HC Deb 17 December 1962 vol 669 cc891-3
Sir F. Soskice

(by Private Notice) asked the Minister of Power whether he will ask the Iron and Steel Board to have regard to the implications from the point of view of the public interest, and, in particular, of the interest of those employed in the industry, of the proposal by Stewart and Lloyds Ltd., to take over the Whitehead Iron and Steel Company Ltd., of Newport.

The Minister of Power (Mr. Richard Wood)

I have been in touch with the Chairman, and I should certainly consult the Board formally if it became necessary to do so.

Sir F. Soskice

Would the Minister accept that the terms, purposes and scope of this projected take-over is one directly within the responsibility of the Iron and Steel Board and, through the Board, of himself? Has he been in contact with the company through his Department? If he has, is he able to give the House any information about the short-term and long-term purposes of this take-over? In particular, will it embrace the transfer of the Whitehead iron and Steel Company to some other area of Stewart and Lloyds' operations, such as Corby, or will the Whitehead Iron and Steel Company continue to operate in Newport? If it is to close, has the Minister, or any of his colleagues, taken any steps, or do they intend to take any steps, and, if so, what, with the object of safeguarding about 1,500 of my constituents who are art present employed in the Whitehead Iron and Steel Company?

Mr. Wood

The right hon. and learned Gentleman has asked me several questions. The responsibility of the Iron and Steel Board is contained in some of the subsections of Section 5 of the Iron and Steel Act, one of which provides that the Board shall consult producers and others concerned in order to secure the provision and use of plant. Another provides that if necessary plant is going out of use it is among my powers to make arrangements to keep it in use. I do not think that in this case either of those two conditions apply.

The right hon. and learned Gentleman also asked whether I had had contact with the company. I have not. The matter has so far not proceeded beyond an expression of intention by the company to negotiate with the Whitehead Iron and Steel Company Limited. It is bound to be a little time before any results of their discussion emerge, and it would be quite impossible for me at present to answer the latter part of the supplementary question about the precise operation of Whitehead's if this transaction takes place.

Sir F. Soskice

Is it not the case that this project for a take-over has been mooted and referred to in the Press for at least a week now? Is not this a matter which directly falls within the responsibility of the Board to exercise general supervision over the industry under Section 3 of the Iron and Steel Act, 1953? Has not the Minister ample powers, under Section 15 of that Act, to furnish himself, through the Board, with full information about the purposes, scope and ultimate objective of this take-over?

Will not the right hon. Gentleman exercise those powers? If, when he exercises those powers, he finds that one of the purposes is that the Whitehead Iron and Steel Company is to cease operations in Newport and ultimately to go to Corby, will he state what steps, if any, he and his colleagues propose to take with reference to the continued employment of those working now in Newport for this company, or whether he completely washes his hands of any responsibility for their employment?

Mr. Wood

I said quite clearly to the right hon. and learned Gentleman that I would certainly consult the Board formally if it became necessary for me to do so. I do not think that that point has been reached. Whether it will be reached in the future I do not know. I and the Government would watch employment, but it might be that if this transaction came off the effect on employment would not be deleterious but might be an improvement.

Mr. Nabarro

Would my right hon. Friend bear in mind that Whitehead's is not a basic steel producer but is largely concerned only with rolled and rerolled steel products? Will he bear in mind, further, that the integration of White-head's into the Stewart and Lloyd's organisation might well result in much greater efficiency overall in the production of steel?

Mr. Wood

I did know of the process for which Whitehead's is responsible. I think that some of the reflections which my hon. Friend has given to the House may have been in the mind of the board of Stewart and Lloyds when it made this suggestion.

Sir F. Soskice

Is it not the case that the Whitehead Iron and Steel Company is by far the largest independent reroller? Is not its undertaking one of great importance to a number of other companies which have dealings with it, for example, Richard Thomas and Baldwin and other companies in the country? Is it not really a matter of vital concern that if there is to be any change in the future operations of this company the Minister should at once use his powers to inform himself about any changes and, at the earliest possible moment, give the results of his inquiries to the House and stare whether he intends to take any steps and, if so, what, with regard to the future operations of the company and the future employment of those now employed in it?

Mr. Wood

I have already told the right hon. and learned Gentleman that I have been in touch with the Chairman of the Iron and Steel Board and, therefore, am taking steps to inform myself as far as possible of what is happening, but I cannot think that it is right or proper at the moment for me to take formal action with the Board, because I do not believe that there yet exists any basis for so doing.