GOVERNMENT plans to step in and rescue Tata's Port Talbot steel plant have sparked anger that Redcar steelworks was not given similar support last year. 

India's Tata Steel has announced plans to sell off its entire UK operations - including its sites across the North-East. 

COMMENT: Double standards over steel support

The decision casts doubt over the futures of 600 North-East jobs and thousands more across the UK.

Ministers are concerned Tata could seek to close the Port Talbot plant within weeks if a buyer is not found.

It is understood the government is looking at offering loan guarantees to potential buyers.

When asked on the BBC's Today programme whether the government would be prepared to nationalise Tata's remaining steel plants, Business Minister Anna Soubry said: "We are, and have, and continue to look at, all options and I do mean all options."

But she stressed that the UK had to work within EU rules over state aid.

North-East MPs asked why ministers were preparing to support the South Wales site whereas SSI's Redcar steelworks was allowed to close permanently last year when it suffered a major cash crisis. That led to the loss of more than 3,000 plant and supply chain jobs, and signalled the end of 170 years of iron and steelmaking on Teesside. 

Middlesbrough South and East Cleveland MP Tom Blenkinsop, who chairs the Parliamentary steel group, said: "This ongoing uncertainty is a disgrace.

“Any assistance must be made available to retain our British steel making capability perfectly reasonable to step in to maintain assets until market settles.

“If the Government are actively looking into some kind of temporary nationalisation then we need details sooner rather than later. However, when I and Redcar MP, Anna Turley, called for state intervention at SSI in Redcar, we were given a definite 'no' by the Government. Things have certainly changed."

Ms Turley hoped lessons had been learned from the demise of SSI's Redcar works. She said: “If UK steel is to have a future the government needs to act fast to save the industry and the jobs of these workers.

"I am glad they are considering all options and hope this is a sign that they have learnt the lessons from the closure of the SSI plant in Redcar last year. I am angry, as all Teessiders will be, that they weren't so willing to act to save the Redcar plant.

"It has taken the tragedy of losing Redcar steelmaking to make the government realise that steel production is a vital economic interest, particularly as a foundation for advanced manufacturing.

"No more prevarication, they must act.”

A statement issued by Tata Steel said it had noted with "deep concern the deteriorating financial performance of the UK subsiduary in the last twelve months".

It said that the board met in Mumbai and had reviewed a proposed restructuring plan for its UK business - spread across 14 sites - and concluded it was unaffordable.

Tata Steel Europe has been advised "to explore all options for portfolio restructuring including the portential divestment of Tata Steel UK, in whole or in parts."

Union leaders travelled to Mumbai where the Tata board met to discuss the company's UK business, reported to be losing £1 million a day.

They had been hoping Tata would agree to a turnaround plan to keep steelmaking in Port Talbot and other UK plants. The news will affect other Tata sites including Rotherham, Corby and Shotton plus three tube mills in Hartlepool.

Tata announced over 1,000 job cuts in January, including 750 in Port Talbot.

Thousands of steel jobs have been lost in the past year - including the SSI plant at Redcar - with companies blaming cheap Chinese imports and high energy costs.

Tata said global steel demand had been muted since the 2008 financial crisis but conditions had rapidly deteriorated due to a global oversupply of steel, rise in steel exports into Europe, high manufacturing costs, weak domestic demand and a volatile currency.

"These factors are likely to continue into the future and have significantly impacted the long term competitive position of the UK operations in spite of several initiatives undertaken by the management and the workers of the businesses in recent years," it added.

It said Tata Steel Group has extended substantial financial support to the UK business and "suffered asset impairment of more than £2 billion in the last 5 years".

Labour MP Stephen Kinnock, who is with the union delegation in Mumbai, was critical of the Government for not sending a minister to lobby the Tata meeting. Business Secretary Sajid Javid is in Australia on an official trip.

The decision came completely out of the blue to union officials although Tata said it had been in "deep engagement" with the UK Government in recent months seeking its support to achieve the best possible outcome.

Dave Hulse, national officer of the GMB union said: "This is absolutely devastating news for all our members, their families and the local communities. Tata has let the whole of the UK steel industry down."

Unite general secretary Len McCluskey said: "This is a very dark day for the proud communities and a proud industry which is now on the verge of extinction in this country."

Roy Rickhuss, general secretary of Community, said: "We travelled to Mumbai to secure a future for steel making in South Wales and we are disappointed that the future remains uncertain, not just for Welsh steelworkers but for thousands more workers in Tata's businesses elsewhere in the UK."