The beleaguered steel industry in Scotland is facing fresh uncertainty because of new Brussels rules.
Leading businessmen have warned the sector which in the mid-1970s employed 27,000 people “could grind to a halt” when new EU red tape comes into force in the summer.
In July all steel firms in the UK will have to comply with a new standards regime.
Everything from nuts and bolts to huge girders will have to carry the CE quality mark under the rules handed down by Brussels bureaucrats.
The CE mark is most commonly found in the home on children’s toys but it is also on all sorts of equipment that must be safe and accurate including medical supplies, boilers and fireworks.
The cost of getting accreditation is estimated at between £5,000 and £20,000 depending on the size of the company.
But it’s believed only six Scottish firms are accredited under the new rules, leaving around 700 others facing ruin when they are unable to sell their products.
In England and Wales steel companies have been offered government assistance to meet the new standards.
However, critics north of the Border have accused the SNP administration of sitting on its hands, putting up to 7,000 jobs at risk.
Murray Cruickshanks is the third generation of his family to run blacksmith business T&D Cruickshanks in Kirkintilloch.
He said: “As of July 1 every steelwork contractor in Scotland bar six will be trading illegally. It’s ludicrous. We are facing a severe threat of being shut down just because we don’t have a bit of paper.
“This company has ridden out all the recessions since it was set up in 1948. Now I’m considering the future of the business due to red tape.”
Firms must be accredited by an inspector but the officials are already booked up until the autumn meaning many companies will have no choice but to cease trading or continue doing business without the proper
accreditation after July 1.
Councils are charged with policing the new directive but the Scottish Government has held just one event in Scotland to inform local trading standards about the changes.
In England the UK Government funded manufacturing advisory service is guiding companies through the process. That’s led to concerns that English firms will start picking up business that Scots companies are unable to take on.
Steve McCool, national officer at the union Community, said: “Yet again, the Scottish Government is too busy talking about putting Scotland first and failing to put Scottish industry first. Scotland’s steel producers deserve the same support as their competitors in England and Wales, if Scottish steel supply chains are to be sustained.”
The issue was raised in Westminster last week by Cruickshanks’ local MP Gregg McClymont. “Industry voices are saying that the implications of this issue are significant for small businesses and jobs across Scotland,” he said.
UK Government minister Stephen Williams said: “There is still plenty of time for conversations with trading standards to ensure that compliance problems and sanctions do not arise.”
A Scottish Government spokesperson said: “The Scottish Government is aware of steel manufacturers concerns and have raised these at Ministerial level with the UK Government.
“We are working closely with public sector partners to identify what support can be provided to help business comply with this UK legislation.”
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