IT’S a body blow that yet another once-proud British industry is facing meltdown.
I appreciate that cheaper steel can be bought elsewhere, but our industry has not been competing on a level playing field.
Hobbled by subsidy directives, carbon taxes and expensive energy, and with far too little support from the EU, tens of thousands of jobs are now at risk.
Understandably, the Government is in a quandary and I’d be the first to admit that I do not have a ready solution.
Ideally, a new buyer is needed, and urgently, but who’s likely to invest in a business that’s losing £1 million a day?
The human cost, alone, is serious enough, but steel is a major component in so many of our strategic industries, not least defence, aerospace and engineering.
During a Commons debate in January, I pushed minister Anna Soubry on her point that there was no reason why we could not use British steel.
Her reply was evasive, saying that businesses must be free to seek the ‘best deal’.
Regrettably, that’s meant that the latest generation of warships will be built with Swedish steel.
Meanwhile, and not unsurprisingly, European steel-makers have taken matters into their own hands.
As a result Italy and Belgium are now under investigation for breaching EU rules on state aid.
The partial renationalization of British steel, being mooted this week, is likely to fall foul of those same rules.
Naturally, the blame-game is now in full cry, with China the main culprit.
She’s been dumping steel into Europe for less than it costs to produce.
In contrast to the EU, the USA responded promptly by imposing prohibitive import tariffs.
But they’re a sovereign and independent country, able to control their destiny.
If only we were.