HC Deb 05 November 1968 vol 772 cc674-6
17. Mr. Ridley

asked the Minister of Power what is the reason for the retention by the British Steel Corporation of a 45 per cent. holding in the privately-owned Sheffield Rolling Mills Company.

39 and 40. Mr. Hooley

asked the Minister of Power (1) whether, before approving the application by the British Steel Corporation, he will make it a condition that the Corporation shall have a 51 per cent. holding in the proposed new steel company, Sheffield Rolling Mills Limited;

(2) if he will make a statement on the official discussions which have taken place with the Trades Union Congress Steel Consultative Committee about the proposed formation of Sheffield Rolling Mills Limited and which involve the transfer of publicly-owned assets worth £3 million to the private sector of the steel industry.

Mr. Mason

I am satisfied that the general arrangements agreed for Sheffield Rolling Mills Ltd., are in the interest of the nationalised steel industry, although I will not give final approval until satisfactory detailed terms to give effect to them have been worked out. I have agreed to send the T.U.C. Steel Industry Consultative Committee a paper setting out the position.

Mr. Ridley

But since this company is to be returned to the private sector, can the Minister explain why the taxpayers' money is to be spent on investments in it? He must give a reason for spending public money. What is the reason for this 45 per cent. holding in an ordinary private company?

Mr. Mason

Because the Tinsley Park Bar Mill comes under the B.S.C., the B.S.C. wants to safeguard its interests and it is satisfied that its 45 per cent. interest will do just that.

Mr. Hooley

Is my right hon. Friend aware that the contribution of the private sector to this venture is, to some extent, on their own admission, in the form of obsolescent plant and equipment, while the contribution of the public sector is in the most modern plant in Europe? Would it not be more equitable to the taxpayer, who has already paid for this plant, if a majority holding in the new company were held by the British Steel Corporation?

Mr. Mason

The Tinsley Park Bar Mill has never worked above 50 per cent. capacity, and has been making heavy losses in recent years. The B.S.C. is satisfied with the suggestion that it shall have the managing director and two directors as well on the new company and that its interests will be safeguarded.