HC Deb 10 May 1971 vol 817 cc22-3
31. Mr. Moyle

asked the Secretary of State for Trade and Industry whether he is now in a position to make an announcement on the future size and structure of the British Steel Corporation.

Mr. John Davies

I have nothing to add to my statement to the House on 27th April.—[Vol. 816, c. 247–58].

Mr. Moyle

Does not the right hon. Gentleman agree that, if we ever join the E.E.C., its present members will require us to abolish the Consumer Council's power to make representations about price increases by monopolistic corporations? Will he ensure that the Six are asked whether they would allow the Council to retain that power?

Mr. Davies

This is a matter on which we should want to have discussions with the Six in the light of any result of the negotiations in Brussels.

35. Mr. Duffy

asked the Secretary of State for Trade and Industry whether he is satisfied with the operation of the Iron and Steel Act, 1967; and whether he will make a statement.

Mr. John Davies

The hon. Member will be aware that we did not support this Measure; however I have no current proposals to amend it.

Mr. Duffy

Nevertheless, the right hon. Gentleman will be aware that Part IV of the Act imposes on the Corporation the need to maintain financial viability, taking one year with another. Does not he now think, in view of his recent refusal to grant in full the application by the Corporation for a price increase against the background of an inherited and accumulating deficit, that he should amend the Act?

Mr. Davies

No, Sir. I propose first and foremost to see the results of the first phase of my review. It is not yet completed but will be shortly. In the light of that, I shall have to make firm decisions about the future.

Mr. Michael Foot

I suppose that the right hon. Gentleman will announce the first phase of his review in a week or two. Will he include consideration of the other half of the 14 per cent. increase for which the Corporation originally asked? We welcome the right hon. Gentleman's intimation that he understands that he must carry out the provisions of the Iron and Steel Act, 1967. Will he reiterate the commitment which the Government have already made under the Coal Industry Bill—which he has introduced—that any proposal for hiving-off any part of the steel industry would first have to be submitted to the House of Commons?

Mr. Davies

The second part of the 14 per cent. price increase asked for by the Corporation will be looked at in the first phase of the review. In reply to the second part of the hon. Gentleman's supplementary question, I shall not do anything that I am statutorily forbidden to do.