AFTER what was called a “doubly sad day” for North-East industry, The Northern Echo business team assess efforts to rescue troubled Tag Energy Solutions and Tata Steel.

THE Government has been accused of taking a laissez faire stance towards a steel mill sale, which could put hundreds of North-East jobs at risk.

North-East MPs yesterday (Thursday, October 16) held an urgent Parliamentary debate with Business Minister Matthew Hancock over Tata Steel’s plans to sell its loss-making European long products division.

Swiss-based US billionaire investor Gary Klesch is in talks to buy the business, which includes Teesside Beam Mill, at Lackenby, near Redcar, and employs 750 North-East workers.

A number of Labour MPs called for Mr Hancock to give job guarantees and urged the Government to reduce companies’ costs by cutting energy taxes and protect British products by lowering steel imports.

The Northern Echo also understands they hope to meet Mr Klesch to hear more about his plans, amid further fears any changes will hit workers’ pensions.

However, Mr Hancock said the UK steel industry has a long-term future and said the Government is speaking to both parties in the potential sale to ensure the business’ future.

He added Klesch has restarted a similar plant in Italy, emphasising its industry prowess.

But Mr Jones, Labour MP for North Durham, said the Coalition wasn’t doing enough.

He said: “We need a Government that will take action to ensure we protect jobs and steel in the UK.

“For a steel plant like that to go would be devastating for Teesside and for the wider industry as well.

“There is a laissez faire attitude here.

“The annoying thing about Mr Hancock was his attitude; it was almost like ‘let them eat cake’, and there was no passion or urgency.”

Tata’s long products business also includes special profiles sites in Skinningrove, east Cleveland, and Darlington; a rail consultancy in York; distribution sites in Teesside and Newcastle, and a 4,000-job plant in Scunthorpe.

Speaking previously to The Northern Echo about his offer, Mr Klesch, a former steel mill electrician in Ohio, played down any fears over job losses and site closures.

However, Mr Cunningham said Mr Hancock’s response gave no such reassurances.

He said: “He showed the Government’s response amounts to little more than throwing in the towel and giving up the fight to protect skilled jobs on Teesside.

“I was absolutely stunned one his answers was to direct people to other jobs because I’d love to know what opportunities there are on Teesside for steel workers.

“We need to fight for these existing roles, which are high quality and pay well.

“Companies in this country are paying taxes over and above their competitors elsewhere in the world.

“The Government needs to get that sorted and we also need British steel for British products.

“We see a large amount of imports, despite the fact we are exporting.”

Tom Blenkinsop, chairman of the all-party Parliamentary Group on Steel, echoed Mr Cunningham’s tax and import worries, and also played down Mr Hancock’s reference to Klesch’s Italian plant.

He said: “This is not as nice an announcement as the Government thinks it is.

“It has big implications and we need to have a bit of clarity and know what Klesch intend to do.

“The Italian plant is a different operation and to compare them is not necessarily correct.

“We can also slow the process down by leaving the door open and seeing if other people are interested, and I also want to see Klesch’s processes and their working out.”

Mr Hancock said the Government was doing all it could to make sure the business had a competitive future.

He added: “I understand an announcement of this sort brings uncertainty.

“Decisions on company ownership are commercial matters for companies.

“Nevertheless, we are working with the metals sector to develop our strategy and believe there is a sustainable long-term future for the UK steel industry.

“After decades of decline, steel production in the UK is rising and we will not rest in our determination to ensure that manufacturing, including steel, has a strong future in our country.”