates, so they do not in

any way breach state aid rules, whatever that is. These are commercial rate

loans, so they have got to pay the commercial rate interest. The second

tranche did not materialise and the company are saying that the Government

have reneged on their commitment to support the business with this second

loan.

Unfortunately, the people who now stand to lose out are our members.

Ironically, I was asked to speak yesterday afternoon, which is why I

disappeared at lunchtime, at an event in Westminster where UK Steel were

launching a new charter around the steel industry and around procurement in

particular. All the great and the good were there, lots and lots of MPs wanting

to have their photos taken holding up a placard saying that they support the UK

steel industry, the new Minister, Andrew Stephenson, turned up and he said a

few words and he had his photo taken. When I made my contribution I felt the

elephant in the room was the current situation with what was happening at

British Steel. We all remember the situation at Teesside not that long ago

when the Teesside works went into administration. I made a plea that we

cannot and we must not let another Teesside ever happen again. I am not

sure whether that has fallen on deaf ears, but we woke up this morning to the

news that all the talks now have broken down. They were deep in discussions

over the last few days, the Government, the employers and the banks, the

lenders. Those talks appear at this stage to have broken down and the strong

indication is that the receivers are on site, they are preparing their

communications, I think it is Ernst Young, and we could get the call any minute

now that the works is into administration.

That works supports 5,000 jobs, 4,500/5,000 jobs directly, but, as we always

say within the steel industry, you can probably multiply that by at least five or

six jobs that are in the supply chain, the service providers, that rely on that site

for its employment, so in total it could be as many as 20,000 jobs in the supply

chain. It is absolutely devastating for the area and for the community and it is

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