HC Deb 26 January 1976 vol 904 cc4-6
2. Mr. Tim Renton

asked the Secretary of State for Industry what discussions he is having with the Chairman of the BSC regarding future technological change in steel production.

The Minister of State, Department of Industry (Mr. Gerald Kaufman)

I am in regular contact with the chairman about a wide range of matters affecting the Corporation's present performance and future development. Technological change is one of the factors taken into account.

Mr. Renton

Is not technological change intertwined with overmanning? Why is the BSC board blowing hot and cold in its demands that overmanning should be reduced? Will the Minister categorically assure the House that the Secretary of State did not pull the rug from under Mr. Scholey's feet during last week's negotiations?

Mr. Kaufman

Mr. Scholey had his feet on the ground. There was no rug between him and the ground. The hon. Gentleman should be aware that it is not essential in this kind of situation to have a confrontation. The British Steel Corporation and the unions concerned came to an admirable agreement on the basis not of confrontation but of cooperation.

Dr. Bray

Is my hon. Friend aware that the British Steel Corporation seems to be holding up investment plans, for example, in the steel foundry at Craigneuk works, which is particularly anomalous in view of the measures being taken by the Government to modernise the ferrous foundry industry? Will he check that the BSC is taking all due technological steps to increase productivity?

Mr. Kaufman

We are in regular contact with the BSC on this matter, but I shall be glad to look into the specific point made by my hon. Friend.

Mr. Lane

Reverting to the point made by my hon. Friend the Member for Mid-Sussex (Mr. Renton), is it not clear that the Corporation has been pushed considerably off course? Will the Minister undertake that, if and when the Corporation has to take a further initiative to secure the strong competitive position that we want in the industry within a reasonable time, it can rely totally on Government support?

Mr. Kaufman

The hon. Gentleman should reconcile himself to a situation where we do not have a Government meddling in and interfering with the day-to-day activities of the Corporation. There was a sensible negotiation between the BSC and the unions and there was a sensible outcome.

Mr. Tebbit

Does the Minister agree that if the British Steel Corporation is to go in for technological change it must achieve the right manning levels? Were the productivity comparisons issued in conjunction with the statement on the recent agreement between the unions and the Corporation? One or the other must be so—"Yes" or "No"?

Mr. Kaufman

The productivity comparisons appended to that agreement were international comparison statistics, as the hon. Gentleman knows. It is not necessary for the unions or anybody else to agree objective figures. The Corporation demonstrated the ground that needs to be made up to pull back on the lack of competitiveness that was so signal in the period before nationalisation.