HC Deb 27 June 1988 vol 136 cc8-9
10. Mr. Jack

To ask the Secretary of State for Wales if he will make a statement on productivity gains made over the last five years in the steel industry in Wales.

Mr. Peter Walker

I am delighted to say that productivity in the steel industry has massively improved in recent years due to high investment and the collaboration of those involved. The British Steel Corporation's production of liquid steel and coil was higher in 1987 than it was in 1979 in spite of the industry employing nearly 30,000 fewer people in the Principality.

As for the private sector, the successful flotation of Allied Steel and Wire is, I think, clear evidence of an energetic, growing and forward-looking industry whose employees have full confidence in the future.

Mr. Jack

I thank my right hon. Friend for that splendid answer. Does he agree that it is a tribute to the £400 million investment programme in the Port Talbot steel works, for example, and provides an excellent springboard for further productivity gains as the steel industry is privatised?

Mr. Walker

Yes, Sir. I think that the steel industry in Wales is in a strong position. It is one of the finest steel industries throughout Europe and it is confident about the future.

Mr. Foot

If the Secretary of State is so enthusiastic about the achievements of steel workers in Wales, as he and everyone else has every right to be, why does he not listen to what they say about keeping the industry in public hands?

Mr. Walker

I think the right hon. Gentleman will find that those employed in the steel industry will be eager and pleased to participate in privatisation.

Sir John Stradling Thomas

Does my right hon. Friend agree—I am sure that he will, but not because of any discussions beforehand—that the steel industry in Wales can welcome wholeheartedly something that I have wanted to see for a long time, the abolition of the quota system, because we are now competitive and can compete with the world?

Mr. Walker

Yes. As I have said, there are few steel industries in Europe more confident about the future than the Welsh steel industry.

Mr. Morgan

Does the Secretary of State agree that the answer to the question is that the productivity gains made by the steel industry in Wales have come about because the steel workers in Wales refused to listen to Operation Slimline introduced by the Government in 1979, which halved the work force in the steel industry in Wales and halved output as well? That means that there are no productivity gains at all. The extraordinarily good performance of the steel industry in Wales since 1979 has taken place, if the Secretary of State looks at the facts, simply because the workers refused to abide by Operation Slimline.

Mr. Walker

The labour force has not been halved. It has been cut by almost two thirds.