HC Deb 23 November 1994 vol 250 c588
8. Mr. Roy Hughes

To ask the President of the Board of Trade what recent discussions he has had with his European counterparts concerning pricing policy in the steel industry.

Mr. Eggar

The Government have had no such discussions with Community member states. Decisions on steel prices are a matter for the commercial judgment of the companies concerned.

Mr. Hughes

Does the Minister recognise that the problems of state subsidies and unfair practices have temporarily abated because of the upturn in demand for steel? Nevertheless, when the downturn comes we shall be back to square one. Is not there some justification for the widespread feeling among steel workers that the Government have put up only a sham fight on their behalf?

Mr. Eggar

I simply do not accept that. I pay tribute to the management and work force of British Steel and of the other steel companies for the dramatic change that has been achieved since privatisation. I know that the hon. Gentleman's constituency has been through a period of change. He now has a world-class plant in his constituency that is producing a record amount of extremely high quality steel.

It is well known that the Government strongly opposed a number of European Union proposals. Last December, however, we accepted, a package of six article 95 cases. We are discussing a particular article 95 case, the EcoStahl case, with the Commission and the German and French Governments, and at the same time we are keeping British Steel and the British Independent Steel Producers Association—BISPA—closely informed of progress. It is a difficult issue. We are aiming to achieve equivalence between the present article 95 proposals and the December 1993 proposals.

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