Steel Industry

HC Deb 06 June 1990 vol 173 cc622-4

8. Dr. Reid

To ask the Secretary of State for Scotland if he intends to meet trade union representatives from the Scottish steel industry to discuss investment in the Scottish steel industry.

Mr. Rifkind

My hon. Friend the Minister of State and I met representatives of the steel trade unions in Scotland recently.

Dr. Reid

I am glad that the Secretary of State met representatives of the work force at Dalzell and Ravenscraig because their jobs are on the line and they know better than any hon. Member the problems of the steel industry. Is the Secretary of State aware of growing suspicion among workers' representatives and others that the closure of the hot strip mill at Ravenscraig is a result of the manipulation of the monopoly position of British Steel? What will he do to investigate that? I am aware that he welcomed the study of the market by Motherwell district council, but that will not be sufficient. What independent investigation has the Scottish Office initiated, or does it intend to initiate, into the competitive—or otherwise—practices of British Steel now and in the future?

Mr. Rifkind

We have said that the first priority is to try to obtain greater information—indeed, some information—from British Steel on the reasoning and thinking behind its announcement. I endorse what the hon. Gentleman said about the attitude of the work force. When I wrote to Sir Robert Scholey last week seeking further information of the kind that I have indicated, I also suggested to him that he might find it helpful to meet representatives of the work force at Ravenscraig not only to explain to them the thinking behind his proposals but to hear their constructive suggestions on how they can continue to make a viable contribution to the well-being of British Steel as a whole through the Ravenscraig works.

Mr. Siliars

Is the Secretary of State aware that one of the most important meetings this year on investment in the future of the Scottish steel industry will be the annual general meeting of British Steel in July? Will he confirm that one of the privileges of the golden share held by the Government is that a Crown Minister has the right to attend and address the shareholders' meeting? Will the Secretary of State take the opportunity in July to exercise that right and address the board and the shareholders on the unfairness of the investment by British Steel since 1983 and try to elicit from the meeting the information that has so far been denied to us?

Mr. Rifkind

However sincere the hon. Gentleman's intention might be in making that proposition, it is a rather foolish suggestion. He knows as well as I do that the golden share is relevant only to any proposal by an outside interest to acquire more than 15 per cent. in the shareholding of British Steel. That is made quite clear by the prospectus, and the hon. Gentleman knows it as well as I do.

Mr. Holt

May I remind my right hon. and learned Friend that we are talking about the British steel industry and that there will be considerable resentment among my constituents and others on Teesside if he seeks in any way unduly to influence British Steel in making its commercial decisions simply because of the volume of voices from the parliamentary Labour party?

Mr. Rifkind

Although I understand my hon. Friend's views, I remind him that the Government amendment, which the House approved, called upon British Steel to explain and defend its decision with regard to its proposals for the hot strip mill, and that is exactly what we intend to do.

Mr. Dewar

Does the Secretary of State accept that it is not encouraging to hear a Minister of the Crown say that he is hoping to get some information from British Steel? Is the Secretary of State receiving information from the company about the arguments, the facts and the figures? Has Sir Robert Scholey stated that he will discuss his case openly and frankly with the work force and with the Government? What steps does the Secretary of State propose to take if that co-operation is not forthcoming? If the information does come forward, will the right hon. and learned Gentleman look seriously at the need to challenge and test the assumptions behind that disastrous decision, perhaps with the help of independent advice?

Mr. Rifkind

Naturally, I understand the hon. Gentleman's need to make those remarks. However, I remind him that the Labour party's policy on this matter is, in practically all respects, exactly the same as the Government's. The Labour party has clearly ruled out the renationalisation of British Steel. It therefore follows that Labour is saying exactly the same as everyone else—that this is ultimately a decision for British Steel. If my assumption about Labour's policy towards the renationalisation of the steel industry is incorrect, I have no doubt that the hon. Gentleman will wish to make that clear.