RUTH SUNDERLAND: Does Labour really want the demise of steel in this country to happen on its watch?

UK Steel Industry Under Threat: Closure Looms at British Steel Plant

While Donald Trump may be subject to criticism on numerous fronts, his 2018 assertion, “If you don’t have steel, you don’t have a country,” resonates with a fundamental truth. The unfortunate context of his statement, delivered amidst the imposition of steel tariffs that negatively impacted both America and the global economy, does not diminish its underlying validity.

Indeed, national self-reliance and security are intrinsically linked to the presence of a robust domestic steel industry. This perspective is crucial for understanding the current predicament involving Jingye, the Chinese conglomerate that owns British Steel. Jingye’s recent threat to shutter Britain’s remaining two blast furnaces in Scunthorpe represents a grave challenge to the UK’s industrial capabilities.

This looming crisis, sadly, was anticipated. Concerns were voiced when Jingye initially acquired British Steel, and the present situation evokes a sense of personal connection to the issue.

Growing up in Teesside, an area deeply intertwined with steel production, provided firsthand exposure to the industry’s significance. Family ties run deep, with my father, grandfather, uncles, and cousins all having dedicated their careers to steelmaking.

The Enduring Importance of Steel

There is no inclination here to romanticize the often arduous and hazardous nature of heavy industry jobs.

However, immense pride is associated with steel production. Teessiders frequently boast, “We built the world,” a testament to the pervasive presence of their steel in iconic structures worldwide, from the Sydney Harbour Bridge to the Yangtze River and Canary Wharf.

Looking ahead, steel remains indispensable for building a sustainable future, fueling the green energy revolution and underpinning new infrastructure developments. Furthermore, in an increasingly unpredictable global landscape, particularly concerning the reliability of the US as an ally in a “Trumpian world,” a domestic steel industry is vital for national defense.

Jingye’s Acquisition and Subsequent Challenges

When the Chinese conglomerate Jingye finalized the agreement to purchase British Steel, apprehension was palpable.

The timing of the deal, facilitated by the Conservative government and seemingly averting job losses in a key “red wall” constituency during an election period, appeared strategically convenient.

Optimistic pronouncements from Chairman Li Ganpo about forging a “splendid future” were seemingly accepted without sufficient scrutiny.

Currently, Jingye is requesting £1 billion in government subsidies, having turned down an offer of £500 million. The potential shutdown of the blast furnaces is now a matter of weeks.

Being proven correct in initial misgivings provides no comfort. Jingye’s suitability as an owner was questionable from the outset. Should a viable solution remain elusive, 2,700 individuals will face job losses, and the UK will become the sole G7 nation without the capacity to produce its own steel.

Labour’s Stance and the Path Forward

The Labour Party has declared its commitment to supporting the steel industry, pledging up to £2.5 billion through a national wealth fund and promising a comprehensive strategy later in the spring.

However, reversing decades of mismanagement and neglect, not always benign in nature, will be a formidable challenge.

Cultural Disdain and Environmental Pressures

Steelmaking has long endured a subtle yet tangible cultural disregard.

Steel plants are often situated in regions like Scunthorpe and Redcar, geographically distant from London and the centers of power inhabited by the decision-making elite, within working-class communities.

In an economy dominated by service industries, finance, and retail, the steel sector has been marginalized. The industry also bears the brunt of environmental policies, with substantial environmental levies exacerbating already elevated energy expenses.

Resilience and the Dawning Realization

It is remarkable that the UK steel industry has persisted at all. Its continued existence stands as a testament to the resilience of the 34,000 individuals employed within it.

A growing awareness of the indispensable nature of steel appears to be emerging.

In an era characterized by retreating globalization, diminished reliance on inexpensive imports, and the pressing need for rearmament, the strategic importance of a domestic steel industry is undeniable.

A Question for Labour

The critical question remains: Does the Labour Party genuinely intend to preside over the demise of the UK steel industry during its tenure?