HC Deb 10 April 1978 vol 947 cc968-70
20. Mr. Gow

asked the Secretary of State for Industry what is his latest estimate of the prospective loss of the British Steel Corporation for the current financial year.

Mr. Kaufman

On 16th January my right hon. Friend exceptionally announced an estimated loss for 1977–78 of £520 million, including a £50 million allowance for contingencies, which has fortunately proved not to be required. Present indications are that the outturn for the year will be a loss of around £440 million, but I would prefer to await the audited results before giving the House a firm figure.

Mr. Gow

Could not the new prospective loss of £440 million be reduced if the steel mills that are unprofitable and the steel mills that are grievously over-manned—some of which are in Labour marginal seats—received the sort of surgery that true efficiency requires?

Mr. Kaufman

If we chucked workers out of work overnight, as the hon. Gentleman wants in so many sectors of industry, we could reduce a great deal of losses. We could also destroy industrial relations stability in the British Steel Corporation. We could wreck the Corporation. However, that is a consequence of everything that the hon. Gentleman proposes in the House.

Mr. Michael Marshall

Does the hon. Gentleman recognise that both he and his right hon. Friend the Secretary of State tend to rely very much on historical figures when talking about losses? Is it not the case that action could have been taken earlier last summer if his Department's reporting systems were more effective, instead of which his right hon. Friend constantly says that he could not take action earlier in the year and that, in effect, he has to wait for the year ending?

Mr. Kaufman

One day we will get it into the hon. Gentleman's head that if we had taken hasty and arbitrary action to chuck workers out of work because of a prospective loss forecast four weeks into a financial year he and his hon. Friends would have been the first to criticise us—or maybe they would not, as they love unemployment so much.

21. Mr. Rost

asked the Secretary of State for Industry when he expects to announce his proposals for improving the productivity, competitiveness and profitability of the British Steel Corporation.

Mr. Kaufman

I would refer the hon. Member to my right hon. Friend's statement of 22nd March.

Mr. Rost

As the Minister has failed to answer questions on and refuses to claim any responsibility for the shameful bankruptcy and rundown of the steel industry, will he now at least admit that the industry's problems are due to its inability to compete in world markets against private enterprise industries abroad? Will he also admit that nationalisation in 1967 has done nothing to solve the problems but a great deal to aggravate them?

Mr. Kaufman

Changing the odd date and figure, the hon. Gentleman's remarks could apply exactly to Rolls-Royce, for whose nationalisation he voted.

Mr. Rost

That is no answer.