HC Deb 01 May 1991 vol 190 cc305-6
7. Mr. Salmond

To ask the Secretary of State for Trade and Industry what plans he has to meet the chairman and chief executive of British Steel to discuss the future of steel making in Scotland; and if he will make a statement.

Mr. Redwood

My right hon. Friend and my noble Friend the Minister for Industry meet the chairman of British Steel from time to time to discuss matters.

Mr. Salmond

Does the Minister accept that the information given to the Select Committee on Trade and Industry on 6 December by the chairman of British Steel—that the European Commission would oppose any sale of Ravenscraig—was incorrect? is he aware that, on 25 March, the Secretary of State for Scotland was not only given that information by the European Commissioner, but told that Scholey himself knew that he had gone too far in his evidence to the Select Committee? Can the Minister explain why the Secretary of State for Scotland has not given that information to the House of Commons, the Select Committee or I he general public?

Mr. Speaker

Briefly, please.

Mr. Salmond

Now that the key reason given by British Steel for not selling Ravenscraig has been discredited, will the Minister intervene to force such a sale before the assets are destroyed by the private-sector monopoly that he has created?

Mr. Redwood

My right hon. Friend is considering his reply to the Select Committee, and will give that reply by 14 May, which is the deadline for it. There are two matters that are specifically for his consideration, and he will deal with them when he produces his full and considered response.

I cannot answer for the chairman of British Steel in regard to the evidence that he gave the Select Committee; that must be taken up with him. If the hon. Gentleman has any questions for the Secretary of State for Scotland, I suggest that Scottish Question Time would be a better opportunity for him than Trade and Industry Questions.

Mr. Bill Walker

When my right hon. Friend meets Bob Scholey, will he tell him that Conservative Members respect the way in which he has so dramatically changed the fortunes of British Steel? He has made it profitable and increased productivity, and the company is now a net exporter of steel. We have no intention of insulting him or the work force, as the Scottish National party has done.

Will my right hon. Friend also tell Bob Scholey that we expect British Steel to honour its commitment to sell the Scottish plants, on the ground that it has no use for them?

Mr. Redwood

I am grateful to my hon. Friend for his comments. He is right to point out that the Scottish National party has upset the trade unions in this case, which, I am sure, is a matter of concern to the House. He is also right to point out that British Steel's success under its management in the private sector has been phenomenal. It is a world beater—a very profitable and productive company, which has transformed the fortunes of our steel industry in the past few years. I should have thought that most sensible Members of the House would welcome that, and would support the management that had delivered the goods.

Dr. Moonie

rose—

Mr. Douglas

Make way for the well-known steel worker.

Dr. Moonie

Clearly, the hon. Gentleman's brain is as large as his body. [Laughter.]

Mr. Speaker

Order. A question please.

Dr. Moonie

We appreciate the fact that the Secretary of State for Trade and Industry is trying to match the Prime Minister in dithering. As he has now had the Select Committee's report in his hands for some time, can he tell us what action he proposes to take?

Mr. Redwood

I thought that the hon. Gentleman was good at anatomy, but his first remark implies that even that is not his strong subject. I can promise the hon. Gentleman that we shall make a considered reply to the Select Committee within the due time, but I cannot tell him what my right hon. Friend will say, because he has not yet finalised his response. If he had finalised it, it would now be available. I am sure that you, Mr. Speaker, and the House will want a considered and full reply, and that is what my right hon. Friend will produce.

Mr. Grylls

Will my hon. Friend remember and remind his right hon. Friend the Secretary of State that he is no longer the owner of British Steel and that British Steel's owners are now the many thousands of people who work in that company, as well as the many thousands of small and, no doubt, larger shareholders around the country? Does he agree that British Steel has been successful because politicans have not interfered in it during the past few years, and will he—as I am sure that he will—resist any temptation to do so in the future?

Mr. Redwood

I am grateful to my hon. Friend who is right that we need a productive and successful industry to provide the jobs that we all wish to see in the steel sector. It is remarkable how much more successful British Steel has been since politicians stopped issuing lunch-time directives and making direct interventions in its management, and that is how we intend to continue.