HC Deb 10 February 1988 vol 127 cc341-2
5. Mr. Beaumont-Dark

To ask the Chancellor of the Duchy of Lancaster what was the output of the metals industry in 1987 and in 1986.

The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Robert Atkins)

The index of production for the metals industry was 110–5 in 1986 and 119 in the first 11 months of 1987, based on 1980 equalling 100.

Mr. Beaumont-Dark

Does my hon. Friend agree that, after 20 years of going downhill in the manufacturing industry, at long last we have turned the corner? Much of the reason has been the productivity and the work of unions and employers. Would it not be a tragedy if Austin Rover, Land Rover and other companies were foolishly to follow the Ford people and try to export jobs instead of goods? Is it not time that people realised that we all—management and workers—must keep the process going so that unemployment will drop, as it is already dropping in the midlands?

Mr. Atkins

With his usual skill, my hon. Friend has paraphrased the Government's policy on a variety of matters, although his question went a little wider than the answer.

Mr. Crowther

In view of the significant increase in demand for British-made steel in the past 12 months or so, is the Minister having discussions with the chairman of the British Steel Corporation to ensure that, whether or not it is privatised, BSC will retain an adequate steel-making capacity to meet any further demand that may arise from, for example, a further increase in the motor manufacturing operations in Britain or from any other source?

Mr. Atkins

We are more than satisfied, as I think most people in this country are, with the management success of the present chairman and board of the British Steel Corporation, and we intend that as a result of that success——

Mr. Skinner

The workers; they are the wealth creators.

Mr. Atkins

The hon. Gentleman is right: I certainly include the workers.

As a result of that success, we are content to abide by the chairman's commercial advice about the future, as he sees it, of the corporation. That will require meeting the sorts of demands to which the hon. Gentleman referred.

Mr. Gould

Has it occurred to the Minister that these welcome improvements have taken place in the one part of British manufacturing industry that is substantially under public ownership, and in which, accordingly, the requisite investment has been made? Can he now give a guarantee that a similar improvement will be made and sustained under private ownership? If he cannot, what is the point of privatisation, other than to hand over to the Government's friends in the City a return on investment which is rightfully that of the taxpayer?

Mr. Atkins

The hon. Gentleman will hear more examples of good news in various other industries during today's Question Time. Steel is not the only one. The hon. Gentleman forgets the criticism that was rightly levelled at the British Steel Corporation for losing up to £3 million a day in the years preceding the changes that have recently been made. He should recognise that British Steel is a success story derived from having built on and understood the changes in European and world markets. I hope that he and his hon. Friends will not continue to attack the British Steel Corporation for the changes that it has achieved.