Labour MP Stephen Kinnock accused Tata of ‘bluffing’ the Government
Tata Steel bosses have been lambasted over their handling of the loss of 2,800 jobs at the Port Talbot steel plant.
Labour MP Stephen Kinnock, whose constituency includes the steelworks, accused it of ‘bluffing’ the Government with the closure of its site in South Wales to secure a better deal.
The Indian-owned firm is preparing to close blast furnaces and replace them with greener electric arc furnaces, with £500million of taxpayer support.
The decision risks the loss of 2,800 jobs. Tata claims the other option was shutting the site with the loss 8,000 jobs.
Global chief executive TV Narendran and UK boss Rajesh Nair yesterday faced Welsh affairs committee MPs where Kinnock said: ‘I put it to you that when you threatened the British government – it sounds like you did – that you would close completely, I don’t believe that was the case.’
Narendran said: ‘Shareholders were asking us: “How much longer will you keep supporting a business which is not viable, just because you are invested in the community and people?”
‘We have said: “Give us some more time.” It can’t go on forever because we’re an-swerable to 3 m shareholders.’
Kinnock said it would have cost Tata £1billion to close the site.
Narendran said that if Tata had declared bankruptcy, taxpayers would have paid the decommissioning bill.
