§ 29. Mr. Palmerasked the Chancellor of the Exchequer if he will make a statement on the future of the Normanby Iron Works, Cargo Fleet, in the possession of the Iron and Steel Holding and Realisation Agency.
§ Mr. ErrollThe Agency announced recently that, on the recommendation of the directors of the company, it had decided with regret that the furnaces should be permanently blown out on Friday, 24th July.
§ Mr. PalmerIs the hon. Gentleman aware that this works, which employs many hundreds of men, has been closed down at almost indecently short notice? Notice was given yesterday without any consultation with the trade union, and in spite of many proposals for modernisation having been put forward by the directors to the Agency. Is not this a most extraordinary state of affairs?
§ Mr. ErrollNo, a representative of the trade union was informed in confidence in advance. As regards redevelopment of the works, the trouble is that the demand for haematite iron has not been increasing and that there is existing a surplus capacity. Redevelopment would not, therefore, be an economic proposition.
§ Mr. PalmerIs the hon. Gentleman aware that the trade union representatives have said publicly that they were not consulted?
§ Mr. ErrollI am aware of that report, and I am looking into it.
§ Mr. MarquandIs it not a fact that more than once this firm has been refused permission by the Agency to modernise its works? Would he confirm or deny the rumour that it is now to be sold to its principal competitor in the industry which was sold back to private hands only last year?
§ Mr. ErrollNo, I can neither confirm nor deny that rumour concerning the sale of the assets, but I would point out that any reconstruction of the Normanby Iron Works would be very expensive and would not be economically justifiable.
§ Mr. MarquandAs this works is in my constituency, and in view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment.