Saturday, 2 April 2016

Tata Steel Confusion

I'm not sure that i understand the Tata steel storm at the moment which is seeing the Steel industry in the UK being decimated.
I get that China have been flooding the market with cheap steel which it is producing in vast quantities but is more than they need in China so they sell the surplus abroad.
Where it loses me is that the EU wanted to increase the tariffs on steel made outside the EU so the Chinese steel price wasn't so attractive to EU members who were snapping it up.
The country that used their veto, three times, was the UK who stated that cheap steel was good as it made the cost of building things cheaper.
Obviously, this had a detrimental effect on British made steel who now faces being closed down as it doesn't have a market.
Confusingly, the British Government are now running around and bleating that British Steel needs to be saved and is 'absolutely vital' for the UK's industrial future and are hopeful 'a new buyer that can take the Port Talbot plant forward could be found' and offering a loan of £100m to sweeten the deal.
Why, if it is so vital, did the Government stop the EU Commission when they said that China was dumping a wide range of steel products in Europe and recommended higher tariffs to help protect similar goods made in the EU.
You don't need a degree in economics to know that it would put the UK Steel trade at risk as people would obviously buy the cheaper steel, therefore helping China at the expense of British industry.
We can only assume that we have been rolled over by our own Government who seem to be bending over backwards to woo the Chinese with one eye on the tens of billions the Chinese are spending on building nuclear power stations in the UK which trumps saving 5,000 UK jobs and costing the British taxpayer £100 million to bribe someone to take over an industry that our politicians have scuppered.
Someone has really dropped the ball on this one.

11 comments:

Keep Life Simple said...

Sooooo, you are for tariffs or against tariffs on steel imports?

Falling on a bruise said...

I will do the same as our Prime Minister and ask the Chinese first and answer accordingly and if that means turfing 5000 British people out of work then i will try and find someone else to blame.

Keep Life Simple said...

So, are you saying importing steel is good, or are you saying it is bad. If you are gonna challenge what is going on it would be logical to have a position on the topic.

So, is it the overall good for the greater population or are the needs of 5000 steel workers that are more important?

Falling on a bruise said...

My position I as stated in the very first sentence, confusion over why the government blocked the eu tariffs which was detrimental to our steel industry but now are panicking because the steel industry is being closed down. Who would have thought that!!

Keep Life Simple said...

So you favor the needs of the 5000 workers and the steel industry owners over the value to the rest of the nation. Ok I get it. Even if it causes construction jobs to be lost. And delivery job loss. And other indirect jobs lost due to the higher cost of steel. I get it.

Why not support cheaper steel and then train the steel workers to do something else that is more valuable?

Falling on a bruise said...

Thank you for telling me what I think. That revealing trait you have never gets tiresome luckily.

Keep Life Simple said...

I was just trying to restate what I thought you said. It is a common practice to reduce misunderstanding. Did I get it wrong?

Falling on a bruise said...

You do it a lot, i imagine you do it in 'real life' also. Seems to be your thing to tell people what they think and then attack them for it. It's very strange behaviour and shows that actually, you don't 'get it' at all otherwise you wouldn't be trying to draw your own conclusions and then answering them yourself.

Keep Life Simple said...

No, when somebody says things that confuse me I try to say what I thought they say and ask if I understood.

And no, at work and with friends I do not have all these esoteric conversations. I limit them to blogosphere.

Keep Life Simple said...

So, which way do you come down on the steel tarrifs? For or against?

Falling on a bruise said...

If i was the British Government i would say protecting our own industry and protecting jobs would trump buying cheaper steel because as we found with the coal mines, once they are gone they are going and we then have to import from abroad. I would have therefore joined the EU wide tariffs.