British Steel - Insolvency

[Deleted member 2014]

I remember growing up in Corby in the 70s, British Steel pretty much engulfed the whole town and surrounding area, providing thousands upon thousands of jobs. Crying shame what's happened.

Likewise.
I worked at British Steel in British West Hartlepool (South Durham Works) A place where many thousands of Hartlepudlians down the years have earned a living.
I started there after leaving school in the 1970's and I loved every minute of my time there.
I worked there for 6 years and for a further 4 years off and on as a contractor.
I learned to operate different machines and learned new skills, eventually working my way up the ladder to become a shot blaster.
My late Dad worked at the same place as me, as a crane driver and worked there until he eventually retired.
Once upon a time, getting a job at British Steel was considered to be a job for life, though sadly nowadays, a job for life, seems to be very much a thing of the past.

 

[weebil64]

Likewise.
I worked at British Steel in British West Hartlepool (South Durham Works) A place where many thousands of Hartlepudlians down the years have earned a living.
I started there after leaving school in the 1970's and I loved every minute of my time there.
I worked there for 6 years and for a further 4 years off and on as a contractor.
I learned to operate different machines and learned new skills, eventually working my way up the ladder to become a shot blaster.
My late Dad worked at the same place as me, as a crane driver and worked there until he eventually retired.
Once upon a time, getting a job at British Steel was considered to be a job for life, though sadly nowadays, a job for life, seems to be very much a thing of the past.

Unfortunately the thought of industry run for the good of the country disappeared in the 1980's. I forget the name of the person responsible.

 

[Deleted member 29721]

Didn't think we could bail out certain industries such as steel as it would be seen as state aid which goes against EU law.

Could be wrong like.

It's complicated but there are situations were state aid is acceptable under EU rules for example:

• promote the economic development of areas with low standards of living (107(3)(a)) and to promote the development of certain economic activities/areas (107(3)(c))
• Article 107(3)(b) - ‘to remedy a serious disturbance in the economy of a Member State’

source

 

[Scimmy]

And then what? Who are they going to make steel for if the customers buy it from China instead? I agree it may be worthwhile short term if EU rules allow it, but only if there is a buyer in prospect

BBC has a bloke on the news last night saying China has produced more steel in the last two years than the UK has in total since we first developed the process

There should be an embargo on steel from China being imported.

i thought they already did from Scunny

Workington iirc

 

[Deleted member 2014]

Unfortunately the thought of industry run for the good of the country disappeared in the 1980's. I forget the name of the person responsible.

I remember being out on the picket lines because of a 13 week strike.
It it our family hard because myself, my brother and my Dad were all out on strike and my Ma was the only one of the family bringing in a weekly wage.
Strike pay wasn't enough to make ends meet.
Ian McGregor was injured by angry steel workers who showed him what they really thought of him.

 

[mcq10]

That's a touch different. The ECL is a public service franchised out to private companies. It was always a temporary measure whilst another suitable company for the franchise was concerned, although in my experience, the service was far better when centrally run.

Where’s the steel for the new HS2 coming from like?

 

[Deleted member 29721]

Not sure, it allegedly became profitable, but then it also had a massive carbon tax bill. So was it really profitable or just on paper but not in reality?

The Carbon Bill was a problem because the they couldn't claim carbon emissions credits for this year under the EU’s Emissions Trading System as we were suspended from the scheme until Brexit is sorted out.

 

[Scimmy]

Surely saving it is of a strategic (war fighting) importance.

That's a very good point!

 

[king of the road]

It's complicated but there are situations were state aid is acceptable under EU rules for example:

• promote the economic development of areas with low standards of living (107(3)(a)) and to promote the development of certain economic activities/areas (107(3)(c))
• Article 107(3)(b) - ‘to remedy a serious disturbance in the economy of a Member State’

source

state aid can be offered but must be on commercial terms - i.e. has to be paid back at market rates of interest

 

[Deleted member 29721]

state aid can be offered but must be on commercial terms - i.e. has to be paid back at market rates of interest

It depends upon the type of State Aid, British Steel, amongst others, was given £40 million in grants in 2017/2018 to offset energy prices, they don't need to be paid back as far as I'm aware.

 

[pavarotti1980]

state aid can be offered but must be on commercial terms - i.e. has to be paid back at market rates of interest

Surely a repayment plan of £1(+interest) a week would meet that criteria. Then we could then write off the debt if/when out of the EU

 

[shepherd88]

Not vetoing the proposed tariffs by the EU on imported Chinese steel would have helped like.

We weren't the only ones though, so you can blame another 12 countries. Plus tariffs were raised in 2017

 

[ajthemackem]

We weren't the only ones though, so you can blame another 12 countries. Plus tariffs were raised in 2017

Maybe, maybe. But the nob still vetoed it.

 

[king of the road]

Surely a repayment plan of £1(+interest) a week would meet that criteria. Then we could then write off the debt if/when out of the EU

I'm no expert - they've just been discussing it on Radio5 Live - but I'm guessing the EUs rules are a bit tighter than to allow that

They also commented on the fact that when the Chinese economy is booming the vast majority of their steel is consumed internally. If that slows they export/(dump?) more. One of the major drivers for The Chinese economy slowing is that knacker Trump and his tariffs on all things Chinese.

 

[Lambchops]

We weren't the only ones though, so you can blame another 12 countries. Plus tariffs were raised in 2017

Only to 20% from 9 if I remember right - the EU wanted to impose 66%

 

[black cat in france]

Makes you wonder about the fact they bought Ascoval in North France just last week and saying that will not be affected. Dirty business.

 

[Harry Angstrom]

British Steel to enter insolvency

Sad times. If someone told me I’d see such a headline when I was growing up..

When were you growing up?

 

[shepherd88]

Only to 20% from 9 if I remember right - the EU wanted to impose 66%

It did on a certain type, UK steel wanted it higher though

EU imposes import duties of up to 73.7% on cheap Chinese steel

 

[Deleted member 29721]

Only to 20% from 9 if I remember right - the EU wanted to impose 66%

It depends upon the type of steel, it's around 70% for heavy plate steel iirc

It did on a certain type, UK steel wanted it higher though

EU imposes import duties of up to 73.7% on cheap Chinese steel

You got there first.

Edit: Important to note that in the event of Brexit UK Steel will be subject to tariffs if they want to export to the EU, so Farage claiming the we need to leave the EU to save the UK steel industry doesn't really stand up to even the smallest scrutiny.

 

[Helmerroids]

When were you growing up?

The same time it was a toss up between ICI and British Steel for the ultimate Chairmanship.