§ LORD DOUGLASS OF CLEVELANDasked Her Majesty's Government:
Whether they have considered recent Press reports that the Government's Review of the BSC ten-year modernisation programme is causing delay with consequent escalation of costs; if these reports are justified; and whether they will make a Statement.
§ LORD BESWICKThe British Steel Corporation's 10 year Development Strategy (Command 5226 of 1973) agreed by the previous Government with the British Steel Corporation remained subject to consideration by the Government1394WA of each major investment project in the programme, under procedures agreed between the Corporation and the previous Government. In considering the projects, we shall, of course, have regard to the social consequences for workers in the industry just as we are presently doing in the closure review. The BSC sent us for consideration on March 8 the £210 million Redcar JIB iron and steelmaking project. Our favourable reply on this project was sent to the BSC on July 19. The only other project submitted to the present Government by the BSC for consideration under the agreed procedures reached us on November 25. Tt concerns coke ovens and a coal handling system at Port Talbot. We shall consider this as quickly as we can. Outside the agreed procedures, BSC consulted us about their plans for expanding stainless steel capacity. We welcomed these. Any escalation of costs in the modernisation programme therefore reflects rising prices resulting from inflation and not delays in approval caused by the Government's review of proposed steel closures.
House adjourned at twenty-one minutes past ten o'clock.