Sugar Refining (Hansard, 28 July 1977)

§ Mr. John Silkin

Since September of last year. I have been holding consultations with both management and unions with a view to maintaining employment and the viability of 'he industry. Broad agreement on the way ahead has now been reached. The plan published earlier this year by Tate and Lyle, which has been considerably modified in the detailed and thorough discussions that have taken place, can now form the basis of direct negotiations between the company and the unions.

The original plan—which was drawn up in December of last year and covered the three years to 1980—envisaged a total loss of jobs in sugar refining from reorganisation not exceeding 1,535. There would be no loss of jobs in Scotland as a result of refinery closures; the net loss of jobs in Liverpool would not exceed 300; it was hoped that this could be done 463W without forced redundancies. The plan involved the creation of some 550 jobs in alternative employment in the areas worst affected. The plan itself, which was an advance on earlier positions, has now been amended in the following particulars. The company has undertaken to import additional quantities of raw sugar from the EEC until 1979, and it has given an assurance that, provided its long-term supplies of raw sugar from the ACP countries continue at current levels, it will not contract capacity or employment in the port refineries, except by agreement with the trade unions, at a greater rate than is envisaged in the plan. It has also said that after rationalisation it will still have some flexibility to increase throughput should there be a shortfall in domestic supplies.

The company has also offered to pay, until the end of the year, the wages of its employees at Hammersmith and Newton-le-Willows, the two refineries where reductions in refining are planned for this autumn.

The British Sugar Corporation has also been included in my discussions and has agreed, subject to suitable commercial terms being negotiated, to maintain a supply of raw sugar from its Ely factory to the cane refineries for a further two years from 1979. Tate and Lyle has undertaken to continue to seek new activities further to reduce the number of jobs lost. For their part, the Government will give 311 possible help to the industry through their employment and retraining services and under the Industry Acts.

These consultations have been full and necessarily lengthy. All the various interests have shown a constructive attitude towards this difficult question. There will be further detailed problems to be overcome, but I would hope that speedy progress can now be made to ensure that the port sugar refineries continue as an efficient and productive part of our sugar industry.