§ Mr. Teddy Taylorasked the Secretary of State for Industry if he will publish a table showing the steel capacity of each member State of the European Economic Community when the steel cartel was initiated; and what percentage reduction in steel capacity has been achieved by each member State since it was agreed that capacity should be reduced.
§ Mr. ButcherFigures for capacity are published in the ECSC annual survey of investment in the Community coalmining and iron and steel industries, but the 1982 version is not yet available. The Commission recently stated that the State aids decision 2320/81/ECSC and its predecessor have been instrumental in a fall of 4 million tonnes of finished product capacity over the past 18 months. The full effects of the Community decision have not, however, been felt and further reductions in capacity are expected to result from discussions presently taking place between the Commission and several member States on aid proposals.
§ Mr. Teddy Taylorasked the Secretary of State for Industry what are the powers available to Her Majesty's Government to prevent their steel market being undermined if member States of the European Economic Community steel cartel fail to carry out agreed reductions in steel producing capacity.
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§ Mr. ButcherEuropean Community steel policy does not embody agreed levels of capacity reduction. The Government are supporting the Commisson in its determination to apply strictly decision 2320/81/ECSC, under which aid to the steel industry must be tied to capacity reduction.
The Government are keeping a close watch on developments in other member States in relation to this decision, and are regularly involved in multilateral discussions in Brussels of restructuring proposals made by them. It is premature to consider alternative options.