Guest sibon Posted March 29, 2016 Share Posted March 29, 2016 . Its not as easy to say, let if fail. So. What will happen to the Tata works and the employees and all of the other stakeholders? Link to comment Share on other sites More sharing options...
Allen Posted March 29, 2016 Share Posted March 29, 2016 The UK taxpayer is currently over £4.5bn down on the Lloyds deal. I can't see the Government underwriting Tata to a similar extent. I just heard on the news that there are EU restrictions as to how much a government is allowed to support (prop up) a company. Another reason we should vote to get OUT! Link to comment Share on other sites More sharing options...
ECCOnoob Posted March 29, 2016 Share Posted March 29, 2016 So. What will happen to the Tata works and the employees and all of the other stakeholders? The works will be sold off as an asset to the new company or other party money put back into the firm. The employees will receive whatever redundancy payment and will seek other work. The stakeholder will still continue to be stakeholders in the remainder of the company which is doing what it is to try and get back on track profit wise. If they choose not to, they will withdraw their current stake and take the money. Link to comment Share on other sites More sharing options...
Guest sibon Posted March 29, 2016 Share Posted March 29, 2016 The works will be sold off as an asset to the new company or other party money put back into the firm. The employees will receive whatever redundancy payment and will seek other work. The stakeholder will still continue to be stakeholders in the remainder of the company which is doing what it is to try and get back on track profit wise. If they choose not to, they will withdraw their current stake and take the money. Just like the banks then:rolleyes: Link to comment Share on other sites More sharing options...
ez8004 Posted March 29, 2016 Share Posted March 29, 2016 Tata Steel is not strategic to the UK unlike the banking sector. The banks fundamentally have a profitable business model unlike steel making in the UK. Also, Forgemasters is strategic and is significantly more supported. Link to comment Share on other sites More sharing options...
the_bloke Posted March 29, 2016 Share Posted March 29, 2016 Would you invest your own money in it? The classic question. 'If I was a billionaire, would I buy Tata steel in the UK and save British jobs, losing all my money in the process and leaving them in the same position in a few years?' The Government can't 'save the steel industry' it isn't allowed to, wether it makes economic sense to do so or not. Something Corbyn didn't explain very well when he said he'll nationalise all the industries. Link to comment Share on other sites More sharing options...
tinfoilhat Posted March 29, 2016 Share Posted March 29, 2016 The classic question. 'If I was a billionaire, would I buy Tata steel in the UK and save British jobs, losing all my money in the process and leaving them in the same position in a few years?' The Government can't 'save the steel industry' it isn't allowed to, wether it makes economic sense to do so or not. Something Corbyn didn't explain very well when he said he'll nationalise all the industries. He could if he wasn't in the EU? But isn't he campaigning to stay in? Link to comment Share on other sites More sharing options...
the_bloke Posted March 29, 2016 Share Posted March 29, 2016 (edited) He could if he wasn't in the EU? But isn't he campaigning to stay in? Yep. Nationalising industry to bring an unfair competitive advantage to other manufacturers in the EU isn't allowed (unless they were already owned by the state before joining) yet Corbyn won't leave the EU. The only way around it would to go cap in hand to Brussels asking to change the rules. (Or do what Italy did and bend the rules to the point of breaking and get in bother about it. http://europa.eu/rapid/press-release_IP-16-115_en.htm) From that link: 'EU State aid rules do not allow public support for the rescue and restructuring of companies in difficulty in the steel sector. The steel sector was excluded by agreement of EU Member States and the Commission in the mid-1990s (Commission Decision No 2496/96/ECSC). Since then, the EU followed a market-driven approach to achieve the capacity adjustments and restructuring necessary to ensure a viable and sustainable steel industry in Europe. The Commission has to continue to apply State aid rules consistently to ensure a level playing field for those steelmakers that have already been carrying out painful and costly restructuring plans funded through private resources. Furthermore, as past experience has shown, allowing rescue and restructuring aid would distort competition and risk leading to subsidy races between Member States' Edited March 29, 2016 by the_bloke Link to comment Share on other sites More sharing options...
petemcewan Posted March 29, 2016 Share Posted March 29, 2016 http://www.bloomberg.com/news/articles/2015-12-22/u-s-commerce-department-to-put-256-tariff-on-chinese-steel Link to comment Share on other sites More sharing options...
tinfoilhat Posted March 30, 2016 Share Posted March 30, 2016 Point of interest, Donald trump of all people is going to put all sorts of barriers to stop cheap Chinese imports. Does he have a point? Could the EU do that, and should they? Link to comment Share on other sites More sharing options...
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