HC Deb 21 November 1977 vol 939 cc1082-3
13. Mr. Nicholas Edwards

asked the Secretary of State for Wales what representations he has received about the financial position of the steel industry in Wales: and whether he is satisfied that the investment programme of the industry is making the expected contribution to economic progress in Wales.

Mr. Alec Jones

My right hon. and learned Friend has had several representations on various aspects of the steel industry in Wales. As the hon. Member knows, my right hon. Friend the Secretary of State for Industry is responsible for the steel industry. The British Steel Corporation's investment programme is one of the matters he is discussing with the Corporation and the TUC Steel Committee.

Mr. Edwards

Is the Minister aware that the West Wales Steel Development Committee is holding a crisis meeting today to consider the huge losses of BSC, the collapse of its investment strategy and the real possibility that the Port Talbot development will not go ahead? What action will the Government take to deal with this financial crisis and the potentially serious consequences for the Welsh economy?

Mr. Alec Jones

I have already indicated that this matter is principally one for my right hon. Friend the Secretary of State for Industry, but the investment to which the hon. Gentleman refers particularly is a matter for the Corporation within the financial limits and the strategic framework agreed with the Government. I very much hope that the obstacles to a start on further investment can be overcome, but the situation is inevitably affected by market prospects.

Mr. Anderson

Does my hon. Friend accept that the elation in West Glamorgan when we had the announcement last February of the massive investment at Port Talbot is now being replaced by increasing worry that there will be an indefinite postponement? Does he accept the case that the Port Talbot investment rests mainly on the long-term future of British Steel as a whole and that it should not be held up because of short-term financial difficulties?

Mr. Alec Jones

I think that hon. Members on both sides of the House are concerned about the deterioration of the financial position of the British Steel Corporation, and it is this matter which now is the subject of urgent Government attention.

Sir A. Meyer

Is the Minister aware that, in a situation in which world demand for steel is contracting, the case for maintaining in production small and efficient producers is stronger than it ever was?

Mr. Alec Jones

Yes, Sir. There has been a suggestion that the Corporation might increase its investment in its small works. That, principally, is a matter for the Corporation in putting forward investment proposals which it believes to be sound. I welcome the hon. Gentleman's conversion to the interests of Shotton.

Mr. D. E. Thomas

Will the Minister ensure that the Government will resist in Wales any proposals for voluntary redundancies introduced by the Corporation, since alternative jobs have not been made available in steel-making areas such as Ebbw Vale and are not forthcoming in the other steel-making areas of Clwyd and South Glamorgan?

Mr. Alec Jones

I think everyone agrees that we need an efficient, high-productivity steel industry, and any question of de-manning is a matter for negotiation between the Corporation and the trade unions concerned.

Several Hon. Members

rose—

Mr. Speaker

Order. There are other Questions down about steel later on.