§ 6. Sir G. Nabarroasked the Minister of Power whether he is aware that steel output for 1967 based on present prospects is 70 per cent. of capacity or 22 million ingot tons compared with 27 million ingot tons in 1965; and, as this represents wasted resources of £70 million approximately in 1967, what steps he is taking to restore the position.
§ Mr. MarshSteel output has always fluctuated more widely than economic activity generally.
I am examining with those concerned what measures might be taken to secure a more even utilisation of steel capacity. As Members are aware this problem is not confined to the United Kingdom.
§ Sir G. NabarroIs it not a fact that since the 1930s the steel industry has never bumped along the bottom at 70 per cent. of its capacity, representing a vast waste of resources? Is the Minister prepared to allow this disgraceful Socialist policy to continue indefinitely?
§ Mr. MarshI am certainly not prepared to allow the situation which has been with us so far to continue. That is one reason why the Government decided, seeing that the problem could not 1406 be solved by others, to nationalise the industry and deal with it ourselves.
§ Mr. O'MalleyIn order to improve the level of output in the industry and to assist the steel-using industries in export markets, will my right hon. Friend consider giving the steel industry a subsidy for coking coal on lines similar to that operated by the European Iron and Steel Community? If not, what will he do to assist the industry in the export market?
§ Mr. MarshThe point which my hon. Friend raises hopefully is the subject of another Question. I do not think that this would, of itself, solve the question of surplus capacity. It is a European problem.