‘Move aside’ call over Corus chief

Mar 11 2010 by Sue Scott, Evening Gazette

Mr. B. Muthuraman, Vice Chairman,
Tata Steel,

10th March 2010.

Dear Mr Muthuraman

I am writing on behalf of my constituents in Redcar to tell you of the hardship the community faces as a result of the recent "mothballing" of the Teesside Cast Products (TCP) plant, which you own. Failure to find a buyer for this plant will impact on this wonderful, historic community for many generations to come.

I know that you take pride in your social corporate responsibility agenda, and that your reputation for caring for the communities that work for you is integral to your business reputation globally. As the largest foreign investor in UK industry today you must have been watching closely the events taking place on Teesside since the Consortium pulled out of a ten year deal to buy our steel.

The values you espouse for yourself are written large on your corporate communications materials. I quote: "Tata is one of the world’s most dynamic and trusted business groups. Combining deep ethical values with proven business performance, Tata has a heritage of deep social commitment that has earned the trust and respect of its stakeholders."

I am actively involved in supporting negotiations with what we understand to be three outstanding potential purchasers for the Corus plant. However, even though I have personally defended Corus in respect of the time it is taking to bring one or any of these deals to a conclusion, others, including the influential North East Select Committee, have been critical of Corus.

The report of this highly respected committee is very critical of the Corus CEO, Kirby Adams, for not appearing before it and, instead, answering questions only by letter. The committee points to his lack of openness with it, the trade unions and the government. It points further to his aggression in response to its reasonable inquiries and his reputed rudeness to at least one government minister. I can add that I wrote asking for assurances about carbon credits in December of 2009 and received in reply an aggressive and dismissive letter which did not answer my questions, notwithstanding that I made clear that they were being asked on behalf of this very anxious community which I represent, and which is entitled to information of importance to its future. His reply took several weeks and I had to write again before I finally received the answer necessary. By then his positive answer was, of course, called into doubt because of his attitude and delay. Even now local people do not believe it. This kind of conduct is the very opposite of what a reasonable person would expect of someone with the interests of our community in mind.

Clearly we all want the proud history of steelmaking to continue on Teesside with the acknowledged skills and expertise of its wonderful workers, and, for this to happen, a buyer must be found. Until any deal is concluded we hope you will keep enough workers on site to ensure the mothballing is just that: a short term measure which will eventually lead to long term sustainable production again under new ownership.

This is much more I could say but I am sure you will be reading the report of the North East Select Committee yourself and that your intentions are sincere. The Tata Group's five core values of integrity, understanding, excellence, unity and responsibility are said to be woven into the fabric of your brands and are fundamental to your business success around the globe.

Will you therefore assure me that all that can be done to find a new owner for TCP is being done and that all that needs to be done to keep the plant in good order until one is found will be done, for the sake of the Teesside community that has served Tata so well and profitably in recent years? Will you kindly ensure that Mr Adams fully understands and shares the intentions represented by these assurances? If he does not, as local people suspect, the best course would be to ask someone else in your company to undertake the vital sales negotiations from now on.

In short will you abide fully by your purported social corporate responsibility agenda?

I look forward to your reply.

Vera Baird QC MP.