§ 12. Mr. Tom Clarkeasked the Secretary of State for Trade and Industry if he will make a statement on Government policy towards British Steel and on the job future for Ravenscraig and Gartcosh.
§ Mr. Norman LamontThere is nothing that I can add to my right hon. Friend's statement on 20 December last year and to the letter which he sent to Mr. MacGregor on 19 May last, setting out the Government's decision on BSC's corporate plan for 1983–86.
§ Mr. ClarkeIs the Minister aware that there is no great merit in claiming that Britain's steel industry has been protected against European Community intrusion if great sections of that industry are to be hived off in American deals? Will he tell Mr. MacGregor that: any suggestion that those deals should involve the closure of the strip mills at Ravenscraig and Gartcosh is completely unacceptable, especially as Minister after Minister has promised an upturn in the economy and in the market? Does he realise that the Scottish people will be watching closely any developments in the industry?
§ Mr. LamontI note what the hon. Gentleman said about a possible slab deal with the United States. The British Steel Corporation has put no proposition to the Government, and it remains to be seen whether such a proposition will be made. We are not just predicting an upturn in steel production— it has already happened. Steel production has increased.
§ Mr. Bill WalkerDoes my hon. Friend agree that the Scottish people expect Ravenscraig to be competitive and to have industrial relations that allow it to be so, and that they do not expect the Government continually to pour in money unless the plant is competitive?
§ Mr. LamontI agree entirely with my hon. Friend and, because of the large spare capacity in the strip business, it is vital that all employees in that area do their best to be competitive. If they do not, there is no future.
§ Dr. BrayIs the Minister aware that the hot-rolled coil costs at Ravenscraig at the end of the first quarter were the lowest in the British Steel Corporation? Has the Secretary of State initiated a review of the medium-term demand for steel because of the proven falsity of the corporation's short-term demand'?
§ Mr. LamontWe have not commissioned a review of medium-term demand for the corporation's products, strip or otherwise, although, as the hon. Gentleman knows, because of our anxiety about the medium-term, we asked the corporation to make its plans on the assumption that steel production would continue at the five integrated plants for the next three years. One must consider the cost of hot-rolled coil from Ravenscraig not just over one quarter but over a period, and ultimately the management of the corporation must judge which is the best plant. The management is best equipped to make such decisions.
§ Mr. OrmeDoes the Minister agree that Mr. MacGregor had controversial views about the future of Ravenscraig? Has he discussed those views with the new chairman of the British Steel Corporation, and have they altered the Government's policy on the future of Ravenscraig?
§ Mr. LamontThe Government's policy towards Ravenscraig has not been altered. My right hon. Friend the 572 previous Secretary of State made his announcement on 20 December last year, and nothing has changed since then. Neither I nor my right hon. Friend has discussed it with the new chairman.
§ Mr. Tom ClarkeOn a point of order, Mr. Speaker. In view of the unsatisfactory nature of the reply, I give notice that I shall seek to raise this matter on an Adjournment debate.