HC Deb 10 July 1978 vol 953 cc1018-9
17. Mr. Hardy

asked the Secretary of State for Industry what was the volume of steel produced and the volume sold by the British Steel Corporation in the last three months and in the same period in 1976 and 1977.

Mr. Kaufman

This information is properly a matter for the British Steel Corporation, but I am arranging for a table giving this information to be published in the Official Report.

Mr. Hardy

Given the present low level of world steel demand, is it not clear that the recent story that the British Steel Corporation will be selling off its successful enterprises in South Yorkshire is rather ridiculous? Will the Minister echo Sir Charles Villiers' firm denial of this story, which is clearly a squalid and silly manoeuvre to frighten Labour voters in the Penistone by-election?

Mr. Kaufman

That report has been repudiated by the chairman of the British Steel Corporation. The Government fully endorse the chairman's statement on that matter.

Mr. Emery

Will the Minister make it clear to the House that the British Steel Corporation will be unable to increase its sales to British industry unless it modernises its productive process? Will he also remind the trade unions of that?

Mr. Kaufman

I shall also remind the Opposition of that since they voted against the borrowing powers to provide the money for modernisation.

Mr. John Ellis

Is my right hon. Friend aware that sales of steel in this country have been affected, despite an agreement with the EEC, by the amounts of steel being made available in the EEC, allegedly to be shipped outside the EEC but which are coming into this country in contravention of the agreement? Will he consult other Ministers so that representations may be made to other EEC countries?

Mr. Kaufman

I am willing to consider any information that is sent to me. I am willing to discuss the matter with the Secretary of State for Trade.

Mr. Nelson

Was not production in both periods in question affected by the stockpiling schemes under which hundreds of millions of pounds of taxpayers' money was provided to finance anti-cyclical production of steel? Is it not the case that, in spite of this money being put into the BSC, there are shortages of certain types of steel, particularly of mild rolling bar? In view of the amount of money that has been spent, how does the Minister explain the severe shortages which exist?

Mr. Kaufman

This is in part due to the fact that the corporation is not yet fully equipped to provide all sections of the market. The programme that it has undertaken for modernisation and for quality improvement, which is very important, can assist, but one does not deny that serious problems exist.

Following is the information:

STEEL OUTPUT BY BRITISH STEEL CORPORATION
Three months ended Liquid steel produced Million tones Finished steel deliveries Million tones
29th May 1976 5.3 3.7
28th May 1977 4.5 3.5
3rd June 1978* 5.2 3.8
* 14 week period.

Source: British Steel Corporation.