HC Deb 08 November 1982 vol 31 cc69-70W
Mr. Barry Jones

asked the Secretary of State for Industry what is his estimate of the percentage of costs in steel making represented by energy costs; what assistance (i) the British Steel Corporation and (ii) private steel manufacturers obtain towards energy costs from Her Majesty's Government; what are the comparative figures of assistance given to the steel industries of the European Economic Community; if he will take steps to give greater assistance on energy costs to the United Kingdom steel industry; and if he will make a statement.

Mr. Butcher

Reports by the NEDC energy task force in 1981 showed that, for iron and steel, energy costs represented some 20-25 per cent. of operating costs. In the last two Budgets the Government provided for relief on both gas and electricity prices. Both BSC and the private sector companies have benefited from these arrangements, in particular through their participation in the contracted load management scheme of the electricity supply industry. The most recent details of prices paid for energy by European steel producers were contained in the energy task force report published in November 1981. The Government are considering what further action can be taken in the light of the report on the review of the bulk supply tariff by the electricity supply industry. My right hon. Friend the Secretary of State for Energy will be reporting on this to the NEDC in December.