HC Deb 29 March 1971 vol 814 cc1138-41
18. Mr. Roy Hughes

asked the Secretary of State for Wales what recent discussions he has had with the British Steel Corporation concerning its investment policies in Wales.

24. Mr. Kinnock

asked the Secretary of State for Wales what proposals he has for safeguarding the interests of the steel industry in Wales.

30. Mr. Coleman

asked the Secretary of State for Wales what recent discussions he has had concerning the investment policies for the steel industry in Wales; and with whom.

Mr. Peter Thomas

My senior officials have had discussions with members of the Corporation very recently, and I have arranged to meet the Deputy Chairman later this week. I also keep in close touch with my right hon. Friend the Secretary of State for Trade and Industry on all questions regarding the steel industry in Wales.

Mr. Hughes

Has the Secretary of State indicated to the Corporation that he supports the decision to hold up the major investment scheme at the Spencer works after the matter had been thoroughly gone into by the Labour Government, and the go-ahead given? Does he appreciate that on 4th March the general manager at the works gave a categorical assurance that this scheme was to go ahead? What effect does he expect this turnabout to have on the morale of the work people? Does he support the idea of keeping a great industry dangling in mid-air? Why does he not stand up for Welsh interests, or else resign and make way for someone who will?

Mr. Peter Thomas

I certainly intend to stand up for Welsh interests and the steel industry in Wales. I am very conscious of the fact that it is the largest single industry in Wales, employing about 70,000 people, and that it should prosper.

I take it that the hon. Gentleman followed the debate in the House on 18th March. He will have heard from my right hon. Friend the Secretary of State for Trade and Industry the revelations that have been made by the Corporation, and will also have heard that a deep-seated review of the whole of the Corporation's development and financial position is being undertaken. I am keeping closely in touch with my right hon. Friend.

Mr. Kinnock

Is the Secretary of State aware that on 18th March we not only heard what he has described as the revelations of the Secretary of State for Trade and Industry, but we also heard the Secretary of State for Trade and Industry say that he would hold up the Llanwern C development scheme? If he, as Secretary of State for Wales, has Welsh interests closely at heart, should he not go to the Secretary of State for Trade and Industry and ask him to make haste with releasing the money required for developing this great industry in Wales?

Mr. Peter Thomas

My right hon. Friend the Secretary of State for Trade and Industry explained why it was necessary for Llanwern C to be deferred.

Mr. Coleman

Will the Secretary of State take this opportunity to repudiate those who suggest that Britain's steel needs should be met by importing steel from abroad? Further, will he impress upon his Cabinet colleagues the absolute need for the British Steel Corporation's investment plans to be restored to what they were under the Labour Government? Will he also impress upon the Cabinet the need for Britain to build three new integrated steel plants for the 1980s?

Mr. Peter Thomas

The Labour Government created this enormous organisation of the British Steel Corporation. The Corporation is obviously in some difficulty. My anxiety is to see that there is a steel industry in Wales which is viable and can afford proper and lasting employment opportunities for those who work in it.

Mr. Michael Foot

; Does the Secretary of State really mean that he gave his approval to the hold-up in the Llanwern development scheme? Did he say "Yes" on behalf of his Department to the proposal from the Secretary of State for Trade and Industry that this development should be held up? What did the right hon. Gentleman say to the Secretary of State for Trade and Industry when it was proposed to abolish the investment grants? What effect does the right hon. Gentleman think that has had upon the steel industry of Wales? When will he make a statement in the House which can give some confidence to those who work in the biggest industry in Wales? Does he realise that every decision taken by the Government has done the gravest injury to the steel industry in Wales?

Mr. Peter Thomas

The hon. Gentleman is just repeating what he said in the debate on 18th March. I have nothing to add to what my right hon. Friend the Secretary of State for Trade and Industry said at that time. The decision on the deferment was a Government decision. I am a member of the Government and I share the responsibility for it.

Mr. Foot

In that case will the Secretary of State take care never again to refer in such terms to his inheritance from the Labour Government? The inheritance he had from the Labour Government in the steel industry was a go-ahead on capital investment, and that is what he is reversing.

Mr. Peter Thomas

The full inheritance by the Government in the steel industry will be known only after the deep-seated review has been conducted.

Mr. Barry Jones

Has the Secretary of State received any representations from the North Wales trade unions about the need to construct an integrated steel works on the bank of the River Dee?

Mr. Peter Thomas

The answer to that is "Yes", Sir.

Mr. Coleman

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of that reply, I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest possible moment.