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Oral Answers To Questions

Volume 833: debated on Monday 20 March 1972

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Trade And Industry

Fuel Prices Announcement (Press Publication)

1.

asked the Secretary of State for Trade and Industry whether he will cause an investigation to be made to ascertain how and in what way Mr. Roland Cribben, the business correspondent of the Daily Telegraph, was able to publish in that paper on the morning of Friday, 3rd March, 1972, full details of the rise in fuel prices etc., as contained in his statement made to the House of Commons on Monday, 6th March, 1972.

Will the right hon. Gentleman explain that answer? Is he aware that the full details of his intended statement on the Monday were published in the Daily Telegraph on the Friday? That could not have been intelligent anticipation because precisely what the Minister said on the Monday was recorded in that newspaper. Is the Secretary of State aware that it is typical of all information emanating from the Government for the Press to be tipped off long before even Parliament knows what is happening?

I disagree with that analysis of the situation. There were many speculations by different sections of the Press, one of which may have got nearer the mark than the others.

Air Traffic Facilities (Hampshire And Sussex)

2.

asked the Secretary of State for Trade and Industry whether he will call a round table conference of all concerned to discuss the rational, economic and safe development of comprehensive airport and air traffic control facilities to serve the South Hampshire and West Sussex areas.

No, Sir. I do not think this is necessary. The provision of aerodrome facilities for this area is already being considered by the local authorities concerned in the South Hampshire Plan Advisory Committee, and the Department is advising the Committee on civil aviation matters.

In view of the rapid expansion of population and the general development of this area, has not the time come for a co-ordinated approach, and will the Government take the initiative to bring this about?

If the hon. Gentleman is referring to a co-ordinated approach in his area, I believe that this is now taking place. If he is referring to a national co-ordinated approach, the Civil Aviation Authority, which comes into operation at the end of this month, will undoubtedly be considering this issue.

Coal Industry

3.

asked the Secretary of State for Trade and Industry if he will make a statement on the progress made towards full production in the mining industry following the recent strike.

I would refer the hon. Member to my hon. Friend's reply of 13th March to the hon. Member for Dudley (Dr. Gilbert).—[Vol. 833, c. 5.]

Does the right hon. Gentleman agree that normal production in the coal industry was well on the way at a far faster pace than was anticipated both by the Government and the National Coal Board? Does he accept that this seems to lend credence to the view that the Government and the N.C.B. consciously and deliberately exaggerated the effects of the coal miners' strike in an effort to scare the public and the miners into submission even before the Wilberforce Committee was set up?

No, that was not the case. I am sure that the country is happy that the resumption of production in the mines turned out to be better than both the Government and the N.C.B. had anticipated. This was largely due to the strenuous efforts of management and officials in preparing for the return to work.

Is it not inevitable that the consequences of the strike will be reduced demand for coal and reduced employment for miners?

This is a matter of great importance to me and I am addressing myself to it now in the form of a major study of the industry.

Will the Secretary of State acknowledge that whatever arguments may be adduced about the miners' picketing of coal stocks on the ground, it was the fact that those stocks were on the ground that, when the strike was settled, prevented the Government's ruinous gamble from being pursued to the point when the industry would have been put out of action for several months after the settlement?

From the industry's point of view, the interruption caused by the strike was very damaging in any case; but the way in which coal stocks from the pitheads were moved in, particularly to the generating boards, was indeed remarkable

4.

asked the Secretary of State for Trade and Industry if he will issue a general direction to the National Coal Board to accelerate the closure of uneconomic coal mines.

No, Sir. This is a matter for the board in discharging its statutory responsibilities.

Is it not necessary to have a crash programme for the retraining of miners in uneconomic pits? Would not that ensure that those working in economic pits would have a secure and very good future?

My right hon. Friend the Secretary of State for Employment has published a Green Paper on the subject of the development of training facilities generally, and this may be of help in the event of there being any redundancies.

Will the Secretary of State say how many mines would be closed in the constituency of the hon. Member for Chertsey (Mr. Grylls)?

I have had no proposals for closures of mines from the National Coal Board following the miners' strike.

Is the right hon. Gentleman aware that if the European Communities Bill is passed he will no longer have any power to give general directions to the National Coal Board? Is he further aware that this would deprive the House of Commons of the device whereby it is enabled to ask him detailed questions about the National Coal Board, so that the coal industry is answerable to the House? Will he therefore try to find some other device which will continue his answerability on these matters?

It seems that hon. Members find many devices of their own for raising matters relating to the National Coal Board.

Shipbuilding (Assistance)

7.

asked the Secretary of State for Trade and Industry if he will make a further statement on Government aid to the shipbuilding industry.

Will the right hon. Gentleman bear in mind that it needs to come very quickly, because there is the question of costings that are being carried out by shipbuilders competing with Govan Shipbuilders and, because of this they are unable to quote for orders which it would be in this country's interest for them to obtain? When will the right hon. Gentleman make a statement about how these subsidies, to which he has only recently become attached, will become rational and comprehensible?

The hon. Gentleman would do better to wait for my announcement. I am very much aware of his first point about the problems of competition in the industry arising from the proposal for Govan Shipbuilders Ltd.

Does my right hon. Friend agree that the age and inadequacy of machinery and cranage in the yards is one of our biggest problems? Will his statement take this into account in encouraging investment? Will he confirm that he regards the shipbuilding industry as a growth industry and not as one destined for eventual contraction?

On the first point, I am conscious of the fact that there has been a manifest lack of investment in the industry over a period of time. This will need reconstituting. I agree that the shipbuilding industry is a growth industry with very considerable prospects.

Has the right hon. Gentleman yet approved the sum of £12 million, or whatever it is, for the Marathon takeover of the Clydebank yard? Will the new legislation deal only with Govan Shipbuilders and Clydebank, or will it also deal with the shipbuilding industry and cater for the large subsidies now confidently expected?

The right hon. Gentleman would do well to await my announcement on all these matters.

Package Tours

8.

asked the Secretary of State for Trade and Industry if he will take further steps to regulate package tours to obtain higher standards of safety and comfort for the holiday-makers concerned.

No, Sir. I do not think those factors require additional legislative measures.

While the majority of package tours are organised efficiently, is there not a small minority in which the holiday-makers suffer disappointment, discomfort and inconvenience and receive poor value for money? Should not the hon. Gentleman take steps to protect their interests?

The hon. Gentleman is quite right in saying that a small minority fall below the standards one expects. But the Civil Aviation (Air Travel Organisers' Licensing) Regulations, 1972, just intro- duced, will enable civil aviation to safeguard the public by requiring the organisers to be fit and proper persons and to have adequate resources and arrangements.

The safety record of the British charter companies and tour operators is second to none.

Concerning comfort, is not the considerable competition prevailing in the industry today a far better guarantee to the consumer than any intervention from the Department?

I recognise that the travel trade is covered now by the Trade Descriptions Act, and that the Association of British Travel Agents has set up a safety fund and arbitration body with a view to covering its mistakes, but is the hon. Gentleman aware that if there is any major failure this season and numerous holiday-makers are disappointed, great pressure will be brought to bear on the Government to introduce legislation to register all travel trade operators with a view to withdrawing their licences, if necessary?

Yes, I understand that entirely. But I welcome the A.B.T.A. initiative. It would be wise to see how it works out.

Power Stations

9.

asked the Secretary of State for Trade and Industry what plans he has, in order to relieve coal miners of dirty, dangerous and difficult work, to expand and accelerate the conversion of presently coal-fired electricity generating stations to natural gas, oil and nuclear power.

None, Sir, but I keep the question of basic fuel supply for electricity generation under constant review.

Does my right hon. Friend recall that only a very short time ago Lord Robens, who really ought to know, forecast that as a result of the strike 15,000—[HON. MEMBERS: "Reading."]—I am not reading; that is why I did not give the right figure—50,000 miners' jobs would be put in peril? Does my right hon. Friend take into account in his calculations the recent large find of oil and natural gas off the Welsh coast? Does he consider that these facts, put together, require the Government to undertake a complete reappraisal of the sources of power generation in the next decade?

I have seen Lord Robens' conjecture about employment in the mines. I realise that the various important issues that have arisen call once again for a review of the whole question of fuel and energy supply. This is being undertaken now. I look forward to taking into consideration the matters mentioned by my hon. Friend

Will the right hon. Gentleman bear in mind that if we are to relieve coal miners of dirty, dangerous and difficult work it is necessary simultaneously to provide them with the opportunity of engaging in clean, safe and easy work? Until that point, will he regard Questions phrased as this one is as a disreputable way of seeking to make reputable vengeful and ruinous action upon our mining workers?

I am clear in my own mind that the whole issue of energy supply raises matters of great interest to both sides of the House. I try to keep a level keel on this matter, as I hope the right hon. Gentleman does.

19.

asked the Secretary of State for Trade and Industry whether he will take advantage of the lower cost of coal-fired power stations, having regard to the fact that the costs of nuclear stations range from Berkeley at 1·27 old pence per unit to Wylfa at an estimated 0·67 old pence per unit, compared with typical coal-fired stations' costs at Cottam and Drax of 0·53d. and 0·56d., respectively; and if he will make a statement on his future plans.

The figures quoted relate to power stations already completed or under construction whereas the choice of fuels for new power stations rests on their estimated cost six to 30 years ahead.

That is exactly why I want a White Paper. Does my hon. Friend recognise that many of us have a deep interest in the matter, that it is indisputable that in the past 10 years the coal industry has been run down too far and too fast and that many of us want to see this position reversed during the forthcoming years, notably in connection with power station generation?

The last White Paper in 1967 postulated a rundown in the coal industry. The C.E.G.B. advises me that at present oil-fired generation is on average cheaper than coal-fired generation. But all these factors will be taken into account in my right hon. Friend's review.

Since nationalisation nearly 500,000 men in the coalmining industry have been relieved of their difficult, dirty and dangerous work. In view of the Minister's reply to his hon. Friend that the coal-fired power stations are the cheapest, will he give further confidence to the coal industry by keeping open all the pits that it is possible to keep open?

While my hon. Friend may be right in saying that coal is cheaper than nuclear power, in the C.E.G.B.'s opinion oil is cheaper than coal at present, even bearing the tax. We must await my right hon. Friend's decisions on these matters.

Will the Government resist the temptation to allow the C.E.G.B. to burn gas, at least until a more efficient method of burning it has been devised?

This is a matter we must consider very carefully, because it has wide implications for fuel policy as a whole.

Will the Minister study and bear in mind, when comparing necessarily notional cost estimates of the different fuels over a long-term future, the contrast between the estimates made by the nuclear industry for electricity generation and the actual outturn?

I advise the right hon. Gentleman to read his own Government's fuel White Paper, in which all those calculations were made with singular lack of success.

Hovercraft Industry

10.

asked the Secretary of State for Trade and Industry what Government financial assistance is at present given to the hovercraft industry; and if he will make a statement on the future of this industry.

Payments to the industry in this financial year amount to approximately £1·3 million. Over the next two years I intend to place further contracts worth £1·5 million with the industry, for the development and improvement of existing craft. This expenditure will be reinforced by another £500,000 to be spent within Government Departments. I have made it clear that by the end of this period I expect the industry to be entirely self-supporting. There are encouraging signs that this will be so; and in this connection I should like to congratulate the British Hovercraft Corporation, Vosper Thorneycroft and Hovermarine Transport Ltd. on their recent sales.

I thank the Minister for that helpful reply. Is he convinced that the amount of Government assistance he has now outlined is sufficient to ensure the future development of the industry? If necessary, will he call together all the interested parties for a consultation on the industry's long-term future?

I assure the hon. Gentleman and the House that in allocating the £1·5 million to which I have referred I have already consulted those interested, and I have been anxious to ensure that it is with their agreement that these funds are directed to where they will do the most possible good.

Is my right hon. Friend satisfied with progress in the research and development programme on the very interesting possibility of tracked hovercraft, and will he give special attention to this in the period ahead?

Fuel Policy

11.

asked the Secretary of State for Trade and Industry what progress he is undertaking with his comprehensive review of the nation's energy policy to meet future demand with co-ordinated economic planning; and if he will publish a White Paper in due course.

36.

asked the Secretary of State for Trade and Industry what consultations he proposes to seek to hold with interested parties in order to formulate an energy policy as a result of the Wilberforce Report.

41.

asked the Secretary of State for Trade and Industry if he has now decided whether to publish a White Paper setting out the Government's general fuel policy, following the recently announced increases in coal prices.

Energy problems are kept under constant review. Recent developments in the coal industry clearly have an important bearing upon this work. I see no occasion to publish a White Paper in the near future.

Will my right hon. Friend's long-term review of the nation's future energy requirements take into account the need to apply more of our technology urgently towards obtaining greater efficiency in our fuel consumption so that we may prevent environmental pollution, produce our electricity more cheaply and ensure that our natural reserves of hydrocarbons are not exhausted?

I can assure my hon. Friend that all these matters are very much in the Government's mind although clearly main initiatives in all these fields lie with the various industries concerned.

Will the Secretary of State bear in mind that reserves of natural gas have a life expectancy of only 20 years and that the vulnerability of oil, whether in the North Sea or in the Middle East in a strategic sense, must cause concern? There is no problem about known coal reserves and at this moment oil is being used faster than it is being discovered.

These questions of security of supply are very pertinent to the matter of energy policy generally. On the whole, forecasts made a very long time ahead often prove to be entirely upset by experiences subsequently encountered.

Does the Minister appreciate that some of us have been following these questions for a rather longer period than he has? Is not the House therefore entitled to a statement from the Govern- ment, perhaps a White Paper, setting out the latest energy position as the Government see it?

While I make no very great pretensions of longevity in this subject I should say that it has formed a major topic for me during the whole of my working life. On the question of a White Paper, the very fact that the issues involved are subject to constant and major variation militates against the usefulness of fixed positions adopted in a White Paper.

Will my right hon. Friend bear in mind in the broadest sense of friendliness that I congratulate him very warmly on the way he presented his material last Friday on North Sea oil and the comprehensive dossier I received? We are anxious about the next generation of power stations and whether they are to be coal- or oil-fired or nuclear-powered. As these matters must be planned seven years ahead, is it not reasonable that my right hon. Friend should take the House of Commons into his confidence?

I would very much hope that my disinclination to publish a White Paper by no means meant that I would not take the House of Commons into my confidence, and that goes particularly for my hon. Friend and his friendliness. But I doubt whether the material in question is really a suitable matter for a White Paper.

Regional Policy

12.

asked the Secretary of State for Trade and Industry if he will publish the Report of the Central Policy Review Staff on Regional Policy as a Green Paper.

Does my right hon. Friend appreciate the great disappointment caused in the North-West Region when the last Government refused to implement the proposals of the Hunt Committee? Has the Central Capability Unit been asked or will it be asked to look once again at these proposals?

My hon. Friend can remain assured that the matters in question, particularly those raised in the Hunt Report, are being borne in mind in considering the problems of regional policy As he knows, when he accompanied a delegation from Bolton with others of my hon. Friends this was referred to and I gave that same assurance.

Will the Secretary of State accept my assurance that we in the development areas, having seen the position go from bad to worse in the last 18 months or so, realise that the time is long overdue for the announcement of a positive new policy for the areas rather than the constant repetition of "I am urgently reviewing the policy for the regions"? Will he give a definition of his meaning of "urgency" since he has been using that term for 18 months?

The development areas in general are waiting avidly for the report and it will be a bad job for the "think tank" if it does not produce a good policy. Presumably shipbuilding policy will also be reviewed, and my right hon. Friend should remember that England has quite as much an interest in this as Scotland. We have heard too much about Scotland and I should like a bit more assistance given to England.

Whether or not the regional policy changes, when they emerge, are considered good will be a matter for which I will largely bear responsibility and I will take that responsibility. The whole weight of shipbuilding does not reside solely north of the Border but south of the Border as well.

The C.B.I. has published its regional proposals, the T.U.C. has included detailed proposals in its economic review and Lord Rothschild has been permitted to publish his own Green Paper on research and development. Is there any reason, therefore, why the House should not have made available to it broadly the same advice as was made available to Ministers so that we can judge whether the Government's policy meets the requirements of the proposals which have been brought forward?

I think the Green Paper on research and development is a different matter which is not germane to this issue. But I have the feeling that the House will have very full access to information upon which it can judge the validity of the new policies.

Overseas Visitors

13.

asked the Secretary of State for Trade and Industry what has been the average annual increase percentage in the number of overseas visitors to Great Britain during the last five years for which figures are complete.

For the United Kingdom, 11 per cent. per annum in the five years ended December, 1971.

As one of the benefits of Common Market membership will be a further increase in the number of tourists from Europe, particularly to historic cities like Cambridge, is it not obvious, if we are to take advantage of this prospect, that imaginative action will be necessary by everyone concerned in these cities, and will the Government do everything possible to encourage this?

Yes, the Government most certainly will. The English Tourist Board will also take the point.

I recognise that the promotion of tourism to Britain has been very good but development at home is still lagging behind. When will the Secretary of State implement the part of the Act which we introduced in 1969 which gives the Government power to register and classify hotels so that tourists can know the quality and price of the hotels

This matter is under consideration by the Government in the light of information we are receiving but I am not in a position to make an announcement today.

The increasing number of tourists to the main tourist centres, for example, Westminster Abbey, is now making conditions quite intolerable. Is it possible to find a way of restricting the numbers who visit these places at any one time?

The problem of concentration in certain key areas such as London and Stratford is a matter for urgent consideration by the British Tourist Authority and the English Tourist Board, which are preparing plans to rectify that situation.

Mexborough

14.

asked the Secretary of State for Trade and Industry if he is aware that the British Domestic Appliances Limited factory at Swinton, Mexborough, has decided to make 600 employees redundant, thus aggravating the number of unemployed in the Mexborough and district areas; and what are his plans to provide new jobs in this part of Yorkshire.

Yes, Sir. The Department will continue to use all the means available to it to encourage the development of new industry in Mexborough and the surrounding districts of this intermediate area.

When will the Department of Trade and Industry take unemployment seriously? This area needs jobs in thousands, not in one or two hundreds. When will the Department do something to discourage firms like British Domestic Appliances Ltd., which, due to losing markets, has now created 600 redundancies? Is it not time that this part of Yorkshire was declared a development area?

I understand the hon. Member's quite proper concern for unemployment. On the broad point he would do well to await the results of the regional review to which my right hon. Friend the Secretary of State has referred. On the specific issue of British Domestic Appliances Ltd. I understand that there has been a temporary stay in the execution of redundancy notices pending meetings between management and unions and there will be another meeting this week, which I hope will be satisfactory to all parties.

This is an important matter for the whole country, and where closures occur for economic reasons and to cheapen prices we can only accept them. Will my hon. Friend keep his eye on firms which are doing asset-stripping and try to take action to protect the workers?

If my hon. Friend gives me specific examples we shall study them very carefully.

Industrial Investment

15.

asked the Secretary of State for Trade and Industry what was the level of seasonally-adjusted investment by manufacturing industries in the third quarter of 1971 as compared with the second quarter of 1971.

17.

asked the Secretary of State for Trade and Industry what was the level of seasonally-adjusted investment by the distributive and service industries in the third quarter of 1971 as against the second quarter of 1971.

Capital expenditure by manufacturing industries, at 1963 prices and seasonally adjusted, in the second and third quarters of 1971 was £372 million and £386 million, respectively; the corresponding figures for distribution and services were £408 million and £411 million. Figures for the fourth quarter issued last week show a small further rise for distributive and service industries but a fall for manufacturing industries.

Does my right hon. Friend agree that the slight decline in industrial investment in the last quarter is rather disappointing, but in view of the likelihood tomorrow of a further reflationary Budget can he tell us the investment indications for 1972?

I am somewhat disappointed with the fall in manufacturing investment in the fourth quarter. The prospects for 1972 on the basis of the previous analyses show that we should be due for something of an upturn—3 per cent. is the expected figure—though there may be other factors, as my hon. Friend mentioned, that will influence the level of investment this year.

Are not the figures for the distributive and service industries more encouraging? Do not they show that those important industries are recovering from the penal discrimination they suffered under the previous Government?

Certainly they have responded to the clear upturn in consumer expenditure which took place in the latter part of 1971 and early this year.

On the contrary, does not the right hon. Gentleman realise that the investment record of distribution services has been very poor? Will he explain why in view of the reintroduction of investment incentives in this area by the present Government?

The reason lay in what I said in response to my hon. Friend, namely, that consumer expenditure was at a low level until the middle of last year. It is only with the pickup of consumer expenditure that we have seen a resumption of a higher level of investment in the services sector.

If the right hon. Gentleman is right in his suppressed optimism, how does he explain why tomorrow's Budget is almost certain to include yet another desperate investment gimmick and why the economic development council for the chemical industry has indicated that new investors in the industry were 25 per cent. worse off under the investment allowance system than they were under the grants system? Will he also explain how in Wales last year so little foot-loose industry was created that industrial development certificates were a mere 40 per cent. of those issued during our last full 12 months in office?

None the less, the investment forward appraisal carried out by my Department regularly, and for years past, shows an upturn in investment during the coming year, and the most recent C.B.I. trend survey also seems to bear out that modest degree of optimism.

Motor Vehicles

16.

asked the Secretary of State for Trade and Industry what was the number of cars produced by United Kingdom manufacturers in 1971 as against 1970; and whether he will make a statement.

The number was 1,742,000 compared with 1,641,000 in 1970, an increase of 6 per cent. Prospects for a further marked growth in production this year are good and the opportunity exists to approach an output of 2 million cars. Car production figures are published monthly and are available in the Library.

I am grateful for those most encouraging figures. Will my hon. Friend indicate the likely effect of an increase in steel prices on sales in the coming year, and the numbers of cars lost in the past year through strikes?

It would be impossible to make those estimates. But strikes have already brought the 1972 figure below what it might have been. If the industry is to continue in prosperity, there must be an improvement in industrial relations.

Does the Minister agree that what the car industry and its workers most want is not the bandying about by politicians and Ministers of record numbers of cars produced but the long-term stability of the industry?

Is the Minister aware that the proposed steel price increases will make a difference of a very few pounds per car in car prices, and that it would be entirely wrong for the future development of the steel industry, a basic industry, to be in any way jeopardised by a reluctance to increase prices on this occasion as was displayed on a previous occasion?

The Government have asked the nationalised industries to conform to the C.B.I. initiative, which has had an effect upon steel prices, but I must ask the hon. Gentleman to argue out with his hon. Friend the Member for Birmingham, Northfield (Mr. Carter) what they jointly think about those two alternatives.

Engineering (Orders)

18.

asked the Secretary of State for Trade and Industry what was the rise in net new orders in the engineering industries in the third quarter of 1971 as compared with the average of the first half of 1971.

As this industry is, after textiles, the largest employer of labour in my constituency, will my hon. Friend on every occasion answer those people who denigrate the industry, sections of which are doing extremely well thanks to the Government's policy?

It is true that there has been a recovery in engineering orders and the conditions seem now to be set fair for a further expansion in the industry. I agree that it has every chance of taking advantage of present conditions.

Nationalised Industries (Prices)

20.

asked the Secretary of State for Trade and Industry whether he is satisfied with the application of the Confederation of British Industry's prices ceiling to the nationalised industries; and if he will make a statement.

The nationalised industries for which I am responsible have fully respected the C.B.I. pricing initiative and have contributed thereby to the success of that initiative.

But will my right hon. Friend think very hard before allowing the arrangement to be renewed in the case of the nationalised industries? Quite apart from the fact that it must imply the abandonment of all commercial criteria in the nationalised industries, have we not now seen that it is bound to lead directly to taxpayers' subsidies for the settlement of individual wage claims in the public sector, which my right hon. Friend the Secretary of State for Employment identified as a very undesirable initiative, giving a fresh twist to the inflationary spiral?

I am very conscious of all the points my hon. Friend has raised, but I would point out how important it is to the nation as a whole that the containment of inflation should continue from the point of view of the nation's external competitiveness and also its internal standard of living.

Would not the right hon. Gentleman agree that this forced interference with the pricing policy of nationalised industries is wrecking their financial structures, particularly that of the electricity supply industry?

Of course the problem of price containment has very grave difficulties for the industries, as I fully recognise, but I am sure the hon. Gentleman would not wish to dissociate himself from what I said in response to the Question—that the containment of inflation is a primary purpose not just of the Government but of the whole country.

While my right hon. Friend must be correct on the desire to contain inflation, does he not accept that if the policy of price limitation, whether in the nationalised industries or in the private sector, is not followed up by an equal containment of wage increases, all that will happen is a build-up of future price increases, which will then be even more damaging to the economy?

Yes, Sir. I think there is a great deal in what my hon. Friend says. I hope that the whole purpose of the restraint of inflation will be seen as necessary by all sectors of the community.

Is the right hon. Gentleman aware that the price increase proposed by the British Steel Corporation—about 4½ per cent.—is unrealistic in view of the price escalation which it is asked to absorb? Can he tell us what concessions and indications he gave to the corporation regarding its borrowing powers and its capital investment programme for the future?

The Iron and Steel Act contains provisions for certain concessions to be made to the industry. These remain yet to be finalised. The hon. Gentleman, who knows the industry so well, is aware that the question of pricing and of production is not merely a function of the costs involved but also very much a function of the competitive atmosphere in which the industry must live.

Foulness

21.

asked the Secretary of State for Trade and Industry to what extent the proximity of the Channel Tunnel was taken into account when Foulness was chosen as the site of the proposed new airport to serve the London area.

The Government were fully aware of the Channel Tunnel proposal when deciding on Maplin as the location of the third London airport.

While recognising the unacceptability of inland sites as long as aircraft remain noisy, may I ask my hon. Friend whether he would not agree that if the Channel Tunnel is given the go-ahead it will tend to invalidate many of the assumptions on which the need for a huge new third airport in the South East is based? Is he further aware that the tunnel and the advanced passenger train will have enormous effects on the viability of short-haul aircraft movements into and from London as aircraft get bigger and quieter? Will he undertake that if it is decided to go ahead with the tunnel the Government will look at the size and scope of Foulness itself?

The Roskill Commission estimated that at most the tunnel might delay the need for extra airport capacity by less than a year, and we would not disagree with that view. We are examining the point further in our Channel Tunnel studies.

Does not the hon. Gentleman agree that the rise in air traffic is phenomenal? Is he aware that the number of movements at Heathrow is 50 per cent. up on the figure for 1963, when the Wilson Committee said that it was already far too high? Is it not necessary to operate all kinds of measures to reduce the impact of noise on particular sections of the community?

That is precisely why the decision was taken for the third London airport.

Shoe Sizing

22.

asked the Secretary of State for Trade and Industry what progress has been made, with the assistance of his Department, in obtaining international acceptance of the Mondo Point system of shoe sizing.

Agreement has been reached on some details and member countries of the International Standards Organisation are continuing their studies of others in preparation for the committee's next meeting in November, 1972.

Will the Government press on with this, recognising that it is not only an important matter for my constituents but that people everywhere who wear shoes will benefit from standardisation of sizes and that we in this country stand to gain in the long run from the export trade?

I agree about the desirability of getting this matter finished, but international agreement requires agreement by our international partners and the matter is not in the hands of the Government but of the British Standards Institution, which is doing its utmost to carry it forward.

Does my hon. Friend realise that if the imports of leather and footwear, mainly from under-developed countries, continue to increase as they have done recently, it will be necessary for his Department to give rather greater assistance to the British footwear industry, a loyal and strike-free industry, than simply advice on shoes sizes?

That is a separate question. We shall certainly keep our eye on the situation as it develops.

Exports (Comecon Countries)

23.

asked the Secretary of State for Trade and Industry what action he intends to take to protect British firms wishing to export to Council for Mutual Economic Assistance countries from interference by the Co-ordinating Committee.

The purpose of this international committee, on which the United Kingdom is represented, is to avoid the disruption of trade which would be caused by conflicting national decisions on the operation of strategic export controls.

Is it not clear that that is not working? Is the hon. Gentleman aware that at the beginning of this month Ferranti was prevented from carrying out a £4 million export order of basic circuits needed for the building of computers in Poland? Does he not think it high time that the Government took a much tougher line with the committee? Apart from the fact that jobs in this country depend on our being able to export more and more goods to Eastern Europe, does not the hon. Gentleman think it galling and annoying that American circuit and electronic materials are exported to Eastern Europe while the Americans prevent ours from being so exported?

I understand all that, but in answer to the general question I would say that there are bound to be both debits and credits in operating controls. We believe that on balance the system benefits the national interest.

Is the hon. Gentleman aware that in south-east Lancashire, where this order would have gone, there is serious unemployment and that the engineering workers there think that the Government are still living in the cold war era, particularly as Ferranti says that the contract was not for war purposes?

I understand what the hon. Gentleman is saying. All the matters he has referred to are under consideration by the Government.

Candles (Industrial Development Certificate Control)

24.

asked the Secretary of State for Trade and Industry if he will vary the criteria for industrial development certificates when such applications are for the manufacture of candles.

Is the hon. Gentleman aware that during the fuel crisis caused by the miners' strike and the incompetence of the Government, there was a grave shortage of candles? Is he further aware that there was profiteering galore and that candles were selling for as much as 6p each in the West End? Will he now take steps for the production of candles at a much lower price in future against the day when the Government run us into another fuel crisis?

I am not aware of what the hon. Gentleman claims. My right hon. Friend said earlier that if there was any evidence of such profiteering it should be submitted to us, when we would investigate. Such evidence has not yet been forthcoming. In any event, I do not think that anything the hon. Gentleman has said is a case for altering the criteria for industrial development certificate control.

As candles are largely made from whale blubber, will my hon. Friend also now answer Questions Nos. 43 and 45?

Advance Factories (Scotland)

25.

asked the Secretary of State for Trade and Industry how many Government advance factories are at present unoccupied in Scotland; and how many of that number have, respectively, never been occupied and been vacated, in the period June, 1970, to February, 1972.

Twenty-seven advance factories including two built for the Development Commission are unoccupied. Twenty-three have not yet been occupied and four have been occupied and vacated by the tenants since June, 1970.

I thank the hon. Gentleman for his reply and also for understanding that these points were posed in the Question, despite how it is printed. There is obviously a difficulty in letting these factories. Will he accept that there is now a need to relax the conditions of letting, particularly as many of the factories are predominantly for male-employee industries? Will he examine also the possibility of handing over some of the smaller units to local authorities so that they may be used as sheltered workshops to deal with unemployment among handicapped people?

We endeavour to administer the advance factory policy as flexibly as possible for all types of employment. We shall keep the latter point made by the hon. Gentleman under consideration, but in the first instance the important thing is to get our own advance factories occupied.

Would it not help to fill these factories if my hon. Friend were willing to extend the special development area incentives to local firms considering expansion as well as giving them to incoming firms? Have the Government reached a decision about this yet?

All these matters are under consideration in our regional review and I cannot go further than my right hon. Friend has gone.

Industrial Dispute (Police Dogs)

26.

asked the Secretary of State for Trade and Industry if he will now make a statement on the inquiry into the use of police dogs during an industrial dispute at London Airport.

It is understood that a report will be submitted to the Chairman of the Police Committee of the British Airports Authority shortly. We will then consider in consultation with the Chairman of the B.A.A. whether any statement should be made.

Is the hon. Gentleman aware that it is now four months since this happened and that I and others have asked him questions about it on several occasions? Does he realise that we would like to know who gave the instructions to take the dogs there? Will that person be disciplined and will the Government send to all employers a copy of the Home Office circular of 1963 pointing out that it is a dangerous and provocative practice to send police dogs to meetings of trade unionists?

All these matters had better await the result of the inquiry. I understand that the reason for the delay is that there has been difficulty in obtaining statements from witnesses still subject to court proceedings and from others subject to High Court injunctions. It is obviously right that the inspectors should do the job thoroughly rather than rush it.

Will the hon. Gentleman explain to the House what is his attitude to the use of dogs in industrial disputes?

I have nothing further to add to the answer given by my right hon. Friend the Home Secretary.

On a point of order, Mr. Speaker. I am sure the hon. Gentleman does not want to mislead the House, but he has made a reference to a statement made by the Home Secretary. That was about picketing and had nothing to do with police dogs and industrial disputes.

Further to that point of order. I should explain that the reference I was making was to an answer given by my right hon. Friend as reported in HANSARD for 2nd December, 1971.

Machine Tool Industry

27.

asked the Secretary of State for Trade and Industry if he is satisfied with the present level of activity in the machine tool industry; and if he will make a statement.

The low state of the industry's order book is a matter of concern at the present time. I am watching the situation closely.

Is the right hon. Gentleman aware that the low level of activity in this industry is a major contribution to the intolerable level of unemployment in the West Midlands? Is he also aware that the industry is saying that it can absorb up to a 30 per cent. increase in production without any increase in employment? In view of this sad state of affairs, will the right hon. Gentleman institute an inquiry into long-term employment in the industry?

I have had the benefit of one or two pieces of advice about the future of the industry, first from the machine tool economic development council, the chairman of which has given me some guidance on the subject, and secondly from the Way Committee which went into the whole question of the prospects of the industry. The truth is that the present position of the industry is due to its characteristics in relation to the industrial cycle and its sensitivity to low levels of investment. This is undoubtedly the problem from which it is suffering—it needs more orders.

Would not my right hon. Friend agree that a previous Minister, Mr. Frank Cousins, carried out a long and detailed inquiry into the machine tool industry which had precious little effect upon the industry? Is it not a fact that it is not inquiries that are needed but orders?

Since the Minister has told us that on Wednesday he will make a major statement on regional policy and on shipbuilding, and as he has already announced hovercraft policy and computer support, can he give us an idea of whether the Government will be ready to consider special help to the machine tool industry, the difficulties of which arise because its cycle of orders tends to leave it short of investment when it should be preparing for future expansion?

The right hon. Gentleman is indulging in his considerable versatility and talent for anticipation, as usual.

Steel Industry

29.

asked the Secretary of State for Trade and Industry if he is yet in a position to announce the outcome of the steel industry review.

50.

asked the Secretary of State for Trade and Industry if he has now completed his study of the steering group's report on investment in the steel industry; and if he will now make a statement.

Does not the right hon. Gentleman consider that reply most unsatisfactory? Over the weekend there has been a statement about the pricing policy of the corporation and the Budget Statement is impending. The right hon. Gentleman will be speaking in the debate on regional policy, which is under scrutiny. Does he not think that these developments and the concern being expressed in other quarters about industry's capacity and competitiveness warrant a statement?

I certainly hope that a statement will be made very shortly. This industry is, as the hon. Gentleman knows, of such absolutely primary importance to the rest of industry that it requires the most careful and thorough analysis before a decision is taken.

Does the welcome statement that a decision will be made shortly mean that we will soon have a decision on the proposed development of a major steelworks at Hunterston on Clydeside? As most of Scottish industry regards this as crucial, may we have a decision on this at the same time?

I said that a statement would be made shortly and it would be wise for my hon. Friend to wait for that.

Will the right hon. Gentleman accept that "shortly" is not good enough? Is he aware that he has been saying that for the last three months? A statement was promised before Christmas; we are now approaching Easter. Will the right hon. Gentleman confirm today that when his statement appears it will contain something of substance and deal with the criteria he laid down for the joint steering committee and that it will be a comprehensive statement dealing with the British Steel Corporation over the next 10 years?

I can assure the hon. Gentleman that the statement, when it comes, will be substantial.

May I ask whether the statement will include something about the future of the Irlam steelworks?

The future of any individual works is a matter for the corporation, not for me. The purpose of the statement will be to deal with the very deep review which has been taking place into the future of the industry as a whole.

Is the right hon. Gentleman aware that people in the steel industry are getting fed up with the Government's policy? Is he further aware that whenever Ministers go anywhere they promise that the new steel complex might go there? Will he clarify this and stop this deception of the people?

My right hon. and hon. Friends in the Department and myself have certainly given no promises or tips that any particular complex will go anywhere. This is a matter for the corporation to make recommendations about and is not for the Government.

Bankrupt Companies (Disposal Of Information)

30.

asked the Secretary of State for Trade and Industry whether he will introduce legislation to regulate the disposal of stores of confidential information from bankrupt companies.

The books, records and documents of a company in liquidation are normally in the possession of the liquidator, and fall to be disposed of within the provisions of the Companies Act, 1948, and the Companies (Winding Up) Rules, 1949. I am not sure what particular point the hon. Member may have in mind; while I cannot hold out hope of early legislation, I would be glad to consider the matter further if the hon. Member would care to write to me about the particular point which interests him.

Is the hon. Gentleman aware that the Vehicle and General Insurance receiver has given exclusive use to the London and Edinburgh General Insurance Company of over 800,000 names from his files? Is he further aware that the company has been given sufficient information to enable it to send out individual quotations to 340,000 former V. & G. policy holders? Is he further aware that this is highly confidential, highly personal information? Is he also aware that the receiver has said that after this company has finished, after the exclusive use of the lists for one month, anyone who wants to buy the information can do so? What does the Minister intend to do about that?

The answer is that I was not aware of those facts. I will look into them and write to the hon. Gentleman.

Is the hon. Gentleman aware that the circumstances described by my hon. Friend are a matter of legitimate public concern? Will he tell the House whether or not, when such data is sold, any duty of confidentiality is imposed upon the purchaser?

It is a matter for the liquidator in considering the sale of assets of a company whether there are moral reasons which transcend his commercial duty to realise the maximum for the creditors. I am not aware of the circumstances that the hon. Gentleman has raised and I should like to look into the matter before commenting.