§ 9. Mr. Abseasked the Secretary of State for Wales if he has now had discussions with the British Steel Corporation on the future of the Panteg steelworks; and whether he will make a statement.
§ Mr. Nicholas EdwardsI have been in touch with the chairman, and he has explained the corporation's reasons leading to the decision announced last week to reduce manpower levels at the plant. The decision is one for the commercial judgment of the corporation.
§ Mr. AbseIs the Seretary of State aware that Sir Charles Villiers, accompanied by Mr. MacGregor, gave confident predictions to the Seclect Committee two years ago claiming that £150 million invested in stainless steel provided assurances for the future of Panteg? In view of the clear managerial blunders at the top, which are revealed by this decision to reduce the numbers by 300 in an area of almost chronic unemployment, does the Secretary of State not think that instead of adopting a supine position he should be ordering an inquiry into why such massive investment should now be—we are told—absolutely useless? How can the Secretary of State expect to gain the co-operation of work forces when decisions such as this are taken by managements? How can reliance be placed upon people who give assurances one year and tear them up the next?
§ Mr. EdwardsI have checked on the assurances that Sir Charles Villiers gave to the Select Committee. I cannot be responsible for what he said. His answer was in response to a question from the hon. Member about hiving off. Sir Charles made it clear that the BSC, having invested £140 million in the stainless steel operation, wished to continue making stainless steel and that Panteg had an essential role in that operation. The present 10 chairman of the British Steel Corporation has written to the hon. Gentleman pointing out the present state of the European market, the lack of demand and the enormous over-capacity. This is on a European and world-wide basis. As he says:
In these serious market conditions, it would not he sensible to prophesy beyond the short term. To that extent it would be irresponsible of me to make promises or offer indefinite guarantees as to the life of the Panteg works or the jobs available within that operation.No manager of any commercial organisation can give guarantees about future employment in companies that depend upon sales.
§ Mr. ColemanWill the right hon. Gentleman assure the House, in the light of the disaster that has overtaken the Panteg works in particular, and Gwent in general, that he will prevent any further pandering to sectional interests in the steel industry which is to Britain's detriment, especially in respect of the cold-rolled narrow steel strip market? Will he take steps to ensure that the same fate does not befall Whitehead's works, which is bigger and more efficient than any other in the country and our best producer of cold-rolled narrow strip?
§ Mr. EdwardsNo one within the company or on the Government Benches can give guarantees about employment levels in any commercial organisation. The Government are fully committed to securing the best possible defence of the British steel industry's interests in regard to the United States action and actions being taken in the EEC. The European Commission and the Government are objecting to the United States countervailing duties on United Kingdom steel with all possible force. The company is considering the legal position. Both the company and the Government will continue to defend robustly the interests of the British steel industry in international markets.