Save British Steel – A Government Response

Call on David Cameron to act to protect our steel industry & recall Parliament.

Last week media was awash with stories about the TATA British Steel plant in Port Talbot, Wales potentially closing, before I reveal the statement from the Department of Business, Innovation and Skills, I wanted to set out my opinions on the matter.

China

My concern is China, what influence is this state having on our governments decision not to bail out the Steel Industry?

China-steel-production

The graph above shows the increase in the last 10 years for China’s Steel Production, supply is massively outstripping the demand, hence we call this dumping.

The effect across Europe are steel plant closures and redundancies – how much has this already cost Europe in terms of job losses?

Since 2008 there have been many plant closures across Europe, and the number of workers in European steel manufacturing has fallen by about 70,000.

The Department of Business, Innovation and Skills.

70,000 jobs lost in the last 10 years across Europe

At Port Talbot we are looking at around 15,000 jobs, we have seen this before with coal mining across the UK and the effects were devastating. Communities were destroyed, unemployment soared through the roof, the welfare state increased massively due to tax receipts being lower.

Its the affect of other industries who rely on the steel to create jobs, those will also go leaving Port Talbot a virtual ghost town.

We cannot let this happen, when we bail out the banks who lets face it stole from us with the PPI scandal, they manipulated currency markets and who remembers the bank charges? this is the industry we need to be reducing, not the production and manufacturing industry.

The UK steel sector is facing unparalleled global economic conditions. Around the world, production of steel is 30 per cent higher than demand. In China alone, excess steel capacity is 25 times the UK’s entire annual production. India, Indonesia and other emerging economies are ramping up production with ready supplies of raw materials and low-paid labour.

In Europe, demand has yet to return to pre-crash levels. When unprecedented supply is met with sluggish demand, prices inevitably fall – the international price of steel has halved over the past 18 months.

The Department of Business, Innovation and Skills.

The future for British Steel

I am sorry but we all have to face the facts that we are living in a more robotic era, some have said jobs will be lost to machines in the future, this cannot be denied.

However we should embrace this change, whilst steel is a hot topic as well as a massive Demand for Housing, why aren’t we adapting our building designs to utilise more British Steel?

This is a no brainer, the plants require investment, housing requires investment and people need jobs, at a time when the Chancellor is warning of another potential downturn, we need to step away from austerity and start investing whilst interest rates are so low.

The full statement. Read more