Mr. Eddie Griffithsasked the Minister of Power if he can now announce his final decision whether to give consent to the British Steel Corporation's participation in Sheffield Rolling Mills.
§ Mr. MasonI am today giving my formal consent. I had already agreed in principle to the B.S.C.'s participation in the company but decided not to give final consent until I had assured myself that there were reasonable safeguards against the purposes of the agreement68W being frustrated. Since then, the detailed agreements have been discussed with me at the formative stage and contain the following safeguards:
- (i) that the unanimous consent of all the parties should be required to a substantial expansion of S.R.M.'s activities by the issue of more share capital or by extra borrowing;
- (ii) that S.R.M. should be required to seek to avoid policies likely to cause substantial harm to the steel-making interests of any of the partners;
- (iii) the prevention of the concentration of a majority holding in one hand, and,
- (iv) the prevention of the use of a majority vote to force the disposal of S.R.M.'s assets.
I am fully satisfied that these safeguards meet the needs of the situation. The employment consequences of the merger have been fully discussed with the unions, and I have myself discussed the questions raised by the merger with representatives of the unions, both locally and nationally.
The merger will allow for amalgamation of certain of the partners' bar and rod interests in the Sheffield area by concentration of production on the most modern plant. The Corporation expect their participation to result in fuller use of their assets and a considerable financial gain. I am satisfied that the merger is in the interests of the national economy and of the nationalised steel industry.