Sadly, what we have suspected for the past few weeks has come to pass and British Steel has been placed into compulsory liquidation. This is by no means the end of the matter and I want to assure residents and workers that every effort is being put into finding a new buyer. The Government made several offers of tens of millions of pounds to the current owners Greybull in addition to the £120 million already loaned a couple of weeks ago. That company's role in this issue will need to be looked at.
There are a few key points that I want to make about where we are at now.
1. The Government worked to ensure that workers were paid early this week to ensure that there is no doubt over this month's wages.
2. As the site now passes to the Government's Official Receiver there is every likelihood that the site will continue to operate. Indeed, as it is in liquidation and in the hands of the Official Receiver, state aid rules are dis-applied allowing the Government to put money in to support the site and to continue its running.
3. My understanding is that several potential buyers have already come forward, some may wish to buy parts of the site, others the whole concern. My discussions with Ministers have been clear that the priority should be to buy new operators for the entire site.
4. On nationalisation, which is often offered up as a simple solution, and as an ideological one by Labour, we need to be honest. Had the Government nationalised the site before liquidation, Greybull could have been paid millions and the Government would only have been able to invest on commercial terms, as is the case in private ownership thanks to UK and EU state aid rules (state aid rules by the way apply under WTO terms too for those thinking a no deal Brexit is the answer). Now that the company is in liquidation, any option on future ownership can be looked at, including a possible partnership between the Government and a new owner. If, for example, a new owner came forward offering investment, the Government could also become a partial owner and that would allow investment from the Government too. All options of future ownership are on the table.
5. Myself and other local MPs and North Lincs Council continue to work together on this matter, cross-party, and we all have the same aim. This is not the end of the story yet and there is a long way to go but every effort is being put in at all levels to secure the future of the site.
Andrew