HC Deb 09 June 1980 vol 986 cc15-6
11. Mr. Hooley

asked the Secretary of State for Industry what additional capital will be made available to the British Steel Corporation in the period 1981 to 1983 to continue the process of modernisation.

13. Mr. Chapman

asked the Secretary of State for Industry when it is intended to set the cash limits of the British Steel Corporation for 1981–82.

Mr. Michael Marshall

The Government expect to announce the BSC's external finance limit for 1981–82 later this year at the same time as the limit for other nationalised industries. This would include provision for BSC's investment in fixed assets. It would be premature to take a view on the provision of funds for 1982–83. My right hon. Friend will, of course, be discussing these matters with the chairman-designate when the latter has had time to take stock.

Mr. Hooley

Is the Minister aware that, even in the present state of world steel demand, a sustained and high level of investment is essential for a modern steel industry, and that that investment cannot be turned off like a tap because of ideological monetary dogma?

Mr. Marshall

I note the hon. Gentleman's comment, but he will perhaps appreciate that Mr. MacGregor, the chairman-designate, has recently said that since the plans to produce a capacity of 15 million tonnes were made the problems of the BSC have been increasing rather than decreasing.

Mr. Chapman

While in no way wishing to discourage sound capital investment projects in the BSC, may I ask whether my hon. Friend recognises that, in the allocation of taxpayers' money, priorities suggest that most people in the country would be well satisfied if the reduction in the BSC's external financing limits next year compared with this year was of the same order as this year compared with last year?

Mr. Marshall

I appreciate the force of my hon. Friend's question. The fact is that the corporation has received more than £4 billion in the last five years, of which about £2½ billion have gone into capital investment. The British taxpayer cannot go on putting in large sums of money unless he sees some return on the massive investment that has already been made.

Mr. Michael Brown

Does my hon. Friend accept that if the Government are to make any funds available to the BSC for capital projects those funds should be reserved strictly for capital projects, such as the furthering of continuous casting within the BSC?

Mr. Marshall

I am certain that the BSC will take note of my hon. Friend's point. It is certainly one that I have argued in times past.