HC Deb 28 March 1990 vol 170 cc482-4
13. Mr. Sillars

To ask the Secretary of State for Scotland when he next expects to meet the chairman or chief executive of British Steel.

Mr. Rifkind

I expect to see the chairman of British Steel in the relatively near future.

Mr. Sillars

Is the right hon. and learned Gentleman aware that there is a different dimension in relationships between the Scottish Office and IBM and the Scottish Office and British Steel, because he deliberately privatised British Steel? When the right hon. and learned Gentleman meets British Steel senior executives, will he discuss the fact that there are lying at Leith docks mile upon mile of welded pipe which will be used to extract Scottish oil from the Scottish waters of the North sea, and not a single mile of it has been produced in Scottish steel mills?

When will the right hon. and learned Gentleman press British Steel to accept—and will he accept unequivocally—the call by shop stewards at Dalziel today that the welded steel mill that British Steel is earmarking for Teesside should go to Dalziel in Lanarkshire, which would increase its take from Ravenscraig and ensure that Scottish steel jobs are created from the massively expanding demand for steel products in the Scottish waters of the North sea?

Mr. Rifkind

The hon. Gentleman is correct to say that there are imports of steel into the United Kingdom in categories that are simply not manufactured in this country, in Scotland or elsewhere. It is obviously a matter for British Steel to decide whether that makes sense or whether it should start manufacturing in the United Kingdom steel that it currently imports. That is a matter for British Steel to decide and, naturally, we hope that if it comes to that judgment, it will choose a Scottish location for the manufacture of products of that kind.

Dr. Bray

Is the Secretary of State aware that the shutdown at Ravenscraig, however unwelcome, is being handled with the customary responsibility and competence of the managers and steel workers there so as not to prejudice the long-term future of the plant? Will he make sure that the chairman of British Steel fully understands the implications of the plate review for the future of Dalziel and Ravenscraig up to and beyond 1994?

Mr. Rifkind

I join the hon. Gentleman in paying tribute to the responsible attitude of shop stewards and work force at Ravenscraig, and I agree with him that it is important for all in Scotland who attach importance to these matters to ensure that British Steel is aware of the attractions of Scotland as a location for investment, either at Dalziel or in respect of its other steel activities north of the border.

Mr. Holt

Is my right hon. and learned Friend aware that there would be considerable resentment on Teesside if he were to use, or seek to use, undue influence on British Steel? The people of England are just as entitled to produce steel—on Teesside—as the Scots are; let the board of management make that decision. I am sorry that there are no socialists from Teesside here today to fight for jobs on Teesside, as I am doing, and I hope that my right hon. and learned Friend has got the message.

Mr. Rifkind

My hon. Friend is absolutely right. The decision must be based on the good commercial case that can be put in regard to where investment should go. All parts of the United Kingdom would welcome steel investment, and it is the responsibility of us who live in Scotland to put such arguments as point towards investment in Scotland. I have no doubt that my hon. Friend will be making similar representations on behalf of his constituency and his part of the United Kingdom.

Mr. Dewar

I am genuinely grateful to you, Mr. Speaker, for calling me again. I welcome the fact that the right hon. and learned Gentleman is soon to meet the chairman of British Steel. May I press on him the urgency of doing that in a short time scale, given the imminence of decisions that may affect the Scottish industry? Will he bear very much in mind the fact that British Steel is not just another private sector company but that it has a wider responsibility, given its history and the vulnerability and importance of the industry in Scotland? Its special status is reflected by the existence of the golden share.

Mr. Rifkind

The hon. Gentleman knows as well as I do that the golden share applies only in regard to any attempt by any outside interest to acquire more than 15 per cent. of the shares in British Steel, and I am not aware of any suggestion that that is about to happen or is likely to happen.

As for the overall responsibilities of British Steel, the hon. Gentleman will be aware of the assurance that was given at the time of privatisation, and which has since been repeated—that if at any time British Steel did not wish to continue with its assets at Ravenscraig, it would consider any private sector bid for those assets to ensure the continuation of steel activity north of the border. That is a matter to which I attach importance and to which the Prime Minister referred when questioned about it at this Dispatch Box.