UK’s public sector urged to buy locally to end steel crisis

Press Trust of India Updated - January 20, 2018 at 06:46 AM.

Britain has changed its procurement rules to encourage public sector bodies to use British steel products as part of efforts to revive the ailing steel industry and save thousands of jobs after Tata Steel decided to sell its loss-making businesses in the UK.

Under the new decision, public sector bodies are to be encouraged to buy British steel for construction projects to help save the industry. The government said councils and NHS trusts will be asked to consider the economic impact of buying from abroad.

Business Secretary Sajid Javid said he was determined to ensure a sustainable future for the British steel industry and find a solution that supports workers.

“By changing the procurement rules on these major infrastructure projects, we are backing the future of UK steel — opening up significant opportunities for UK suppliers and allowing them to compete more effectively with international companies,” the Pakistani-origin minister said.

The unions said the government’s decision was “a small step in the right direction” but the measure should have been in place already. Guidelines were introduced last year requiring central government bodies to take into account the “true value” of British steel.

Now the guidance is to be extended across the public sector and public procurements involving the supply of steel will need to consider “responsible sourcing, the training suppliers give to their workforce, carbon footprint, protecting the health and safety of staff and the social integration of disadvantaged workers”.

Published on April 3, 2016 13:29