§ 2.43 p.m.
Lord Belhaven and StentonMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how productivity per man at BSC now compares with that of the American, West German and Japanese steel industries, and how the current United Kingdom figure compares with that achieved in 1978.
§ The Chancellor of the Duchy of Lancaster (Lord Cockfield)My Lords, in the nine months to September 1983 BSC produced the equivalent of 210 tonnes of crude steel per man-year and West Germany the equivalent of 206 tonnes per man-year. Figures for the United States of America and Japan are prepared on a different basis, but the information available suggests that BSC's productivity is still somewhat below the level in the United States of America and significantly below that in Japan. The latest BSC figure of 210 tonnes per man-year compares with 122 tonnes per man-year achieved in 1978.
Lord Belhaven and StentonMy Lords, I thank my noble friend for that extremely encouraging reply. In view of the figures which he has given, can he say whether a consequence may be some relief for those plants in British Steel which have been threatened with closure over the last few years?
§ Lord CockfieldMy Lords, I am grateful for what my noble friend says. First, of course, the improvement in the performance of BSC is a matter of 426 great credit to both management and the workforce. But it is essential that the improvement should continue because our competitors are also improving their performance. On the future of individual steel plants, there is nothing that I can say beyond what already appears in BSC's corporate plan for 1983 to 1986.
§ Lord DiamondMy Lords, having regard to the Minister's last comment about competitors, can he possibly say what the West German figure was for 1978?
§ Lord CockfieldMy Lords, the West German figure for 1978 was 201 tonnes of crude steel per man per year.
Lord Bruce of DoningtonMy Lords, will the noble Lord agree that during the past three or four years the British steel industry has been run down at a far greater rate than the steel industries of our EC colleagues? Will the noble Lord give an undertaking that there will be a far more vigorous defence of British steel interests when they come to determine the various steel production quotas that are always under review? Will he underline the tremendous debts that both BSC and the country owe to those who work in the steel industry—the survivors of the original labour force?
§ Lord CockfieldMy Lords, perhaps I may remind the noble Lord that I paid tribute to both the management and the workforce in the steel industry for what has been a remarkable performance over the last few years. On the other point that the noble Lord raised, we have put up a most vigorous defence of British interests in the Community, and that is borne out by the fact that in the last round of discussions on 25th July the reduction agreed in BSC's capacity was only 500,000 tonnes. The total reductions called for were as follows. In the case of Germany, a reduction of 6 million tonnes compared with their 1980 capacity; in the case of the Italians, 5.8 million tonnes; in the case of the French, a reduction of 5.3 million tonnes; and in the case of the Belgians a reduction of 3.1 million tonnes. Therefore, we have very successfully defended what I accept are the vital interests of the British steel industry.
§ Lord MolloyMy Lords, is the noble Lord the Minister aware that his generous comments regarding all grades of work in the British steel industry —management and workers—are very much appreciated indeed? Will he please bear in mind that there is probably no other industry that requires such a vast range of skills as those that are required in the whole set-up of making steel in this country or any other country? Will he take on board the thought that we can in no way allow these magnificent skills of British workmen in the steel industry to be lost for ever?
§ Lord CockfieldMy Lords, I am grateful to the noble Lord for what he said in his first supplementary question. On his second supplementary question, I entirely agree that there are great and valuable skills here; but of course many of our other industries also possess a highly skilled workforce.