HC Deb 12 January 1981 vol 996 cc734-5
3 Mr. Barry Jones

asked the Secretary of State for Industry when he next expects to meet the chairman of the British Steel Corporation to discuss the consequences of the review of steel-making capacity.

The Secretary of State for Industry (Sir Keith Joseph)

I expect to continue discussions with Mr. MacGregor later this month.

Mr. Jones

When the right hon. Gentleman does so, will he consider directing the chairman of the Corporation to permit no more steel redundancies until he has collaborated with the right hon. Gentleman's Department in order to deliver new jobs that will replace those which must go? Is the Secretary of State aware of the consternation in my constituency, which last year suffered 7,000 steel job losses and this year is programmed to lose another 900? Will he dissociate himself from the outrageous speech of the Secretary of State for Energy, who said that new jobs would bypass once prosperous areas?

Sir Keith Joseph

The answer to the first part of the hon. Gentleman's question is "No". The BSC board does not need the Government's authority to seek to improve the competitiveness of British Steel plants. The answer to the last part of his question is "No".

Sir Anthony Meyer

Is it not clear that a terrible weight of responsibility rests on Labour Members to advise all those concerned with the steel industry to try to make a success of the Corporation's new plan and, therefore, to ignore the usually bad advice given by the ISTC that its members should vote against the proposals?

Sir Keith Joseph

Although I sympathise very much with the general theme of my hon. Friend's implications, I do not think that it is for the Government to intervene in something which is a matter for the BSC board. I am sure that British Steel workers are well aware of the options before the BSC board.

Mr. Orme

When will the Secretary of State report to the House on the Government's decision in respect of the corporate plan? The House is anxious to have an early decision and, obviously, a debate. Surely the right hon. Gentleman cannot blame the present plight of the steel industry on wage claims, in particular what has been offered at present by the BSC. Can he say anything further about energy costs and the effect that they are having on steel manufacturing in this country?

Sir Keith Joseph

The Government hope to reach a decision on the BSC plan by about the end of this month and, of course, will be reporting to Parliament. The causes of the lack of British Steel competitiveness go back into the past and affect both management and work force. As for energy, last week's NEDO meeting approved the setting up of a task force which will be reporting by the end of March on the facts of energy so that the necessary decisions can be made by the energy authorities.