HC Deb 27 November 1978 vol 959 cc13-6
10. Mr. John Ellis

asked the Secretary of State for Trade what were the imports and exports of steel for the latest convenient period for which he has figures.

Mr. Meacher

In the 12 months ended October 1978, 3.85 million tonnes of ingots, semi-finished and finished steel were imported and 4.16 million tonnes were exported.

Mr. Ellis

Will my hon. Friend accept my congratulations because at least the figures are on the right side for the first time? However, my constituents who make steel, and who could make much more, still think that the import totals are too high. Will the Minister take into account rumours coming from British Steel that it is not satisfied with the European arrangements which are being negotiated and that there is some fiddling going on which is to our disadvantage?

Mr. Meacher

I am not quite sure to what my hon. Friend refers when he says that there is some"fiddling going on which is to our disadvantage ". I can assure him that the Commission, with our support, has established a base price scheme for a wide range of sensitive steel products. Imports from third countries which are below the base price are liable to anti-dumping regulations. The Commission has also negotiated voluntary restraint arrangements with 15 main countries which export to the EEC. These arrangements have restrained the growth of imports considerably. The Commission is now negotiating for 1979. We hope that not only will these measures be maintained but that they will be extended.

Mr. Tim Rentor

In the Minister's judgment, what in the past year has been the overall effect on the import-export balance of the Davignon proposals—for the European steel industry in general and the British Steel Corporation in particular?

Mr. Meacher

I cannot give a quantified answer. But there is no doubt that the Davignon proposals have introduced a measure of discipline, particularly within the EEC. That has assisted the balance of trade because there has been some restraint on the growth of imports into the EEC. There has been no significant export retaliation.

Dr. Bray

Is the Minister aware that the export of steel from this country would be facilitated if there were better access to capital goods markets within Europe? Is he aware that fabricators within Europe often get cut price steel to supply to British process plant customers at a cheaper price than British fabricators can obtain in order to sell to European customers?

Mr. Meacher

That is a problem for the British Steel Corporation. I am not sure whether my hon. Friend is suggesting that there are ways in which the Government can assist. If he is, we shall be glad to examine them.

Mr. Hooley

Is my hon. Friend aware that the main import penetration problem is not from outside the EEC but from inside, particularly from West Germany? Does my hon. Friend admit that we have no powers to prevent this?

Mr. Meacher

I am aware that the Sheffield special steels industry has suffered badly in the past year, particularly from exports from Germany, Italy and, to some extent, France. The Secretary of State for Industry wrote to Commissioner Davignon about this. We have just had a reply. The Commissioner is now examining price practices for special steels on the basis of article 60 of the ECSC treaty and is looking at methods to improve price discipline by the harmonisation of price lists. This is not as much as we wanted but it is a helpful reply. We shall study it and reply soon.

Mr. Nott

The Minister mentioned the Sheffield steel industry. Are the Government supporting a policy of market sharing for domestic industries which are in temporary trouble, plus a minimum price which is agreed by the main producers in that industry? Several industries are now approaching the Government with such schemes which might come up against the EEC competition rules. What is the Government's policy on special industries which are in difficulty? What is the Government's position on market sharing and minimum prices?

Mr. Meacher

The Commission has already established a mandatory minimum price policy for three product groups and a non-mandatory guidance price system for another five product groups in the steel industry. Our policy is to seek the extension of this policy and to ensure that special steels are brought within the ambit of this policy which, up to now, has been restricted to bulk steels.