Sturgeon sets up steel task force

First Minister Nicola Sturgeon has announced she will establish a Scottish Steel Task Force to find an alternative to closing the Tata Steel works in Scotland.

Earlier today Tata Steel announced proposals to mothball the Dalyell steel works in Motherwell and the Clydebridge plant in Cambuslang with the potential loss of 270 jobs.

The Scottish Steel Task Force will look for new owners for the business, support affected workers and consider the regeneration needs of the wider area.

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It will be chaired by Business Minister Fergus Ewing and will include representatives from Tata Steel, trade unions, North Lanarkshire Council, South Lanarkshire Council, Scottish Government agencies and local politicians.

Minister for Business, Energy and Tourism Fergus Ewing told BBC News that David Cameron should "hang his head in shame" at his failure to protect the British steel industry from job losses.

He added that Cameron had “abrogated the responsibility as UK Prime Minister to stand up for UK industry”.

Scottish Labour leader Kezia Dugdale called on the Scottish Government not let the steel industry go down without with a fight.

Dugdale said: "The steel industry is iconic in this part of the world. It has not only sustained jobs and boosted the local economy, it's part of Lanarkshire's DNA.

“We cannot let the light go out on the industry without a fight. When Ferguson's was going down, the Scottish Government stepped in. When Prestwick Airport was about to close, the Scottish Government stepped in. We need the Scottish Government to do the same for our steel industry.

"The workers at the Dalzell and Clydebridge plants are highly skilled and make a valuable contribution to our communities. These skills cannot be allowed to wither on the vine.”

John Wilson, Independent MSP for Central Scotland, called on the Scottish Government, UK Government and the European Commission to work on creating a system that would help Scottish steel workers compete with foreign markets without lowering wages or working standards.

“If the UK government can support bankers and financial services through difficult times it should be able to support important business in Scotland too,” he said.

Tata blamed the end of production on “a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.”

Karl Koehler, Chief Executive of Tata Steel’s European operations, said they had looked at other options before proposing these changes.

He said: "The UK steel industry is struggling for survival in the face of extremely challenging market conditions. This industry has a crucial role to play in rebalancing the UK economy, but we need a fairer system to encourage growth.”

Koehler called on the European Commission to do more to deal with unfairly traded imports and said that in the past two years, imports of steel plate into Europe have doubled and imports from China have quadrupled, causing steel prices to fall steeply, while a stronger pound has undermined the competitiveness of the UK’s exports.