Volkswacht Bodensee - UK parliament recalled to 'protect' British Steel's future

MPs will take part in a rare weekend sitting of parliament on Saturday to discuss legislation giving the Labour administration "the power to direct steel companies" in England, a Downing Street spokesperson said.

A person familiar with the matter told AFP that this would mean the government taking over the running of the Chinese-owned company. The BBC reported parliament could then be asked to nationalise the company at a later session.

The Downing Street spokesperson said the bill will be used to "protect" British Steel's plant in Scunthorpe, eastern England, which is just weeks away from possible closure.

"It enables the UK government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports," the spokesperson said in a statement.

MPs left for their Easter holidays on Tuesday and were not due to return to parliament until April 22.

The lower house of Britain's bi-cameral parliament was last recalled from recess in August 2021 for a debate about the situation then unfolding in Afghanistan as the western-backed government fell to the Taliban.

In an indication of how seriously the government is taking the plight of British Steel, the last Saturday sitting of parliament took place in October 2019 to vote on prime minister Boris Johnson's Brexit deal.

Before that MPs sat on a Saturday at the start of the Falklands War between Britain and Argentina in 1982.

UK media reported on Wednesday that Britain's Labour government is considering the nationalisation of the flagging company, after its Chinese owners recently said it would scale back operations.

Prime Minister Keir Starmer has said that all options were open but has not specifically mentioned nationalisation.

- 'Bright future' -

"We have been negotiating with British Steel's owners in good faith ever since coming to office," the Downing Street spokesperson added.

"We have always been clear there is a bright future for steel in the UK. All options remain on the table."

Pressure is mounting over British Steel less than two weeks after it confirmed plans to shut blast furnaces and other operations in England, as it continues talks with the government.

British Steel said US President Donald Trump's tariffs on the sector were partly to blame for a decision which could cost up to 2,700 jobs at its main Scunthorpe site.

However, it is fierce competition from cheaper Asian steel that has been blamed for heaping pressure on Europe's beleaguered steel industry in recent years.

The Financial Times on Wednesday reported that finance minister Rachel Reeves "is open to the option of bringing British steel into public ownership", citing people close to recent conversations held between the minister and union bosses.

UK Business and Trade Secretary Jonathan Reynolds met with the CEOs of British Steel and owner Jingye this week to discuss the future of the Scunthorpe plant.

British Steel, which employs about 3,500 people, has so far failed to reach agreement with the UK government on a financial package that would help it transition to "greener" steel making.

Starmer recently announced that the government was stumping up some £2.5 billion ($3.2 billion) to help support the steel sector in Britain, home also to operations owned by Indian group Tata.

Saturday's sitting will begin at 11:00 am (1000 GMT).

"Recalling parliament is the right decision to ensure that British Steel, the wider steel sector and thousands of steel workers and their families are given the certainty they deserve in trying times," said UK Steel director-general Gareth Stace.

Greenpeace's Lily-Rose Ellis said MPs "must vote in favour of nationalisation and seize the opportunity to revitalise the industry, making Britain a world leader in green steel manufacturing".

F.Stadler--VB