§ 10. Mr. Ashleyasked the Secretary of State for Trade and Industry when he proposes to make a further statement about the productive capacity of the British Steel Corporation.
§ Mr. Peter WalkerI have already announced a 10-year strategy for the modernisation and expansion of BSC's productive capacity. Further details are contained in the White Paper on the strategy published on 8th February, Cmnd. 5226.
§ Mr. AshleyHas the right hon. Gentleman noted the fine productivity record of Shelton Steelworks with existing inadequate equipment? Is he aware that if electric are furnaces were installed the investment of £4 million that is required would be repaid within a year and the existing profits would be doubled to £5 million a year?
§ Mr. WalkerThere is no intention in the immediate future for closure of Shelton to take place. The British Steel Corporation has pursued a policy of giving all the financial facts which result in its decisions being given to those concerned. I am sure that if and when a closure comes, as far as Shelton is concerned this will be provided.
§ Mr. SkeetDoes my right hon. Friend agree that productivity investment depends on demand and relative prices and that to have too high a productivity capacity which the market cannot warrant would not be in the interests of the steel industry?
§ Mr. WalkerThere is a need in any strategy for flexibility, and I believe that in the strategy approved by the Government there is that flexibility. We must have modern steel plants that can compete with our major overseas competitors.
§ Mr. GoldingWill the right hon. Gentleman say whether it is certain that a steel-producing mini-plant will be provided at Irlam, Bilston or Shelton? Will he further tell us what length of life that steel-producing plant is expected to have?
§ Mr. WalkerThat is a separate question. I do not know the details of the answer. I will write to the hon. Gentle- 964 man or he can put a Question on the Order Paper.