The latest news surrounding the British steel industry is stealing the headlines. Tata has decided, after looking at its exposure to the steel industry, that it needs to get rid of its UK operations. This could be a sale or it could be closure.

Either way, this situation leads to huge uncertainty not just for the 15,000 people who work for Tata, but also for the other 25,000 people whose jobs and livelihoods depend on UK steel production.

As is always the case with these situations, there are cries for something to be done. These cries, in the main, call for the expenditure of taxpayers’ money.

The debate broadly splits into three areas. The first looks at what are the extra costs that UK steel manufacturers have to face that makes them uncompetitive. We know there are extra costs to UK energy prices because we decided, long ago, that we wanted to move toward a more environmentally- friendly economy. Other countries don’t want to follow our lead so they are in a better position to compete against UK manufactur- View from Westminster ers. This was always going to be an outcome of this policy. The question we need to ask is: should we reverse our green policies, at least for heavy energy usage industries, to preserve our heavy industries?

The second question looks at whether we should inject taxpayers’ cash into the business, either as full nationalisation or as a stopgap whilst a buyer is found. While many would agree this may be an answer, no one is able to say just how much taxpayers’ money should be stumped up. Should we pay the £1 million-a-day losses?

Should we buy out the business all together and its pension deficit, whatever the price? Or should we use taxpayers’ money for something else?

Finally, there is the question about our steel industry as a whole. It has been in decline for many years and has been bailed out several times before. If we bail it out again, are we simply kicking the can down the road, putting off the inevitable closure whilst spending yet more money unwisely?

The length of this column gives little space for a complex debate. But this debate will run and run.

CONTACT YOUR MP

  • Email: mark.garnier.mp@parliament.uk
  • Telephone: 020 7219 7198 or 01562 746771
  • Write: 9a Lower Mill Street, Kidderminster, DY11 6UU, or House of Commons, Westminster, London