HC Deb 08 March 1979 vol 963 cc783-5W
Mr. Hooley

asked the Secretary of State for Industry if he will hold consultations with the chairman of the National Enterprise Board about the future of the special steels industry and possible involvement of the National Enterprise Board in that industry.

Mr. Les Huckfield

I am sure the iron and steel sector working party is ready to give consideration to the role the NEB could play in this sector. Companies in the industry can of course contact the NEB direct if they wish to seek an NEB involvement.

Mr. Hooley

asked the Secretary of State for Industry if he will arrange to meet trade union representatives in Sheffield to discuss the findings of the iron and steel sector working party concerning the special steels industry.

Mr. Les Huckfield

In November last my right hon. Friend held a meeting to discuss the problems of the special steels industry with the British Independent Steel Producers' Association, together with the president of the Sheffield chamber of commerce, the chairman of the NEDO iron and steel working party and the chairman of the TUC steel committee who is also the general secretary of the iron and steel trades confederation.

Following that meeting my right hon. Friend has received further advice from the sector working party about the industry's allegations concerning the discriminatory pricing of imports. He is awaiting its response on the possibility of a scheme under section 8 of the Industry Act as well as other means of improving the competitiveness of the industry, which were raised in the report of the SWP's consultant.

It seems best to continue to handle these discussions through the iron and steel sector working party on which the trades unions are directly represented.

However, I have been keeping closely in touch with these problems and my right hon. Friend has asked me to arrange an early visit to Sheffield to meet trade union representatives.

Mr. Hooley

asked the Secretary of State for Industry if, in the light of the finding by the iron and steel sector working party that large tonnages of special steels have been clumped on the United Kingdom market by European companies at prices which could not cover production costs, he will now take unilateral action to seek to prohibit such imports.

Mr. Les Huckfield

The progress report of the iron and steel sector working party for 1979 refers to the study by the consultant commissioned by it who concluded that losses sustained by some major European companies in their special steels business were evidence of sales by these companies at prices which could not cover production costs. But many companies have been making losses in their steel business and this does not in itself constitute evidence of dumping. However, the position of our special steels industry is one about which we remain deeply concerned and we are continuing to pursue the industry's allegations of discriminatory pricing with Commissioner Davignon. In the absence of my right hon. Friend the Secretary of State, my right hon. Friend the Minister of State wrote to Commissioner Davignon again last week immediately following receipt of further advice from the industry.