HC Deb 06 December 1995 vol 268 c364
14. Mr. McAvoy

To ask the President of the Board of Trade what assessment he has made of the impact on the British steel industry if Irish Steel Ltd. is allowed by the European Council of Ministers to increase its output; and if he will make a statement. [2612]

Mr. Lang

Any impact on the British steel industry of an increase in output by Irish Steel Ltd. would depend on the size of that increase, the type of products and where they were sold. The Government are determined that any decision to allow state aid for Irish Steel should not result in job losses in the UK.

Mr. McAvoy

The question remains how the President of the Board of Trade can actually deliver on that answer, because, bearing in mind the damage caused to the British steel industry by his Government and the European Union, is it not ridiculous that the European Union is considering a £27 million subsidy to the Irish Steel company? Will he give a categorical assurance that that subsidy will be vetoed by the British Minister at the Council of Ministers, and that he will stand up for British jobs?

Mr. Lang

I recall how hard the hon. Gentleman and his colleagues pressed me and my predecessor as Secretary of State to increase subsidies to the steel industry in this country. However, the hon. Gentleman asked me how we shall deliver. Article 4(c) of the European Coal and Steel Community treaty prohibits all state aids to EC steel producers. We cannot contemplate a situation in which jobs in Britain should be lost in order to save jobs in Ireland.