Owner of Hartlepool's Liberty Steel placed senior bosses in 'unacceptable position'

The Business, Energy and Industrial Strategy Committee said the steel sector cannot continue to “lurch from crisis to crisis” without help.

The MPs also suggested that ministers should reflect on the “systemic” risks to the UK steel industry posed by such unusual corporate structures as those used by GFG Alliance.

Around 250 workers at Liberty Steel’s plant in Brenda Road, Hartlepool, have faced an uncertain future since parent company GFG Alliance’s chief financial backer Greensill went into administration earlier this year.

The strategy committee noted: “Liberty Steel owner Sanjeev Gupta put senior members of his staff in an unacceptable position by employing them with job titles associated with traditional executive functions in well-run companies, without giving them the required access to information or decision-making powers necessary for them to perform their duties.”

It added that the Insolvency Service should consider whether Mr Gupta has breached his “fiduciary” duties as a company director.

A Government spokesman said: “We recognise the critical role the steel industry plays in all areas of the UK and in our economy and will carefully consider the report’s recommendations.”

A GFG Alliance spokesman said: “Since the Select Committee took evidence, GFG has implemented a range of measures under a broad-based restructuring and transformation committee of senior executives to deal with matters raised in the report.

“We have moved to establish a secure pathway to recovery following the collapse of Greensill Capital and to lead the UK’s vital transition to a decarbonised steel industry.”

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