04.04.16
British steel industry to compete equally for HS2 contracts under new measures
New measures designed to make it easier for British steel companies to compete for public sector contracts, including on major rail projects such as HS2, have been announced.
The government initiative is designed to secure the future of the UK steel industry, as Indian company Tata seeks to sell its steel plants in Wales.
The new reforms expand steel requirement procurements to consider suppliers’ policies on responsible sourcing, training, greenhouse gas emissions, health and safety and the social integration of disadvantaged workers, from central government to all public sector projects.
Sajid Javid, the business secretary, who visited Port Talbot steel factory on Friday to address workers’ concerns, said: “By changing the procurement rules on these major infrastructure projects we are backing the future of UK steel – opening up significant opportunities for UK suppliers and allowing them to compete more effectively with international companies.”
The new measure is intended to make the British steel industry more competitive by making its social worth as well as value for money part of the public sector procurement process.
HS2, which recently saw its Bill pass through the House of Commons, will use over £2m tonnes of steel. Tata Steel in Scunthorpe provide Network Rail with around 120,000 tonnes of steel each year, or 96% of its total demand, and all of the 7,000 tonnes for building Crossrail.
The government will also establish a list of approved steel suppliers who meet its criteria.
The government is also seeking to protect British steel by creating a steel council, reducing steel imports and trying to exempt steel from energy costs and secure flexibility over EU emissions regulations.
(Image c. Ben Birchall from PA Wire and Press Association Images)