HC Deb 29 June 1983 vol 44 cc559-60
1. Mr. Straw

asked the Secretary of State for Trade and Industry what representations he has made to the European Community Commission to obtain its early approval of the British Steel Corporation's investment plans.

The Secretary of State for Trade and Industry (Mr. Cecil Parkinson)

I have made it clear to the Commission that its speedy approval of the proposed investment by BSC at Port Talbot is a priority for the Government.

Mr. Straw

Is the Secretary of State aware that the continuing delay by the European Commission in approving the steel investment plan has already contributed to a loss of jobs in my constituency, at the firm of Clayton Goodfellow? Does the Secretary of State accept that the Common Market has unquestionably cost us jobs in the British steel industry, and that, given the fact that more steel jobs are being lost in Britain than in almost all the other European countries combined, it is imperative that the EC approves the plan without delay?

Mr. Parkinson

It may reassure the hon. Gentleman to know that although I have been in office for only two weeks I have already had three meetings with the Commission and have pressed the case on it extremely strongly. I hope that the company in the hon. Gentleman's constituency will be the nominated subcontractor when approval is given, but that is by no means certain. We cannot, as a Government, guarantee that, as I am sure the hon. Gentleman understands.

Mr. Moate

Does my right hon. Friend see the investment plan as part of an arrangement that will lead to the early ending of subsidies to the BSC and the privatisation of part or all of it?

Mr. Parkinson

My predecessor and I have encouraged Mr. MacGregor and his colleagues to work hard towards making the company viable. They have taken extremely brave decisions on capacity and big steps that should make the company viable. I hope that they will achieve their objective of breaking even next year and phasing out aids. I hope, too, that we can move the company towards privatisation.

Mr. Hardy

Has the Secretary of State had time to look at the long list of European steel producers who have defaulted, who were supposed to pay fines to the Community? If the right hon. Gentleman has seen that list, does he realise that no British steel producer's name appears on it? Given that fact and the experience of the past three or four years, we are entitled to demand swift and favourable consideration by the Community.

Mr. Parkinson

I have stated firmly that 47 per cent. of all the capacity reduction in the Community has been in this country and that it is time for other countries to play their part. I have said that any renewal of the article 58 arrangements must be dependent upon clear, concise commitments from other countries to reduce capacity. The Commission accepted that view.