State aid – Redcar illustrates how the EU constrains us

THE PRESS OFFICE OF                                                           

The Lord Stoddart of Swindon (Independent Labour)  

News Release

1st October 2015

Redcar steelworks closure emphasises impotence of the Government and strengthens case for leaving the EU

Commenting on the closure of the Redcar Steelworks, the independent Labour Peer, Lord Stoddart of Swindon has highlighted the impotence of the Government in the face of strict EU rules on state aid and that being unable to help the steelworkers, who face losing their jobs, strengthens the case for leaving the EU.

Lord Stoddart said:  “The Government openly admits that EU rules on state aid for industry constrains their ability to provide financial support for the Redcar steel plant, to prevent its closure.  This is yet another example of EU membership leading to loss of jobs for British workers and further loss of manufacturing industry.  This must, surely, bolster support for leaving the EU, even among those in the Labour Party and some trade unions, who believe that the United Kingdom should remain in the EU, come what may.

“Sadly, it is a long established principle that our democratically elected Government must wade through a sea of EU red tape and go cap in hand to Brussels to beg for permission to help our own industries, from unelected bureaucrats at the European Commission.  Once again, it is quite clear who really governs Britain.”


rn the UK alone.

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  1. ScepticSidReply

    I am not aware of the government “openly admitting” anything in relation to the Redcar closure.

    Certainly none of the pro-EU ‘lamestream’ media reported how the UK government was powerless to intervene because of the EU rules on state aid.

  2. Robin GoodfellowReply

    Good Lord..After British Aerospace Radar works closure in 2005, FordVans Closed in 2011 Southampton in preference to EU aid to Turkey…Not least Surprised.EU has turned UK from Manufacturing 83% in 1973 to less 13% in 2015 to Service economy & Zero hours

  3. James CampbellReply

    Isn’t state aid something we would criticise other member states for, in terms of skewing the single market? Would we be any freer to provide state aid under the EEA / Norway option?

  4. Ian Hawthorn ThainReply

    I am as sorry as everybody else to see Redcar close, but in all honesty I cannot for once blame the EU for it. I think the seeds were sown years ago.

    The LCC was Ken Livingstone’s power base, so Mrs Thatcher abolished it.
    The mines were Arthur Scargill’s power base, so Mrs Thatcher closed them down.
    Manufacturing companies were the other big unions’ power base, so Mrs Thatcher hung them out to dry in favour of Financial Services.

    The LCC decision was probably a good one. The mining decision was questionable. The manufacturing decision was a disaster, and Merchant Bankers have become a synonym for self-gratifying corruption. As was pointed out at the time, we can’t all earn a living by taking in each other’s washing; somebody has to make things that other nations want to buy. But we’re not doing that any more, and the present government of “pre-pubescent political marshmallows” has absolutely no experience of how to make an honest living in the world.

    That’s the underlying reason for Redcar’s failure, and I’m afraid it can’t be corrected simply by throwing public money at an un-competitive company.

  5. Gordon WebsterReply

    I have read elsewhere that those countries – France, Germany, Italy and Netherland
    s – which were members of the European Coal and Steel Community, which was the origin of the EU – are still happily subsidising and being allow to subsidise the Steel and Shipbuilding. Is this true, and if so why?

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