News: MPs urge Government to back steel making in Rotherham

The three Rotherham MPs are urging the Government to look closely at its proposed changes to the Climate Change Levy (CCL) and the impact it could have on steel making in South Yorkshire.

There are concerns amongst steel makers that the Government may alter the current rules on the Climate Change Levy which could end up penalising steel made by electric arc furnaces (EAF) which require large amount of electrical power delivered to work effectively.

The Rotherham MPs, Denis MacShane, John Healey and Kevin Barron, are urging that the Treasury add to their plans and include measures that would mean that steel manufacturers and "metallurgical processes" be exempt from the CCL.

In a letter to the Economic Secretary, they stated that: "We believe that the cost of restoring the full CCL relief to EAF companies would be of great assistance to steel making in Rotherham and Sheffield."

Rotherham MP, Denis MacShane, added: "We all want a greener economy but that should be achieved by focusing on insulation of homes and other promoting non C02 emitting transport. The productive steel exporters should not be unfairly penalised."

Investment in 2005 saw the Rotherham site of Tata Steel (formerly Corus) at Aldwarke become the focus for steel making, casting and rolling of specialist steels. The steel is manufactured at the Rotherham site before undergoing further refining at the Stocksbridge plant or the Thrybergh Bar Mill to improve the quality.

A recent £6.5m investment in aerospace steel production has boosted output of these steels by 30% and has led to the creation of eight new jobs. The scheme included two new vacuum arc remelting (VAR) furnaces and specialist testing equipment, as well as a new ultrasonic immersion testing facility.

The steel, predominantly stainless and low alloy grades, is used in landing gear and aircraft engines including the landing gear of the Boeing 787 Dreamliner.

Recommended reading: Digital and Sustainable: How Local Businesses are Embracing a Greener Future

Tata Steel Europe employs around 2,000 steelworkers in South Yorkshire.

Following this year's budget, Karl-Ulrich Köhler, MD & CEO of Tata Steel's European operations called on more to be done to support energy-intensive industrial companies in the UK.

Earlier this month the government began consultation on its proposed £250m Energy Intensive Industries Package (EIIP) which aims to reduce the impact of energy and climate change policies on the cost of electricity for energy intensive industries.

Business Secretary Vince Cable said: "Many energy intensive businesses are located in areas that have been hit hard by the economic downturn, which is why it's important that we get this right and present the best support package available."

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News: Climate change policies threatening local industry claims Rotherham MP

Rotherham MP Denis MacShane has welcomed the publication of a report on the combined impact of the Government's climate change policies is imposing significant costs on the UK's energy intensive industries, which warns that without urgent review could see some companies leaving the UK for good.

The Cumulative Impact of Climate Change Policies on UK Energy Intensive Industries is published jointly by the Energy Intensive Users Group (EIUG) and the TUC and says that the forecast increase in total energy bills for industries like steel, taking electricity, gas and emissions reduction schemes together, could be as high as 141 per cent by 2020.

Speaking during a briefing on the report at the House of Commons last week, Dr MacShane said: "We will need our steel industry if we are to green our economy. Wind turbines, wave power, new nuclear power stations will all require large quantities of steel. But this report shows that the current mix of policies is putting an unequal burden on the UK steel industry's shoulders.

"The government must urgently reassess these policies if we are not to lose out to cheaper steel from countries like Russia and China and risk seeing more of our own industry close."

Michael Leahy, General Secretary of the Community Trade Union, said: "This report is a welcome and revealing insight into the challenges faced by heavy industry. We accept that we must move towards a low carbon economy - but the route you take to get there is all important.

"The UK's steel industry is already among the greenest in the world and steel can play its part in the renewable energy projects that will help us tomorrow. But to do this we need to counter the threat from "carbon leakage" that is putting the steel industry and our members' jobs at risk today."

Tata Steel Europe, which has manufacturing plants in Rotherham, participated in the study.

EIUG website

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News: Rotherham MPs on the AMP

Two Rotherham MPs took part in a roundtable discussion with businesses based at the Advanced Manufacturing Park (AMP) Technology Centre in Rotherham last week.

Rotherham MP Denis MacShane and Rother Valley MP Kevin Barron sat down with representatives from some of Yorkshire's most innovative advanced manufacturing companies to find out how they think the Government can help them continue to grow and deliver jobs and prosperity for the region.

Creative Space Management (CSM), which manages the AMP Technology Centre for owners Yorkshire Forward, has organised the roundtable discussion and tour of the AMP.

"This is a great opportunity for local businesses to meet with their MPs to talk about the current challenges and opportunities they are facing and suggest ways in which the Government can help," said CSM Director Paul Taylor.

Organisations meeting the MPs include: Fripp Design and Research, a product design, research and business consultancy which aims to more than double its workforce on the park in 2010; HBM UK, a global market leader in test and measurement, and weighing technologies; cleantech company ITI Energy; the UK branch of the Materialise Group, best known for its activities in the field of rapid prototyping; and Creative Sheffield, whose investment managers are instrumental in attracting investors to move to the AMP.

At the AMP, world-leading materials and structures R&D organisations are partnering industry innovators and international brands to create a centre of advanced manufacturing excellence with a global reputation. Based at the hub of the Park, the Technology Centre provides small and start-up high-tech companies with a support infrastructure designed to help them turn innovative ideas into commercial reality in an environment which accelerates growth.

Kevin Barron MP said: "The past and future investment on this site is leading the way in 21st century manufacturing technology, all those who are involved should be very proud."

AMP website
Rotherham

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News: Rotherham MP discusses unemployment figures and hopes of new jobs at Corus

Rotherham MP Denis MacShane has welcomed the modest fall in unemployment figures announced this week.

According to the Office of National Statistics there is a 7,000 drop in the ILO measure of unemployment, a 15,000 drop in the claimant count and a 7,600 drop in the youth claimant count.

In Rotherham, the total number of Jobseeker's Allowance fell by 18, the fourth consecutive month where the total number of claimants in Rotherham has fallen. This is in contrast to the large increases between October 2008 and March 2009.

MacShane said: "Britain under Labour and Gordon Brown's policy mix has done better than the United States and major EU countries in keeping people in jobs despite the closures and job losses following the economic crisis."

The MP was in town to speak to the Rotherham and Barnsley Chamber of Commerce and visit steelmaker, Corus.

He added: "I was pleased at recent meeting with top management of Corus in Rotherham that the firm may be looking to take on some workers in the course of 2010 providing the outlook for sales remains good. After the annus horriblis for Corus in South Yorkshire last year it is good that steel has a future in Rotherham despite the global pressure on steel in all advanced economies."

Speaking in the Commons, MacShane paid tribute to the cooperation between the Community steel union leadership in Rotherham and Corus managers which had resulted in local production surviving despite the very serious fears of closure last spring. He also praised the role of Peter Mandelson who came to visit Corus in the summer.

He told the house: "I must say that since his visit, things have turned around. We are now narrowly in the black and the unions have worked co-operatively with the management.

"Mr. Stuart Sansome, the leader of the Corus steelworkers, made a presentation to the Corus board with the local management, which showed partnership at work. Let us place it on the record that Lord Mandelson might help Britain's steel industry to have a future, which was far from certain this time last year."

Denis MacShane website
Rotherham

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News: MPs talk business at Chamber forum

Members of the Barnsley and Rotherham Chamber have met with local MPs Kevin Barron, Mick Clapham, Eric Illsley and Denis MacShane to discuss current issues facing business in the locality and to seek the views of MP's in the run up to the forthcoming election.

One of the main issues covered at the forum was finance and Chamber members urged their MPs to ask the government to further challenge the banks regarding loans to fund working capital and further growth.

Chamber members also expressed concern at the lack of leadership from Yorkshire Forward, the regional development agency, and at the parochial views of Sheffield City Council over the Waverley Development.

The lack of investment in transport infrastructure in the North of England and the issue of existing legislation on the use of pre-pack administrations were also discussed.

Andrew Denniff, the Chamber's policy and communications manager, said: "This was an excellent opportunity for a number of our members to deal face-to-face with our local MPs on a variety of business-related issues.

"As we enter the election campaign in a few weeks’ time, I am sure we will develop the forum into a focused discussion with representatives of all the main parties."

Chamber website

Rotherham

Images: brchamber.co.uk

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News: MacShane: Hire or train a Rotherham worker in 2010

Rotherham MP Denis MacShane has issued a New Year appeal to employers in Rotherham urging them to give priority to hiring local men or women in 2010.

The MP highlighted the £2,500 on offer to employers to recruit and train 18-24 year olds who must be in receipt of unemployment benefits.

MacShane said: "I hope that in 2010 every Rotherham business, big or small, can reach out to the Rotherham community and give local people a job if they have the skills and motivation.

"The Government has offered grants of up to £2,500 to recruit or train young workers between the age of 18 and 24 but there are men and women of all ages who want to work if they are given a chance."

The MP raised the need to support more local employment in the House of Commons just before the Christmas recess. He told Labour Deputy Leader, Harriet Harman, to hold a special Commons debate on the need to encourage Yorkshire employers to provide more work for local people.

Speaking in the Commons MacShane said: "People from Toyoda Gosei, the Japanese car parts factory in my constituency, wrote to me recently saying that they had 30 different nationalities employed there.

"Could we have a debate on hiring practices, because although I am sure that the firms hiring practices are completely non-discriminatory, there is widespread concern in South Yorkshire that employers are perhaps not giving a fair crack to local Yorkshire men and women, and we need to discuss with employers how to bring more of the local work force into active work?"

In her reply Ms Harman stated: "It is important not only that we have training, high skill levels and the appropriate skill levels in the local community for the jobs that are available, but that those jobs are made available through the jobcentres and that the regional development agencies work with employers to make sure that agencies that do not just choose workers from abroad are used. My right hon. Friend makes an important point and it is being taken forward."

The MP has urged the local Chamber of Commerce to draw up an employment audit so that all its member firms can see what they can do to help get more Rotherham council tax-payers into work.

He added: "This is not about excluding anyone and Rotherham is proud of being open to foreign investment such as Toyoda Gosei brought to the Borough. You cannot say yes to foreign companies investing in the UK and then demand that race or nationality criteria should determine who gets work. But that said, it is important for all Rotherham employers to be sensitive to community feelings and to the sense that sometime local workers to do not get a fair crack of the employment whip."

Denis MacShane website
Rotherham

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News: Rotherham companies work together to reduce carbon footprint

Local manufacturers AESSEAL are working together with Rotherham based EMSc UK Ltd, the engineers behind the Powerstar voltage optimisation system, to drive down their energy consumption and CO2 emissions.

Following an introduction by Rotherham MP Denis MacShane, the Powerstar system was installed at AESSEAL's Templeborugh headquarters at the end of October resulting in an immediate energy saving of just under 8%.

PowerStar is the only voltage optimisation system wholly designed and manufactured in the UK and works by reducing the the voltage supplied by the National Grid. It is endorsed by The Carbon Trust and AESSEAL expect a three year return on investment.

AESSEAL Managing Director, Chris Rea said: "It was coincidental to receive a visit from Denis MacShane and without his word of mouth endorsement we would not have known that Powerstar existed, despite the fact that they are located within a few hundred yards of our primary facility in Rotherham. It is fantastic that we were able to purchase from a local business."

"Powerstar in particular and voltage optimisation equipment in general deserves to be higher up the business and political agenda and possibly needs to be if the UK is to achieve our targeted CO2 emission reductions."

Dr Alex Mardapittas, Powerstar designer and Managing Director of EMSc UK Ltd added: "I am passionate about helping companies to use only the energy that they need. For that reason we always carry out a site survey to identify the equipment in use and loading. This enables us to guarantee the savings that can be achieved and build the most appropriate system for each client.

"Voltage optimisation is only part of the answer and so every Powerstar unit comes with an online monitoring and targeting tool. This will enable AESSEAL to monitor their overall energy consumption and take further steps to reduce consumption which can be as basic as simply turning off unnecessary lights."

Denis MacShane MP said: "At a time when climate change and the reduction of energy consumption and C02 emissions is at the top of the world's political agenda it is great news that AESSEAL in Rotherham are putting theory absolutely into practice with the installation of this voltage optimisation system.

"This collaboration is great news for the two companies involved - but it's even better news for Rotherham and our local economy."

AESSEAL website
EMSc UK Ltd website
Rotherham

Images: aesseal.co.uk

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News: Mandelson visits Corus in Rotherham

First Secretary Peter Mandelson last week visited the Rotherham site of Corus Engineering Steels at the invitation of the town's MP Denis MacShane.

Lord Mandelson toured the plant and spoke with Community union representatives as well as Corus long products director, Phil Dryden.

Mr MacShane said: "I asked Peter Mandelson to come to South Yorkshire to see that there is a first-rate workforce and modern technology ready to make high quality steel when demand returns.

It shows how seriously the Government is taking the Corus problem that Peter came to see us here in Rotherham and then across the M1 at the Stocksbridge plant of Corus Engineering Steels.

I explained to Lord Mandelson that we needed new government thinking to help the UK steel industry through the new world economic model in which demand for steel is low."

Mr MacShane highlighted the issues facing the steel industry including electricity prices, credit risk insurance and the need for support for workers to be re-trained.

He added: "There are neither easy nor obvious solutions for Corus in South Yorkshire or anywhere in the UK.

I hope Peter returns to London and is able to think hard about a new approach to industry that gives stronger hope for the Yorkshire steel industry."

Last week local MPs delivered the Save our Steel petition to parliament which included over 6,000 signatures.

Denis MacShane website
Rotherham

Images: Alan Murray-Rust / geograph.org.uk

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News: 6,000 pledge support to Save our Steel campaign

Rotherham MP, Denis MacShane has delivered the Save our Steel petition to parliament which included over 6,000 signatures.

Earlier in the month, MacShane raised the issue of the steel industry in Rotherham in a debate at Westminster.

He outlined the importance of the industry to the area, and the country, before urging the government to provide more support in response to the recently announced restructure.

The restructure could result in over 400 redundancies at Rotherham sites, added to the 700 announced in January.

The debate highlighted support seen in other European countries, such as short time working, retraining and measures to increase the demand for steel.

Mr MacShane has urged the Government to intervene with EDF, the French electricity company, to urge EDF to provide industrial-use electricity at fair prices to Corus.

In the Commons, MacShane asked fellow South Yorkshire MP, Energy Secretary, Ed Miliband, to talk to EDF and ask them to agree a contract with Corus based on the electricity prices charged on the continent.

He said: "Corus Engineering Steel has been crippled by high electricity prices compared to the EU average, even though Corus made handsome profits in Europe last year on the back of high steel prices.

My appeal to Corus is to ride out the down-turn in demand and avoid laying off skilled production workers. The drop in demand is not forever and Tata Corus has to take the long view. The company will not be pardoned if it sheds workers and close down facilities.

I am urging every government minister to think differently and my appeal to Ed Miliband is part of this political process. But the ultimate responsibility lies with Tata Corus. The workforce has done everything asked of it. Now it the turn of the company to show long-term vision."

First Secretary Lord Mandelson will be meeting steelworkers in Rotherham on Friday July 17.

Denis MacShane website
Rotherham

Images: Denis MacShane MP

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News: Huge support for save our steel petition

Local MPs Denis MacShane and John Healey along with Council Leader Roger Stone, church leaders, steelworkers and others launched the "Save our Steel" petition in Rotherham last week.

There was also a "Save our Steel" campaign stand at South Yorkshire Festival at Wortley Hall on 4th July.

Denis MacShane MP said "Rotherham people were really pleased to have a tangible way of showing their support for our steel workers and steel industry. I did an event earlier with the British Heart Foundation at their Frederick St shop and within minutes of dropping a petition form on the counter it was half full.

"This is an urgent call to Rotherham people to sign up by 14th July in order that I can present the petition to Parliament on behalf of the people of Rotherham."

John Healey MP said: "After all the glorious weather Rotherham has had this week we ended up launching this petition in torrential rain, but in the first hour we had over 300 signatures."

Cllr Roger Stone OBE, Leader of Rotherham Council said "It was great to see so many Rotherham people stepping forward to sign this petition. I am fully behind our MPs in their drive to make sure that the voice of Rotherham citizens can be heard and I hope as many as possible from across Rotherham's varied community will sign it."

The petetion will be available to sign on: Friday July 10th and Saturday July 11th at 10.30 - 12.30 by College St entrance to the markets in Rotherham town centre.

Denis MacShane website
John Healey website
Rotherham

Images: johnhealeymp.co.uk

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News: Rotherham MP calls on more support for steelworkers

Rotherham MP Denis MacShane has called on Lord Mandelson and ministers in the Business Department to examine measures in place in Europe which allow steelworkers to be kept in work for training purposes rather than be made redundant. Speaking in a Commons debate, MacShane challenged Business Minister Pat McFadden to be more innovative in seeking ideas from Europe to help the beleaguered steel communities. "Good things are happening in Europe, so will my right hon. Friend consider applying them to our steel industry? If not, we will face much graver problems, which could be avoided with a little more flexibility and innovation from the Department." MacShane added: "This recession will end and Britain still has to make things. Steel is at the heart of all manufacturing and I urge Ministers to be bold and be prepared to take ideas from elsewhere to keep jobs going."
Denis Macshane website

Rotherham

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