HC Deb 17 July 1972 vol 841 cc6-7
5. Mr. Guy Barnett

asked the Secretary of State for Trade and Industry what assistance his Department has provided to the British Steel Corporation for the purpose of expanding its export potential.

Mr. Tom Boardman

The export services of the Department are available to BSC which subscribes to the Export Intelligence Service. There is close contact between the Department and the central organisation of BSC.

Mr. Barnett

Is the Minister aware that in addition to the alarming number of redundancies in the steel industry in Scotland and elsewhere, redundancies are even threatened in my own constituency in a branch of the constructional engineering division? In view of the floating of the £ and the fact that as a consequence our steel exports should be a good deal more competitive than they were, will his Department use every effort to push up the export potential of the BSC?

Mr. Boardman

The hon. Gentleman no doubt is aware that the greatest aid we can give to exports is to make sure that we have an efficient industry backed by very substantial investment. It is that very high level of investment which the Government are supporting in the British Steel Corporation and which will pay the biggest dividends.

Mr. Powell

Is not one consequence of floating the £ that the Government do not need to bother their heads about exports at all?

Mr. Boardman

That gives rise to a wider question than falls to me to answer now.

Mr. Varley

In view of the fact that only recently we were told that this matter was being fully considered by the joint steering group and by McKinsey, will the Minister say how much steel will be exported assuming a target for 1980 of 28 million tons? In view of that target and bearing in mind the Chancellor of the Exchequer's assumption of a 5 per cent. growth rate by 1980, how much steel will have to be imported?

Mr. Boardman

The Joint Steering Group figures cover a wide range of possible outcomes both at home and in regard to exports. The subsequent McKinsey Report has strengthened the Government's confidence in accepting them.