The former owner of British Steel has announced plans to seek compensation from the British government following the nationalisation of the loss-making firm. The UK government took control of the Scunthorpe steelworks about a year ago, which has since raised eyebrows and sparked tension in the relationship between London and Beijing. The decision to nationalise British Steel comes at a particularly sensitive time, with Andy Burnham set to step into Downing Street as the new Prime Minister on Monday. This move has left many wondering: what will be the future of British Steel?
China has been vocally critical of the UK government’s actions, stating that the nationalisation is a serious infringement on the rights and interests of Jingye, the Chinese company that previously owned the steelworks. The Chinese commerce ministry expressed that they would support their firms in protecting their rights, although the specifics of this support remain unclear. The UK government, on the other hand, has defended its decision, citing failed commercial negotiations with the Chinese steelmaker that did not yield a fair deal for taxpayers.
The Scunthorpe plant employs around 2,700 workers and is crucial for various industries in North Lincolnshire. However, it has faced a lot of uncertainty in recent years. A report from the National Audit Office released in March highlighted that keeping the plant operational was costing the government approximately £1.3 million a day. Business Secretary Peter Kyle stated that shutting down the operation was not an option, and assured that the government would continue to cover its running costs “for the immediate future.”
It’s worth noting that British Steel was last in state ownership back in 1988, when Margaret Thatcher’s government privatised it. The current nationalisation of British Steel aims to preserve a vital national capability, with officials stressing that this move is intended to protect future generations. But will it be enough to mend the rift with China? As the situation unfolds, many are left pondering the implications of this nationalisation on international relations and the future of steel production in the UK.
Kaynak: Orijinal Haber
