British Steel nationalisation takes step closer

Powers to nationalise the steel industry have been passed, clearing the way for British Steel to be brought under public ownership.

The House of Commons approved on Tuesday a number of amendments to the Steel Industry (Nationalisation) Bill made in the House of Lords.

It then received royal assent and is now law, Commons deputy speaker Judith Cummins told MPs on Wednesday.

Energy minister Chris McDonald said the government was "acting decisively and with a purpose in the national interest".

He rejected criticism from shadow business secretary Andrew Griffith, who argued "nationalisation is a bad idea" and that the "real issue" for steel is Energy Secretary Ed Miliband's "addiction to ruinously high energy prices".

North Lincolnshire Council leader councillor Rob Waltham said it was "significantly important" for Scunthorpe and the surrounding area but said more still needed to be done to secure its long-term future.

"It's really welcome news because it gives a certain future for steel-making in Scunthorpe," he said.

"It's a significant part of our local economy and British Steel is critically important to our nation's infrastructure.

"You don't build much without steel, you don't deliver much without steel and, certainly, you don't defend yourself without steel.

"Nationalisation is about securing the future of the steel industry as we see it now but the government will never have enough money to invest in what we will need to make sure we've got a sustainable steel industry going forward."

Last year, Parliament passed special powers allowing the government to direct British Steel operations in Scunthorpe.

This stopped its owner, Jingye, from closing blast furnaces, but the company remained privately owned.

In May, the government announced British Steel would be nationalised after it failed to reach a deal with the Chinese company.

Jingye has said it had begun the process of seeking compensation for nationalisation, having previously claimed the business was losing £700,000 a day. However, the UK government has said it could limit or refuse compensation.

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