A NEW charter is being launched aimed at maximising the amount of UK-produced steel in construction and other projects.
Trade body UK Steel said there was “significant” potential for increased use of steel products built in this country, given that half is currently bought from abroad.
The move comes as British Steel continues to seek financial support to help address Brexit-related issues and secure its future.
UK Steel said its charter will be signed today by Westminster, following a commitment by the Welsh Government last week, and with the Scottish Government due to follow suit in the next few days.
The charter builds on existing government policy on steel procurement, but goes further by asking signatories to commit to a range of steps, which UK Steel
said could transform the way steel is purchased.
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The UK Government is projected to buy £2.5 billion worth of steel in the next five years, for rail, roads, schools, hospitals, ships and other projects.
UK Steel director general Gareth Stace said: “This initiative will encourage as many organisations as possible to take a more proactive and thoughtful approach to their procurement of steel in the future, and importantly publicise the exemplar approach that many organisations are already taking.
“UK public procurement accounts for a massive 14% of UK GDP each year, its decisions are therefore a hugely important policy tool and perhaps the most significant intervention the Government makes in the economy.”
Roy Rickhuss, general secretary of the Community union said: “This is an important initiative and a welcome step forward to support our steel industry.
“Steel unions have long campaigned for government at
all levels to maximise the procurement opportunities for UK steel producers.
“I hope that the charter will be widely used and adopted and the positive examples of good procurement practice are followed.”
Gerald Reichmann, British Steel chief executive, said: “This initiative can help increase the amount of high-quality steel manufactured in Britain going into thousands of domestic construction projects, something which will have a positive impact on the supply chain and wider UK economy.”
Unite national officer Tony Brady said: “Unite has long called for the Government to use UK-produced steel in major infrastructure projects to support jobs and manufacturing communities across the UK.
“The need and the sense of urgency for this to happen is only heightened by the current difficulties experienced by British Steel.
“We would urge the UK Government to back this charter
and use its buying power to put UK steel at the heart of major infrastructure projects and ensure projects like the Royal Navy’s new Fleet Solid Ships are built in the UK using UK steel.”
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