'We are staring at disaster' Tata Steel boss hits out at UK's energy costs
THE boss of struggling steel giant Tata has blamed soaring energy costs and high business rates for crippling British industry.
Tata Steel chief executive Bimlendra Jha appeared before the Business Select Committee today
Tata chief executive Bimlendra Jha, whose UK operations are losing around £1million a week, said the firm’s energy charges are £40million more a year than those in Germany.
His comments came as discussions continue over the future of the company’s plant in Port Talbot, South Wales, with thousands of jobs at risk.
Mr Jha told members of the Business Select Committee today that high prices and a strong pound were hitting trade.
He said: “When you get headwinds such as a stronger currency, you only have to go over the Channel to buy products in an open market.”
Jha warned the Committee that a buyer must be found extremely quickly
Sajid Javid said the company had planned to close the giant Port Talbot plant immediately
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Mr Jha said if the pension fund liability at Tata is not taken care of there would be no buyer for the business, adding: “If we don’t solve it we are staring at some very bad consequences for the taxpayer. We are staring at a huge economic and social disaster.”
If we don’t solve it we are staring at some very bad consequences for the taxpayer
Mr Jha also said he could not confirm a claim by Business Secretary Sajid Javid that the company had planned to close the giant Port Talbot plant immediately.
Mr Jha told MPs there was no set deadline for selling the loss-making assets, but made it clear that Tata could not continue to “bleed” indefinitely.
He added: “We would not be selling the business if we were not losing money.”
Tata's UK operations are losing around £1million a week
Later Mr Javid told the committee: “I don’t want to live in a country where we have to import all our steel.
“For the thousands of steelworkers and their families affected by this, the message is that we are doing everything we can