§ 2.53 pm.
§ Lord Gainford asked Her Majesty's Government:
§ In view of the forthcoming privatisation of British Steel, what recent improvements there have been in its international competitiveness.
§ The Secretary of State for Trade and Industry (Lord Young of Graffham)My Lords, the Pathfinder prospectus was published on 28th October and the British Steel share offer will open on 23rd November. In these circumstances it would be inappropriate for me to comment on British Steel's business, but the Pathfinder prospectus makes it clear that British Steel has become one of the most profitable integrated steel producers in the world.
§ Lord GainfordMy Lords, I thank my noble friend for that Answer. It was so much an example of brevity and perfect information that I am totally at a loss in regard to asking a supplementary question.
§ Lord Williams of ElvelMy Lords, if the noble Lord is not prepared to comment on the Pathfinder prospectus, will he perhaps comment on the changes 837 in the exchange rate that have taken place since the publication of that prospectus? Further, will he tell the House whether, in the light of the changes in the exchange rate and the recent hikes in the interest rates, the profit forecast contained on page 44 of the prospectus is still appropriate?
§ Lord Young of GraffhamNo, my Lords, I will not comment on the prospectus which has been issued by the board of British Steel and upon which people will judge whether or not they support the offer.
§ Lord Williams of ElvelMy Lords, may I therefore press the noble Lord a little further? If Stock Market conditions are such next week, when he decides whether or not to go ahead with the flotation, and if prices have reached the point where the minimum indicated price can no longer be met, will he assure the House that the issue will not take place, rather than risk another flop, where the issue is left in the hands of the underwriters or, what is worse, the Kuwait Investment Office?
§ Lord Young of GraffhamMy Lords, the noble Lord, Lord Williams of Elvel, knows that that is a purely hypothetical question to which I do not have to give an answer.