Scotland's Economy

Scottish Steel can still have a future

October 21, 2015 by 1 Comment | Category Economy, Employment

For decades, there wasn’t a family in Scotland’s industrial heartlands who didn’t know a steel worker. The manufacture and processing of steel was part of the backbone of our economy.

The 1980s and 1990s, of course, changed that.

Lanarkshire was badly hit, as Gartcosh closed in 1986 then Ravenscraig in 1992. Today we all stand firm with Lanarkshire’s steel workers as they are again being told their future is on the line.

The formal announcement yesterday by Tata Steel that they intend to mothball their plants in Motherwell and Cambuslang may not have been a surprise, but it is a bitter blow to the 270 staff there, and their families.

Since Tata Steel first announced the potential sale of its Long Products Division last year, the Scottish Government and Scottish Enterprise have been in constant contact with the company and trade unions, exploring every possible option to keep these plants operational despite hugely challenging market conditions.

But this need not be the end of Scottish steel.

It is my firm belief that there can still be a future for our steel industry and I am determined that we will do all we can to save as many Scottish steel jobs as possible.

To take that work forward I have established a Scottish Steel Task Force – chaired by the Business Minister, Fergus Ewing – bringing together unions, local councils, politicians and others to work to keep Dalzell and Clydebridge open.

Over the last four months steel plants have been closed and mothballed across the UK but the UK government has sat on its hands.

We cannot allow another industry to be shut down because of its inaction.

So whatever the UK Government does – our approach is this, the Scottish Government’s priority is to find a way to continue with commercial production and support the 270 staff affected. Every option will be considered, nothing will be ruled out and I will work with anyone who wants to see a vibrant future for these plants.

We will be urging the UK Government to respond quickly to industry demands for action and to play their full part in our efforts to save jobs.

The UK minister’s failure to mention Scotland during his response in the house yesterday was shameful – and I hope is an oversight that will be quickly rectified.

The right response would be for the UK government to immediately implement plans to compensate industry for high energy costs, costs that make it less economical to make steel here than in France or Germany.

The UK Government must work with others in Europe and elsewhere to deliver a level playing field for the steel industry around the globe.

And if we in Scotland are able to find an alternative operator for the plants then all and any support that can come from the UK Government must be made available.

The search for an alternative operator is our priority.

When Ferguson’s in Port Glasgow, Scotland’s last commercial shipbuilder on the Clyde, was in danger we were able to find a buyer who with fresh investment has been able to give those yards a bright future.

That wasn’t easy.  It took hard work on behalf of the government, the unions and the company. I do not want to raise false hopes or offer empty promises but I can give you a commitment that my government will work hard, every day to secure a future for steel in Scotland.

For the workers and the families at Dalzell and Clydebridge, as well as for the future of a great Scottish industry,  my government will take every action we can to support you.  We will leave no stone unturned in our pursuit of a future for these plants.   I will not let steel manufacturing in Scotland go down without a fight.

Scottish steel has been an iconic symbol of our nation for decades. Its time need not be over yet.


Comments

  • Its so bad how so many steel companies have started to cut jobs and shut down, I feel that it really should be made a aim in the UK to have our own manufacturing first before imports. Its only we us in the UK will loose money and jobs not China. China is booming.

Leave a comment

By submitting a comment, you understand it may be published on this public website. Please read our privacy policy to see how the Scottish Government handles your information.

Your email address will not be published. Required fields are marked *