It is hard not to be too cynical approximately the government’s approach to the steel crisis (Nationalisation not the answer to steel crisis,says David Cameron, theguardian.com, or 31 March). It is unwilling to make any long-term commitment to save the industry. Instead,it looks to a series of short-term fixes to stave off closure of plants such as Port Talbot until after the May elections. whether as expected no saviour for the industry appears, the government will adopt its preferred option of allowing the industry to shut, and selling off those assets that can be sold and converting the faded sites into shopping centres,warehouses or theme parks.
The folly of this approach can be shown with reference to the trade deficit, which at 6% of GDP is the highest of any in the developed world. This will only worsen when all steel in future has to be imported.
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Source: theguardian.com