HC Deb 07 May 1962 vol 659 cc23-4
15 and 16. Mr. Lawson

asked the Minister of Power (1) at what level of its estimated productive capacity the steel industry of Scotland is currently operating;

(2) what was Scotland's share of Great Britain's production of crude steel in 1948 and in 1961; and what was the percentage increase or decrease in crude steel production over the period in Great Britain and Scotland, respectively.

Mr. Wood

It is estimated that the Scottish steel industry is at present working at about 60 per cent. of capacity. The Scottish share of Great Britain's crude steel production in 1948 was 15.2 per cent., and 10.6 per cent. in 1961. There was an increase in production between these years of 48.5 per cent. in Great Britain and 3.9 per cent. in Scotland.

Mr. Lawson

Do not those figures reveal a mast disturbing situation in Scotland, inasmuch as what is, perhaps, the most vital industry for all Scotland is so much worse affected there than it is in the rest of the country? Will the Minister reconsider again the imposition of a coal price policy which will make it enormously more difficult for the Scottish steel industry to maintain its position in relation to the rest of the country?

Mr. Wood

When answering the hon. Gentleman two years ago, my hon. Friend the Parliamentary Secretary estimated that the figure in 1962 would be 11 per cent. I hope very much that that figure will still be reached in 1962. The real trouble here is that the heavier steel products in Scotland have been harder hit by present difficulties, whereas in the strip mills there is fairly high activity. I hope that when the Ravenscraig hot strip mill comes into production the position will improve.

Mr. Lawson

May I remind the Minister again that he has just imposed, or has been associated with imposing, a price policy on Scotland which will make the prospect of Scotland recovering much more difficult than before? Has he considered this?

Mr. Wood

Certainly I considered it, but the cost of coal is only one of a number of factors which are relevant in this connection.