Steel (Hansard, 15 November 1971)

§ 4. Mr. Hardy
asked the Secretary of State for Trade and Industry what negotiations or discussions are taking place in his Department in regard to future development in the steel industry, particularly concerning new methods of ore reduction, and the implications this kind of development may have.

§ Mr. Ridley
Because of its implications for investment, the prospect of technological change in the steel industry is 5 within the scope of our review of the B.S.C.

§ Mr. Hardy
Can the hon. Gentleman give an assurance that the Government will neither impede nor obstruct any desire of the British Steel Corporation to participate in international developments of this kind? Does he not feel that international developments and international participation of this kind could well be included in the B.S.C.'s expansion programme? Do the Government continue to agree with that expansion programme?

§ Mr. Ridley
The purpose of the review is to determine, with the Corporation, the most effective investments for the future. The considerations which the hon. Gentleman has in mind will form part of our deliberations in the review.

§ Mr. Michael Foot
Can the hon. Gentleman give a definite date when he will bring to an end the day-to-day interventions in the operations of the steel industry involved in the operation of the Joint Steering Group? We have been promised that they will be brought to an end. When will the hon. Gentleman give us a definite date for the steel industry getting full authority to go ahead with its major investment plans?

§ Mr. Ridley
I cannot at present give a firm date. If the Government are providing the money for investment, it is obvious that they will want to be entirely happy about where the money is to be put. I emphasise that this is a continuing process, but I take the hon. Gentleman's point that the sooner we can make a firm decision on the present series of proposals the better.

§ 35. Mr. Duffy
asked the Secretary of State for Trade and Industry when he expects to conclude his review of the steel industry.

§ The Secretary of State for Trade and Industry (Mr. John Davies)
I expect to have the second report of the Joint Steering Group by the end of the year.

§ Mr. Duffy
Will the Secretary of State accept that at the present rate of loss the steel industry will have exhausted its statutory borrowing powers by February with no immediate prospect of a price increase? Demand apart, is he aware that a factor in this crisis, in areas like Sheffield and district, is lack of confidence in the industry's future? In view 6 of this, does not the right hon. Gentleman consider that the conclusion and publication of this review ought to be sought with much more urgency?

§ Mr. Davies
Perhaps the hon. Gentleman does not realise the length and complexity of the review in question. After all, we are dealing with an original proposal which amounted to the very great figure of £4,000 million, which constitutes an enormous demand on resources nationally, particularly in the light of the Corporation's deficit. It would be utterly irrational to go into this on a superficial basis, and I am unprepared to do so.

Mr. Edward Taylor
Will the Secretary of State consult the European Coal and Steel Community before coming to a decision on the investment programme?

§ Mr. Davies
Not I. The British Steel Corporation is in close consultation with the E.C.S.C. about its future arrangements. But, as the person responsible for sanctioning investment in the industry, my contact for this purpose is with the industry itself and not with the Community.

§ Mr. Michael Foot
When shall we have the Borrowing Powers Bill for the steel industry, which is urgently required to enable it to keep ahead with its investment programme? Shall we have that before the end of the year and before we get the report from the Joint Steering Group? Does the right hon. Gentleman appreciate that an acceleration of the investment programme of the steel industry is precisely one of the ways in which the Government could give immediate help in dealing with the appalling unemployment problem, especially in those areas where unemployment is at its worst?

§ Mr. Davies
I am sure that the hon. Gentleman is well aware that in authorising the degree of investment expenditure, which was materially greater than that authorised by the previous Government in respect of current annual demand of investment, we have ensured that immediate plans are being carried through to finality. At present I do not consider that any action that is being taken is deferring the implementation of investment which the Corporation believes it could usefully put in hand.

§ Mr. Michael Foot
But when?