Huge potential for Jobs and Growth threatened by ConDem failure
Inexperienced Chancellor George Osborne has decided to scrap a £90 million loan to Sheffield Forgemasters placing jobs and the economic recovery at risk says Community Union. The loan provided by the previous Business Secretary would have allowed investment in a 15,000 tonne press, essential for the construction of nuclear power plant components and developing a sustainable British presence in a very competitive global marketplace. Cancelling the contract may incur punitive legal fees for the Treasury.
Community Union General Secretary Michael J. Leahy OBE said:
‘This short-sighted decision to refuse this loan is a clear case of robbing Peter to pay Paul. In this case the Chancellor has chosen to rob future generations of the jobs and growth that building a world class industry would provide in favour of paying down the banker’s debt.
‘How can George Osborne demand banks loan to small business with one breath and kill a proven driver of economic growth with the next. The industrial policy coming from this ConDem coalition is incoherent, harming the economic recovery and costing jobs.
‘Undermining Sheffield Forgemasters, not only threatens jobs and livelihoods, but reduces British Industry from a world leader to an also ran. Cutting the deficit is a laudable goal, but not at the expense of future growth. To echo the comments of Labour leadership candidate David Miliband the ConDem coalition is has chosen self defeating short-termism at the expense of jobs, industry and future growth.
It is unfortunate that only days into the ConDem coalition the Chancellor chooses to display his shaky grasp of economic theory.’
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