HC Deb 19 January 1976 vol 903 cc911-4
17. Mr. Rost

asked the Secretary of State for Industry if he will make a statement on the investment and rationalisation programme of the British Steel Corporation.

Mr. Kaufman

The British Steel Corporation expects to spend over £500 million in the current financial year on its capital investment programme—a record figure—and substantially more in 1976–77. Government decisions on most of the plant closures proposed by BSC in its related rationalisation programme have already been announced to the House on 4th February and 6th August last year. My right hon. Friend hopes to be in a position to make a statement on the outstanding issues in the near future.

Mr. Rost

Does the Minister's statement mean that the Government are now coming off the party political fence and will actively support the British Steel Corporation management in trying to save the industry from complete collapse? Is he aware that indecision by the Government over the last few months has brought about complete chaos in the industry's attempt to reorganise and modernise and therefore to save jobs for the future?

Mr. Kaufman

The hon. Gentleman's immoderate remarks will do nothing to help the situation in the British Steel Corporation. He is more familiar with the party political fence and its immoderacies than, possibly, any other hon. Member in the House—[Interruption.] If the hon. Member for Derbyshire, South-East (Mr. Rost) wishes, in a serious question, to throw around that kind of nonsensical verbiage, I must be allowed to reply in kind. The Corporation is involved in most important and serious negotiations with the steel trade unions and it would be prejudicial for us to make public statements about these negotiations, which are solely between the Corporation and the unions.

Mr. Roy Hughes

Does my hon. Friend appreciate that the Government have a responsibility in this matter? The industry now faces a very serious situation, particularly in Wales, where thousands of people are out of work and thousands more have the threat of redundancy hanging over them. Is my hon. Friend aware that millions of pounds have been poured into this industry to provide new investment, yet it is producing less steel than for many years? Will he now authorise a full-scale inquiry into the management of the industry to see what is going on?

Mr. Kaufman

I agree with my hon. Friend that it is a great pity that production is being lost, for whatever reason. We believe that in this difficult and delicate situation it is right for these matters to be discussed properly between the Corporation and the steel trade unions. I would not wish to say anything that would in any way damage the progress of these discussions. My right hon. Friend the Secretary of State is at this moment meeting the TUC's steel committee.

Sir A. Meyer

Has the Minister noted that Shotton, which, under the BSC proposals, is to cease production of steel, is none the less continuing to work without industrial dispute, whereas Port Talbot, on which the Corporation will have to rely for future supplies, is at present at a standstill as a result of industrial action?

Mr. Kaufman

I had noted the situation at both Shotton and Port Talbot. The hon. Gentleman's supplementary question seemed to contain some implication about the effect of such events upon any Government decision on future steel investment in Shotton. I assure the hon. Gentleman that we shall be making a statement on that matter as soon as we can.

Mr. Golding

When can Shelton Bar expect to get its are furnaces? Will the Minister reassure the workers there that steelmaking is to continue, despite the policies of the British Steel Corporation?

Mr. Kaufman

We made our decisions about Shelton a considerable time ago. There has been no change in the decisions that we made. The only matter on which the Government have not yet made a decision concerns Shotton. All the rest of the British Steel Corporation's investment programme is now fully agreed with the Government.

Sir J. Langford-Holt

Does the Minister agree that the future of the steel industry depends first on its viability and secondly on an upturn in the economy? When his hon. Friend the Member for Cannock (Mr. Roberts) spoke of a sharp upturn in the economy next year, the Minister did not dissent. Is it the Government's view that a sharp upturn can be expected next year?

Mr. Kaufman

Questions about a sharp or any other upturn in the economy are for my right hon. Friend the Chancellor of the Exchequer.

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