MPs accuse Corus bosses

The majority of the job losses will be at plants in Wales

A committee of MPs has attacked steel giant Corus for poor management and failing to involve the government in key talks over job cuts.

A report on the steel crisis published on Wednesday concluded that little could have been done by the government to prevent thousands of job losses in Wales and the UK.

But there was widespread anger among MPs earlier this year when Corus announced it was cutting 6,000 UK jobs - 3,000 in Wales - without widespread consultation.

The root of the problems go back to the merger of British Steel and Hoogovens said the Trade and Industry committee report.

Management tales

Shareholders handed £694m after merger last year

Corus accused by union of raiding £863m from pension fund

Ousted chief executives rewarded with £1m pay-offs

Up to 6500 workers sacked

Corus failed make the decisions that would have delivered the efficiencies promised by the merger and the Chairman, Sir Brian Moffatt, was singled out for his present corporate strategy which offers no hope for the company's survival.

The weak euro was described by MPs as only a "short term" problem for Corus and said "a large well-managed company could have been expected to weather" the fluctuations.

Ministers powerless

The select committee said that it "regretted" Corus had not fully briefed ministers initially in December when plans for huge cutbacks were first being drawn up.

Corus then announced in February that it was cutting more jobs and scaling back production in a move, which will see Ebbw Vale close and steel production at Llanwern, near Newport, come to an end after 35 years.

The report by MPs said: "We are not convinced that there was much that ministers could have done to help the process."

It was no secret that the steel plants at Llanwern and Ebbw Vale in south Wales were at risk, the MPs reported.

While the setting up of a taskforce - similar to one launched to help save jobs at the Rover plant in Longbridge - was desirable in presentational terms, the outcome for the workers was unlikely to be different, the MPs decided.

Imported steel

"We have detected some feeling in business that detailed advance briefings may be for the advantage of ministers but not of the company or its workforce."

The report said that despite high productivity, UK steel producers found they were increasingly unable to compete with imported steel, partly because of the weakness of the euro.

Sir Brian Moffat: Announced sweeping cuts

Corus was urged to make an early announcement of its plans for redundant steel sites so they can be put to other uses as soon as possible.

Michael Leahy, general secretary of the Iron and Steel Trades Confederation, said the MPs had echoed the union's criticism of Corus' lack of a strategic plan.

"We hope all parties will heed the committee's recommendations and give steel a chance."