Overview

The Steel Industry (Special Measures) Bill grants the Secretary of State extensive powers to intervene in steel undertakings facing asset disuse or risk of closure, aiming to secure continued and safe operation. This includes directing asset use, taking control of assets if necessary, and providing financial assistance and compensation.

Description

This bill defines a "steel undertaking" as any business involved in steel manufacturing. The Secretary of State can issue directions to a steel undertaking regarding asset use if they deem it in the public interest to maintain or resume operation. These directions can include requirements to enter agreements (including employment contracts), appoint officers, manage operations in specific ways, and refrain from insolvency proceedings. Non-compliance can lead to the Secretary of State taking control of assets, using force if necessary, and recovering expenses from the undertaking or its related group. The bill establishes offences for non-compliance, with potential for imprisonment and fines. Injunctions can be sought to prevent offenses. A compensation scheme is included to cover losses resulting from compliance with the bill's provisions.

Key Powers of the Secretary of State:

• Issue directions on asset use.
• Take control of assets in case of non-compliance.
• Recover expenses incurred.
• Apply for injunctions.
• Establish a compensation scheme.

Government Spending

The bill mandates that any expenses incurred by the Secretary of State in implementing its provisions, and any increase in sums payable under other Acts as a result of this bill, will be funded from money provided by Parliament. No specific figures are provided in the bill text.

Groups Affected

• Steel Undertakings: May face significant intervention in their operations, potentially including the imposition of directions and financial penalties for non-compliance. They may also be eligible for compensation.
• Relevant Persons: Directors, managers, and other key personnel within steel undertakings will be directly impacted by directions and potential penalties.
• Employees of Steel Undertakings: The bill's focus on continued operation suggests a positive impact on employment, though job security might remain subject to the undertaking's success under state intervention.
• UK Government: Will incur costs associated with implementing the bill, potentially leading to increased government spending.
• The Judiciary: The High Court will be involved in hearing injunction applications under the bill.

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