HC Deb 02 August 1976 vol 916 cc1188-9
5. Mr. Ridley

asked the Secretary of State for Industry what estimate he has made of the increase in labour productivity in the steel industry in recent years.

The Under-Secretary of State for Industry (Mr. Les Huckfield)

An index of output per man year is compiled by the Iron and Steel Statistics Bureau. Between 1967 and 1973 the rate of growth in the index was 3½ per cent. per annum. Between 1973 and 1975, however, the index fell by 13 per cent. per annum, owing to the deep world-wide recession throughout the industry.

Mr. Ridley

What an extraordinary admission, that the Goverment have actually brought steel productivity down. In view of the Government's statement last week that they wished to bring it down further by keeping open uneconomic mills, will the hon. Gentleman tell the House whether the instructions to the BSC are to increase productivity or to increase employment? The hon. Gentleman must know that he cannot do both.

Mr. Huckfield

Obviously we want productivity in the steel industry to increase. The hon. Gentleman ought to realise that the whole of the British Steel Corporation's investment programme was held back in 1971 and 1972 while the joint steering committee set up by his party considered it.

Mr. Heseltine

Will the hon. Gentleman say what concrete progress has been made towards achieving the specific targets set out in the document put before the House earlier this year, after agree- ment between the steel unions and the British Steel Corporation?

Mr. Huckfield

The hon. Gentleman is right to refer to the British Steel Corporation's agreement with the TUC steel committee about the potential reduction of 20,000 jobs in the steel industry. Obviously this is a continuing matter, and a review into the whole subject is going ahead.

Mr. Ronald Atkins

Docs my hon. Friend agree that the steel industry still suffers from generations of neglect in investment by private enterprise before the steel industry was taken over, and that, even allowing for the fact that, with the recession, productivity is bound to fall through inadequate use of existing capacity, nevertheless there is a need for increased investment?

Mr. Huckfield

My hon. Friend is absolutely right. The British Steel Corporation does have a large amount of obsolescent plant. The replacement of that obsolescent plant is not helped by the joint steering committee, which the Conservative Party set up. It is not helped by the Conservatives' increased and continuing opposition to the Iron and Steel (Amendment) Bill.