Forgemasters always treated like a sacred cow, says industrialist

The chairman of Sheffield-based William Cook Holdings lobbied against the previous Labour administration’s £80m loan to Forgemasters. It was axed shortly after the coalition came to power.

Mr Cook said: “Sheffield Forgemasters has always been a sacred cow to politicians and it continues to be. Somehow it’s regarded as a national treasure that taxpayers should keep going at all costs.”

Forgemasters hoped to use the £80m loan to help it compete for contracts in the next wave of nuclear power stations.

The scrapping of the loan caused huge outcry in Sheffield, the home of Deputy Prime Minister Nick Clegg.

Mr Clegg, the Liberal Democrat MP for Sheffield Hallam, visited Forgemasters this week to announce that the company had been successful in its bid to the Government’s £1.4bn regional growth fund.

The interest-bearing loan is expected to be used to fund opportunities in the civil nuclear and steel processing markets.

Mr Cook said: “I don’t believe in taxpayer handouts for companies. I have always funded my development myself. If I have had to go to outside investors I have had loans on commercial terms from banks. One time I had to use outside shareholders. If you are a successful company you can do it yourself. If you can’t do it, then tough.”

Forgemasters remained profitable through the recession, although turnover fell last year to £104.8m, from £117.3m in 2009. It declined to respond to Mr Cook’s comments.

A Government spokesman said the fund was designed “to kick start private sector investment and create jobs”.