§ Mr. Kenneth Clarkeasked the Secretary of State for Industry what studies he has carried out into the extent to which the ferrous foundry scheme has boosted investment in excess capacity in the ferrous foundry industry; when he now expects the upturn in demand to take place on the expectation of which the scheme was based; what plans he now has for the rationalisation of the industry; and whether he will make a statement.
§ Mr. Les HuckfieldThe object of the ferrous foundry industry scheme was to help companies eliminate bottlenecks in capacity, and encourage the modernisation of the industry so as to improve its competitiveness and its ability to respond to its customers' needs. The ferrous foundry advisory committee of industrialists and trade unionists which advised my right hon. Friend on applications for as-306W sistance under the scheme was particularly anxious not to encourage investment in excess capacity. We are accordingly keeping a close watch on the recovery of demand. Any upturn in demand for ferrous castings must depend upon a recovery in the economy as a whole but the ferrous foundry industry should be much better placed than before to meet that demand. My right hon. Friend has no new plans for the rationalisation of the industry since the assistance scheme included a measure of planned rationalisation with financial encouragement to reequip and modernise.