Tata Steel preparing to sell British arm putting 4,000 jobs at risk

[-:Undertaker:-]

http://www.ft.com/cms/s/0/c3d7c846-f...#axzz44Oov4Z5G
http://www.breitbart.com/london/2016...g-uk-industry/

Tata Steel preparing to sell British arm of company putting 4,000 jobs at risk

- Steel industry has been hit hard in the last year with an influx of cheap Chinese steel
- Government would be barred under EU law from rescuing the Welsh Port Talbot plant
- Government is currently barred under EU law from imposing steel tariffs to halt Chinese dumping of steel on markets

Yesterday, Tata Steel announced it was pulling out of the United Kingdom, leaving Britain’s biggest steel works in Port Talbot, Wales facing closure with 4,000 job losses, blaming an influx of cheap steel imports from China.

There has been talk of the government stepping in to bail out Port Talbot, but Simon Boyd, director of Reid Steel, told Sky News that EU regulation is to blame. “State aid rules mean that government is prevented from doing what’s necessary,” he said.

“We in our membership of the European Union are prevented from intervening in a way that other governments can. If you look at what happened in America for example, Chinese dumping went on there, the Americans put an appropriate tariff on imported steel, problem solved.”

USA imposes a 266% tariff on cheap steel allowing its own industry to thrive
The benefit of being a sovereign nation pic.twitter.com/eMIaflUgeI

— Leave.EU (@LeaveEUOfficial) March 30, 2016

America was able to impose a 266 per cent tariff, but under EU rules Britain can only impose a 24 per cent import tax.

The European Commission takes a hostile view of rescue aid for the steel industry and Britain can expect bruising negotiations with Brussels if it wants to use state funds to save Tata Steel UK.

While Brussels is trying to avoid any clash with the UK government before June’s referendum on Britain’s membership of the EU, the commission would have to perform an improbable U-turn if it were to approve a big government rescue package at the steelmaker.

The EU’s competition authorities would study any rescue deal to determine whether it gave the Port Talbot steelworks an unfair advantage against rivals. A commission spokesperson said on Wednesday that Brussels was not immediately aware of any contact from the UK authorities about Tata.

However, the commission has already put down a strong marker of its intent to crack down on subsidies in the steel sector. In January, Margrethe Vestager, competition commissioner, announced an investigation into €2bn of state support that the Italian government gave to the struggling steelmaker Ilva.

I do not like subsidies and I am generally against them.

However, in certain circumstances I can sometimes be tempted to agree to them if deemed vital enough for national interests such as with say defence procurement corporations. I'm yet to be convinced in this case however it is generally reasonable to assume that the people of Wales and of Britain would generally be favourable to combating the influx of cheap Chinese steel on the market: either by supporting the Port Talbot plant directly or applying a temporary trade barrier on Chinese imports.

But guess what? Due to EU law we're barred from doing so. Yet again another vital issue which ought to be up to our parliament (whether you're pro subsidies or against) to decide at election time. Instead the Welsh workers of Port Talbot will likely be told by our elected government that there's nothing they can do because the unelected European Commission says so. A fundamental attack on our democracy and parliament that has only one solution.

And note to moderators, this is a separate headline story from the EU thread so deserves its own. But I thought I would highlight the EU element.

What do you think should happen in regards to Britain's steel industry if Tata go ahead with closing or selling the plant?

Thoughts?

[j0rd]

My father and grandfather have both worked at these steel works all their lives. Granted not as steel workers but directly employed by british steel, chorus and tata.

Apparently the port talbot plant is losing £1m a day, surely it would be impossible for the government to step in and substitise. As much as it would help save jobs, as a country we simply can't afford to lose that much in an industry that will never fully revive.

Unfortunately though I can see the port talbot plant being closed. We're quite lucky that the local plant is a plating plant where there is still demand - this alone would be profitable for any company willing to take it over. This can't be said about the majority of other British plants unfortunately though.

[FlyingJesus]

Boooooooooo free markets and cheap goods are evil!!!!! We need more government intervention in business and trade!! Nationalise the greengrocers and the bakers!!!!!!

[Lucy]

It is always a shame to hear of things like this closing but unfortunately whilst there are cheaper options elsewhere in terms of labour cost etc I believe it is always going to happen. I am impressed with the way the US handles it but is that a viable solution?