HC Deb 05 December 1977 vol 940 cc557-9W
Mr. Kenneth Clarke

asked the Secretary of State for Industry what is the total amount so far granted by the European Investment Bank for investment by the British Steel Corporation.

Mr. Les Huckfield

I refer the hon. Member to the article published in Trade and Industry of 18th November 1977, at page 332.

Mr. Woof

asked the Secretary of State for Industry what effect United Kingdom membership of the European Economic Community has had in enabling the British Steel Corporation to share fully in the joint activities of the Community steel makers.

Mr. Les Huckfield

It has enabled the British Steel Corporation to participate fully in the activities of the ECSC Consultative Committee and of the European Communities Steel Producers' Association (EUROFER).

Mr. Woof

asked the Secretary of State for Industry to what extent the British Steel Corporation, in consultation with the European Commission, will be able to exercise influence on decisions made by the Coal and Steel Community.

Mr. Les Huckfield

The Corporation makes its views known to the Commission directly and through its membership of the ECSC Consultative Committee and of the Community Steel Producers' Association (EUROFER).

Mr. Woof

asked the Secretary of State for Industry whether he estimates that the United Kingdom's membership of the EEC will lead to greater market stability for the British Steel Corporation; and if he will make a statement.

Mr. Les Huckfield

In normal times the ECSC pricing rules should help to stabilise the market. In the current acute recession United Kingdom membership of the EEC enables the Government and the British Steel Corporation to participate fully in the consideration of remedial measures by the Commission.

Mr. Woof

asked the Secretary of State for Industry what is the likely amount of financial levy contributed by the British Steel Corporation to the EEC in 1977.

Mr. Les Huckfield

The estimated levy on BSC's production on iron and steel products in 1977 is £5.85 million.

Mr. Woof

asked the Secretary of State for Industry what is the amount to be borrowed by the British Steel Corporation from the European Investment Bank in 1977.

Mr. Les Huckfield

About £85 million is expected.

Mr. Skeet

asked the Secretary of State for Industry whether the British Steel Corporation programme of investment as revised will be affected significantly by any proposals for the rationalisation of the Community steel industry under the European Coal and Steel Community Treaty.

Mr. Les Huckfield

Discussions about further EEC measures to deal with the current problems of the Community steel industries are still continuing, and no decisions have been taken affecting the British Steel Corporation's investment programme

Mr. Woof

asked the Secretary of State for Industry what total amount of financial return the British Steel Corporation is expected to receive from the EEC in 1977; and if he will give specific grants and research grants, respectively.

Mr. Les Huckfield

The Corporation expects to receive the following grants and loans from the EEC in 1977:

£
Research grants 931,000
European Regional Development Fund grants (contributing towards the cost of developing Deesside Industrial park) 210,000
Grants towards feasibility studies made under Article 46 of the ECSC Treaty 7,500
Interest rebates on ECSC loans made to the Corporation 462,000
ECSC housing loans (estimated) 37,000
Loans under Article 54 of the ECSC Treaty 110,486,000
European Investment Bank loans 85,000,000