§ 20. Mr. Arthur Lewisasked the Secretary of State for Trade and Industry whether he is now in a position to make a statement on the Government's policy for the steel industry, and to what extent this will mean the closing of existing steel works and redundancies in the industry's and to what extent the Government's proposals are based on the prospects of Great Britain's entry into the Common Market.
§ 31. Mr. Roy Hughesasked the Secretary of State for Trade and Industry if he will now announce the details of his plans regarding the financial investment and capacity requirements of the British Steel Corporation up to 1980; and if he will make a statement.
§ 42. Mr. Patrick McNair-Wilsonasked the Secretary of State for Trade and Industry if he will now publish the long-term development plans for the British Steel Corporation; and if he will make a statement.
§ Mr. John DaviesI have nothing to add to the answer given to my hon. Friend the Member for Glasgow, Cathcart (Mr. Edward Taylor) on 10th April.—[Vol. 834, c. 843–45.]
§ Mr. LewisThat is a very disappointing reply. Will the Minister give a definite assurance that, come what may, under whatever conditions we may enter the Common Market, he and the Government will be able and entitled to take whatever action they may desire, without reference to the EEC, on matters relating to prices, redundancies, the price of steel and all matters pertaining to the steel industry, without question, let or hindrance from the EEC countries? Will the Minister give a definite pledge on these matters?
§ Mr. DaviesAs the hon. Gentleman very well knows, on the question of prices I cannot and will not give him that undertaking, because the principles regarding prices are embodied in the ECSC Treaty. Redundancies are a matter for the Corporation and not for me.
§ Mr. HughesHas the Secretary of State's attention been drawn to the proposal of the British Steel Corporation to close the former Stewarts and Lloyds tube works in Newport, Monmouthshire? Instead of allowing that, would he try to ensure investment at these works in line with their profitability over many years and the fine product which has always been made there? Will he also bear in mind the heavy unemployment in Newport at present?
§ Mr. DaviesI am naturally very concerned with the questions to which the 21 hon. Gentleman refers. I know that the hon. Gentleman realises that questions of closure, redundancies and further investment are primarily for the Corporation. It is evident that I take a very great interest in these matters, particularly from the point of view of regional policy——
§ Mr. Davies—and from the point of view of the Government's investment interests in this massive industry——
§ Mr. Davies—but this is primarily a matter for the Corporation.
§ Mr. McNair-WilsonMy right hon. Friend will realise that my Question deals specifically with the long-term development plans which we were promised would be announced last year. Why has there been this long delay? Can he announce an early date when these plans will be published, because their absence is causing a great deal of concern to plant manufacturers?
§ Mr. DaviesI am as concerned as is my hon. Friend with the urgency of these problems, The fact that publication has been later than I expected is due entirely to the complex nature of the assessments which have demanded far deeper and more careful study than had ever previously been made. I should like to reassure my hon. Friend in one respect. The present level of investment in this industry is very high. Irrespective of the considerations of long-term strategic investment, present investment in the steel industry is at an historically high level. Therefore, in terms of the immediate future of the industry, nothing is being neglected which could possibly be proceeded with.
§ Mr. AshleyIs the right hon. Gentleman aware that last night I attended a mass meeting in Stoke-on-Trent at which the possible closure of the Shelton Steel Works was discussed? There is growing concern in North Staffordshire, because, if this steelworks closed, it would turn North Staffordshire into a distressed area. Will the right hon. Gentleman take account of this very grave state of affairs and accept my assurance that, if this 22 works is closed, what has happened on Upper Clyde will be as nothing to what the moderate men of North Staffordshire will be doing?
§ Mr. DaviesI am as anxious as is the hon. Gentleman to ensure that the future of the industry is planned with due regard to the existing interests of people employed in it and to the major interests of customers, both at home and abroad. All this is important in the determination of the best long-term plan. This occasions the very deepest consideration, particularly in circumstances in which the steel market in current terms, and even in outlook, is still looking very uncertain.
Mr. Edward TaylorWhen will my right hon. Friend be able to tell us how many price basing points for steel the EEC will permit us to have——
Mr. Taylor—in the event of our joining the Community? Is my right hon. Friend aware that Scotland was very glad to have his assurance recently that Hunterston is still an open question and we hope that there will still be a decision on this——
§ Mr. DaviesDetecting the purport of my hon. Friend's question as best I may through the sedentary interjections of the hon. Member for West Ham, North (Mr. Arthur Lewis), I must tell my hon. Friend that the question of basing points for pricing purposes by the Corporation is one in which the Corporation is deeply engaged. I hope that these negotiations will soon be completed and that the Corporation will make the necessary announcement.
§ Mr. BennWould it not be nearer the truth for the right hon. Gentleman to admit that he held back the steel investment plan with a view, first, to cutting it and then, while he was reviewing it, realised the need for expansion? Is it not true that the Government have not given a clear lead to the competitive steel industry? Although investment is at a high level, is there not a serious need for plant manufacturers and for the industry as a whole to know what the level of investment is to be and also, to stress a point which has been raised 23 more than once this afternoon, to know the impending level of redundancies?
§ Mr. DaviesYes, but the right hon. Gentleman should recall that in 1971–72 the out-turn of investment will be about £258 million, which is nearly double the figure for the preceding year, which figure was the outcome of investment decisions taken previously. The right hon. Gentleman cannot in reason make a charge that the Government intended to restrain the level of investment. What the Government were concerned to do was to move ahead with all investment they humanly could without prejudicing the Corporation's long-term interests.
34. Mr. Edward Taylorasked the Secretary of State for Trade and Industry what assessment he has made on the effect of steel-consuming industries in Scotland of the pricing policy which will be required to be introduced to conform to the rules of the European Coal and Steel Community.
§ Mr. Tom BoardmanThe Corporation and the independent steel producers are examining the effect as part of their detailed study to see where to place their basing points. Government Departments are being kept in touch with the progress of this study.
Mr. TaylorCan my hon. Friend confirm that it will no longer be possible to continue a uniform price for steel in Great Britain? When does he think Scottish industrialists will have some indication whether the prices relative to England will move up or down?
§ Mr. BoardmanThe pricing policy is, as my hon. Friend knows, governed by the regulations and there will not be uniformity throughout. However, there may well be a number of basing points, and it may be, as there can be, one in Scotland which could be advantageous to Scotland. It is the intention of the Steel Corporation to minimise disturbance in the traditional price pattern.
§ Mr. DouglasWill the hon. Gentleman given an assurance that whatever basing points are chosen, pricing will not be damaging to the shipbuilding industry?
§ Mr. BoardmanAs I said, it is the Corporation's intention to minimise disturbance to the traditional pricing pattern. 24 It will make an announcement fairly soon.