§ Mr. Crowtherasked the Secretary of State for Industry what steps he is taking to ensure that supplies of scrap will be adequate to meet the needs of the steel industry as demand for steel increases with the anticipated recovery of 421W the nation's economy; what consultations he proposes to have with the BSC, the Independent Steel Producers' Association and the scrap industry on this subject; and whether he will be prepared to reduce quotas under the licensing system for the export of scrap to non-EEC countries if this appears necessary to maintain adequate supplies for the British steel industry.
§ Mr. Les HuckfieldThe procurement of ferrous scrap is primarily a commercial matter for the consuming industries. But my Department regularly consults the BSC, the British Independent Steel Producers Association and the British Scrap Federation about supplies. I recently discussed with the federation quotas for the exports of scrap to non-Community countries. My right hon. Friend is always prepared, in consultation with our Community partners, to reduce these quotas should this become necessary. They were in fact reduced for the second and third quarters of 1976. We are encouraging the maximum recycling of ferrous waste and my Department is willing to give financial assistance towards the construction in the private sector of a plant producing directly-reduced iron as a substitute for scrap. This would be in addition to the plant being built at Hunterston by the British Steel Corporation.
If my hon. Friend knows of any particular difficulty I shall be pleased to hear from him.