THE government’s support for a troubled steel plant which employs dozens of Barnsley workers has been welcomed by a local MP.
Insolvency courts recently granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by Speciality Steels UK (SSUK), part of the Liberty Steel metals empire of controversial tycoon Sanjeev Gupta.
The company, which uses scrap metal to manufacture steel, has been placed in the hands of the official receiver a government-appointed liquidator.
MP Marie Tidball welcomed Steel Minister Sarah Jones MP’s statement in Parliament which confirmed the government’s commitment to the site’s revival.
The minister made a number of further commitments in her statement, and in response to the local MP’s question, including that the government will cover all pay for all employees during this period.
The government is also working closely with the official receiver to resolve the issue of 12 months of outstanding pension contributions, as one of the top priorities during this period.
“I strongly welcome the minister’s statement and I was pleased to hear her confirm the government’s unwavering support for our steelworks,” Ms Tidball said.
“It is reassuring that she has committed the government covering wages, working closely with the official receiver to resolve the outstanding pension issue, and continuing to fund the official receiver until the right deal is found.
“I called for Gupta to go months ago whether it’s paying wages late or employees not receiving pension contributions, Liberty has failed its highly-skilled workers.”
A winding-up judge found the firm was ‘hopelessly insolvent’ with £600,000 in the bank, a monthly wage bill of £3.7m, supported by a parent group that has 15 entities in insolvency proceedings across nine jurisdictions.
“I have been fighting for steel since day one and I understand that this time will be causing worry and uncertainty for steelworkers and their families,” Marie added.
“I know that steelworkers and other employees will have a number of queries about what happens next and I will continue to work closely with Community Union around ongoing job security.”
