UK’s 12m tonnes’ production capacity is only 0.7% of world manufacturing capacity of 1600m tons. There is already over-capacity globally, so it would be unwise to support it. The workers need to be supported while being retrained in other skills over 2-5 years.
This industry’s history tells us a wider story about Britain’s two conflicting ideologies of socialism and capitalism that has damaged not only that industry but many other industry sectors and undermined the institutions that support them.
British steel was nationalised by the Labour in 1949 because of under-investment. The Conservatives privatised it in 1952. Labour renationalised it in 1967. Margaret Thatcher privatised it again in 1988. It merged with Dutch steel producer Hoogovens in 1999 to form Corus Group.
Tata acquired Corus in 2007 for an inflated price of £6.2bn after a bidding war. Tata invested £3bn in its European operations to restore competitiveness. The assets are now worth £0bn. Winding up could cost another £1bn. Tata Steel is likely to move to continental Europe.
The financial services sector worldwide encourages borrowing, tax evasion, housing inflation, currency speculation, hedging and international money laundering. It is time its activities are curbed and manufacturing, that represents genuine growth, are encouraged.
Nagindas Khajuria
By email
