HC Deb 15 November 1976 vol 919 cc345-7W
Mr. Tom King

asked the Secretary of State for the Environment if he will list in the Official Report the recommendations for action by the Government made in the NEDO working sector report for the construction steelwork industry together with details of action taken by the Government to implement those recommendations.

Mr. Freeson

The recommendations made by the Constructional Steelwork Sector Working Party for action by Government, and details of the action which has been taken, are given below.Recommendation.—Finance should be made available to allow the British Steel Corporation's strategic stockpile to be further extended in 1976–77. Action.—The Government have agreed to increased expenditure of £50 million and so provide additional finance for BSC to increase stocks against the foreseen period of high demand. Recommendation.—The Government should ensure that the contribution new buildings make to productive efficiency is fully examined by Government and industry when formulating schemes under the Industry Act, and that any existing discrimination against investment in buildings under such schemes be removed. Action.—The Government recognise the contribution which new buildings can make to production efficiency. The appropriate rate of grant for new building, and its relationship with that for plant and machinery, is considered in the context of the overall needs of individual schemes. Recommendation.—The Government should consider ways and means of ensuring that national and local planning regulations and control are as streamlined as possible and that there are no avoidable administrative bottleneck sto private industrial development. Action.—The procedures are kept under review and local planning authorities have been advised of ways to help speed up decisions on planning applications. They have been asked to give priority to applications for significant industrial development. Recommendation.—Local authorities should be encouraged to identify, in conjunction with local industry if necessary, land needs for industrial development and to ensure that land purchased meets these needs. Action.—Local authorities have been asked to consider the needs of industry in their activities under the Community Land Act and to set up appropriate local consultation arrangements. Recommendation.—The Department of the Environment should consider action to increase the share of bridge building projects executed in steel where price factors are evenly balanced as between competing media. Action.—The Department of Transport will meet the British Constructional Steelwork Association on 17th December to discuss the issues raised on bridge building projects. Recommendation—The New British Standard 153, which brings together and updates the design codes for bridges, be issued as soon as practicable. Action.—The British Standards Institution has been asked to publish the standard as soon as it is technically feasible to do so. Recommendation.—Approval be given as a matter of urgency to the construction of at least one of the major new steelmaking facilities sought by British Steel Corporation. Action.—British Steel Corporation is now urgently reviewing the question of future investment at Port Talbot and future plate mill investment elsewhere. Recommendations.—The case for extending the use of nomination in constructional steelwork contracts be re-examined in detail. Further investigation of the question of progress payments be undertaken with a view to helping the industry's cash flow as far as practicable in the circumstances. Action.—These matters are under consideration in the light of further discussions which have been held with the industry. Recommendation.—The Department of the Environment, in conjunction with the industry, should consider what further action can be taken to promote speedy financial settlement on contracts. Action.—The attention of Government Departments and local authorities has previously been drawn to the importance of settling accounts promptly and further reminders will be given as appropriate. Recommendations.—Export Credits Guarantee Department's cost escalation facilities be amended so that steelwork is regarded as a capital project in its own right and the minimum contract value is reduced to £250,000 with a one-year manufacturing period. ECGD pre-shipment finance provisions be amended so that projects of value over £250,000 with a manufacturing period of six months or more are eligible. Further consideration be given to alleviating the strain on a manufacturer's financial resources arising from bid and performance bonds. The ECGD cost escalation cover provisions be increased to reduce the inflation risks borne by the manufacturer to 5 or 10 per cent. of the amount above the threshold. The ECGD scheme for participant's insolvency cover be provided at a lower premium. Action.—These recommendations are being studied in the context of the wider questions of finance for exports. Some improvement to ECGD's bond facilities was announced on 3rd November. Recommendation.—Orders for new industrial premises should be brought forward in the short term, whether by more publicity for, and greater flexibility in, the accelerated investment scheme and, possibly, a later closing date, or by means of time-limited industrial development certificate relaxations or by extending the advance factory programme.

ROCHFORD DISTRICT COUNCIL
Year
1973–74 1974–75 1975–76
Number of domestic hereditaments at 1st April 23,620 23,723 23,962
(April-September) (April-September) Recipients at 31st March 1976
Number of rebate recipients 1,562 3,331 3,406
(October-March) (October-March)
1,484 2,748

MALDON DISTRICT COUNCIL
Year
1973–74 1974–75 1975–76
Number of domestic hereditaments at 1st April 15,881 16,054 16,413
(April-September) (April-September) Recipients at 31st March 1976
Number of rebate recipients 1,003 1,657 1,919
(October-March) (October-March)
972 1,747

The precise number of ratepayers is not known.

Forward to