HC Deb 28 July 1980 vol 989 cc1030-1
30 Dr. Ifor Davies

asked the Secretary of State for Wales, further to his reply to the hon. Member for Gower,Official Report,

Mr. Nicholas Edwards

The meeting covered the short-term problems for tin-plate as a result of the present fall in demand.

Dr. Davies

Is the right hon. Gentleman aware that the tinplate section of the British Steel Corporation has consistently operated at a profit over the years? Is he further aware that the BSC has recently announced that the industry, which is located in my constituency, will operate on a shorter working week because of lack of supplies of continuous casting quality steel, a full supply of which it has been unable to get from the BSC? As a result, that quality steel is now imported. As Secretary of State, will he institute an inquiry in the light of the seriousness of this situation?

Mr. Edwards

My understanding—certainly from the information that has been given to me by the BSC—is that the present short-time working and temporary arrangements are being made not because of the shortage of suitable steel, although some is being imported, but because of the serious collapse of the market. The BSC is attempting to mitigate this situation by temporary short-time working during the summer months in the hope that the market will improve in the autumn.

Dr. Davies

Is the right hon. Gentleman aware that I have it in writing that the statement which I made is correct?

I shall be glad to convey that to the right hon. Gentleman after Question Time.

Mr. Edwards

It is quite true that the BSC has chosen to import some steel, because in some of the new techniques for making cans it is necessary to have con-cast steel, which has not been immediately available from the BSC. I can assure the hon. Gentleman that the general reason for the slowdown in the tinplate operation at present arises from the condition of the market rather than from the inadequacy of supplies.