THE DECLINE OF STEEL

The Tory government's decision to wind up the British steel industryleaving it without any viable, independent future-was prepared by the policies adopted by the last Labour government under Harold Wilson.

The Labour decided to nationalize the steel industry, the second time they have done this. But the way it was carried through only served to facilitate and assist the processes we are seeing today. compensation paid he old n compensation to the ol owners. Firms like Colville: received £50m, Dorman Longs 46m and the Steel Compan f Wales the massive £120m n order to make such pay nents, the British Steel Cor poration, which was established • to run the industry, incurred an annual f45m burden in interest payments. Not only this, but 200 firms were left untouched by the plan. They included some considerable enterprises like Thomas Firth and John Brown, the Sheffield-based engineering and steel groups.

Many of the most profitable specialists and alloy steel makers were not brought into the nationalized steel sector.

The private sector was freed from any restrictions such as price control which was imposed upon the public sector.

Most importantly the control of the industry was placed not in the hands of the working class, but directly under the control of out-and-out Tories.

Lord Melchett became the chairman. This high Tory was on holiday in the south of France when the urgent message came from the Labourites in London that he was wanted to preside over BSC.

Old Etonian Julian Edward Mond, third Baron Melchett of Landford, comes from an old capitalist family. Before taking over steel he was a director of Guardian InsurBritish Field Products. ance and on the board of His father was Sir Henry Mond, of Mond Nickel and Imperial Chemical Industries. He had been a Liberal MP, but joined the Tories when father crossed over to them in 1926.

In January 1969 Melchett gave an indication of the times to come for British steelworkers. He announced plans for 50,000 redundancies by 1975 and the closure of several plants.

But so rapid has been the devastation of the industry that this target has been reached almost three years before its deadline.

When they assumed power the Tories were so overjoyed with the prospect facing them that they decided against denationalization, the policy they adopted after the industry's takeover by the post-war Labour government.

The old owners had had a most generous handout for their largely outdated plant. More importantly, the most profitable sectors had been left in the hands of private enterprises.

So, after hiving off a few profitable side-line operations carried on by BSC, the Tories set about drawing up the virthorpe, Lackenby on Teesside, Clanwern and Port Talbot in tual elimination of the public sector, spending public money South Wales and Ravenscraig to modernize just a few key plants.

It was in May this year that the Tories spelled out doom for steel. Mr Tom Boardman, NO FUTURE the Minister for Industry, rose in the House of Commons to announce investment plans and output targets up to 1980.

He said amid Labour uproar that the forecast for output by 1980 was between 28 million were not even mentioned. In and 36 million ingot tons. It other words, they don't have was clear from the rest of his any tuture whatsoever in Tory statement that the lower figure was the one the government had in mind. following day: "The closure of BSC had been thinking of older plant in order to conover 40 million tons by 1980 centrate more financial and an investment programme resources on larger, advanced of £4,000m over the next steelmaking centres inevitably decade. The largest proportion means adding to the 40,000 of the money allocated would redundancies since the Corbe for a major new 'green poration was set up? field' steelworks capable of Above all else the governproducing up to 15 million nent has made it clear that no tons a year. new major DUL — DOCU Boardman told MPs that something like 15 million tons only £200m was to be invested and costing at least £1,500m in the period 1973-1974. At would be built in Britain. this rate only half BSC's This plant was to be BSC's investment programme would attempt to launch itself into be reached. Next year's allo- modern steel-producing with cation was in itself a cut-back plants something like the size I the Lords.

rous expaniC giving us springboard zation and our steel :luded. (My the turn to ath for the ry. cent bigger ›le group in amission in document EEC being ne ten big 8 more than if the total ie steel. pricing system similar to that in Europe.

This basically allows firms to lower their prices from a calculated base to meet foreign competition. This kind of flexible system has been named 'the jaws of hell' because of the temptation to reduce prices to uneconomic levels.

On top of this, all investment plans will have to be submitted to the European Coal and Steel Community. ECSC officials are known to disapprove of expansion plans going ahead while plants that make a loss are still operating. being shut. That's what lies behind the massive 7,500 to 10,000 redundancies announced for Scotland last month.

Places like Shotton in Flintshire and Corby in Northants will close eventually. Instead, as pointed out, production will be concentrated in five key centres.

For areas like Shotton and Corby, closure equals disaster. With a total labour force of 12,800 supporting a population of 55,000, Shotton would face a complete economic and social collapse.

Corby is no different. The town is steel, with 13,000 workers employed in the tubes and steel plants. Many of the and on the basis of competiWhat is required is the fight for a socialist united states of Europe in opposition to the capitalist conspiracy of the That means taking up a fight against the leadership of the steel unions, like the Iron and Steel Trades Confederation. This union, along with the others, has put up no night against closures, although its leaders have intimate, inside