HC Deb 04 November 1974 vol 880 cc669-71
7. Mr. Peter Morrison

asked the Secretary of State for Industry when he intends to make an announcement about the steel-making process at the Shotton Steelworks.

Mr. Meacher

My right hon. and noble Friend the Minister of State has undertaken extensive consultations with the BSC, the TUC Steel Committee, the workers involved and other local interests about the future of iron- and steel-making and hot-rolling at Shotton. He is now carefully considering the many representations which have been made to him. I am well aware of the need to resolve the present uncertainty and an announcement will be made as soon as possible.

Mr. Morrison

Is the hon. Gentleman aware that any further delay in the announcement on the future of the steelmaking process at Shotton is bound to have the effect of completely undermining the morale of those who work in that section of the steelworks? Is he also aware that certain supporters of the Labour Party campaigned during the last General Election on the basis that a vote for Labour was a vote for the continuation of the steel-making process?

Mr. Meacher

I agree that a decision needs to be made as early as possible, but the hon. Gentleman will agree that there are interconnections within the BSC strategy, and until the review is complete in that section which affects Shotton it would be premature to make a decision. I am sure that a decision will be made before long.

I should remind the hon. Gentleman that, were it not for the fact that the Labour Government are carrying out this review, there would be a loss of 6,000 jobs in 1978–79 as a result of the closure of iron-and steel-making at Shotton. Even if there is some delay, the review will be in the long-term interests of Shotton.

Mr. Skinner

Will my hon. Friend take a tip from me? Will he reflect upon the possibility that the steel industry, like the coal industry, nationalised as it is, could to some degree suffer the same fate as the coal industry if he pays too much attention to those well-paid economists who give him information on matters such as these? Will he bear in mind most of all that perhaps it would be as well to look at the lessons derived from the coal industry and save jobs in the steel industry rather than have to clamour for steel in two or three years' time?

Mr. Meacher

I am always very happy to take tips, particularly successful ones, from my hon. Friend; he has been right on many occasions. I am sure he would agree that, whilst job preservation is a central priority of the Government, nevertheless we must have a steel industry which in the long term is viable. This does not mean making closures quickly and abruptly simply because market interests suggest that that would be the most profitable conclusion in the short term. We have to take account of the longer-term view and the need to compete successfully and viably, as we believe we can, with Continental, American and Japanese steel-making firms.

Sir A. Meyer

Will the hon. Gentleman bear in mind and impress upon the British Steel Corporation that a decision on the future of steel-making at Shotton, which may be marginal to the calculations of the British steel industry, is none the less absolutely essential and crucial to the whole economic future of North-East Wales?

Mr. Meacher

We certainly do not take the view that a decision about Shotton is marginal to the British steel-making strategy, but I am rather surprised that the hon. Gentleman should raise that point since I believe he voted in favour of the previous Government's decisions to close Shotton. However, I can assure him that we shall be taking full account of the importance of Shotton, because there are a large number of jobs there and we are extremely conscious of that fact.

Mr. Roy Hughes

May I remind the hon. Member for Flint, West (Sir A. Meyer) that it was the previous Government who accepted the proposals of the BSC to close large sections of the steel industry in Wales, including East Moors at Cardiff, and also to end steel-making at both Ebbw Vale and Shotton? Should we not expect a much better deal from this Labour Government and an early announcement?

Mr. Meacher

My hon. Friend is entirely right that he should expect a better deal, and I can assure him that when the time comes he can confidently have that expectation. Certainly it was the previous Government who were going to do away with a large number of jobs, many—in fact, the great majority—of them concentrated in the development areas. We are determined that within the constraints of a viable industry we shall preserve and indeed, in many places, as I have indicated, expand the number of jobs.