Rubber (Hansard, 18 November 1976)

Mr. Alan Williams

, pursuant to his reply [Official Report, 16th November 1976; Vol. 919, c. 551], gave the following information:

The recommendations for action by Government are as follows: Recommendation.—The industry, in cooperation with Government where necessary, should start detailed project planning to determine raw material requirements, market opportunities and capital availability. Action.—The Government are in touch with industry about their discussions. Recommendation.—The Government in cooperation with the petrochemical industry should formulate a United Kingdom petrochemical policy which promotes downstream development based on North Sea feedstock rather than exporting feedstock before its conversion to high value added intermediates such as polyisoprene. Action.—In his Written Answer on 10th November, outlining the Government's petrochemical strategy, my right hon. Friend the Secretary of State for Industry emphasised the importance we attach to downstream developments. Recommendation.—On completion of a detailed project study the Government should consider discussing with the natural rubber producing countries the implications of commissioning a large polyisoprene plant in the United Kingdom in 1980 to produce for the EEC market. Action.—The Government will consider this at the appropriate time. Recommendation.—The synthetic rubber industry should discuss with Government and potential feedstock suppliers the future availability and price of North Sea gas liquids for polyisoprene manufacture in relation to the likely availability and price of similar gas liquids in other production locations. Action.—Government are in touch with industry about their discussions. Recommendation.—COMECON approached the EEC Commission early in 1976 with a series of major proposals for greater cooperation in economic affairs, including various tariff reductions and the removal of bans and restrictions on imports and exports. The Government should consider the implications of these initiatives alongside the proposal to manufacture polyisoprene on a large scale in the United Kingdom for the EEC market and also in the broader context of the synthetic rubber industry generally. Action.—The Government are taking this recommendation into account in considering the COMECON approach. Recommendation.—NEDO should examine the way in which co-ordination between the plastics materials strategy and the synthetic rubber strategy can be organised. 729W Action.—Co-ordination of the organic chemicals, plastics materials and synthetic rubber sector strategies will be undertaken by the Petrochemicals Sector Working Party Recommendation.—The availability of trained production engineers in the sector should be examined by those Government and industry agencies responsible for manpower services, training and education. Any necessary corrective measures should be taken. Action.—The Government and the Manpower Services Commission (MSC) has published a consultative document " Training for Vital Skills" which outlines a way in which the difficulty of ensuring an adequate supply of trained labour might be tackled. The retention of skilled engineering craftsmen is one of the matters being studied by the joint NEDO/MSC Working Party, on which both sides of the engineering industry are represented. Lack of take-up of places in scientific and engineering disciplines at the institutions of higher education is a problem which the educational authorities are aware of and they are doing what they can to encourage suitable candidates to take these courses. Recommendation.—The NEDO Process Plant Working Party should, examine the ability of the United Kingdom process plant industry to supply the requirements of the synthetic rubber strategy. Action.—This recommendation will be carried forward when definite targets for the requirements of the synthetic rubber industry can be put to the Working Party. The definition of these targets must await the outcome of other recommendations, in particular the possibility of building the polyisoprene plant. Recommendation.—Government policies to deal with inflation should take full account of the investment requirements of the synthetic rubber strategy. Action.—The weight of the Sector Working Parties' opinions was a factor in the modifications in the Price Code which were introduced on 1st August this year. Recommendation.—The Government should ensure that legislative and administrative policies for protecting the environment do not weaken the natural advantage for petrochemical investment which the United Kingdom enjoys at present. Action.—Our support for this recommendation is witnessed by the Government's recent stand in the EEC on emission standards and other environmental legislation.