British steel.............

Would that it were so simple Arena.

Revealed: Britain 'blocked' EU bid to raise China steel tariff that could have protected the industry from cheap imports

Read more: www.dailymail.co.uk/news/article-3518278/UK-blocked-EU-bid-raise-China-steel-tariff-protected-industry-cheap-imports.html#ixzz44eZJHhSD
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I have read that Arena. You said earlier that UK production was down 12% but German production only 1%. I am not disputing either figure. However it is a fact that the prices charged for energy to German steel manufacturers is around half that paid by their British counterparts. Germany are the largest European steel manufacturer.

There seems to be a widespread view that we Brits are not very good at things. That is untrue, we are very good at things, but we do need a level playing field.

I am not in favour of nationalisation. It is usually grossly inefficient. Steel needs to be produced by people who understand steel, not politicians. That said, I think it is very important that we retain a steel industry and if that means subsidies and tax breaks, which is effectively nationalisation through the back door, then I am in favour.

I don't think 'Going it alone' is the issue or the argument here Arena. I think for a raft of reasons we need our own steel industry. We have the raw materials the expertise and the man power. My fear is the Government will not have the balls to tell Tata what they can and can't do.

Chinese steel production is hundreds of times the size of what we produce. But we simply can't know the true cost of production in China due to manipulated exchange rates and serious Chinese government intervention there.

At the moment the world needs less steel than is being produced. In time that will change. Then the price from China India and other places might well increase and without our own production facilities we will be stuck with paying whatever is asked from overseas producers.

Arena.

I saw on the lunchtime news that for example the government taking over the pension liabilities of Tata, which from memory stand at about £450 million to try and oil the wheels of a takeover is actually in contravention of EU rules regarding state aid, so it really does cut both ways.

I agree, we can nationalise, but what we can't do it would seem is offer some sort of incentive to a potential buyer without invoking the wrath of the EU. That is seen as offering competitive advantage.

We already import coal Arena, from China, and Australia. A lot cheaper than the home grown variety as theirs is mostly open cast as opposed to deep pit. I don't know what Port Talbot is fired by, but I suspect it is imported.