HC Deb 15 January 1979 vol 960 cc1306-9
12. Mr. Michael Marshall

asked the Secretary of State for Industry when he will next meet the chairman of the British Steel Corporation.

Mr. Kaufman

My right hon. Friend will meet the chairman on 7th February.

Mr. Marshall

Is the Minister aware that once again we have had a period of speculation and a rather difficult problem about the chairmanship of the British Steel Corporation? According to the press, it now appears that Sir Charles Villiers will extend his term of office for a further year, and we wish him well. But the period which has led up to this announcement once again has been full of speculation about whether he would be replaced. This follows the argument that we had about Sir Monty Finniston. What is the Government's policy about the appointment and reappointment of the chairman of the British Steel Corporation?

Mr. Kaufman

That strikes me as an extremely peculiar question. These matters have to be considered. Sir Charles has been reappointed. The fact that there was speculation in the newspapers was not the responsibility of the Government. It was the Government's intention to reappoint Sir Charles, and at the appropriate time that took place.

Mr. John Ellis

When my right hon. Friend meets the chairman of the British Steel Corporation, will he press upon him the example of the chairman of the National Coal Board? When it comes to changes in that industry, whether it be the opening or closing of coal mines, and so on, there is always agreement with the trade unions, even though the negotiations may be difficult. Will my right hon. Friend issue instructions that before more changes are canvassed or talked about in the steel industry, and that if closures have to be talked about, it will be made plain that after discussions and consultations there will be agreement with the trade union movement and that it is not for the Government, the BSC or the trade unions to go it on their own?

Mr. Kaufman

I do not recall that being a recommendation of the Select Committee whose report my hon. Friend signed, but I am interested to know that he now takes that view with regard to closures. Of course, we ask the British Steel Corporation to consult the Trades Union Congress steel committee and the workers about potential closures. But we cannot allow even the TUC steel committee to have a veto over a closure if the British Steel Corporation regards that as being necessary, and provided that proper negotiation has taken place. So far, every closure that has taken place within the past 12 months has been by agreement, and we hope very much that that will continue to be the case.

Mr. Rost

Why has not the Minister met the chairman of British Steel to discuss the lorry drivers' dispute? Is he aware that at the Stanton and Staveley plant only one-third of the production is getting away and that all export orders are at a complete standstill? What is the right hon. Gentleman doing about that?

Mr. Kaufman

If the hon. Gentleman had had his way when he voted against further money for the British Steel Corporation, the whole Corporation would be permanently at a standstill, and the hon. Gentleman's synthetic indignation would not have put that right.

Mr. Stan Crowther

When my right hon. Friend next meets Sir Charles, will he tell him that at least one of his employees, when he visited the BSC's training centre at Brookfield Manor in Derbyshire, was greatly affronted to find Japanese stainless steel icecream dishes in use in the dining room? Will my right hon. Friend suggest that it might be sensible to discontinue that practice?

Mr. Kaufman

I am afraid that that supplementary question was not anticipated in my notes. But I shall make inquiries about it with the urgency that it requires.

Mr. Norman Lamont

Will the Minister explain why it was that when, last year, total EEC steel output increased and French, German and Italian output increased, British steel output decreased? Is not the failure to exploit that upturn in the market the biggest possible condemnation of all that the Government have done to prevent the British Steel Corporation from making itself competitive?

Mr. Litterick

They are breaking the rules. That is what is happening.

Mr. Kaufman

There are two matters to which I ought to draw attention. When internal demand does not come forward, it is not there for the British Steel Corporation to supply. One of the reasons why the BSC is not producing as much steel as it might is that the demand by the motor car manufacturers for steel last year was not as high as it should have been because of the downturn in production, partly due to the strike over free collective bargaining at Ford.