HC Deb 04 November 1974 vol 880 cc679-81
21. Mr. Michael Marshall

asked the Secretary of State for Industry when he expects to make an announcement of his policy regarding the British Steel Corporation's closure review; and if he will make a statement.

23. Mr. Lambie

asked the Secretary of State for Industry when he will complete his review of the British Steel Corporation's 10 years' strategic plan; and if he will make a statement.

Mr. Benn

My right hon. and noble Friend the Minister of State is now carefully considering the many representations he has received in the course of his consultations on the proposed closures at Ebbw Vale, East Moors, Hartlepools steel-making, Shelton and Shotton arising out of the BSC's development plans. He will be visiting Scotland next week to see nine plants likely to be affected there and to hold similar discussions. I am well aware of the need to resolve the present uncertainty and an announcement will be made as soon as possible.

Mr. Marshall

Is the right hon. Gentleman aware that the Chairman of the British Steel Corporation recently estimated that for each month of the delay in finalising the closure review the increase in the cost investment programme went up by 1½ per cent. to 2 per cent.? Is he further aware that in the case of Port Talbot, assuming a capital investment of about £500 million, this means that we are now seeing about £90 million added to that bill since February? Finally, will the right hon. Gentleman understand that this kind of delay and situation bodes ill for the future of the shipbuilding and aircraft industries?

Mr. Benn

I appreciate what the hon. Gentleman has said. There are, in fact, no major investment proposals now before us. But I would put this to him for his consideration. If there had been proper consultation and disclosure at the time the BSC development plans were first produced, all these reviews, taking account of the social, community and human as well as technical factors, would have been taken into account without its being necessary for us to undertake the reviews at this stage. I make no apology whatever for looking very carefully, after full consultation, into the closures that are implicit in the original BSC plans.

Mr. Lambie

I thank my right hon. Friend for his reply. However, I am more concerned with the future plans of the British Steel Corporation. Would my right hon. Friend state that the Government accept former Labour Party policy in that we should be considering a United Kingdom annual production steel target of about 44 million tons and not the 33 million tons announced by the corporation? Is not this the time for the Government to be considering breaking up the corporation, giving Dr. Finniston the kick and setting up a Scottish steel corporation in its place?

Mr. Benn

I confess to my hon. Friend that I am not persuaded of his latter point, but I made clear on my first meeting with Dr. Finniston after the election that, as far as the Government were concerned, there was no upper limit on his steel targeting if he thought it right to bring forward alternative proposals. Therefore, on the first part of my hon. Friend's question, the matter was dealt with by me some months ago.