HC Deb 15 January 1986 vol 89 cc1070-2
15. Mr. Wallace

asked the Secretary of State for Trade and Industry what representations he has received concerning Ravenscraig steelworks; and if he will make a statement.

Mr. Peter Morrison

My right hon. and learned Friend and I have received a number of written and oral representations about Ravenscraig steelworks in the context of BSC's decision to close the Gartcosh works. Earlier today I replied on behalf of the Government, to the recommendations of the Select Committee on Scottish Affairs relating to Gartcosh. In that reply I stated that, having examined closely the recommendations and evidence, I remained of the opinion that the Government should not interfere with BSC's decision to close Gartcosh.

Mr. Wallace

Will the Minister accept, as the overwhelming majority of Scottish opinion accepts, that the future of Ravenscraig is inextricably bound up with that of Gartcosh, and that any long-term guarantee to Ravenscraig would be meaningful and worthwhile only if it were extended to the Gartcosh plant? Notwithstanding the reply that he gave to the Select Committee on Scottish Affairs this morning, may I ask him to look at the figures now produced by the Scottish Trades Union Congress on recent trends and figures for markets for the steel produced there and to reconsider his decision, which is very damaging to Scotland and its industry, in the light of this new evidence?

Mr. Morrison

I can, of course, appreciate what the hon. Gentleman says. There is very significant feeling in Scotland about Gartcosh and Ravenscraig. That is why we looked carefully indeed at all the evidence put to us. Having done so, we came to the conclusion that the decision of the British Steel Corporation on its future strategy, which was endorsed by the Government in August, should not be undermined.

Mr. Ewing

How can the Minister honestly say that he has considered all the evidence and has come to the conclusion that he has reached when the evidence is all against his determination to bring about the closure of Gartcosh? How can the Minister condone a situation where the Government are prepared to spend nearly £10 million a year to keep Scottish workers unemployed when they could be investing that kind of money in the steel industry, not only of Scotland, but of the whole of the United Kingdom?

Mr. Morrison

It is not for me to publish my reply' to the Select Committee in which I gave the reasons for the Government's decision not to intervene in this particular matter, although I am sure that the hon. Member will understand them when he sees it. I perfectly understand that there is very strong feeling in Scotland about Gartcosh, but the hon. Member will be aware that there is overcapacity in the kinds of products made by Gartcosh. He will also be aware of the argument which says that Gartcosh and Ravenscraig are not inextricably connected.

Mr. Hickmet

Does my hon. Friend agree that, in its attempts to survive, the British Steel Corporation, for the past three or four years, has had to take very difficult decisions involving the redundancy of many thousands of men? Now, when the corporation is profitable, excess capacity is being removed and, for the first time for many years, the corporation finds itself the most competitive steel producer in Europe, is it fair that the steel workers in Scotland should be exempted from some of the very difficult decisions that have had to be taken throughout the country, including in my own constituency, where 11,000 men have lost their jobs in two years?

Mr. Morrison

I certainly agree that enormous progress has been made by BSC management and the trade unions within the corporation to make it into the most efficient steel corporation in Europe. I differ a little from my hon. Friend. I fully appreciated the fact that, in the short term at least, closure brings a bleak future for the 800 or so employees at Gartcosh and their families. It was in that context that I took my decision. I do not welcome taking such decisions.

Mr. Strang

Is the hon. Gentleman aware that there is a lobby in the House of Commons today, representative of all walks of life in Scotland, to meet representatives from all parties in the House? Is he further aware that that lobby is clearly saying that the future of Gartcosh is crucial to the future of Ravenscraig, and that the future of Ravenscraig is vital to Scotland's future as an industrial nation? Will the hon. Gentleman recognise that Gartcosh is Scotland's industrial El Alamein and that it must stay open, even if that means driving every Tory out of Scotland?

Mr. Morrison

Of course I realise that there is a lobby in the House today. Of course I realise also that there has been a consistent campaign. I am aware also that several representatives of the work force walked the whole way from Gartcosh to London. The hon. Gentleman should be aware that the very same representatives have had an opportunity to see me, which they requested, since the middle of October. That invitation has been extended, further extended and further extended again, and they did not decide to put their case. I wonder why.

Mr. John Smith

Did the hon. Gentleman advise the Prime Minister to see the delegation that had walked all the way from Gartcosh? Why did she snub those representatives by refusing even to meet them when the request was put? Is the hon. Gentleman aware that there have been few issues in recent times on which majority opinion has been rallied more successfully than in the campaign to save Gartcosh? Why do the Government intervene in the Ravenscraig matter on an explicit political basis and claim credit for it, yet seem totally unable to intervene in the Gartcosh matter?

Mr. Morrison

I made it quite clear to my right hon. Friend the Prime Minister that my door was open to see the representatives of the work force, as it had been for more than three months. It seemed unusual, to put it mildly, that they did not take advantage of that. My door remained open. The right hon. and learned Gentleman is well aware of the fundamental difference between Gartcosh and Ravenscraig—[Interruption]—in terms of BSC's strategy.

Mr. Speaker

Order. I fully understand and appreciate that there is an important debate to follow Question Time, but Question Time is important to those hon. Members with questions on the Order Paper.