The debate around the future of the UK steel industry has demonstrated just how ludicrously parochial political debate here has become. People lined up to argue over how losing hundreds of jobs in Port Talbot was the UK Government’s fault, the Welsh Government’s fault, the Remain side’s fault, the Leave side’s fault, the fault of any politician I don’t like…
It is just possible that it isn’t any politician’s fault.
The fact is, since the mid-’90s in particular, we have all literally bought into an economy based on cheap supply from the Far East.
We are not necessarily wrong. Upon retirement in 1997 my father bought an Internet-capable (US-built) PC for the modern equivalent of around £5,000. Its capabilities would be comfortably passed by a basic (Chinese-built) £100 mobile phone now.
So it goes on across a vast range of goods – phones made in China, vacuums made in Malaysia, electronics made in Indonesia, etc etc. In such countries, wages are much lower and workers’ rights much inferior (even basic welfare or pension provision is almost unknown).
But we don’t care, as long as we get the goods cheap and can spend the rest of our wages on leisure activities, fancy cars and holidays (perhaps to places like Dubai, largely built by migrant workers on pitiful salaries with no basic rights at all).
Let us be clear, any politician seeking to deny us this standard of living, even though it is in effect based on slave labour (just not our slave labour), would never attain office.
China and other countries have used this income to grow their economies and create a burgeoning middle class – which, just every few years, grows by a size equivalent to the entire population of the UK. One of the inevitable consequences was a construction boom in the Far East (most obviously in China), and then something of a bust, with a further consequence that China had an excess steel supply which it dumped cheaply on the world market.
So it is that Chinese economic decisions affected an Indian company to the extent that hundreds of jobs were put at risk in South Wales. This is globalisation, an inevitable consequence of the cheap supply economy into which we have all eagerly bought – not “politicians”, us!
Such also is the limitation, or indeed near irrelevance, of the concept of “sovereignty”. It was not a current Welsh Government or UK Cabinet Minister’s decisions which threatened the UK steel industry; it was a Chinese economic decision and an Indian company board’s reaction to it.
This is the ludicrous nonsense of “take back control”. This is a globalised world of quality European imports and cheap Far Eastern imports. We need to be part of a big team, not exposed on the sidelines.