Tata Steel to sell UK all assets

[sutty27]

So why do you support the Tories then?

 

What makes you think that I do?

[I1L2T3]

What makes you think that I do?

 

Because you spend practically all your time on here defending their record in government.

[sutty27]

Because you spend practically all your time on here defending their record in government.

 

You might find a few posts in which I have defended their policies, but you will also find some that have attacked their policies.

[foxy lady]

Very interesting article.

 

It turns out that the amount of steel affected by the Chinese tariff on special steel will affect less than £1 million worth of UK steel exports per year. It is hardly a crucial issue in the viability of Tata Steel's operations in the UK.

In fact it would seem the we don't really export much steel to China and China doesn't export much to the UK. Certainly nothing that would make any difference to the UK steel industry's viability.

It would however seem that Tata has built rather a lot of capacity in Asia in the past few years and no longer needs the UK plants.

They are certainly keen to get away from the UK as quickly as possible and to offload the liabilites, because not only is this plant heamoraging money, it also requires a huge injection of cash. Leaving also would require paying out hundreds of millions in redundancies, but that pales into insignificance compared to the liabilities of the pension fund and at least £1 billion to decontaminate the sites should they close.

Edited April 2, 2016 by foxy lady

[the_bloke]

It turns out that the amount of steel affected by the Chinese tariff on special steel will affect less than £1 million worth of UK steel exports per year. It is hardly a crucial issue in the viability of Tata Steel's operations in the UK.

 

http://www.bbc.co.uk/news/uk-35951108

 

'Tata said the type of steel affected by the Chinese tariffs had not been exported "in recent times from our UK operations", but it was concerned about the knock on effect on other countries looking for alternative markets for their products'

 

Sounds like Tata is more worried about how the Chinese tariff will affect its other plants across the world.

[El Cid]

They are certainly keen to get away from the UK as quickly as possible and to offload the liabilites, because not only is this plant heamoraging money, it also requires a huge injection of cash. Leaving also would require paying out hundreds of millions in redundancies, but that pales into insignificance compared to the liabilities of the pension fund and at least £1 billion to decontaminate the sites should they close.

 

Perhaps they feel they are too important to fail, like the banks; so the UK Government will have to either pump money in to the company, or let it close.

 

A very crafty ploy, it worked with the banks.

 

A nationalised steel company may be the smart answer; we dont want the same situation as the banks, pump in loads of money, and have nothing to show for it.

[JFKvsNixon]

Perhaps they feel they are too important to fail, like the banks; so the UK Government will have to either pump money in to the company, or let it close.

 

A very crafty ploy, it worked with the banks.

 

A nationalised steel company may be the smart answer; we dont want the same situation as the banks, pump in loads of money, and have nothing to show for it.

 

What have we got to show for the bank bailout? What about the avoidance of a depression that may have been greater than the Great Depression.

 

The thing is, with the financial sector, it is built upon confidence. Without confidence it is worthless, so the bailout saved the whole sector by restoring confidence.

 

The steel industry is built upon something tangible, whether or not it can produce and sell a product at a profit. Would a bailout change whether or not it can can produce a product and sell it at a profit?

 

Interestingly, in the USA for a lot of the banks they managed to sell off the shares that they purchased with their bailouts for a tidy profit, it would be interesting to see if we could do the same here in the UK.

[GLASGOWOODS]

What are your thoughts on the SNP? They took rather a lot of seats in Scotland in the General Election after the Scottish referendum went against Scottish independence. They look like they will also sweep up in the election for the Scottish Parliament in May.

 

If they win the next referendum, then they'll simply drop the 'ist' from their name, and be known as the Scottish National party.

 

 

Then their demise will begin.

[foxy lady]

What have we got to show for the bank bailout? What about the avoidance of a depression that may have been greater than the Great Depression.

 

The thing is, with the financial sector, it is built upon confidence. Without confidence it is worthless, so the bailout saved the whole sector by restoring confidence.

 

The steel industry is built upon something tangible, whether or not it can produce and sell a product at a profit. Would a bailout change whether or not it can can produce a product and sell it at a profit?

 

Interestingly, in the USA for a lot of the banks they managed to sell off the shares that they purchased with their bailouts for a tidy profit, it would be interesting to see if we could do the same here in the UK.

 

Well if you intend to compete in the world market in the manufacturing industry where there is surplus capacity, you need to either manufacture a product that is better than the competition or cheaper. Otherwise you will not survive.

There is little evidence that in bulk steel production that UK steel is any better or worse than that obtainable elsewhere.

As around 50% of the cost of UK steel is labour, then it is difficult to imagine the UK can compete unless the workforce work for the levels of pay that the competition receive. I doubt the UK steel workers will do that. Therefore there is little prospect of the current situation changing for the better.

[ricgem2002]

Well if you intend to compete in the world market in the manufacturing industry where there is surplus capacity, you need to either manufacture a product that is better than the competition or cheaper. Otherwise you will not survive.

There is little evidence that in bulk steel production that UK steel is any better or worse than that obtainable elsewhere.

As around 50% of the cost of UK steel is labour, then it is difficult to imagine the UK can compete unless the workforce work for the levels of pay that the competition receive. I doubt the UK steel workers will do that. Therefore there is little prospect of the current situation changing for the better.

 

maybe if we got the same subsidies as these other countries and were paying the same price for energy use we might be a little more competitive. or maybe if we didn't deal with countries using cheap labour/not addressing the carbon/green issues that we have to pay we might be in with a chance but carry on with your support in trying to make the british workforce to become a third word workplace