Chemicals (Hansard, 15 November 1976)

Mr. Alan Williams

The information requested is as followsRecommendation.—Government and companies should together consider the construction of a gas gathering pipeline network to bring to the United Kingdom mainland the natural gases in Northern North Sea oil fields. Action.—The Secretary of State for Energy will shortly be making an announcement in the light of the comments received from industry and other interested parties on the consultation document published in May. Recommendation.—The costs of energy, particularly electricity, to the organic chemicals industry should be examined to establish whether or not prices charged within the United Kingdom deter new investment. Action.—The National Economic Development Office is in touch with Departments of Industry and Energy about this. Recommendation.—The Government should consider how the provision of port facilities and other infrastructure could be used to increase the attractions of the United Kingdom as an investment location. 438W Action.—Consideration of siting questions for large chemical developments is continuing. Recommendation.—The procedures relating to physical planning should be reformed so as not to deter new and substantial investment in the United Kingdom. Action.—New guidelines for local authorities are currently under consideration. Recommendation.—Government, the training boards for the process industries and educational institutions should together make a careful assessment of the future United Kingdom needs, in relation to current output, of professionally qualified engineers and scientists. Action.—Not all the available places in scientific and engineering disciplines at the institutions of higher education have been taken up and the educational authorities are doing what they can to encourage suitable students to take these courses. Further detailed consideration is being given to this matter. Recommendation.—Urgent consideration should be given to how, in addition to completion of two crackers before 1985 to meet United Kingdom expected growth of consumption, construction can be begun as soon as possible of two ethylene crackers, provided these are commercially viable, to allow increased exports of derivatives needed to achieve the strategy objective of the petrochemical part of the sector. Action.—The Secretary of State made a statement to the House on the Government's petrochemical strategy on 10th November. We are in discussion with major companies on specific proposals. Recommendation.—Government, management and trade unions should actively seek to promote the climate of confidence that is needed if the United Kingdom is to increase its attractiveness as a location for new investment. Action.—The Government have made it clear that the object of the industrial strategy is to shift the emphasis in our policies to the support of manufacturing industry. Among other things we have undertaken to ensure that the public sector does not pre-empt resources which are needed for investment and exports; and that full account is taken of the industrial implications of fiscal and monetary measures and of public expenditure. Recommendation.—The management view is that Government policies to contain inflation, in particular the Price Code, should take account of the investment requirements of the organic chemicals sector's strategy. The trade unions do not see availability of finance as a general constraint, but would not wish to see projects of benefit to the United Kingdom economy held back through lack of finance. Action.—The weight of sector working party opinion was a factor in the modifications to the Price Code which were introduced on 1st August this year.