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More steelwork jobs to go

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Isn't the guy who owns Tata a multi multi billionaire? If I'm right, he should pay for it.

 

I presume his wealth is in the value of the company(ies) he owns, so if it's decided that the investment is worthwhile then he would have to sell his shares or borrow on the international markets to raise the capital.

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spot on. we import around 2 million motor vehicles every year. it's not as though they are cheaper or even better than those built in britain. they are bought in thousands by folk who work in engineering companies that make components for uk cars and then they will moan when there are layoffs due to low orders. go to a steelworks and the car parks are full of cars built with foreign steel.

 

some years ago i was in the north east talking to football supporters who were upset that the local steel company had dropped the sponsorship of the club... the reason....the club imported german steel to build the new stands.

 

if folk won't support their own jobs i don't see why the government should be asked to tax the rest of us to bale them out either. certainly not when there is no market for what they produce.

 

Mostly except in this case where the reason they cant compete is due to the illegal subsidies provided by another government, then they have a point. Im not saying they should tax or subsidise back except in the short term, but they might get off their arses and do something.

 

There is a market, but they cant fairly compete. I dont feel the government are too bothered about the north nor are they that bothered about manufacturing, but prefer financial services.

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Its a rerun of the 70s, the government will be looking to help, but will not pour money into the industry. They will as always let the steelworks stand on its own or let it fall

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Firstly, I will say that I am very sorry for the people who are losing their jobs. Its a devastating blow to their community. I wish them well in finding new employment.

 

BUT, I do love the completely hypocrite reaction to stories like there.

 

He we are splashed all over the news chanting and raving about the governments lack of intervention. Lots of keyboard warriors and tv talking heads complaining, tutting and airing their faux grievances about how wrong it is and yet.....

 

Are we supporting our own industries. Would we pay more to buy British. My bony backside we would.

 

We flock to our discount retailers lapping up the plentiful goods. We marvel the bulging shelves of cheap homewares, cheap electronics, cheap phantom brands and toys.

 

Millions revel in the joys of fast fashion retailers, garments that can be purchased and disposed of so cheaply that you could have a brand new outfit every week even on a minimal income.

 

We buy foreign cars, we buy foreign made electrical, we thank god for the floods of foreign labour who come over and do the unsociable hours and unpleasant jobs that we seem are beneath us.

 

How do you think all this gets created so cheaply. Who is choosing to take advantage of this "competition". YES, its ourselves. We the British Public choose what and where we buy.

 

Here is an example: I have recently bought a PC Headset from a well know discounter for £2. A PC headset for less than the price of a cup of tea in a well known café chain.

 

For a shop to be able to make a profit on a £2 shelf price. How much do you think they paid for it wholesale price? For the manufacture to make a profit on the wholesale price, how much do you think they are paying for raw materials and labour costs?

 

With the minimum wage set to rise to £7.20 and the costs of British extracted/processed raw material plus taxes (...because god forbid a company would be in receipt of tax subsidies or incentives... image our reactions), how much do you reckon a British Made computer headset would be?

 

Do you think I would have bought it if it was next to a £2 foreign import one.

 

This is the problem. We can all shout at the government to intervene. We can all blame those greedy businesses not paying staff a "proper wage". We can all get protesty and faux outraged when Tracey on the TV is bleating on about her 'poverty' whilst standing in her council house with a cupboard full of food and a room filled with cheap foreign made furnishings and electronics.

 

We have to change if we want change to happen. We cant have it both ways.

 

If we want "our industries" back we need to create the demand. If we want our "hard done by" workers to get a fair deal, we need to be prepared to pay for it at the end price.

 

excellent post and exactly the state of affairs.

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pay levels are reflective of how much it costs to live in this country. I was reading about Oxford where you need to earn £70k per year to buy a modest terrace. It said in the article the bus companies couldnt put services on as the bus drivers cant afford to live in oxford!

 

This is an extreme example but it's slowly getting worse up north too.

 

On that basis we can't compete with Chinese steel manufacturing.

 

---------- Post added 20-10-2015 at 15:38 ----------

 

Its a rerun of the 70s, the government will be looking to help, but will not pour money into the industry. They will as always let the steelworks stand on its own or let it fall

 

It's always been about net profit since the 80's. We don't subsidise unprofitable Business anymore.

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How can any labour intensive industry compete in the world market when our steel workers are paid £2000/month and those making the same product in China are happy to earn £200/month because it is more than they would earn in the countryside?

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Germany ring fenced, Italy the same, eu. we are all the same my a...e!

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Germany ring fenced, Italy the same, eu. we are all the same my a...e!

 

why should we ringfence failing sectors?

 

If we find a way to run these Businesses (and they are private Business at present) at break even or make public then there's an argument.

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why should we ringfence failing sectors?

 

If we find a way to run these Businesses (and they are private Business at present) at break even or make public then there's an argument.

 

Depends. Do we ring fence sectors that are crucial to a local economy? National security? We (well, some of us weren't) were happy to splurge billions to prop the banks up. If I was a steel worker facing unemployment id be asking where my bail out was.

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I would be interested to know if the net increase to the government in terms of increased benefit payments ect to those out of work were used to assist the steelworks in some way maybe reduced taxes or rent would they be able to stay open at least for the short term if so would it not be better to do this than have all those people lose their jobs.

 

At some time in the future the price of Steel could rise again making the industry viable without subsidies.

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Depends. Do we ring fence sectors that are crucial to a local economy? National security? We (well, some of us weren't) were happy to splurge billions to prop the banks up. If I was a steel worker facing unemployment id be asking where my bail out was.

 

where do the bail outs stop? energy, gas, steel, finance - how many failing sectors do we the public bail out?

 

was the bail out of banks right or wrong in the first place? im not sure. We just sold shares at 70-80% of their original value. Not a good deal.

 

if we bail out steel, do the public then own the companies? and are we going to get our money back?

 

I think companies like TATA etc should focus on profitability first, because we are competing in a global market. China don't care, they will keep finding efficiencies and put us out of Business.

 

Failing that, we just put everything public!

 

---------- Post added 20-10-2015 at 17:55 ----------

 

the government obviously don't have steel top of the agenda. They just subsidised fossil fuels I noticed (£££££££££££).

 

---------- Post added 20-10-2015 at 17:57 ----------

 

I would be interested to know if the net increase to the government in terms of increased benefit payments ect to those out of work were used to assist the steelworks in some way maybe reduced taxes or rent would they be able to stay open at least for the short term if so would it not be better to do this than have all those people lose their jobs.

 

At some time in the future the price of Steel could rise again making the industry viable without subsidies.

 

or retrain people. Could be flogging a dead horse.

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excellent post and exactly the state of affairs.

 

Except he misses out the state subsidies and dumping by the Chinese. So not exactly the state of affiars, although I agree with the sentiment.

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