HC Deb 21 April 1947 vol 436 cc597-8
39. Mr. James Callaghan

asked the Minister of Supply if he is now in a position to make a statement on the modernisation and development of the tinplate and sheet-steel industry in South Wales.

Mr. Wilmot

Yes, Sir. I have considered the recommendations of Iron and Steel Board on this important scheme which, I am glad to say, has now reached a stage at which decisions can be taken on its main features.

The Government accept the Board's recommendations for the construction by the companies concerned of a new continuous hot strip mill with coke ovens, blast furnaces, steel melting shops and ancillary plant at Margam, near Port Talbot. Further, the Government agrees with the Board as to the need for new cold reduction and finishing plants for tinplate and steel sheet. The precise location of these is under consideration by the Government in the light of the Board's recommendations and the sociological factors involved and I hope to make a further statement about them shortly

Mr. Callaghan

Is the Minister aware that this will have a most heartening effect in South Wales? Can he tell us when the scheme is likely to be in full operation, and what effect it will have on national production?

Mr. Wilmot

It will not be in fill, operation for some three years. [HON. MEMBERS: "Oh!"] It is a very big scheme, probably the biggest scheme ever carried out, and I am afraid I could not answer the second part of the supplementary question without notice.

Mr. Oliver Stanley

May I ask whether this heartening scheme is being carried out by private enterprise?

Mr. Wilmot

Yes, Sir.

Mr. Erroll

May I ask the Minister if the scheme is in any way substantially different from that put forward a couple of years ago, and have not the deliberation's of the Iron and Steel Board only caused a further delay?

Mr. Wilmot

I think the thanks of the Government and of the House are due to the Iron and Steel Board for the extremely expeditious way in which they have handled this matter. The scheme did not go to them until about six weeks ago, and their recommendations were in my hands the day before Easter. For a £50 million scheme, I do not think that is bad going.