§ Lord CARR of HADLEYasked Her Majesty's Government:
Whether the latest estimates of the cost of the development of the British Steel Corporation's Port Talbot steelworks given in the statement of 16th March reflects increases over previously published estimates for reasons other than the effects of inflation; whether the statement implies the abandonment of the BSC's Development Strategy; and whether they would clarify the commitment in the statement to keep the Shotton open hearth plant in prime condition.
§ Lord WINTERBOTTOMThe development of the Port Talbot steelworks was estimated to cost approximately £650 million at September 1975 prices. The latest estimate of £835 million at 545WA March 1977 prices essentially reflects increases in plant costs due to inflation. The Government remain committed to the principles of the BSC's Development Strategy, but as was made clear in the 1973 White Paper both we and the Corporation need to be flexible to meet changing circumstances. BSC will make the necessary investment at Shotton to keep the open hearth plant there in efficient working order. The long-term future of steelmaking at Shotton will be reviewed in the 1980s, but not before 1982–83 at the earliest, in the light of technical developments and the results of our industrial strategy.