The big news in South Wales is that Tata Industries is planning to divest itself of its UK steel business.
http://ift.tt/1VSPQ1A
There are suggestions that, because the plant is modern and the downturn in the steel market is apparently short-term, the steel industry has a long term future in the UK but that the government could step in for the short to medium term (EU rules permitting).
My personal feelings are as follows:
If we believe that a steel industry is important to the UK's strategic interests then full or part government ownership can be justified (though whether Victorian heavy industry is important to the UK's strategic interests is IMO a subject for discussion).
State ownership would help to level the playing field against foreign competition which has the benefit of government ownership and/or subsidised energy.
The costs of providing short to medium term support for the industry could be significantly lower than the costs of unemployment and/or retraining (so long as there is actually an upturn down the line).
We baled out the banks when they faced a similar challenge.
OTOH this feels like the government has to bear the cost when things go wrong and then once the industry is viable again, it's passed to the private sector to make a healthy profit.
http://ift.tt/1VSPQ1A
There are suggestions that, because the plant is modern and the downturn in the steel market is apparently short-term, the steel industry has a long term future in the UK but that the government could step in for the short to medium term (EU rules permitting).
My personal feelings are as follows:
If we believe that a steel industry is important to the UK's strategic interests then full or part government ownership can be justified (though whether Victorian heavy industry is important to the UK's strategic interests is IMO a subject for discussion).
State ownership would help to level the playing field against foreign competition which has the benefit of government ownership and/or subsidised energy.
The costs of providing short to medium term support for the industry could be significantly lower than the costs of unemployment and/or retraining (so long as there is actually an upturn down the line).
We baled out the banks when they faced a similar challenge.
OTOH this feels like the government has to bear the cost when things go wrong and then once the industry is viable again, it's passed to the private sector to make a healthy profit.
via International Skeptics Forum http://ift.tt/1q0YQGh
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