§ Mr. Rowlandsasked the Secretary of State for Trade and Industry (1) what estimates the British Steel Corporation has submitted to his Department about the average savings per ton for steelworks operating at 1 million tons capacity, at 3 million tons capacity, at 6 million tons capacity and at 12 million tons capacity, respectively;
(2) what estimates McKinsey and Company have submitted to his Department about the average savings per ton for steelworks operating at 1 million tons capacity, at 3 million tons capacity, at 6 million tons capacity, and at 12 million tons capacity, respectively.
§ Mr. Tom BoardmanThe British Steel Corporation estimated that average costs
464Wthe corresponding figures if prices increase at 6 per cent. per annum.
§ Mr. DeanThe figures set out below are based on the assumption that prices rise at 6 per cent. per annum. For figures based on a 3 per cent. per annum rise in prices, I would refer the hon. Member to Table 2 in my reply to a similar question from the right hon. Member for Birkenhead (Mr. Dell) on 1st March.—[Vil 851, c.425–8.]
per product ton at an 11½ million ton BOS plant would be about £4 per ton lower than at a plant half that size and £7 per ton lower than at a plant of a quarter that size. Other estimates available to the Department are in general agreement with these figures, and show that the differentials are even greater for BOS and open hearth plants of one million tons although in certain circumstances electric are plants of this capacity or less can be economically attractive.