§ Mr. Roy Hughesasked the Secretary of State for Industry what he now estimates to be the cost of the British Steel Corporation's development strategy.
§ Mr. VarleyThe corporation's development strategy as set out in the 1973 White Paper was originally estimated to cost £3,000 million at 1972 prices.
The development of Port Talbot being undertaken later than originally envisaged, the lowering of forecasts of future steel demand and increases in capital costs have all contributed to a series of modifications in the timing and detailed content of the strategy, although its main components have remained unchanged.
Up to the end of 1975–76 the corporation had spent £1,226 million on the strategy. The corporation's five-year investment programme, published in Vol. II of the Government's Expenditure Plans (Cmnd. 6721–II) of February 1977, would involve an expenditure of £3,446 million from 1976–77 to 1980–81 at 1976 survey prices—that is, a total of £4,672 million.
The details of the continually developing strategy for later years are not yet settled and it is not therefore possible to give precise estimates of costs beyond 1980–81.