HC Deb 06 April 1981 vol 2 cc679-80
16. Mr. Michael Morris

asked the Secretary of State for Industry what is the role of his Department in following through the recommendations of National Economic Development Council reports.

Sir Keith Joseph

I believe my hon. Friend must be referring to the periodic reports made to the NEDC by the economic development committees and sector working parties. The Department looks closely at all recommendations addressed to it in these reports and the normal procedure is for the departmental representative on the committee to give the Government's response to the appropriate recommendations.

Mr. Morris

My right hon. Friend will be aware of the report on comparative energy costs and the implications for British industry. Is he particularly aware of the 30 per cent. disparity in foundry coking coal costs? What representations have been made to the Department of Energy on behalf of our foundries?

Sir Keith Joseph

My right hon. and learned Friend the Chancellor of the Exchequer announced in his Budget Statement the Government's response to the report to which my hon. Friend has referred. There is still considerable pressure from industry, which considers that the Government should further consider the matter. No doubt the debate will continue.

Mr. Orme

When will the right hon. Gentleman respond to the debate on energy costs? He said that he would consider the NEDC report. There was a reference to energy costs in the Budget but the Government have taken no action. Is he aware that this is having a disastrous effect upon the steel industry, both private and public?

Sir Keith Joseph

The right hon. Gentleman is ignoring the substantial step that has been taken in conditions of considerable constraint because of the level of public spending that has been set by my right hon. and learned Friend in his Budget. Industry is still making its voice heard, not only on electricity and gas but, as my hon. Friend the Member for Northampton, South (Mr. Morris) has reminded us, on foundry coke. The debate continues.

Mr. John H. Osborn

Will my right hon. Friend bear in mind that when the Industry Ministers meet tomorrow to discuss industrial problems there will be a need to ensure that the task force's report is correct and that competitors of Sheffield steel do not have an energy advantage in electricity and gas?

Sir Keith Joseph

My hon. Friend asks what on the face of it is an extremely reasonable supplementary question. However, relationships between energy costs in various countries are complicated by exchange rate movements that are transitory.