Help needed to save key industries

Jul 13 2009 by Kevin Rowan, The Journal

ONE of the features of this current recession has been how quickly things can change.

In the enthusiasm to aspire to say something positive, to avoid the perpetual doom and gloom, the last few weeks have been peppered by key influencers in the region talking about ‘the beginning of the end of the downturn’, or ‘the economy bottoming out’ and recently the North East Chamber of Commerce understandably seeking to make the most of the rise in confidence demonstrated in its business barometer survey.

This inclination toward positivity can be regarded as at best turning a blind eye to the reality of the current regional trends, at worst blithe ignorance to the fate of thousands of vulnerable workers, an argument reinforced by last week’s very disappointing news around Dow and Croda in Wilton and continuing anxiety about Corus.

The real anxiety is that a failure to find a buyer for these industries in this increasingly competitive global sector could have a house of cards effect on the whole of the process industries cluster in Teesside, threatening thousands of jobs.

One might question what the Government’s announcement of ‘industrial activism’ has actually meant. There is no evidence that this ‘new’ policy approach is bearing any fruit or delivering outcomes or progress for either the process sector or the steel industry.

There are huge government contracts with demand for steel. Explanations about competition rules, manufacturing lead times or any other procurement processes would not be received well if there is a failure to come through on these options and the workers at Corus, along with thousands of workers in supply chain jobs, end up losing their employment at the end of August.

The key feature of ‘industrial activism’ is action to save key industries. There are clearly strong industrial cases demonstrably in need of urgent action in the region.

Kevin Rowan is Regional Secretary, Northern TUC