Mr. Bob Edwardsasked the Secretary of State for Trade and Industry (1) what are the details of the agreement financed by the Government under the private sector steel scheme covering Lloyds, Brockhouse, Sheerness and the British Steel Corporation;
(2) if the Government are satisfied that the transfer of Lloyds and Brockhouse quotas to Sheerness will lead to steel production staying in the United Kingdom;
(3) if he is satisfied that the British Steel Corporation will provide the present customers of Lloyds (Dudley) billet in (a) the qualities and (b) the quantities that they require;
(4) what arrangements have been made to keep Midlands re-rollers in supply following the closure of Lloyds (Dudley) and John Bagnall and Sons Ltd.; and what assessment he makes of the effect of these closures on the United Kingdom motor industry;
(5) if he will estimate how much steel the United Kingdom furniture and other companies will import as a result of supply difficulties arising from the closure of Brockhouse District Steels.
§ Mr. Geoffrey Robinsonasked the Secretary of State for Trade and Industry (1) if he will give the details of the agreement financed by the Government under the private sector steel scheme between Lloyds, Brockhouse, Sheerness and the British Steel Corporation;
(2) if he will make a statement on the likely effects of the closures of Lloyds (Dudley) and John Bagnall and Sons Ltd. on the motor industry;
(3) if he is satisfied that the transfer of Lloyds and Brockhouse steel quotas to Sheerness will lead to production staying in the United Kingdom.
391W
§ Mr. ButcherThe agreement signed between the companies on 2 February involves the closure of Brockhouse District Steel Limited, John Bagnall and Sons Limited and Lloyds (Dudley) Limited. Sheerness Steel gains ECSC production and delivery quota, and will undertake a major capital expenditure programme to extend their product range. The Government have been requested to support the joint scheme with £5 million assistance under the private sector steel scheme.
The agreement represents a substantial step towards reducing over-capacity in "long products" (billets and light sections). We see no reason to doubt United Kingdom companies' ability to meet the needs of the vast majority of the closers' customers. It is not possible to quantify at this stage any increase in imports consequent on the closures. But in the view of the participants rationalisation of this kind is essential to secure the future of a strong, efficient and competitive United Kingdom steel industry, without which the risk of increased imports would be very much greater.
Mr. Bob Edwardsasked the Secretary of State for Trade and Industry whether he has received any representations from customers of Lloyds and Brockhouse about the coming closure of the works and about the possibility of their taking their orders abroad.
§ Mr. ButcherMy right hon. Friend has received one such representation from a customer of one of the closers. We are exploring whether alternative UK sources of supply can be found.
Mr. Bob Edwardsasked the Secretary of State for Trade and Industry if he will estimate (a) the lost energy demand, and (b) the lost materials demand, which will result from the closures of Lloyds (Dudley), John Bagnall and Sons, and Brockhouse District Steels; and which suppliers of materials, including safety equipment, will be most affected.
§ Mr. ButcherThe information necessary to provide such estimates is not available to my Department.
Mr. Bob Edwardsasked the Secretary of State for Trade and Industry if he is satisfied that the purchase of one steel company's quotas by another complies with the European Coal and Steel Community production quota regime.
§ Mr. Geoffrey Robinsonasked the Secretary of State for Trade and Industry if he is satisfied that the purchase of one company's steel quotas by another complies with the European Coal and Steel Community production quota rules.
§ Mr. ButcherExchanges and purchases of quota are permitted under the Commission decision establishing the quota regime (Decision 234/84/ECSC). Such transfers are a matter between the companies concerned and the Commission.