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Daily Mirror
Daily Mirror
Politics
Ben Glaze

Overhaul of government guidance for buying steel aims to boost £2bn industry

Ministers plan to shake-up government guidance for buying steel in a bid to help the British industry.

A report by the Steel Procurement Taskforce - a joint effort by the Business Department and trade body UK Steel - recommends overhauling advice to make it easier for firms to win bumper deals.

The full document, seen exclusively by the Mirror, backs rewriting a key clause known as procurement policy note (PPN) 11/16.

It sets out guidance on “how to create a level playing field for UK steel producers through public procurement” for projects including building new schools, hospitals and military hardware.

Updating the Cabinet Office advice would boost British firms’ attempts to secure lucrative contracts.

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Companies have repeatedly complained about foreign steel being imported for public sector contracts (Getty)

“Since PPN 11/16 was issued in 2016, the project appraisal and public procurement landscape has changed significantly,” says recommendation four of seven.

“An updated PPN provides an opportunity to set out how the new framework for procurement policy applies to steel procurement, from pre-procurement and project design to procurement execution.”

The Government drew up PPN 11/16 in December 2016 following mounting criticism of government departments for buying foreign steel.

The Mirror told how the Royal Navy’s Dreadnought fleet of nuclear-armed submarines was being built with French steel, and how Network Rail was spending millions of pounds on foreign steel.

The Mirror told in 2016 how the new fleet of nuclear-armed submarines were being built with French steel (Internet Unknown)

Sector chiefs have repeatedly complained about public firms buying steel from overseas - undermining the UK’s £2.1billion industry, which directly employs 33,700 workers and supports another 42,000 posts in supply chains.

Other recommendations include the sector exploring “the future development of a ‘Steel Standard’”.

Such a move could “act as an umbrella for existing standards” and “have the potential to certify a number of additional actions taken by producers” on key issues.

“This could be used to badge products which meet appropriate standards across a range of issues of importance to government and other procurers, such as health and safety, environmental management, and responsible sourcing,” says the study.

The report - the last to be published since the Taskforce was formed last March - also calls for better reporting of where government ministries, arm’s-length organisations and other public bodies buy steel.

“There was a clear consensus amongst the Taskforce on the benefits of collecting country of origin data for steel used in public projects – with government gaining a greater insight into its supply chains, and industry understanding the extent to which its products are being used in public projects in the UK,” says the report.

The Taskforce is jointly chaired by UK Steel director-general Gareth Stace and Business Minister Lord Grimstone - meaning the plan already has government backing.

UK Steel director-general Gareth Stace (PA)

Community steelworkers’ union operations director Alasdair McDiarmid said the recommendations “can make a real difference and support steel jobs”.

He added: “They include important measures to help our industry access public procurement opportunities, and new obligations on steel purchasers that will bring some much-needed transparency to the process.

“The package represents a step in the right direction, but we should be clear that more work must be done to properly take into account the social and environmental benefits of sourcing locally.

Community union operations director Alasdair McDiarmid (Community union)

“Buying Britain’s steel supports thousands of jobs and livelihoods, benefits our economy, provides value to the taxpayer and has a lower carbon footprint.”

Business Minister Lee Rowley writes in the foreword to the 13-page report: “The Government wants to see a domestic steel sector which is open, thriving, and competitive.

“We want to see a sector which can continue to win business both domestically and internationally over the long-term, based on the quality of its products and its ability to innovate.

“We want to see a viable steel industry emerge from the challenges of recent years – which can build upon its proud history, its hugely talented workforce, and the clear opportunities that exist within the UK and more broadly in the future.”

Business Minister Lee Rowley (Parliamentlive)

Business Secretary Kwasi Kwarteng said today: “We know and recognise the critical role the steel industry plays in all areas of our economy, and the recommendations set out by the taskforce highlight ways we can achieve our shared objective of a thriving, competitive and open UK steel sector.

“Steel is a national strategic industry and we want to see the sector continue to win business both domestically and internationally over the long-term as it transitions to a low carbon future in a way that supports competitiveness, jobs and clean growth.”

The Mirror has been campaigning to Save Our Steel since 2015.

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