OF course it's all blood under the bridge now, but Ravenscraig's
closure remains one of those scandals which still makes the hackles rise
long after the event.
From a Brussels perspective, last week's remarks by Robin Cook in the
Commons when he oozed sympathy for British Steel sounded bizarre. I am
surprised he did not choke on his words.
His point seemed to be that poor BS might have to shed more of its
workforce to pay the fine imposed on it by the bullies in the European
Commission. I am sure BS's public relations machine would eagerly lend
weight to that notion.
Given BS's track record of contributing to the Euro-mountain of
redundant steelmen there is every chance it will keep melting down
costly overheads, like people. But it takes a leap of the imagination to
say this would be the fault of the Commission.
Karel van Miert, the competition commissioner who announced the #25m
fine on BS last week, entertained no such doubts. He was asked if BS
could afford it. He said it should make no real difference to the
company's viability, given its history of post-privatisation profits.
The facts bear him out. A glance at the record shows that three years
ago BS made #733m and although the profits have since fallen, the
company must still be rolling in the stuff.
Much of it was earned, it seems, by cheating which is why BS was
hauled before the beak. According to the Commission, BS was a ringleader
and habitual offender in this fraud ''on a grand scale''. All the
competition laws which could be infringed were infringed as the company
went about rigging markets and fixing prices illegally.
BS clearly broke the rules of the European coal and steel treaty but
was punished only for its transgressions from 1988 onwards which means
the fine could have been much steeper although it was still the biggest
of the 16 meted out to the members of the cartel. BS has been given time
to pay and can do so in instalments.
BS merely says it thought it was not breaking the rules and it will
probably appeal against conviction and sentence. Meantime, it is guilty
as charged.
And so it seemed strange to hear a Scottish Labour heavyweight
complaining at the possible consequences of it all. The scent of
southern votes surely hung in the air.
Mr Cook's party colleagues in the European Parliament in Brussels kept
tactfully quiet -- in public -- about Labour's official response. I
suspect the
feelings of Scottish Euro-MPs are shared by most people at home in
Scotland where the pain of Ravenscraig is still too
keenly felt to allow for public expressions of sympathy
for those caught on the fiddle.
So, was Ravenscraig the subscription paid by BS for membership of the
cartel? We shall probably never know. Mr van Miert thought Ravenscraig
was not a factor in the fiddle but he admitted to me that the Commission
did not investigate this murky area. I hope it will do so now.
In his view the Scottish conspiracy theory -- that the plant was
killed off to cut BS capacity in return for membership of the cartel --
is negated by the fact that production doubled during the period of
price manipulation. But, if that is so, why did BS not sell the plant
instead of closing it? I supposed the cynical answer is they wanted to
kill the business, rule out any potential competition, and take the
proceeds of cannibalising the assets.
All in all, this is just another grim example of Scotland's political
impotence. Ravenscraig was just like any other single-roof steel plant
in a small European Union state and would have been protected
permanently from closure under rules confirmed last year in the Council
of Ministers (for which English Ministers voted).
If Scotland had had independent representation in the council,
Ravenscraig would be working today and steel would still be at the heart
of the Scottish economy. But we don't and it isn't.
I suspect BS's leadership of the cartel was a factor but not the
decisive one in killing Ravenscraig. But it could explain why steel
chief Bob Scholey was so afraid to answer questions.
The intriguing point now is just how much the Thatcher Government knew
about the cartel's operation. We know the Commission in Brussels was
aware of a cartel at work as far back as 1984. When Ravenscraig was
finally closed there were widespread accusations made and suspicions
voiced that the cartel existed and was threatening the plant.
If the Commission in Brussels was aware of it, can it conceivably be
that the British Government of the day was innocently unaware? Is this
another case where the baroness might reply: ''It is no good asking me.
I was only Prime Minister?''
When Ravenscraig was state-owned, British Steel was losing a million
pounds a day. There can be no doubt that Ministers, especially the
pin-striped, slide-rule crowd who ran Britain in the 1980s, must have
had minds concentrated wonderfully by numbers like that. Yet they didn't
know that part of the BS way of turning round business was to cheat? How
much did the DTI's civil servants -- well versed in Euro-rules -- know?
What of the more pressing issue now for BS? What will happen when the
people it cheated begin suing? Now there's a real problem. Already there
are aggrieved customers queuing to recover the money they reckon they
are due from BS -- and others in the cartel -- and the cost to BS could
make the Commission's fine look like peanuts.
I know it is difficult for BS and I know Robin Cook's heart bleeds for
it and I know there are votes in the south for sympathising with
threatened steel workers and I know this is just the latest area of
corporate sleaze. But forgive me if I feel a little sceptical at this
contrived outrage. There must be tens of thousands of people in Scotland
who silently gave a cheer for the European Commission last week and
thought it couldn't have picked on a more deserving case.
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