EU Commission confirms the UK Government could have saved Redcar steelworks

The European Commission has confirmed that the UK Government could have given state aid support to Redcar steelworks.

In response to a written question from Euro MP for the North East Jude Kirton-Darling the Commission said there are a wide range of reasons state aid can be given to industries.

The Redcar plant stopped production in September in a move which has devastated workers and the whole community.

There were calls for the UK Government to act to support the steelworks but no help was provided.

Since the financial crisis in 2008 there has been less demand for steel across Europe. In addition, lower demand elsewhere has led to steel being ‘dumped’ at low prices into the European market.

This has led to a loss of 40 million tonnes of production across the EU and a loss of 60,000 direct jobs and 100,000 indirect jobs. The environmental impact is also significant as we are now importing steel produced in less environmentally-friendly plants and shipped around the world.

The European Commission has stated that support could have been given to the plant for research and development, to develop innovation, to support training and employment or protect and enhance the environment.

Research … has shown that other European Governments are taking up the option of providing state aid to their steel industry.

Steelworks have been supported in Italy, France and Germany to help deal with the drop in the steel price and to increase the sustainability of the sector.

Source: Confirmation that UK Government could have saved Steelworks | Jude and Paul – North East Labour MEPs

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6 thoughts on “EU Commission confirms the UK Government could have saved Redcar steelworks

  1. A John Coles

    Cameron appears to have no interest in the manufacturing industry of our country. He should be defending our interests not those of mainland China. He’s an ignorant foolish man

  2. Gary Aronsson

    Surely no one seriously believes that German steel is produced in a free market and matches China and India for price? Of course they are given government support,without it Europe would be an industrial wasteland.They don’t always admit to the true level of support but don’t kid yourself that they don’t give it.Only in Britain does the government s**t all over the people.Thatcher set the wrecking ball rolling but kindly old Mr. Blair was quite happy to shaft the poor buggers at Rover and Cameron is following in a long tradition in watching British industry get crucified.

    1. Mike Sivier Post author

      I’ve edited your comment for language, Gary. Please don’t post obscenities in future – I’ll have to trash any such comments.

  3. mrmarcpc

    They didn’t help or care because it was in the North, the hate us up here because we hate them and we know that they have never done us any favours in the past and in recent years so it was just another way to stick it to us, had it been in the South, they may have done something about it but knowing this lot, probably not either, tories aren’t interested in industry, people’s jobs and security, all they’re bothered about is screwing money of everyone for as much as they can!

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