HC Deb 18 July 1977 vol 935 cc1125-6
5. Mr. Hardy

asked the Secretary of State for Industry at what proportion of capacity the steel industry is currently operating; and if he expects the position to improve by the end of 1977.

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

The United Kingdom steel industry operated at about 69 per cent. of capacity in June. It now seems unlikely that there will be any significant improvement in demand before the end of this year.

Mr. Hardy

While we all hope that the industry will improve, may I ask whether my hon. Friend is aware that recent statistics show that the Yorkshire and Humberside Region has been more severely affected by the reduction in steel production than any other region, despite the fact that the region contains some of the Corporation's most successful undertakings? Will my hon. Friend advise the Corporation to build upon success rather than to be content with a lesser level of achievement?

Mr. Huckfield

I am conscious of what my hon. Friend says about Yorkshire, particularly in view of the representations which he and many of my hon. Friends have made. I can assure him that if he has a look at the investment performance and projections of the British Steel Corporation he will see that the Corporation intends to build on success.

Mr. Michael Marshall

Does the hon. Gentleman agree with the Chairman of the British Steel Corporation, who said in a recent speech that the level of losses at which the Corporation was currently running was unacceptable? If the Minister agrees with this, may I ask what he is doing to try to remove that part of the loss which stems from ministerial delay, as demonstrated over Port Talbot and currently Redcar?

Mr. Huckfield

The hon. Gentleman will recognise that there is a specific Question on the Order Paper about this. I hope that he will also recognise, if he has read that speech in full, that what the chairman was saying was that we have to continue to try to be a low-cost, efficient steel producer. That is what the investment programme of the British Steel Corporation aims at.

Mr. John Ellis

Will my hon. Friend look at the position whereby in Scunthorpe we can produce massive quantities of steel at competitive prices yet are short of blast capacity to make iron? Should not plans to improve the blast capacity be made now to take advantage of the upturn when it comes? Will my hon. Friend give British Steel a prod to see that such plans come forward to him for his approval?

Mr. Huckfield

I am aware of what my hon. Friend has said because he has made sincere and detailed representations concerning Scunthorpe. At present, however, we have received no representations from British Steel concerning Scunthorpe.