HC Deb 13 February 1983 vol 54 cc5-6
4. Mr. Roy Hughes

asked the Secretary of State for Wales what recent discussions he has had with the chairman of the British Steel Corporation; and what subjects were discussed.

Mr. Nicholas Edwards

I have met the chairman of the British Steel Corporation on two occasions recently and discussed a range of matters relating to the industry in Wales.

Mr. Hughes

When the Secretary of State next meets the chairman, will he tell him that we in south Wales are fed up with persistent rumours about the possible closure of Llanwern? Will the right hon. Gentleman tell the chairman that he should ensure that his top executives do not speculate idly about these matters or exercise their long-standing prejudice against this great works? Does he agree that, more than anything else, the workers at Llanwern deserve a hearty slap on the back for a job well done?

Mr. Edwards

The hon. Gentleman should not join in the speculation on a range of issues, including this one. The British Steel Corporation has not put forward any proposals of that sort and has not yet submitted its corporate plan. I join the hon. Gentleman in his congratulatory remarks about the performance of Llanwern in the past year or two.

Mr. Foot

Does the Secretary of State recognise that when my hon. Friend the Member for Newport, East (Mr Hughes) raises this issue, he speaks not only for those in Newport but for a much wider area? Does the right hon. Gentleman agree that a closure or rundown at Llanwern would be unthinkable, that the idea should be killed stone dead and that Llanwern should have every encouragement to make its contribution to the recovery, when it comes?

Mr. Edwards

I have seen no proposal or suggestion that Llanwern might be closed. We are awaiting the submissions of the BSC, which has made it clear to us that it wants to review its corporate strategy following the breakdown of the United States steel negotiations. I have maintained the closest possible contact with those involved. I recently met the unions at Llanwern and Port Talbot, and I am in close touch with local management. I share the right hon. Gentleman's interest and anxiety about the matter. He may rest assured that I shall continue to follow events extremely closely.

Mr. Mark Robinson

Does my right hon. Friend agree that, after the success of the slimline programme since 1980, Llanwern has the potential, with the right investment, to become one of the most efficient steel plants not only in Europe but possibly in the world?

Mr. Edwards

It has become a very competitive steel plant, but it will have to continue to make efforts to maintain that position in a world that does not stand still. I agree that further investment in concast could make a considerable difference to those efforts.

Mr. Barry Jones

Does the right hon. Gentleman accept that Wales has already paid a stunning price in steel job losses—about 30,000 since 1979? Is not the existing hot strip mill capacity in south Wales vital to the south Wales economy? Will he give a specific pledge that the Llanwern mill is safe for the rest of the century?

Mr. Edwards

We have two of the most competitive steel plants in Europe, and that is a matter for congratulation. So long as they remain among the most competitive steel plants in Europe, there need be no fear about their future.