HC Deb 18 May 1981 vol 5 cc1-2
1. Mr. Kenneth Carlisle

asked the Secretary of State for Industry how many complaints his Department has received from private companies in regard to British Steel Corporation pricing.

The Under-Secretary of State for Industry (Mr. Michael Marshall)

Many general complaints about BSC's pricing policy have been received in recent months. I have referred 18 separate and specific complaints on behalf of private firms to Mr. MacGregor under the procedure outlined in my right hon. Friend's statement of 24 February.

Mr. Carlisle

I thank my hon. Friend for that reply. Does he agree that the Government must continue their rigorous scrutiny of all such complaints in order to ensure that the massive subsidies that the Government are giving to the British Steel Corporation are not used unfairly to undercut the private sector steel companies

Mr. Marshall

The Government would never pretend that this mechanism can resolve all these difficult problems. With overcapacity in the steel industry throughout the whole of Europe, problems will continue. But I take note of what my hon. Friend says.

Mr. Hooley

Is the Minister aware that the Prime Minister is forever wittering about industry becoming competitive, and that, as soon as the British Steel Corporation becomes competitive, we hear only moans and groans from the private sector? Is he aware that the real problems of the private sector are high interest charges, high fuel charges and the overvalued pound, which are a direct result of the Government's policy?

Mr. Marshall

The hon. Gentleman has answered his own question, because these factors apply to the whole of the steel industry in the United Kingdom. The basic problem is one of overcapacity throughout the whole of the Community, and it is important to try to tackle that problem at source.

Mr. Campbell-Savours

What assurances will the Under-Secretary give the House that BSC will not be required to raise its prices, as a result of these complaints, to such a level that it will lose its own traditional markets?

Mr. Marshall

There is no evidence to support that allegation.

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