Rennie demands Scottish plan after European Liberty Steel plants enter administration

Scottish Liberal Democrat economy spokesperson Willie Rennie has today demanded that the Scottish and UK governments set out their plan for dealing with the consequences of UK firms owned by commodities tycoon Sanjeev Gupta's GFG Alliance group potentially being put into administration.

His call comes after the world's second-largest steelmaker ArcelorMittal won a UK-based court battle on Tuesday to put Liberty Steel Europe - a holding company for a cluster of entities controlling six of Gupta’s eight continental European steelworks - into administration, due to a 140 million euro debt which an arbitration tribunal found was unlikely to be paid.

GFG Alliance's Scottish operations include the Liberty Steel Dalzell Ltd steelworks in Motherwell and Alvance British Aluminium in Lochaber, neither of which have filed accounts for several years.

Willie Rennie said:

"Workers are being badly let down by the failings of Sanjeev Gupta. We must have them at the centre of our thinking.

“Both the Scottish and UK governments need to set out their plans for dealing with the ongoing issues afflicting Sanjeev Gupta's business empire, including the potential threat of their British operations entering administration.

“In Britain and across the globe, Sanjeev Gupta is facing Serious Fraud Office probes, prosecutions over his alleged failure to file accounts and now much of his continental European operations being placed into administration.

“On the Scottish front, there is £7m of outstanding loans to the Scottish Government, yet more unfiled accounts and staff at the Dalzell plant stuck at home on reduced pay.

“The house of cards is looking very shaky. It would give suppliers and workers more confidence if ministers were to set out what plans are in place for dealing with any fallout.”