Iron and Steel Industry (Hansard, 16 June 1958)

§ 25. Mr. Palmer
asked the Paymaster-General if he will use the powers conferred by Section 5 of the Iron and Steel Act, 1953, to keep in use production facilities which are being closed down on Tees-side and in other iron and steel producing areas of the country.

§ Sir I. Horobin
No, Sir.

§ Mr. Palmer
Under what circumstances would Section 5 of the Iron and Steel Act be used? Is the Parliamentary Secretary aware that in my constituency of Cleveland alone, quite apart from the rest of Tees-side, between 1,000 and 2,000 steel workers are likely to lose their jobs at present?

§ Sir I. Horobin
On the first part of that supplementary question, which is hypothetical, I should not like to express any opinion at all. As to the second part, in relation to the situation on Teesside, a decision would depend largely on whether we expect the present demand position at home and abroad to be permanent or to be temporary. As my original Answer indicates, Her Majesty's Government at present do not consider that any action of this kind would be desirable.

§ Mr. Marquand
Are Her Majesty's Government prepared to take action if it should turn out that the depression lasts longer than has been indicated? Is the hon. Gentleman aware that on Tees-side large quantities of structural steel are made? Are the Government prepared to put the Severn Bridge project into rapid execution if there are increasing signs of depression?

§ Sir I. Horobin
A question on that specific point ought to be put down.

§ 31. Mr. Palmer
asked the Paymaster-General if he will make a statement on the present recession in the iron and steel industry; and what action the Government propose to take.

§ Sir I. Horobin
The demand for certain steel products has declined. This means that the industry is now temporarily working under capacity in certain sections. No Government action would be justified at this stage to deal with this fluctuation in trade.

§ Mr. Palmer
Would the hon. Gentleman say on what evidence he or the Government base their view that this is purely a passing phase?

§ Sir I. Horobin
Partly on this: it may interest the hon. Gentleman to know that the most recent figures, which are admittedly only up to the end of March, show that home consumption this year is actually rather higher than last year. What has happened is a very great fall in exports. Therefore, that should drive home to all concerned the necessity for competition. We do not envisage a situation in which the British iron and steel industry would not be fully competitive, because we believe it to be one of our most progressive industries.

§ Mr. H. Morrison
If this industry had not been denationalised, I take it that the Conservative Party would blame the present state of affairs upon nationalisation?

§ Sir I. Horobin
I do not quite know. What matters is what is happening now. That is the main thing. Both the nationalised section of this industry, happily only small, and the denationalised section suffer exactly alike. Nationalisation or denationalisation does not alter the fact that we have to sell at a profit.