§ 2.48 p.m.
§ THE EARL OF LAUDERDALEMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether Press statements, attributed to—
- (1)The Secretary of State for Trade and Industry, that he " would not rule out " private enterprise " including foreign " capital being sunk in new bulk steel plants in Britain (Glasgow Herald, April 28, 1971); and
- (2)The Secretary of State for the Environment that, in the light
945 of a shortage of deepwater ports, large-scale maritime industrial development in Britain " has attracttion " (The Times, April 27, 1971);
EARL JELLICOEMy Lords, the answer to both parts of the Question is, yes. As regards the first part, the Government would examine, taking into account the regional and other considerations, any proposals if they appeared to be in the national interest. On the second part of the Question, the Government recognise that the concept of locating industrial development on coastal sites adjacent to deep water has attractions and are prepared to consider proposals on their merits.
§ THE EARL OF LAUDERDALEMy Lords, in thanking the noble Earl for that reply, may I ask him whether, since the recovery of our steel and petrochemical industries, which have fallen badly behind in the world's growth league, may well depend on developing maritime sites, he can tell us what steps are being taken to work out a coherent policy in this field? Having done that, can he tell us what machinery the Government have in mind for handling propositions of this sort when they arise?
EARL JELLICOEMy Lords, I am not unsympathetic to much of the thought that lies behind my noble friend's supplementary. But I must remind him that, in the first place, this must be a matter for the British Steel Corporation to decide. They have yet to come to a firm decision in their own mind about whether to go either for the iron ore terminal on the Clyde, or for a large scale steel plant in Scotland. This is a matter which will fall to be considered in the second phase of the Steel Corporation's investment plan and it will take some time for a conclusion to be reached on this. But it is my understanding that my right honourable friend hopes to reach conclusions, and doubtless to announce them, before the end of the year. He has of course promised to announce his decisions on the first phase of the Corporation's investment plan shortly after Whitsun.
§ THE EARL OF LAUDERDALEMy Lords, may I ask this further question, 946 and again thank the noble Earl for what he has told us? Is this not simply a question of steel, vital as that is, but also of petro-chemicals? Also, is it not the case that various projects for estuarial development have up till now either run into great planning difficulties, through the cumbersome procedures that exist, or got nowhere because there is nobody in charge? Will the noble Earl bear in mind that there is a demand from industry and from investment quarters to know who is in charge, to whom questions in this field may be addressed with confidence that they really will be grasped and understood and dealt with?
EARL JELLICOEMy Lords, in the first instance, my noble friend is addressing the question to me and I am doing my best to answer it. But I think he is wrong in thinking that there is no governmental machinery here. This falls squarely either to my right honourable friend the Secretary of State for Trade and Industry or to my right honourable friend the Secretary of State for the Environment, or to the two of them to consider together. That is my understanding. I understand also that there is perfecly adequate co-ordinating machinery for handling this type of problem between the two Departments.
§ LORD BESWICK; My Lords, reverting to the first half of the noble Earl's original Question, may I ask the noble Earl, Lord Jellicoe, whether he thinks it is helpful to the morale of the British Steel Corporation that the statement which is contained in the first part of the Question should have been made at all?
EARL JELLICOEMy Lords, I do not think I can answer for the British Steel Corporation on that matter. But I think it is not unhelpful to the morale of the British people and the Scottish people, for my right honourable friend to announce that he is prepared to consider the investment of private capital in the steel industry, provided that that is consonant with the national interest.
§ LORD LEATHERLANDMy Lords, does the noble Earl think that it would be in the national interest to allow foreign capital, sent here perhaps by a firm like Krupps, to help foreigners become part-owners of the British steel industry?
EARL JELLICOEMy Lords, I do not think there is any question of their becoming part-owners of the British steel industry. This is a question of the possible introduction of foreign capital into new enterprises in the steel sector.
§ LORD SLATERMy Lords, is it the policy of Her Majesty's Government, if foreign capital is injected into the steel industry to the extent of 51 per cent., to hand over a controlling interest?
EARL JELLICOEMy Lords, if the noble Lord would like to put down a Question on the policy of Her Majesty's Government in relation to the steel industry as a whole, I should be glad to answer it. My noble friend's Question related to specific industrial developments, and it would be better to confine our discussion to the narrower segment at this stage.
§ LORD DOUGLASS OF CLEVELANDMy Lords, as the Question refers only to the bulk steel industry, does that mean that the other sections of the industry are not going to have private capital injected into them? If so, what is the reason for the differentiation?
EARL JELLICOEMy Lords, I think my right honourable friend's Statement of April 27 was that we would welcome any new private sector steelworks development, and I should have thought that that did not differentiate. But if I am incorrect in my interpretation, I shall of course get in touch with the noble Lord.
§ LORD DOUGLASS OF CLEVELANDI hope so, my Lords, because when it was asked in the other place whether bulk steel could be defined a definition was not forthcoming. I should like a definition of this, if the Minister would be good enough to get it for me.
EARL JELLICOEMy Lords, I know of the keen interest in, and intimate knowledge of, the noble Lord, Lord Douglass of Cleveland, in this matter and I will gladly get in touch with him about it.
§ LORD BESWICKMy Lords, on further reflection will the noble Earl now agree that it is bad for the morale of the British Steel Corporation that this kind of statement should be made?