§ Mr. Roy Hughesasked the Secretary of State for Industry if he will make a statement on the Government's approval of the British Steel Corporation's investment plans in South Africa; and if he will make a statement.
§ Mr. VarleyThe British Steel Corporation is investing about £100 million to
540Wexpenditure are not kept for individual intermediate areas. The table below shows the different types of aid, total annual expenditure for the South-West Development Area, and the total as a percentage of aid for Great Britain as a whole.
expand its production of stainless steel. This will provide a net 1,128 new jobs, safeguard existing jobs and save on imports. For this expansion it needs an assured long-term supply of ferrochrome. South Africa and the USSR are the major producers of the chrome ore from which ferrochrome is made, and some 67 per cent. of total world reserves are in South Africa. World demand for ferrochrome is increasing.
The corporation consulted Ministers in 1974 about a proposal to invest some of its funds now blocked in South Africa in a new company being formed there to produce ferrochrome from South Africa chrome ore. BSC was then advised to seek alternative arrangements for ensuring its supplies of ferrorchrome. BSC subsequently reported that it had been unable to find secure alternative sources or make alternative arrangements. It 541W therefore submitted a revised proposal to take a 10 per cent. interest in the new South African company at a cost of £1.6 million which would come from BSC's blocked funds there. This investment would secure a long-term supply to BSC of about 10,000 tonnes per annum of ferrochrome. I obtained confirmation that the proposal fell within the Government's policy on trade with and investment in South Africa as set out in the statement of 4th December 1974 by the Secretary of State for Foreign and Commonwealth Affairs. I then decided that I could not stand in the way of the project. In