The UK Parliament has announced that the Business, Energy and Industrial Strategy (BEIS) Committee has launched an inquiry into UK-based Liberty Steel, a subsidiary of GFG Alliance, and into the future of the UK steel industry.
The committee will examine the current challenges facing the UK steel industry, issues concerning the sector’s long-term viability, the government’s approach to supporting the steel industry, and the impact the collapse of Greensill Capital has on Liberty Steel, its customers and its workforce in the UK. The committee aims to discover what the government can do regarding industrial policy to help build a financially and environmentally sustainable steel industry in the UK.
The inquiry will begin in late May. In June and July, it is expected to examine the issues facing the steel industry in the UK in more detail and to pick up on concerns relating to GFG Alliance and Liberty Steel.
“The collapse of Greensill Capital and subsequent financing issues affecting GFG Alliance has put thousands of jobs at Liberty Steel in jeopardy. As a committee, we are keen to examine some of the immediate challenges facing the UK steel industry, including at Liberty Steel, and to consider questions around decarbonization and the long-term viability of the sector. This episode has also raised a catalogue of concerns relating to corporate governance, audit and supply-chain finance. As a committee, we will want to examine whether reform is needed in these areas and, additionally, access to and use of tax-payers money, including Covid-19-related support, and whether adequate checks-and-balances were put in place in return for support from government,” Darren Jones, chairman of the BEIS Committee, said.