The steel industry is a perfect example of the general decline of British capitalism. In the period 1961-69 output in British Steel increased by only 15% compared to 39% in the United States, 44% in the whole of the Common market, and 185% in Japan. The situation in terms of exports is even worse. In the same period of nine years British steel exports went up only 22% compared to 190% in the Common Market, 330% in the United States, and 770% in Japan.2 Due to an exceptionally low level of investsent by British steel owners during the period ice 1945 the British steel industry is otally out of date. For example the most Is now ode which intire output.
British Steel Corporation calculates that it can produce its entire output with only 9 plants. Yet at present it takes 39.4 To get some idea of the difference between dern steel making plant and the outdated old open me operation tabes under half an h *. One such furnace can do the work of 14 of the old type,6 An entirely new plant of the new type has an estimated output per man of 700 tons per aneure of pantone he coet British new annum compared to the present British capital equipment is of course immense. To construct a new plant around an already existing plant as Scunthorpe costs approx. E187 million.8 A completely new steel works built from scratch to an output of 12 million tons, and such plant is necessary to compete with Germany and Japan, would cost at least £1,000 million.9 To bring the entire British steel industry up to Japanese standards is estimated to involve investment of £4,000 million by the end of the 1970s.10 Yet without such investment its competitive position can only decline and the productivity of the British steel industry is already only half that of the Japanese. 11 To see just what is involved the British industry can be compared to that of a single Japanese firm —Nippon Steel. This produces approx. 35 million tons per annum, or more than the entire British industry, and its rate of xpansion in the 1960s was approx. 18%.1 n terms of obsolescence of plant it now pay in Britain to close down steel plants only 10 years old, 13 It is virtually impossible for the steel industry. In fact the increase in investment only reached 2.5%.14 Even where investment in advanced plant is carried out it is hampered by the fact that the ancilliary equipment that goes with it is skimped upon. For example in the BOS plant at Port Talbot failures to install appropriate equipment in the rest of the plant meant that running in off equipment took nine months instead of the standard four. 15 In these circumstances the industry was completely unprofitable at the time it was nationalised. The Financial Times stated that the shares of the industry would have been totally worthless in six months. Under these circumstances of a totally run down and capital starved industry it is ridiculous to believe that what is needed is better management, or 'greater efficiency'. Jobs cannot be safeguarded in that way. It is necessary to start from the basis that saving jobs is far more important than any. thing else. The unions must start from the basis that they are totally uninterested in any proposals other than those which safeguard jobs, pay and conditions. The greenbook productivity agreement shows only too clearly what comes out of any other pproach. A start can be made by demandin he immediate end to all compensatio being paid to previous owners of the steel industry. The question is posed very simply. Is BSC going to be run for the purpose of profit or subsidising private industry or is it to run in such a way as to protect the jobs and pay of those who work within it. Is the nationalisation of BSC to be in the benefit of the capitalist class or the working class. Given the economic state of the British steel industry, that is not a long term question, but one which affects the here and now. We believe a fighting policy to run BSC in the interests of the working class must include; 1. No reduction in jobs-a trade union veto on redundancy. 2. No productivity deals. 3. An immediate reduction of the working week with no loss of pay.
-J. Marshall 1 The threat to Steelworkers-IC pamphlet. 2 The threat to Steelworkers-IWC pamphlet. 3 Financial Times 28.4.71, 4 Sunday Times 14,2.71. 5 Sunday Times 14.2.71, 6 Sunday Times 14.2.71. 7 The Observer 4.4.71. 8 Sunday Times 14.2.71. 9 The Times 12.3.71. 10 Morning Star 30.4.71. 11 Sunday Times 16.5.71. 12 Sunday Times 16.5.71 13 Sunday Times 14.2.71. 14 The Threat to Steelworkers-IC pamphlet. 15 Sunday Times 14.2.71.