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Ta-ta to British steel?

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Eamonn Walsh | 13:00 UK time, Friday, 17 July 2009

Steelmaking in Britain in the 1960s was a useful barometer for testing the political mood of the nation.

The Conservatives' desire for the industry to be opened up to market forces and privatised regularly clashed with the Labour party's desire that it be nationalised.

- the main parties hung their political allegiances from it.

But that was then. What used to be British Steel - under various private and nationalised banners - is now known as Corus, a subsidiary of India's and just one of a number of industries in Britain suffering during this recession.

Albeit in a large way - Corus recently (and 4,500 jobs in total since January) across its UK production base.

This importance of steel-making in the post-war years was evident in a 1961 Panorama report from Scunthorpe. Modern, post-war Scunthorpe had been built on the growth of the steel industry. It was a town experiencing its own goldrush - steel-making built the town and put money in pockets. You can watch an abridged version here:

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The politicking over the steel industry continued until 1967 when the UK's 14 main companies were - bringing over 250,000 employees and 90% of British steelmaking into public ownership. It was hoped that this would streamline the industry and allow for focussed investment.

It was during this period that BSC found itself under greater competition from international competitors churning out steel cheaper than seemed possible in the UK. Competition that only intensified over the years.

In the early 1970s the government announced that British steelmaking was to be concentrated in five areas in the UK - Sheffield, Scunthorpe, Teesside, Scotland and South Wales.

It was to this decision that Port Talbot in South Wales owes its continued steel-making existence. The government decided, following a review by the Industry Minister Lord Beswick, that the Shotton plant in North Wales was to close.

Panorama visited both Shotton and Port Talbot in 1975 and saw the hopes and fears of both communities which rested on Beswick's imminent decision. You can watch an abridged version here:

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But steelmaking in Shotton was doomed. Beswick made the decision to close most of its operations and growth of production in Wales was consolidated at Port Talbot.

Interesting to note that in the film a future government trade and industry secretary, Michael Heseltine, saw these moves as vital for preserving the industry's competitive edge. However, even the Conservative government's privatisation of the industry as British Steel in 1988 couldn't safeguard it from the harsh realities of global competition for long.

Thirty or so further years on from Port Talbot's reprieve and Panorama's story turns full-circle with news that Corus' stated aim is to make £250 million savings annually in its UK production, which puts hundreds of jobs in both and under the gravest threat and leaves a once proud industry ailing again.

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