Steel Industry

HC Deb 11 December 1991 vol 200 cc850-1

10. Mr. Oppenheim

To ask the Secretary of State for Scotland what recent representations he has received from the Scottish steel industry.

Mr. Allan Stewart

My right hon. Friend recently received a letter from the chairman of the Scottish Steelfounders Association expressing concern about state subsidies to European steelfounders.

Mr. Oppenheim

Bearing in mind recent noisy Opposition condemnation of steel plant closures, has the Opposition spokesman yet had the guts to give the people of Scotland an unequivocal assurance that, given the chance, they would prevent such closures—[Interruption.]

Mr. Speaker

Order. The hon. Gentleman must ask about government policy.

Mr. Oppenheim

Is the Opposition spokesman afraid that people will remember the days before the Government's policy when political meddling led to huge overcapacity, massive losses and the closure of no fewer than three plants under Labour in Scotland alone?

Mr. Stewart

My hon. Friend is absolutely right. No such assurances have been given by the Opposition because it is not possible for them to do so.

Dr. Bray

Is the Minister aware that the recent fall in British Steel profits has made British Steel look again at capital expenditure and ways of economising without damaging future profitability? Will he use this opportunity to ask British Steel to consider modernising the Dalzell plate mill in Motherwell rather than building an expensive new plate mill, which would be less profitable for British Steel?

Mr. Stewart

I have seen speculation about that. Naturally, we would welcome any investment at Dalzell and any decision that extended the plant's long-term prospects. Some time ago the Scottish Office put a submission to British Steel on the case for investment at Dalzell. That submission was given to the trade unions and is public knowledge. We would welcome any positive news on that front.

Mr. Tom Clarke

Is the Minister aware that perhaps there were so few representations to his right hon. Friend the Secretary of State because the steel industry has been decimated in Scotland, especially in Lanarkshire? Does he accept that there should still be a future for the tube division despite the fact that workers are seeing imported tubes used in the North sea when they are capable of making them? To achieve that, there is an essential need for investment and training. That is particularly necessary in Lanarkshire.

Mr. Stewart

Like the hon. Gentleman, I regret the job losses at Clydesdale, which are due fundamentally to overcapacity in seamless tubes. I agree with the hon. Gentleman's general point about the Lanarkshire economy. That is why the Government have provided an extra £28 million for economic regeneration in Lanarkshire in the current year and why up to an extra £25 million will be available to the Lanarkshire development agency, in addition to what it would otherwise have received in 1992–93. I would hope that the hon. Gentleman would agree that many people of all political persuasions in Lanarkshire are working together extremely hard to build a better and more prosperous future for the area.