HC Deb 18 May 1981 vol 5 cc18-9W
27. Mr. Wickenden

asked the Secretary of State for Industry what progress has been made in the negotiations between the European steel manufacturing countries.

Mr. Tebbit

I refer my hon. Friend to the answer given this afternoon to my hon. Friend the Member for Aldridge-Brownhill (Mr. Shepherd).

Sir Anthony Meyer

asked the Secretary of State for Industry what has been the effect upon the United Kingdom steel industry of the compulsory steel production quotas imposed through the measures introduced by the European Coal and Steel Community in November 1980; how well the United Kingdom's arrangements under this regime are operating; and if he will make a statement on the negotiation of a new regime for the period after 30 June 1981.

Mr. Tebbit

Because of the low level of demand for steel, production of most British producers has been below their quota level. In a few cases where firms have wished to produce more than their quota, additional tonnage has been made available by other producers or by the Commission using the flexibility allowed them in the article 58 decision. The regime has worked reasonably well, although the recovery of steel prices from the very low levels prevailing last autumn has been less than hoped for. For information about negotiations for a new regime after 30 June I refer my hon. Friend to the answer I gave my hon. Friend the Member for Aldridge-Brownhills (Mr. Shepherd) today.