HC Deb 26 June 1972 vol 839 cc986-7
15. Mr. Biffen

asked the Secretary of State for Trade and Industry what is the latest estimate he has made of the likely increase in the price of British Steel Corporation steel products upon accession to the European Economic Community on 1st January, 1973.

Mr. Tom Boardman

As I have already told the House, the aim is for BSC to move into profitability and regardless of entry into Europe some price increases will be necessary. The level of our steel prices within the Community will be determined by competition between the producers.

Mr. Biffen

Is my hon. Friend aware that there is some imprecision in that Answer and that an elaboration has been given topicality by the events of Friday? Are changes in sterling parity rates expected to increase the price of British steel, or otherwise? If the Government were unwise enough to move towards a system of price freeze or control, would my hon. Friend have authority under the Treaty of Paris to require compliance by the British Steel Corporation?

Mr. Boardman

The price structure is for the industry to assess. Steel is operating in an internationally competitive market, and the intention of the BSC and the Government is that it should be profitable. On the rôle of intervention, my hon. Friend will be aware that the powers of direction which followed representation from the Consumer Council are being repealed by the European Communities Bill.

Mr. Kaufman

Who is in charge of BSC pricing—Lord Melchett or M. Jacques Ferry?

Mr. Boardman

The hon. Gentleman should not draw too much from speculative reports based on what is said by spokesmen of the European Community. The British Steel Corporation is in charge of its own pricing policy.

Sir R. Cary

I attended the final meeting at Irlam last Thursday, when it was made known that the plant was to be shut down by 1974, throwing 5,000 people out of work. One justification for it was that the rationalisation of the steel industry and the transfer of that work to other quarters would lead to an economic price for steel. The Question implies quite substantial increases; will my hon. Friend say a word about that?

Mr. Boardman

I might perhaps correct my hon. Friend in his statement that the announcement on Friday implied the removal of 5,000 job opportunities. That is a mistake in the figures, and I know he will have them correctly. I welcome discussions with my hon. Friend and with hon. Members on both sides of the House on this problem. On the suggestion that the closure is in any way due to the pricing policy in Europe, that again is perhaps a misinterpretation of the true position. It is, of course, necessary to secure rationalisation of the industry so that steel can be competitive, and that applies whether or not we enter the Community and whatever the outcome of any other discussions.