HC Deb 29 October 1981 vol 10 c438W

Mr. Hal Miller asked the Secretary of State for Industry what was the outcome of the recent discussions his Department had with the European Commission about the United Kingdom special steels industry.

Mr. Norman Lamont: The Department, in conjunction with the Bank of England and the British Independent Steels Producers Association, has made representations to the Commission about the difficulties facing special steels producers in the United Kingdom with particular regard to stainless tool and high speed steels.

The Commission is examining measures to restore prices for special steels to a level which will ensure adequate profitability, and to check rigorously the application of producers' and distributors' price lists in conformity with the provisions of the ECSC Treaty.

The Commission recognised the need for a reorganisation of the United Kingdom special steels industry. It has undertaken to lend the support of its services with the objective of ensuring a return to normal market conditions as soon as possible.

I welcome the Commission's positive response to a difficult situation. The measures proposed should provide a breathing space for the industry, to reorganise itself so that it becomes profitable again.