HC Deb 18 April 1983 vol 41 cc11-2
12. Mr. Roy Hughes

asked the Secretary of State for Industry if he will initiate talks with leaders of motor manufacturing companies operating in the United Kingdom with a view to impressing upon them the need to use British steel in their products.

Mr. Butcher

No. It is for the British steel makers themselves to prove that they can produce the right product in terms of quality, price and delivery, and to initiate discussions with any potential customers.

Mr. Hughes

Is the Minister aware that when the all-party motor industry group recently visited the Ford Motor Company at Dagenham, it was told that only 20 per cent. of British steel was being used in the models that are produced there? Is that not disgusting? Should not the multinational companies be asked to show some patriotism, especially when they are in receipt of such large Government handouts?

Mr. Butcher

I think that the hon. Gentleman and I must recheck our sources. My information is that the Ford Motor Company plans to increase its take-up of steel in the United Kingdom from one third to one half of its requirements. As there is a discrepancy in the information, I undertake to write to the hon. Gentleman on that subject.

Mr. Stokes

While everyone wishes the British motor manufacturing industry to use British steel wherever appropriate, does my hon. Friend agree that the patriotic duty of the industry is to produce motor cars without interruption by strikes?

Mr. Butcher

The best possible way to increase the take-up of British steel by the motor industry is to sell more British cars. I hope that the House agrees with me that if BL can keep its 22 per cent.-plus share of the market, which it achieved recently, that would have a far greater effect on the use of British steel and the output by the British Steel Corporation than any measure that the House could design.

Dr. Bray

Is the Minister aware that the biggest recovery in industrial output has come in steel, where there was a 37 per cent. increase in production in the first quarter of 1983 compared with the first quarter of 1982? Is he further aware that that was because the quality, price and delivery of British steel are better than is available elsewhere? Is he also aware that production of steel at Ravenscraig and Llanwern exceeds past records of productivity? Does he realise that the forecast published by the British Steel Corporation in the report of the Select Committee on Trade and Industry is totally outdated and that there is absolutely no case for closing down one third of Britain's strip capacity?

Mr. Butcher

I join the hon. Gentleman in congratulating those plants on their increased productivity and the work forces on producing the right products at the right time. The hon. Gentleman is absolutely correct in saying that there is evidence of an increase in demand for their products. The management of BSC must deploy its public funds as best it can to build on what the Government hope will be a continuing success.