HC Deb 15 June 1961 vol 642 cc609-11
5. Mr. Wise

asked the Chancellor of the Exchequer if he is aware that the estimates for building the Spencer works of Messrs. Richard Thomas and Baldwins Limited will be considerably exceeded, and that revised estimates will be submitted with an application for increased Government loans for a greater sum than the £70 million at present agreed; and if he will undertake that no such increased advances will be granted without the approval of this House.

Mr. Barber

On 27th October my right hon. and learned Friend informed the House that the company would have to find substantial sums for its developments at the Spencer Works and elsewhere in addition to the expenditure of £150 million to which my right hon. Friend the Minister of Power referred in the debate on 27th June last. In order to do this it will need to increase its external borrowings during the next few years. As my right hon. Friend indicated in his reply on 26th October last, the company will look to the Iron and Steel Holding and Realisation Agency which is its usual source of finance for short term requirements. There is thus no question of an increase in the amount to be advanced by my right hon. Friend.

Mr. Wise

Will my hon. Friend agree that it would be better that this firm should be returned to private enterprise before it has a chance to come to this House and follow the usual procedure of nationalised industries in asking us to write off past extravagance at the taxpayers' expense?

Mr. Barber

My right hon. and learned Friend has already stated the Government's policy on denationalisation and in particular with regard to this company; but earlier in the year we did take a considerable step forward in publishing a White Paper on Government expenditure below the line. It would not strictly have been necessary for us to include in that the amounts which are involved so far as this company is concerned, but we did so for the convenience of the House and a considerable amount of information has been given.

Mr. Nabarro

Would my hon. Friend persuade the Chancellor of the Exchequer to get a move on?

Mr. Barber

I am sure that that request will be noted.

Mr. Mitchison

Does the hon. Gentleman accept that there has been any extravagance in this matter? I have not heard of it.

Mr. Barber

No, Sir. All I would say on that point is that, very naturally, as the Government are involved in this, we are anxious that the new strip mill capacity should be provided as economically as possible. At the moment a re-estimation is going on, and I think the House will be interested to know that the company is, in fact, receiving outside professional advice in this matter.

Mr. Mitchison

Does not the hon. Gentleman think that the company is not also concerned to avoid extravagance?

Mr. Wise

In view of the fact that even the managing director has stated that the estimates for the new works are going to be considerably exceeded, is it not the case that if the hon. and learned Member for Kettering (Mr. Mitchison) has not heard about it he must be singularly deaf?