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Commons Chamber

Volume 28: debated on Monday 26 July 1982

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House Of Commons

Monday 26 July 1982

The House met at half-past Two o'clock

Prayers

[MR. SPEAKER in the Chair]

Private Business

Greater London Council (General Powers) (No2) Bill

Considered; to be read the Third time.

Commercial Banking Company Of Sydney Limited (Merger) Bill Lords (By Order)

Order for Third Reading read.

To be read the Third time tomorrow.

Oral Answers To Questions

Energy

Coal Mining Subsidence (Compensation)

1.

asked the Secretary of State for Energy whether he has received any representations from organisations representing farmers or landowners in connection with claims for compensation arising from coal mining subsidence following the publication of the Flowers report on coal and the environment.

I have received representations from the National Farmers Union and the British Property Federation.

I thank my hon. Friend for the sympathetic and realistic attitude that he and his Department have taken towards compensation for coal mining subsidence. In view of the application by the National Coal Board to work coal under the Vale of Belvoir, does my hon. Friend agree that people whose property suffers subsidence from coal mining do not receive the same consideration as property owners whose properties are acquired for other purposes? Will he have consultations with his colleagues in the Ministry of Agriculture, Fisheries and Food and the Department of the Environment to see that fairness and equity prevail in the future?

I thank my hon. Friend for his kind remarks. We all wish to see a proper balance struck between the interests and needs of the coal industry, of property holders, and of the environment. I take his point about the need for consultation, which I know exists, and I shall stress that to my ministerial colleagues.

I represent a community in which for nearly a 100 years properties have suffered from subsidence. If there is to be a new regime for the Vale of Belvoir or anywhere else, will it extend to communities that have long suffered from that problem?

I take the hon. Gentleman's point. We all appreciate the excellent work of the Commission on Energy and the Environment, and the degree to which the CENE report has led to detailed debates with many local authorities, who have considerable experience in such matters.

Will the. Minister accept that there will be considerable support from both sides of the House for legislative action to improve the present regime whereby the National Coal Board is judge, jury assessor and compensator for too many people?

The hon. Gentleman will be aware from our debates that that, among other matters, is being considered in the Government's answer to the CENE report recommendations.

Non-Nuclear Energy Expenditure

2.

asked the Secretary of State for Energy what is the current annual rate of public expenditure in alternative, non-nuclear, energy sources in each of the EEC countries, converted as near as possible to £ sterling at the present rate of exchange.

The latest available figures are those collected by the International Energy Agency. They cover eight of the 10 Community countries—excluding France and Luxembourg—and show that in 1981 the United Kingdom spent £15·1 million and was in second place. I have arranged for the figures to be extracted and published in the Official Report.

Is not the disparity between public expenditure on infinitely renewable energy resources and the expenditure on nuclear power utterly grotesque? Is the Minister aware that after 18 years of the advanced gas-cooled reactor programme and the expenditure of billions of pounds of public money, it still satisfies only 1 per cent. of our energy needs? Given a modest improvement in financing, renewable resources could do far better than that.

The hon. Gentleman and I seem to have this dialogue every time there are energy questions. My answer must remain the same as it was the last time. We have a "renewables" programme which establishes the potential of having renewable energy when we need it. Equally, we believe that nuclear power is a proven technology. The AGR on stream at Hinkley Point is one of the best power stations on the grid. Three other AGRs are expected to come on stream within the next 12 months. There are two new generation AGRs which are progressing according to plan.

Will my hon. Friend confirm that we are spending more on research into alternative forms, of energy? That money could be more effectively used if there were no duplication of research with our EEC partners.

I should not have made the point, but my hon. Friend persuades me to say that in 1976–77, when the Labour Government were in power, about £274,000 was spent on renewable energy. The present figure is £15·1 million.

Instead of giving us yah-boo answers, does the Minister agree that it would be a disgrace if we were not spending more on alternative sources of energy following the oil crisis of 1973–74? Is he aware that there is great disquiet about the Government's cuts in resources for alternative sources of energy? Can he justify that action when the Middle East is in a state of crisis?

When we were about six or seven years into the renewable programme it was essential to establish priorities. It is always easy to duck these choices—we have admirable precedents from Labour Members—when decisions have to be made. However, we felt that the time had come when we should pick some winners, and that is what we tried to do.

New Energy-Producing Capacity (Costs)

3.

asked the Secretary of State for Energy what studies have been made by his Department of the relative cost of establishing new energy-producing capacity against introducing new conservation measures to achieve the same net energy effect.

There is no simple choice to be made between investment in energy conservation rather than supply.

I do not expect the Minister to accept the case of Friends of the Earth and the link that it believes exists between investment in nuclear power and gains from energy conservation. However, does he accept that it has been able to identify substantial gains that would be available to us? Will he replace the advisory council with a standing commission on energy conservation that will investigate these issues and take evidence? Will he consider putting in his private office a supporter of Friends of the Earth?

We have recently reconstituted the Advisory Council on Energy Conservation, on which many interests are represented. We believe that it will be an extremely effective body under the distinguished leadership of Dr. Telfer. It is easy to suggest that we should not spend so much money on power stations, but the hon. Gentleman should know that only 7 per cent. of space heating is by electricity. Even if a 25 per cent. saving were achieved in conservation on space heating, electricity demand would be reduced by only 2 per cent. That is why there is no easy relationship between the two factors.

Is it more cost effective to spend public money on keeping open a few high-cost uneconomic pits or on improved insulation in public sector buildings?

My hon. Friend poses a choice upon which I do not feel I should comment.

When does the Department of Energy hope to comment on the report of the Select Committee on Energy, which has some valuable things to say about the proper balance between supply and demand?

I am aware that the Select Committee has recently reported. The Department welcomes the report and is currently studying its response to it, which will be made later in the year.

Is my hon. Friend aware that the studious agnosticism of his original answer was somewhat disappointing? It would be more appropriate if his Department conducted such studies, whatever the methodological difficulties?

I was trying to convey to the House that I believed in both approaches, not that I did not believe in anything. It is necessary that we have new and efficient power stations to replace elderly power stations in the 1990s. It is equally necessary that we continue to have an effective energy conservation programme.

Ncb (European Community Borrowing)

4.

asked the Secretary of State for Energy what was the total borrowing from the EEC by the National Coal Board for the years 1971 to 1979 and 1979 to 1982.

I thank the Minister for that reply. Has any restriction been placed on the National Coal Board's borrowings from the EEC since 1979?

I think that the hon. Gentleman is worried about the absence of borrowings in 1981. That is a reflection of the fact that throughout most of the year it was cheaper by more than 3 per cent. to borrow from British rather than foreign sources.

Following the petroleum industry's financial support of the liquefaction plant, does the Minister intend to proceed with the plant on an experimental basis? Is he aware that if the Government put £1 million into the project the EEC will make £5 million available?

The hon. Gentleman may remember that previously I told the House that the issue was being reviewed by the National Coal Board. The first meeting of the board's review will take place this week.

Oil Companies (Departmental Discussions)

5.

asked the Secretary of State for Energy what discussions his Department holds on a regular basis with the major oil companies; what subjects are discussed; and when the next meeting will take place.

My Department frequently meets the oil industry in order to discuss a wide range of subjects and will continue to do so.

Have the violent fluctuations in petrol prices in recent years been raised in the discussions with the companies, and has their attention been drawn to the public concern that these price movements have caused? Is it possible to take some action through, for example, the European Community?

I appreciate my hon. Friend's point, but I remind him that harmonisation within the Community was designed to remove dependence on oil and to try to establish common principles for energy pricing. United Kingdom prices net of tax are currently the lowest in the European Community. Alignment of United Kingdom prices to Continental levels would mean a substantial increase in United Kingdom prices.

Has the Minister been told by the companies that the fall in the oil profile in the late 1980s and early 1990s will mean that we shall lose net self-sufficiency in Great Britain and that about five medium-sized fields will have to be approved every year if we are to keep pace with demand? Will the Minister tell us exactly what will happen about annex Bs?

My information does not tally with that of the right hon. Gentleman. The highest level of exploration since 1977 has been achieved on the United Kingdom continental shelf this year. More exploration wells were drilled in the first half of the year than in the first half of last year. If this rate of activity continues for the rest of the year, a new record could be set in 1982. The Department is in discussions with the licencees of North Alwyn and Clyde. I expect the licencees to submit their projects for approval shortly. Consequent orders should be placed before the end of 1984.

When the right hon. Gentleman next meets the oil companies, will he be hawking around the secret report on the valuation of Wytch Farm, made, apparently, at a cost of £100,000? Will the Select Committee have the chance to examine the report before the sale takes place so that the House can made a judgment on whether there is again to be a forced sale at a knockdown price to remove an important asset from the nation and from British Gas?

That is a matter for the British Gas Corporation. I am sure that the hon. Gentleman appreciates that.

Does my right hon. Friend appreciate that while exploration is an indication of the general level of activity, development is what really matters? Is he not concerned that the Treasury's need for money is overcoming the national interest in getting fields developed, especially in the interests of creating employment?

I cannot accept that. My right hon. and learned Friend the Chancellor of the Exchequer has a difficult task in balancing the scales of justice and ensuring that the nation gets its due in the national interest, while at the same time not removing incentives from oil companies to invest in the North Sea. I do not agree that the companies are postponing the development of an oilfield. If that has taken place, taxation has been only one element in the decision. It is one that usually comes a poor third.

When the right hon. Gentleman next meets the representatives of Shell and Esso, will he put it to them that the use of the ICI case, which is now before the courts, as an excuse for a reappraisal of the cracker and NGL plants at Moss Morran will be wholly unacceptable to the people of Fife?

I am aware of the hon. Gentleman's very great interest in these matters, which are near to his constituency. I can assure him that any such suggestion from Shell and Esso will not be greeted with any sympathy.

When my right hon. Friend next meets the oil companies, will he try to impress upon them the absolute necessity for an adjustment in the prices of fuel in rural areas, because at present, as my right hon. Friend is aware from his constituency, the prices are devastating and causing a great deal of concern throughout all the rural areas in Scotland?

I know that my hon. Friend is concerned about rural constituencies, as I am. The wholesale price disparity, which remains less than the retail disparity, is likely to narrow as the companies reintroduce temporary sales allowances. Department of Energy officials have been anxious for them to be reintroduced. I am glad to be able to tell the House that one major oil company this weekend reintroduced temporary sales allowances, which should substantially benefit rural areas. I trust that other companies will follow.

Ncb Facilities (Closure)

6.

asked the Secretary of State for Energy whether there are circumstances in which his consent is required to proposals for the closure or disposal of National Coal Board facilities.

Apart from overseas activities, the board does not require the consent of the Secretary of State for the closure or disposal of facilities.

Does the Secretary of State realise that many people in the mining industry will look askance at his statement? Does he not think that it is ridiculous and ludicrous that there should be a difference between the National Union of Mineworkers and the National Coal Board on what will happen to the mining industry, for example, with regard to pit closures? Will he bear in mind that if he does not want to create disharmony in that nationalised industry he should avoid doing what the Government have been doing too often and too regularly—selling the plums of nationalised industries to their friends and leaving the rest to be looked after by the nation?

I am sure that, having got that off his chest, the hon. Gentleman feels much better. There is not the difference between the NCB and the NUM—where it matters—that the hon. Gentleman professes to discern. The fact is that pit closures are dealt with through the board's review procedures with the unions, which are at local level, with a right of appeal at national level. The NUM, its geologists and others are constantly in discussion with the NCB at area level on all those matters. Those procedures were instituted in the early 1970s. They continue to this day.

Will my right hon. Friend explain who benefits when men are made to stay at work in old pits, which are extremely unhealthy, when resources are available to open new pits, where plenty of jobs should be available?

My hon. Friend has a good point. There are many areas in which miners can see the case clearly for the closure of pits and are happy to accept redundancy money. It is interesting to note that when Mr. Scargill was president of the Yorkshire area of the NUM, 11 pits were closed, all with his agreement.

Does the Secretary of State agree that the Government's contribution to the difficulties that have arisen is based on the fact that there has been a delay in replacing capacity? Does the right hon. Gentleman agree that it would help if the Government considered giving assistance for the replacement? I refer to the disgraceful episode of the Vale of Belvoir.

I do not see where the disgrace is about the Vale of Belvoir, because I understand that the NCB has made a fresh application, which will be considered soon by the planning authority responsible, which is the Leicestershire county council. I agree with the hon. Gentleman that replacement capacity is important. He may be interested to know that since 1974, when the "Plan for Coal" came into operation, 8 million tonnes of capacity have been lost through closures and 16 million tonnes—twice that amount—of new capacity have been created.

Commercial Fast Breeder Reactor

7.

asked the Secretary of State for Energy what further progress has been made towards establishing a commercial fast breeder reactor in the United Kingdom.

The National Nuclear Corporation, in association with the Atomic Energy Authority, is further developing the reference design for a commercial scale fast reactor which was announced by the AEA last year. The authority is undertaking a major programme of fast reactor research and development in support of this work based on the prototype fast reactor and associated fuel plant at Dounreay.

I am grateful for that answer and the answer to the three written questions which I tabled last Thursday. In what year does the Minister estimate that the commercial fast-breeder reactor will be built? Will the experimental establishment at Dounreay be the basis on which the commercial fast breeder reactor will be established?

It would be impossible for anyone to specify when that reactor will be built. That is a factor in the review of all the policy options that are involved in the Government's review of the fast breeder. With regard to Dounreay, the Government have made it clear that all aspects of fast breeder development must be examined in their policy debate.

Bearing in mind the importance of Dounreay to the Highland economy, will the Minister give a guarantee that that establishment will not be closed?

I should have thought that it is not the time to give guarantees when one is considering policy options—[HON. MEMBERS: "Oh."]—and those who wish to encourage irresponsible debate can mutter from Labour Benches. The policy is being reviewed, as the Government have made clear. Dounreay has an important role in the Highlands development area, and there are important employment opportunities at Dounreay, which is a key factor in any such review.

Does my hon. Friend agree that it is now 29 years since the first experimental fast-breeder reactor started at Dounreay? Is he aware that many of us believe that all Governments have been somewhat slow in maximising the opportunities of the fast breeder, which would benefit not only our country but many countries throughout the world if we were able to develop a small fast breeder that could be exported?

My hon. Friend is right. The development has been going on for nearly 30 years. The demonstration fast-breeder reactor has been in operation from 1959 to 1977. It is clear that the fundamentals of nuclear development have also changed. The thermal programme in the world has developed more slowly than had been anticipated. It is normal to review the current position on the basis of fundamental economic change.

While the Minister has recognised the importance of Dounreay to the economy of that part of the world, and while he cannot say now that the new fast-breeder reactor will go to Dounreay, can he give an assurance that in the foreseeable future—for example, five years—no jobs will be lost at Dounreay?

All that I can say is that there is a legitimate examination of the policy options. Within that examination the proper role of Dounreay is a key factor, not just in terms of the job opportunities in the Highlands, but in terms of its expertise and excellence in fast-breeder development.

Coal Stocks

8.

asked the Secretary of State for Energy what is the level of coal stocks at the nearest convenient date at power stations in the United Kingdom.

10.

asked the Secretary of State for Energy what is the current level of coal stocks held by the National Coal Board.

That is an encouraging figure. Now that coal can be moved freely by rail, will my right hon. Friend assure me that he will use the summer months to build up the stocks to maximum capacity so that if, regrettably, the threat from Mr. Arthur Scargill were to materialise, the nation would be as well equipped as possible to meet it?

Those are matters for the NCB and the Central Electricity Generating Board. I am sure that the NCB is anxious to sell as much coal as possible. I am sure that the CEGB is aware of the factors that my hon. Friend has mentioned.

Will my right hon. Friend confirm that the CEGB has increased the percentage of electricity generated from coal? Will he say to Mr. Scargill that there is no point in producing coal merely for stockpiling, but that it has to be sold?

My hon. Friend is right. It is true that the percentage of electricity generated by coal has increased. That is a counterpart to the amount generated by oil, which has diminished. If we were to go back from 82 per cent. generated by coal to 68 per cent., that would cost an extra £200 million a year. As for consulting Mr. Scargill, that might be difficult, because at present he is on holiday in Cuba and does not get back until the middle of next month.

Perhaps the right hon. Gentleman could be serious for a moment. Does he agree that coal stocks could be an appreciating rather than a depreciating asset, bearing in mind the problems in the Middle East? What level of coal stocks does he consider that the industry should have?

It is as much for the industry as for me to decide that. I think that the industry would feel—I would agree—that the present level of pithead coal stocks is exceptionally high. Bearing in mind the present level of interest rates—we all want them to come down— the cost of carrying such stock is a heavy burden on the Coal Board. They are higher than is desirable. On the other hand, I agree with the hon. Gentleman about the desirability of having adequate stocks at power stations.

Bearing in mind the increased industrial activity on behalf of railway, Health Service and other workers that is now promised by the National Union of Mineworkers, can my right hon. Friend assure me that there is some danger of some stocks being reduced in the next six months?

That may be so. There was a reduction in power station coal stocks during the prolonged ASLEF dispute in February and March of this year. I do not know whether, as a result of that, the generating board burnt more oil to preserve coal stocks. That was also attacked in The Economist. It is difficult to satisfy even The Economist at any time, let alone a more representative audience.

Does the right hon. Gentleman agree that the problem of coal stocks or of an energy surplus will not be resolved until there is a Government who are eager to promote economic recovery? Will the right hon. Gentleman underline the point that he seemed to make earlier? Will he say clearly to the nation that it would be idiotic for Britain to reduce its energy production capacity to match the continuing recession?

It is essential that the Coal Board makes itself economically viable. It recognises that. That is essential for the future and the success of the coal industry. That is true, irrespective of the present recession.

Coal Industry (Investment)

9.

asked the Secretary of State for Energy when he next intends to meet the president of the National Union of Mineworkers to discuss future investment in the coal industry.

14.

asked the Secretary of State for Energy when he next proposes to meet the chairman of the National Coal Board to discuss investment in the industry.

16.

asked the Secretary of State for Energy when he next expects to meet the chairman of the National Coal Board to discuss investment in the industry.

26.

asked the Secretary of State for Energy when last he met the chairman of the National Coal Board to discuss investment in the coal industry.

I meet periodically the National Coal Board and the NUM to discuss different aspects of the coal mining industry, including investment.

We all enjoy Mr. Scargill's frequent contributions to political debate. Will my hon. Friend confirm what my right hon. Friend the Secretary of State has just said—that Mr. Scargill has gone to Cuba?

I should not like him to stay there. He is the best ally that we Tories have. When Mr. Scargill returns, will my hon. Friend inquire whether the visit was political or whether he was trying, for once, to help the British coal mining industry? For example, is Cuba a large potential market for British coal?

I do not have ministerial responsibility for the president of the National Union of Mineworkers. However, I am sure that, as we all know that 82 per cent. of coal is burnt in our power stations, hon. Members will be interested to know that Cuba burns only oil. Nevertheless, I am sure that the Cubans can be persuaded to do as well as we do.

Order. I propose to call first the three other hon. Members whose questions are being answered.

When will the Government be able to tell the Coal Board and the NUM that it is time to fix a realistic programme for ending the subsidies and the industry's monopoly by introducing private capital in partnership, so that we can inject some competition? Does my hon. Friend agree that it is nonsensical that British companies such as BP should be forced to go abroad to mine coal and are prohibited from contributing to the economy and genuine competition in Britain?

It is sometimes sad and of significance to us all to remember that, in the past 15 years or so, about £26 billion has gone from the private sector into offshore oilfield development. The country has invested only £3 billion in the coal industry. I say "only", although that is obviously a sizeable amount of money. Investment in the coal industry is in all our interests. One would hope that the industry would welcome it.

Does my hon. Friend agree that capital investment in the industry this year will reach nearly £900 million? Does he agree that the miners should, therefore, ignore the militant calls of Mr. Scargill and continue the expansion of their industry by opening new pits and closing old, uneconomic ones?

I should like the industry to carry on with its present excellent productivity and improvements. To the extent that the industry is progressing well, I trust that everyone will notice the large amounts of investment that have been made in the industry since "Plan for Coal". There has been £3½ billion of investment. That is considerably more than the £2½ billion that was expected under "Plan for Coal".

Will the Minister do all that he can to bring on the coal liquefaction scheme at Point of Ayr? Is he aware that, in North-East Wales, in the county of Clwyd, unemployment is now 22 per cent. or more and that there is nearly 40 per cent. male unemployment in Flint? Does he understand that unemployed construction workers look to the scheme to help provide them with work?

The hon. Gentleman will remember that I recently met representatives from Clwyd. As I said earlier, a review by the Coal Board of the plant is in process. It is vital, as with many other areas, that projects are developed economically and rationally, for the success of the coal industry in the long run.

Will my hon. Friend assure me that, unless the present scheme by the Coal Board for the extraction of oil from coal is shown to be completely unworkable, regard will constantly be had to Britain's need for assured supplies of oil, which will eventually run out otherwise, and that oil could be extracted from coal, of which we have almost unlimited reserves?

My hon. Friend is assiduously pursuing his constituents' interests. I understand his point. He will wish to examine the thorough Coal Board review before I comment further.

Will the Minister bear in mind that when private capital ran the mining industry it was in a deplorable condition? I hope that he will resist the proposals that have been advanced by his hon. Friends.

I trust that those whom I respect and who had interests in and responsibility for the coal industry in the past will join the latter part of the twentieth century with regard to investment by reputable organisations. We are not in 1930, we are in 1982.

Is my hon. Friend aware that the taxpayer is losing about £35 million as a result of not being able to import more coal? Instead of expecting the CEGB to import 4 million tonnes, as contracted, and then dumping 2 million tonnes of it in Europe, does he agree that it would be more rational to import into the United Kingdom?

I have learnt from experience in the past few years that rationality is not the basis of every debate on the coal industry. The detailed facts that my hon. Friend suggests bear further examination.

I am sure that the Minister agrees that investment is the key to progress in the coal industry. Will he consult the Government about oil from coal? Does he agree that it not only affects the future of the coal industry, but that British technology could be at stake?

As a member of the Government, I shall indulge in self-consultation. We must make the right decisions in these matters. The right decisions require us to examine the matters carefully, thoroughly and responsibly. We are dealing both with the coal industry, which is crucial, and the future of taxpayers' money.

Britoil

11.

asked the Secretary of State for Energy if he is now in a position to announce the terms and conditions on which Britoil's shares will be put on to the market.

No, Sir. However, I can assure the House that there will be no flotation of Britoil and, indeed, no final decision about the method of sale until the House has reassembled after the Summer Recess.

That is a very welcome reply about timing, but will my right hon. Friend assure the House that he will continue to consider some form of tender option bid so that a price may be set before he embarks on the issue of the shares to the market generally?

I greatly welcome my right hon. Friend's decision to bring Britoil to the market, but can he say to what extent the public issue of the shares in the autumn will depend on stability of oil prices? Would further falls in the international price seriously affect the possibility of bringing the shares to the market in the autumn?

As I have always made clear, the condition of both the oil market and the oil share market will be among the factors to be taken into account when we finally decide on the timing of the issue. So far, I see no reason why the flotation should not go ahead in the autumn. However, as I have said, no decision has been taken. The decision will be taken nearer the time in the light of conditions at that time.

The right hon. Gentleman has just sold the basic pass. Does he not recall the repeated assurances that he and other Ministers gave that there would be no sale of Britoil unless the best possible price could be obtained? Does he agree that no one in his right mind would try to sell a large number of oil shares in the current state of the market? Will he therefore abandon the artificial deadline that he has set to sell the shares by November this year and stand by the assurances given to the House?

The hon. Gentleman cannot be listening with the care that he usually shows or the care that the right hon. Member for Leeds, South (Mr. Rees) would have shown if he were present. Nobody, not even the hon. Gentleman, knows exactly what conditions will be like in the autumn. All that I have said is that a decision will be taken nearer the time, when we have a better idea of what the conditions are.

North-Western Electricity Board (Lancashire)

12.

asked the Secretary of State for Energy what representations he has received concerning the reorganisation of areas within Lancashire by the North-Western electricity board; and if he will make a statement.

I have received a number of representations about the plans of the North-Western electricity board to reorganise its areas. This is essentially a management matter for the board.

Is the Minister aware that there is substantial resentment in the Blackburn area, particularly among the staff, about the way in which the decisions were made, particularly the appointment of senior staff, before a decision was made about the location of the new offices? As the explanation given for the changes was that they would secure financial savings, what monitoring will be carried out by the Department or the Electricity Council to ensure that savings are indeed made?

Although I in no way underestimate the concern that these matters cause in individual constituencies, they are essentially matters for the day-to-day management of the board. Accordingly, the powers of the Department are limited, although we keep in touch on these issues. I know enough about the subject to know that the chairman and deputy chairman of the area board take very seriously the complaints that the hon. Gentleman has raised and would be willing to meet him. The chairman of the North-Western Electricity Consultative Council is also prepared to become involved if the hon. Gentleman wishes.

Is it not strange that the area with the best record in labour relations and efficiency has been eliminated? Is this not another case which proves that, whether it be polytechnics, new towns or whatever, Preston is always preferred to Blackburn, and does my hon. Friend agree that that should stop?

As I was born in Dorset, I should perhaps not intervene too much in any rivalry that may exist between Preston and Blackburn. These are difficult matters, but, in the interests of efficiency and serving the consumer best, area boards throughout the country have been trying to cut administrative overheads. That is always difficult, but there are local ways of putting forward objections and having them heard. Apart from anything else, the part-time members of the North-Western board are in the majority and can intervene if they see fit.

Is my hon. Friend aware that the people of Preston are delighted that the part of the North-Western electricity board to which he referred has been centred on Preston and that we are very grateful for the management decision that was taken? Is he also aware that that view is shared by the hon. Member for Preston, South (Mr. Thorne), who is not on the Conservative Benches?

I think that at this point discretion should be the better part of valour.

In considering consultation with other bodies, will the Minister consult the Glass Manufacturers Federation, which represents all the glass firms in the North-West, about its consumption of electricity and about the reorganisation of the electricity board's undertaking in the North-West?

I have visited factories in the North-West on several occasions since taking office. Representatives of industries know that my door is always open to them if they wish to discuss electricity prices. The hon. Gentleman raises an important point, in that most people feel that they are paying more than they should for electricity. That is why it is crucial for area boards to be able to show that they are not carrying unnecesssary fat in their administration, which means that extra costs are passed on to consumers, particularly industries facing difficulties such as the one to which the hon. Gentleman referred.

House Of Commons

Office Accommodation

28.

asked the Lord President of the Council if he will initiate an inquiry into any difficulties that hon. Members and their secretaries experience due to the provision of accommodation and facilities in offices outside the main buildings of the Palace of Westminster.

33.

asked the Lord President of the Council what is his present estimate of the unfilled need for office accommodation by hon. Members, excluding Ministers, in or near the Palace of Westminster.

The Lord President of the Council and Leader or the House of Commons
(Mr. John Biffen)

I am aware of the pressure on accommodation, although this cannot be measured absolutely in view of the differing wishes of Members. I should be happy to refer to the Accommodation and Administration Sub-Committee any particular problems within the Committee's remit that arise from the occupation of accommodation outside the main Palace buildings.

Does my right hon. Friend agree that, as more than 40 per cent. of hon. Members and more than 80 per cent. of their secretaries are now provided with desk space—I can scarcely call it accommodation—in five buildings outside the Palace of Westminster, this inevitably means a great deal of time being wasted through people and paper moving around and difficulties in receiving messages and visitors? How much longer does he expect hon. Members to put up with that?

As a later question deals with the possible extension of accommodation, it might be more appropriate if I addressed myself to that when it arises.

Is the Lord President aware that in the current Estimates only £700 is allocated to convert a room in a hut on the roof of the Palace of Westminster into an office? Does he regard that as an adequate response to the undoubted need for decent accommodation for Members of Parliament and their staff?

I shall of course refer the hon. Gentleman's anxieties to the Accommodation and Administration Sub-Committee, but I must point out that there is a limit to what can be made of the resources now available and that any extension of those resources that might arise under question 29 is a matter for substantial decision involving considerable public expenditure.

Will my right hon. Friend remind our hon. Friend the Member for Hove (Mr. Sainsbury) and others who think like him that the main work of the House of Commons is carried out in this Chamber and that anything that takes hon. Members away from this place into offices and forces them to spend an excessive amount of time on paperwork is a weakening of parliamentary democracy?

I shall reply in the most dull, downbeat fashion. I do not believe that there is any correlation between effectiveness in the Chamber and the amount of accommodation that an hon. Member has.

Why should Members' secretaries have precedence over Members in the allocation of accommodation within the immediate precincts of the Chamber?

I am not sure that that strictly arises from the answer that I have given, but I shall certainly put that point to the Accommodation and Administration Sub-Committee.

Is my right hon. Friend aware—I am sure he is—that, with all respect to my hon. Friend the Member for Orpington (Mr. Stanbrook), it is not possible in the Chamber to answer letters from one's constituents? Does he agree that most hon. Members and their secretaries work in conditions that would not be tolerated in the private sector, let alone in the great Ministries of Whitehall? Has my right hon. Friend any suggestions as to how to deal with that position without great expense to public funds?

I do not think that my hon. Friend the Member for Orpington (Mr. Stanbrook) had in mind the point that my hon. Friend the Member for Mid-Sussex (Mr. Renton) seeks to make. However, I do not intend to arbitrate between them. The issue touches upon question 29 and perhaps I can reserve judgment until we reach that question.

Bridge Street Site

29.

asked the Lord President of the Council when he expects to receive the report of the sub-Committee considering the provision of additional accommodation for hon. Members on the Bridge Street site.

32.

asked the Lord President of the Council when he expects the Accommodation and Administration Sub-Committee of the Services Committee to complete its consideration of the possibility of securing the assistance of private funds in the implementation of the Casson report relating to the Bridge Street site.

The Accommodation and Administration Sub-Committee reported informally to the Services Committee last week. In the light of this report, the Services Committee is of the opinion that the premises fronting on Parliament Street between Derby Gate and Bridge Street, to the west of Cannon Row, should be restored without delay for parliamentary use. It has asked the Sub-Committee to explore means of developing the remainder of the Bridge Street site in such a manner as to safeguard the interests of Parliament and to report as soon as practicable.

Has the Lord President of the Council noticed that Conservative hon. Members are prepared to tell workers in the pits and on the railways to modernise their working practices, but do not appear to be willing to do anything about the working practices in this building? Is he aware that secretaries and Members are working in appalling conditions and that some of us, unlike Conservative hon. Members, do not have private offices in the City or elsewhere? Will the Lord President assure us that this welcome report will be accepted by the Government and that action will be taken to give Members some decent conditions so that we can provide a good service to our constituents and can scrutinise legislation properly?

The recommendation of the Sub-Committee will now go to the Department of the Environment, so that it will buttress the Department in its discussions with the Treasury in determining the PESC allowance.

Since successive Governments have always managed, for good or ill, to frustrate development proposals for the Bridge Street site, does the Lord President agree that the best way ahead is to invite private investment for a mixed use development of the site, with a lease-back arrangement for extra accommodation? The House can decide nearer the time whether that accommodation should be made available to it.

My hon. Friend overlooks the fact that the future use of the Bridge Street site has never excited unanimous judgment in the Chamber. As regards private capital, my hon. Friend will have noticed in my main answer that that is one of the options now being considered.

Is my right hon. Friend aware that at the beginning of this Parliament the Bridge Street site development was to have gone ahead but was stopped for reasons of economy? Since then the Government have decided to build a new conference centre on the old Colonial Office site in Parliament Square. Have the Government got their priorities right?

Clearly there is more than one view on whether the priorities are properly adjudged. My answer shows that the Accommodation and Administration Sub-Committee has reported to the Services Committee on early action for bringing into full parliamentary use the area that is fronted between Derby Gate and Bridge Street to the west of Cannon Row. Surely that is a development to be applauded by my hon. Friend.

Is the Leader of the House expecting unanimity in the House before anything is done about accomodation and conditions? If so, is he aware that most of us will be filled with utter dismay about the future? Will the right hon. Gentleman be a little more positive, rather than waiting for unanimity in the House?

No, Sir. I should have thought that the measured caution of the House demonstrates the House at its best.

30.

asked the Lord President of the Council whether he will make arrangements to commission a painting or photograph of the present Chamber and Membership of the House.

I would be prepared to ask the Services Committee or the Works of Art Committee to consider this proposal, if it became evident that there was widespread support for it in the House.

I thank my right hon. Friend for his constructive answer. Is he aware that it is some time since a photograph or painting of this Chamber and its Membership was commissioned? Bearing in mind that such a commission was exercised in another place recently, does my right hon. Friend agree that it is about time that we authorised such a commission in this Chamber as a matter of urgency?

I can think of more pressing reforms. I have set only two modest hoops that have to be circumvented to set such a proposal in motion.

Bearing in mind the majority of the hon. Member for Preston, North (Mr. Atkins), should not the Leader of the House have some sympathy with him, because the hon. Gentleman will one day want to prove to his grandchildren that he actually sat in the House?

Since a Tory was the immediate predecessor of the hon. Member for Walsall, North (Mr. Winnick), I have every confidence that my hon. Friend will long outlast him.

Parliamentary Session

31.

asked the Lord President of the Council whether he will consider taking appropriate steps to change the parliamentary year so that the new Session of Parliament is opened in January rather than in the autumn.

Is my right hon. Friend aware that until the 1930s the new Session of Parliament always commenced at the beginning of the year? Does my right hon. Friend agree that there is great merit in bringing together the parliamentary year, the fiscal year and the calendar year so that, in common with other organisations, Parliament can consider the Government's legislative programme along with their fiscal measures at the same time? That is outwith the issue of how long we sit. Is it not time for a necessary return to older practices?

I have no wish to stand at this Box as a great reformer. Such a major innovation should be undertaken only after careful study. Perhaps the initial study should be undertaken by my right hon. Friend the Member for Worthing (Mr. Higgins), who is currently conducting a major overhaul of our financial procedures.

In spite of the persistence of the Leader of the House in having the House meet in July, does he realise that the Scottish school holidays are now halfway through and that holding the Summer Recess in the autumn does not suit many of us? Further, will the right hon. Gentleman say why the last major piece of business is a Scottish matter and, therefore, an aggravation for those Members who would otherwise have gone away with their families?

I have a great deal of sympathy with Scottish Members over the present pattern of business. There is not an immediate and overwhelming reason why a spill-over in September would be more acceptable to the House than a spill-over in October. This matter is intimately related to our financial year, and I refer to my previous answer.

Will the right hon. Gentleman take back his words about reform? After all, he is only the second leader of the House after Dick Crossman to separate decisions on discussions from the discussions themselves, as from last week.

Perhaps that shows what great errors I commit when I depart from the tenets of Conservatism.

Underground Car Park

34.

asked the Lord President of the Council if he will take steps to reduce the number of persons entitled to use passes to the Members' car park, New Palace Yard.

35.

asked the Lord President of the Council if he is satisfied that the rules concerning the use of the Members' car park are being complied with; and if he will make a statement.

I am satisfied that, under normal circumstances, the current ratio of permits to spaces provides optimum use of the car park. Those who use the car park should show their permit on entry and leave it displayed while parked. I have been made aware dial this latter rule is not always complied with and would urge those who do not comply to do so.

As circumstances are not always normal, will my right hon. Friend help Members to get on with their duties by making sure that there is always room for Members to park, by tightening up the regulations? Is my right hon. Friend aware that the overcrowding is getting worse? Will he ensure that passes issued for the use of Members are not sometimes used by secretaries and research assistants?

My hon. Friend raises serious and substantial points. Undoubtedly, in the recent past, the rail strike has resulted in quite serious difficulties, and I shall certainly ask the Services Committee again to look at the rules to see whether they can be enforced more effectively.

Is my right hon. Friend aware that one of the consequences of the congestion last week was that I missed an important vote? Why have there been issued nearly twice as many permits as there are car park spaces, and why are some people using more than one space? In the interests of security as well as convenience, will he ensure that the rule of "one space per Member" is complied with?

When determining the ratio of 2 : 1, the House authorities had in mind the differing working patterns of hon. Members and the differing working hours of other authorised users. However, if there is serious and substantiated evidence of abuse, it is something that we shall have seriously to consider.

Foreign Affairs Council (Steel)

3.31 pm

With permission, Mr. Speaker, I will make a statement about the special session of the Foreign Affairs Council of the European Communities which was held on Saturday 24 July. The purpose of the meeting was to consider the latest developments in the very serious dispute between the Communities and the United States over action taken in the United States against certain steel imports.

Last January the United States steel industry initiated both countervailing and anti-dumping complaints against imports of certain classes of steel from a number of sources, including seven Community countries, one of which is the United Kingdom. In the countervailing cases, provisional duties have been in force since 11 June. Provisional duties in the anti-dumping cases may be determined shortly. There is no assurance that further suits will not be initiated.

The highest rate of provisional duty, at about 40 per cent., has been determined in the case of products exported by the British Steel Corporation. This, as I understand the position, is on the basis that the capital introduced into BSC by the Government, and the waiver of certain BSC obligations, constitute an unfair subsidy to exports into the United States market. This is a formulation which we find quite unacceptable.

The Government's concern is to safeguard the interests of the United Kingdom steel industry, both public and private, in the face of these protectionist measures and to maintain the stability of the internal steel market in the Community. The Community has tried repeatedly but unsuccessfully to achieve a settlement of this dispute on the basis of some limitation of exports to the United States of selected steel products in return for withdrawal by the United States industry of all its countervailing and antidumping complaints. The United Kingdom has fully supported these efforts. However, none of the Community's proposals so far has been acceptable to the United States.

At its session on 19–20 July the Council therefore agreed that the member States worst affected, with the participation of the Commission as co-ordinator, should seek bilateral arrangements with the United States. After midnight on Saturday 24 July action to suspend the current countervailing complaints could be taken by the United States Administration only with the concurrence of the United States steel industry, under United States law.

Regrettably, last Thursday, 22 July, the United States rejected the proposals put to it under this Council decision by the ambassadors of the countries worst affected, including the United Kingdom. The Administration in turn proposed an arrangement for limiting imports of seven products from these countries at an unacceptably low level. In view of the imminence of the deadline, the Council met again on Saturday at the request of Her Majesty's Government and the French Government. It accepted eventually that discussions between the countries worst affected and the United States should continue to see if bilateral agreements were still possible. The Government had despatched to Washington after the Council of 19–20 July a special team accompanied by representatives of the industry. Following the conclusion of the Saturday Council meeting, our team immediately took all possible steps with the United States Administration to negotiate a bilateral agreement for the United Kingdom alone.

I have to inform the House that, despite every effort by our team, reinforced by a last minute approach by myself, and despite earlier indications to the contrary from it, the United States Administration were not willing to conclude a bilateral agreement with the United Kingdom.

The decision of Saturday's Council also provides for a new initiative for the settlement of this dispute on a comprehensive basis by the Community. Such a settlement should embrace both current and future countervailing and anti-dumping suits. The precise terms of the Commission's mandate for these negotiations will be determined in the course of this week. During these negotiations we shall ensure that the interests of the United Kingdom steel industry, both public and private, are taken fully into account.

The House will recognise the serious consequences of that statement, not just for the steel industry, where exports worth about £100 million are at stake, but for world trade. Will the hon. and learned Gentleman make it quite clear to the United States that one cannot tolerate a situation where it wants to make up the rules for others to follow, as it appears to have done for steel, and has done on the Siberian gas pipeline and energy pricing? I hope that he will make it quite clear that the United States must behave like trading partners and not like trading bullies.

Last Monday the Minister promised vigorous action over the United States' measures. That vigorous action, be it from the United Kingdom or the EEC, has, unfortunately, failed to produce results. Will the Minister confirm that the United Kingdom has played by the rules on both pricing and volume and that that has not helped us? Has the United Kingdom been put in jeopardy by the behaviour of other European exporters to the United States? Did the EEC proposals give our steel industry a fair deal? Why was no bilateral arrangement between the United States and the United Kingdom possible? As I understand it, the 40 per cent. duty that is to be slapped on British Steel exports will be much more damaging to our steel industry than any other arrangement on limitation of volumes that might otherwise apply. What further immediate hope, through compensation, other markets or other limitations, can the Minister give to the British steel industry in the immediate future?

I assure the House that the most vigorous representations have been made during this dispute. I very much regret that so far that has yielded no results. The various protectionist measures of the United States Administration, both in this and other spheres, have been, and will continue to be, the subject of complaint by the European Community to GATT.

I confirm that the United Kingdom steel producers and exporters have played by the rules, as we understand them, on both price and volume. It is difficult to say how far the United Kingdom steel industry would be affected if these countervailing duties were confirmed. At present, there has been only a preliminary determination. However, my view is that BSC would be unable to sell over a 40 per cent. tariff and would be compelled either to cut production or to look for other markets for its products, perhaps on the Continent.

I should prefer not to enlarge on the precise proposals that have been put forward in the negotiations either by the Community or by the United Kingdom. It would not be helpful to say what our position has been or what movement from that position we would be prepared to contemplate. I am sure the House recognises that it is difficult to negotiate these delicate matters in public, but I assure it that we shall have the particular interests of the United Kingdom steel industry well in mind.

Since the Council on 19–20 July, we have explored the possibility of bilaterals, first on a co-ordinated basis, and, secondly, on a United Kingdom basis. It would not have been helpful to do so earlier, because we felt that acting as part of the Community would, if I may use the expression, have more clout against the American Administration. There are also certain international obligations to which we must have regard.

With regard to compensation, should it not be possible, against our hope and expectation, to negotiate proper entry for our products into the United States, I am sure that the British Steel Corporation will consider other markets. The long-term future of the industry is, of course, a matter for my right hon. Friend the Secretary of State for Industry.

Order. I propose to allow questions to run until Four o'clock by the digital clock, at which time we must move on.

Does not this sorry tale show that the jobs of British steel workers can best be protected if the European Community acts as one? Is there not now a grave danger that a commercial war with the United States will spread into a commercial war over steel with our European neighbours, with disastrous consequences for the British steel industry?

Steel is essentially a Community problem although, naturally, a national Government such as ours must have regard to the specific national implications, which we have done and will continue to do. I hope that my hon. Friend will say that I deprecate the use of words such as "war" or, to quote the words of a Foreign Minister of a neighbouring State, "a progressive divorce." Such metaphors do not advance cool and patient understanding of the problem, but it is true—I cannot conceal it from the House—that commercial relations between the United Kingdom and, indeed, the Community as a whole and the United States are clouded by many outstanding trade issues. It is the hope and determination of the Government, acting with and through the European Community as a whole, that we will patiently resolve the issues to the advantage of steel workers here and on the Continent.

What is the estimate of the potential financial and job losses to BSC if the Americans refuse to listen to sense? Is the Minister aware that in January and February of this year Britain imported more than £200 million worth of steel? Does he remember that last year Britain complained vigorously about unfair man-made fibre subsidies that the Americans gave to their textile industry?

We are very sensitive to the threat to the jobs of steel workers in this country and—

If the hon. Gentleman had accompanied me and spent his weekend in Brussels, as I did, he would not have made that ill-judged intervention from a sedentary position.

We are sensitive to the threat to jobs not only in the United Kingdom but on the Continent as a whole. We are aware of the statistics which the hon. Member for Flint, East (Mr. Jones) has drawn to the attention of the House. The most vigorous representations have been made to the United States and, as I have told the House, the Community through the Commission has taken a range of United States protectionist measures to the GATT. I hope that those complaints will be pressed home.

Is the Minister aware that the Government will have full support from the Social Democrat and Liberal Benches for the action that they are taking? Does he not find it a little incongruous that the party that advocates import controls, right, left and centre, in this country is opposing import controls by another country which is doing damage to our steel industry? Will he ensure that vigorous action is taken to protect steel jobs, which are being shed in increasing numbers? Will lie further ensure that in any package that is agreed between the Community and the United States the interests of Britain as against the other European countries are well taken into account?

The hon. Gentleman, presumably speaking for the Social Democratic Party, well makes the point that Britain, both in steel and in other commodities, has a strong interest in preserving the open trading system. It is because we are extremely worried about the threat to that system posed by a range of measures from one of the most important commercial and economic Powers in the world that we propose to follow up this theme vigorously not only in bilateral discussions with the countries concerned, but at the GATT.

Is my hon. and learned Friend aware that this is not a delicate matter, as he suggested, but a robust matter of trade confrontation? Does he agree, as he appears in his statement to say, that the United Kingdom will have more punch working together with our EEC partners than by working alone?

If I have referred to it as a delicate matter, it is because we regret very much that the protectionist actions of a Power which we regard as friendly and an ally of ours should have clouded our relations and put at risk a range of industries and jobs in the United Kingdom. I assure my hon. Friend that I have not been over-oppressed by considerations of delicacy in the representations that I have made on the other side of the Atlantic.

I assure the House that we have kept our partners in the European Community fully informed of what we have been doing, because we think that it is very important that we should all stick together. We feel that we shall have more weight in economic and trade questions if we act as a Community rather than as a series of individual countries.

Is the Minister aware that his personal attempts to safeguard the interests of the British steel industry have widespread support? But is it not obvious that the fact that bilateral negotiations have become necessary is an indication of the miserable failure of the Commission to safeguard the interests of the British industry? Is the Minister satisfied that the Commission properly represented the special United Kingdom case, which arises because we have been over-zealous in meeting the Commission's demands for cuts in capacity and manpower? By incurring huge redundancy payments we have been placed in a position whereby the Americans are now claiming that those payments are a form of subsidy.

I am grateful to the hon. Gentleman for what he said about my personal attempts. He has put his finger on an illogicality and anomaly in the United States' position, in that what we have done is responsibly to encourage the restructuring of the British Steel Corporation. Indeed, by an irony what we have done was commended by Commerce Secretary Baldrige to Congress, yet what we have done is apparently forming the basis for the most swingeing countervailing tariff of all. If we chose to embark on bilateral negotiations during this week it was because we were acutely concerned about the importance of the 24 July midnight deadline, Washington time. We were concerned not to miss that deadline, the importance of which had been stressed to us by the United States Administration.

Will my hon. and learned Friend make it clear to the United States that even some of the greatest friends of America in the House find the action taken by the United States Administration absolutely unacceptable? While negotiating as he has to in the most delicate situation, will my hon. and learned Friend publish, in some way or other, all the action in terms of trade retaliation that could be taken by the United Kingdom against the United States' trade with this country, not with the idea that we have to take such retaliation, but to make it known to the United States that many Members in the Chamber find their action so unacceptable that we have to consider what action we can take to defend ourselves?

I understand the strength of feeling shown by my hon. Friend and, indeed, by other hon. Members during these exchanges. I am not certain whether it would be helpful at this stage to talk in terms of retaliation. There are, after all, a range of international agreements which we have observed with reasonable fidelity which are designed to provide for the orderly resolution of these problems. As I said in answer to an earlier question, we as a country have a strong interest in the preservation of the open trading system. It is for that that we must work rather than contemplate any type of trade war between ourselves and old friends and allies.

Will the Minister recognise that those hon. Members with steel interests in their constituencies believe that there should be bilateral negotiations and that the American people should be left in no doubt that enough is enough? Is the Minister aware that if Scotland fails to benefit from the Siberian pipeline, this will be catastrophic for the steel industry and could easily lead to more than 50,000 redundancies?

It was because I felt that it was important to take advantage of the last few hours before the deadline ran out that I instructed our team to press ahead with all possible speed on bilateral negotiations. I have to stress to the hon. Gentleman and to the House that a fundamental reason for the United States Administration failing to conclude bilateral negotiations with us before midnight on Saturday was their desire for a much wider and comprehensive deal with the Community as a whole. To be fair, this point was made to me in Washington three weeks ago. In those circumstances I cannot hold out any hope of bilateral negotiations with the United Kingdom being successful in the prevailing situation. I do not, however, wish to contemplate the possibility of failure. Should it turn out that a further effort on behalf of the Community is unsuccessful, we shall not rule out further bilateral negotiations.

The Government are very much aware of the implications of the pipeline project for employment in the United Kingdom, especially in the constituency—I am not sure whether it also effects the hon. Gentleman—of the hon. Member for Dunbartonshire, Central (Mr. McCartney).

Will my hon. and learned Friend remind the United States Administration, in no uncertain terms, of the numerous statements and commitments by President Reagan at the summit and elsewhere in favour of free trade and against protectionism? Will he remind the United States that if this unjustified action should lead to a wave of protectionism it will cause the very political instability, as well as economic instability, in the Western world that it fears?

We shall not be slow to quote back in appropriate circumstances various ringing affirmations from the United States Administration in favour of the open trading system. I have told the United States Administration that what they have done and what they propose augurs very badly for a successful outcome of the GATT ministerial meeting in November, to which, I happen to know, it attaches great importance.

Will the Minister confirm that those European companies that may have dumped face less discouraging threats than those parts of Britain that are traditional suppliers of the American market? Some of the steel works in my constituency have been supplying that market for a long time. Given that the steel industry's experience of membership of the European Community has been almost invariably bad, will the Government ensure that they take vigorous unilateral action to see that Britain does not face the harshest penalties of this foolish American course?

I do not think it is necessary to compare the performance of the various steel industries in Europe. I note what the hon. Gentleman says. Unilateral action now would not, I believe, prove to be in the long-term interest of the steel industry and those who work in it, some of whom I am aware are ably represented by the hon. Gentleman.

Does the Minister not consider that the EEC steel cartel is itself offensive to the open system of trade, which we so strongly support? Will he ask his right hon. Friend the Secretary of State for Industry to consider with his opposite numbers how long this cartel should continue in view of the damage being caused to United Kingdom consumers of steel and the fact that it is leading to imports of manufactures and semi-manufactures of steel?

I think that my hon. Friend's question goes slightly outside the basis of my statement. The Government are, naturally, anxious that there should be an orderly and stable market in steel products inside Europe. I do not believe that it would be for the long-term benefit of consumers—it is right that we should pay attention to their interests—or to the steel industry and those working in it if there were to be a destabilised market as a consequence of this or any other proposed measures.

Is the Minister aware that if British steel products are shut out of other markets, the remedy is to control the domestic market? If this Government will not do that, a Labour Government will.

It is difficult for me to determine what domestic measures the hon. Gentleman has in mind. I suspect, in any case, that these would not be a matter for me as Minister for Trade.

Will my hon. and learned Friend consider being more forthright with the Americans and pointing out that if they intend to impose an increased duty on British steel to protect their home market, it is just as easy for us to impose increased duties on American textiles and chemicals, which, in the past, have been produced from subsidised feed stocks?

I hope that I have been reasonably forthright. This is a matter of personal style. I must leave it to the House and to the American Administration to judge how I have performed. I note what my hon. Friend says. I have already stated that it would be ill-advised for us to talk in terms of a trade war or retaliation, although we are naturally concerned to see how we can counter the protectionist measures of the United States Administration.

Does the Minister recognise that, despite the fact that nearly half of BSC's product areas are excluded from the claim made by the Department of Commerce, the British Steel Corporation may introduce those excluded areas into the general areas of consideration? Will he study that aspect closely? It has wider implications for BSC, for the regions and for the industries in which a great number of people are employed.

I take note of the point that the hon. Gentleman makes. It would be the wish, I think, of the whole European Community and, in particular, the United Kingdom that there should be a comprehensive settlement of this highly regrettable and damaging dispute.

Would the problem not have been relieved, or perhaps avoided, if other members of the Common Market cartel had cut their steel capacity as they were pledged to do and which Britain, unfortunately, has done almost single handed? As the Minister stated that we are keeping to the rules on price, can he give a categoric assurance that BSC has not been selling steel in America more cheaply than to steel consumers in Britain?

It is true, I believe, that we have restructured more effectively than most of the other countries in the European Community. I am very confident about what my hon. Friend has said. For example, the producers in Holland and Germany have not been singled out by the United States for swingeing, countervailing duties of the kind that we have encountered. It would be unwise for me to comment on my hon. Friend's other proposition—

—because I do not want to say anything, unlike, apparently, my hon. Friend, that might prejudice the position of British Steel in the course of the anti-dumping investigation, which continues. We want to arrive at the facts. We are concerned to see that British Steel occupies as strong a position as possible to resist the measures contemplated by the United States Administration both on the countervailing front and on the anti-dumping front.

Does the Minister agree that if the Americans go ahead with their proposals, all the efforts of Mr. Ian MacGregor will come to nil and that the steel industry will be further damaged? Does the hon. and learned Gentleman not realise that in my constituency, as in Sheffield, the silverware industry, the cutlery industry, the steel industry and the textile industry will decline virtually to nothing? Is it riot time that he took stronger measures and considered seriously the possibility of import controls, in the long-term interests of these industries?

It would not be appropriate for me to engage in a debate about the long-term structure of the British steel industry. That is an important question, but not essentially a question for me, except in its external trade aspect. It might assist the House in its consideration of the issue if I mention that about 200,000 tonnes of BSC's exports to the United States are likely to be affected if the preliminary countervailing duties are confirmed at the 40 per cent. level.

When my hon. and learned Friend does his best to fight for Britain's interests in this matter, does he not feel encumbered in his negotiations by the European baggage that he must take with him? Has not Britain already moved further than almost every other European country to meet the terms of fair trade, and are we not being made the scapegoats for the unfair practices of some of our European partners?

I shall not conceal it from the House that it sometimes requires delicate negotiations to reconcile all the interests of the Community countries, but, provided that an acceptable balance has been struck, in the end we gain immeasurably in negotiating strength with a Power such as the United States of America if we are part of the Community. I do not wish to sound over-optimistic, but I hope that, as part of the Community, an acceptable deal will be struck that will safeguard the position of the British Steel Corporation, the British private sector and all other European producers and exporters.

I believe that the hon. Gentleman has a constituency interest in this matter.

Is the Minister aware of the great anxiety about the events, especially in Lanarkshire, where many people who used to work for American firms are now in the dole queue? Is he aware that there is especial interest in the future of Ravenscraig and Gartcosh and that the events should not be used as an excuse to add to the difficulties of those who work in those plants?

Of course I recognise that a range of American measures—not only the countervailing duties, but what is threatened, though I hope will not be implemented, about the trans-Siberian pipeline, which involves many British or even Scottish companies—are of considerable anxiety not only to the hon. Gentleman and those whom he represents but to companies and representatives of other parts of the United Kingdom.

Questions (Constituency Interests)

4.1 pm

On a point of order, Mr. Speaker. I have waited until now to raise a point of order on questions about Members' constituency interests. You have just called the hon. Member for Coatbridge and Airdrie (Mr. Clarke), recognising that he has a constituency interest. Would you, knowing of my constituency interest in question 7 to the Secretary of State for Energy, consider the appropriate way in which an hon. Member can raise a matter at short notice when something affects his constituency, as the Minister's answer affected mine?

I do not encourage letters about questions on the Order Paper, especially when it is a question from another member of the same party. I do not wish to start the system of hon. Members writing to tell me that they wish to be called on certain questions. I have said several times that it is counter-productive. The practice that I have adopted is the only way to protect the House from that system.

Business Of The House

Ordered,

That, at this day's sitting, notwithstanding the provisions of Standing Order No. 3 (Exempted business) and Standing Order No. 4 (Prayers against statutory instruments, &c. (negative procedure)), the Motions relating to Housing, Social Security and Local Government may be proceeded with, though opposed, for a period of three hours after the first of them has been entered upon, and if proceedings on those Motions have not previously been disposed of, Mr. Speaker shall then put any Question already proposed from the Chair, and any remaining Motions may thereupon be made and the Questions thereon shall be put forthwith.—[Mr. Gummer.]

Housing

4.2 pm

I beg to move,

That the draft Housing Benefits Regulations 1982, which were laid before this House on 8th July, be approved.
With this it might be convenient for the House to consider also the following:
The draft Housing Benefits (Permitted Totals for Local Schemes) Regulations 1982.
The draft Supplementary Benefit (Housing Benefits) (Requirements and Resources) Consequential Amendments Regulations 1982.
The Housing Benefits (Subsidy) (No. 1) Order 1982 (S.I., 1982, No. 903), dated 2nd July 1982.
The Housing Benefits (Subsidy) (No. 2) Order 1982 (S.I., 1982, No. 904), dated 2nd July 1982.
The Housing Benefits (Rate Support Grant) Order 1982 (S.I., 1982, No. 905), dated 2nd July 1982.
The Supplementary Benefit (Housing Benefis) (Miscellaneous Consequential Amendments) Regulations 1982 (S.I., 1982, No. 914), dated 6th July 1982.

By leave of the House, we shall discuss the seven orders and regulations together.

As those hon. Members who attend our debates know only too well, social security regulations tend to be lengthy and difficult to understand. I am afraid that our latest arrival, housing benefit, is from the same mould. However, we can take comfort from the fact that we are not introducing a brand new benefit. The current rent and rate rebate and allowance schemes serve as a useful starting point and the House may find it helpful in its consideration of the regulations if I concentrate on explaining the changes that we are making in housing benefit. I shall spend rather less time on the supplementary benefit amending regulations and financial orders as they are consequential to the housing benefit reform.

There are two main strands to the housing benefit regulations. First, there are the changes that are necessary to achieve the unification of the current dual provision of help with housing costs through the rebate and allowance schemes and supplementary benefit. The problem of which benefit to choose—rent rebate or supplementary benefit—has long confronted claimants with an invidious dilemma. However, harmonisation of two separate schemes that were started at different times with different underlying principles has not proved easy. It has inevitably meant dropping the features of one scheme or the other to achieve unification. Secondly, we have examined the current schemes that have run for about 10 years with a fresh eye and have taken the opportunity to make what we believe to be some useful changes and adjustments.

I shall refer to some changes in more detail as I come to the relevant regulations. However, the House might find it useful now to be given an overall view by my drawing together the improvements in the existing rebate and allowance schemes. First, we are widening the definition of rent eligible for rebate. Under the new scheme, it will be possible to give rebates for the first time for charges for the use of furniture included in the rent, most service charges such as garden maintenance, lifts, communal rooms, communal laundry facilities, radio and television relays, porterage and warding service and rents where two homes must be maintained temporarily because of domestic violence or moving home.

Secondly, we are widening the classes of tenants who can claim rebates to include service occupants and licensees, caravan and houseboat dwellers, including site and mooring charges, hostel dwellers for 14 days or more, business tenants living in mixed hereditaments—for the domestic element—students in university accommodation exempt from the Rent Acts and "shared" owners who rent part of a dwelling.

Thirdly, we have created some new disregards—those items of income that need not be taken into account when calculating entitlement to benefit. They include TOPS travel allowances, parental contributions towards the maintenance of children in advanced education and pensions paid to the victims of Nazi persecution, where there will be a £4 disregard for the first time. The harmonisation of the two systems and the improvements that I have outlined have had to be achieved on an overall cost neutral basis utilising savings in administrative costs that we have achieved for that purpose.

In drafting the regulations we have, of course, drawn heavily on the advice and views of the local authorities, for they bring to such matters the essential practical experience of administering the current schemes. While some associations may still have reservations in principle about the scheme, they would all acknowledge that a genuine consultative process has taken place on the detail of housing benefit. Similarly, the regulations have been sent for comment to several voluntary organisations active in the area who have responded with some helpful comments. I am pleased to place on record the help that we have received from local authorities and voluntary organisations alike. The House may be assured that we have considered their views most carefully.

I turn now to deal with the housing benefit regulations in greater detail. I shall not detain the House on each regulation. Some—for example those dealing with the basic method of calculation—are almost unchanged. My intention is to cover changes of substance.

There are some important changes in definitions made by regulation 2, for example, definition of rent, to which I have already referred. Regulation 3 provides for the commencement of housing benefit in two stages.

As hon. Members know, we have arranged that the simplest cases shall, from 22 November 1982, cease to be eligible for help with their rent and rates from supplementary benefit and shall instead receive a full, 100 per cent., rebate of rent and rates from the local authority. These "simplest cases" are local authority tenants who are living with their partner or dependent children and whose weekly supplementary benefit exceeds the amount of their housing requirements. The remaining cases will be transferred to the authorities in April 1983 at the time that full housing benefit starts. I am sure that this makes sense administratively, and I am glad that most authorities have agreed with me.

Regulations 6 and 7 deal with eligibility for rate rebates and rent allowances by adding new groups that are now excluded from the rebate and allowance schemes. These are the groups that I have already mentioned.

Regulation 9 is one of the corner-stones of housing benefit. It provides that authorities shall, on receipt of a certificate of entitlement to supplementary benefit from the Secretary of State, treat any person named as eligible for housing benefit without further investigation except as to the amount of eligible rent and rates.

Does the Minister agree with Shelter's estimate that 220,000 people who now receive rent or rate rebates will no longer qualify?

Perhaps the hon. Gentleman will elaborate on that point a little later. I am not sure that I agree entirely, but perhaps the hon. Gentleman will catch Mr. Speaker's eye and deal with the matter.

Regulation 10 picks up a point raised in Committee and subsequently pursued by the Campaign for the Homeless and Rootless, among others. It is essentially directed at the problem of short stay hostel dwellers, where there is some evidence to suggest that, under the current schemes, lengthy qualifying periods have been imposed before such people have been accepted as occupying a dwelling as their home. Having considered the representations made on this point, I decided that the qualifying period should not exceed 14 days and entitlement should then be backdated to the date of application so that no benefit is lost. We consulted the local authority associations on this point, and I am glad to report that they accepted that this approach was a reasonable one in the circumstances.

The Minister says that the local authority associations are happy with these proposals, but is CHAR?

The voluntary organisations would have preferred not to have had 14 days as a qualifying period but, as the hon. Gentleman will know, under the existing schemes it has been open to local authorities to make up their own qualifying periods. Some have gone for as much as six months or even longer, which has caused many problems. It has been a matter of negotiation and trying to hold a fair balance between the pressures of voluntary organisations and what the local authorities consider they can practically cope with administratively. Fourteen days has been the shortest period within which local authorities feel that they can cope.

An individual can stay in a hostel for one or two nights, move to another hostel for another two nights, on to a third, and so on, and cart even do so within Greater London. We are dealing with people who are exceedingly mobile. It is difficult for local authorities to catch up with them and to deal with the paperwork. Therefore, it has been felt that 14 days' residence is a reasonable period in those circumstances.

Does the Minister accept that this is a little harsh on some of the groups of people who, because of hostel rules, have to move after two or three days? There is a built-in catch, and they can never get the 14 days, much as they would like to, because of the type of accommodation in which they have to live, which means that they have to move. Will the Minister also accept that the existing supplementary benefit regulations were supposed to deal with people on a day-to-day basis, although we know that in many circumstances they were not able to do so?

It is difficult to deal with the problem of people who are that mobile and whose mode of life is such that they often move from place to place. We have discussed these questions in Committee, as the hon. Gentleman will recall. The regulations will be monitored in their operation. Clearly if, as we learn from experience, we find that improvements of the kind suggested by the hon. Gentleman can be made, we shall do so.

We must take new steps slowly. This is an innovation and a considerable improvement on the position that has obtained until now. We are doing what the local authorities say is the irreducible minimum as far as their administration is concerned.

The Minister has just informed the House that the reason why the claims of certain groups cannot be fitted easily into the scheme is their way of life. My hon. Friend was suggesting that the Government's rules about length of stay in Government hostels are such that people are moved on every third day. Therefore, can the Minister give an undertaking that he will look at the rule now so that those in a spike can stay in that one place long enough to qualify under the new scheme?

With regard to hostel dwellers who rapidly move from place to place, the supplementary benefit will be payable to them from the first day of residence. The 14-day period applies only to those who go to a local authority seeking housing benefit.

The problem that many people have in finding housing is that of producing the rent, or being able to have the rent underwritten. The rules in Government hostels, which were reasonable in the past, mean that people are moved on quickly. If the Minister cannot give an undertaking at least to look at these regulations, it will mean that he is guaranteeing having a mobile group of claimants for ever and a day. If he sticks at the two-week rule, which he has persuasively put to the House today, surely we must change the rules under which people are turfed out on the third day of their stay in a Government spike.

The position of these people with regard to supplementary benefit will remain the same. However, when these people are in for a longer period than just two or three days, they may apply to the local authority. For example, they may go into a YMCA hostel and want to remain there for a while. They can go to the local authority if they are in that place for more than 14 days, and can claim for housing benefit rather than rely on supplementary benefit, which they would have to rely on if they were in Government hostels and subject to the two or three-day rule.

The question of rules and regulations relating to Government hostels, is something that is outside our discussions and raises a great many different issues relating to the purpose of those hostels, how they are organised and why they are run in a particular way. That is not the subject matter of this debate, but we can examine these things to see whether an improvement can be made. I cannot give any commitment that a change will arise out of what we are doing now, because what we are doing today is not strictly relevant to those criteria.

What CHAR and the Labour Party are rightly complaining about is that the Government are making a new class of citizen. At the moment, those who need help ask for supplementary benefit and receive it for their housing and other needs. The Minister is now saying that, with the 14-day rule, a claimant can qualify for housing benefit and supplementary benefit. There is a group of people who will never be able to achieve 14 days and will have to be treated specially by supplementary benefit because supplementary benefit will give them housing assistance. CHAR and many others are concerned that we are making a new group of citizens who will be treated less well in practice than they were treated in the past.

I do not accept the gloss that the hon. Gentleman and CHAR put on the situation. As he and CHAR know, at the moment it is entirely at the discretion of local authorities whether to give rent allowances or rent rebates to people in hostel accommodation. We are removing that discretion to a considerable degree. We are saying "You must give a housing benefit, a rebate or an allowance, to people who are in for longer than 14 days". That is a great improvement on the present position. The hon. Gentleman should not pretend that we are being difficult or hard. We are improving a situation that has existed for a long time. I am saying that, for technical and administrative reasons, at a time when the new scheme is coming in and when local authorities have to assimilate many changes, it is not reasonable to ask them to deal flexibly, when they are not in a position to do so, with people who move around, for whatever reason—either because their accommodation will not keep them longer, or because they choose to move around. It is not right to ask local authorities to deal with those people under housing benefit. Those people will continue to be treated, as always, under supplementary benefit until we can improve the system. That is surely eminently reasonable and fair.

I thank the Minister for his undertaking to look at the matter after today's debate. However, I want to stress what my hon. Friend the Member for Stockport, North (Mr. Bennett) was saying. The Minister is making new rules enhancing the status of all hostel dwellers, providing they are not in hostels run by the Government. Natural justice surely demands that the Government put their own house in order when they are asking others to do so.

I said that, outside the context of these regulations, it will be possible to consider the matter in the continuing reviews that we always carry out of the facilities and services offered by the Government. That will continue to be done, but without any commitment on my part that there will necessarily be changes.

I want to make it clear beyond peradventure that hostel dwellers will continue to get their housing costs with their supplementary benefits. The change that we are making—the 14-day rule—applies merely to those hostel dwellers who do not wish to be treated in that way by housing additions to their supplementary benefit, but who wish to claim for housing benefit. To do that, asking the local authority for help in the local authority-organised scheme, they must have a qualifying 14-day residential period.

I come now to regulation 13, which the House will rightly expect me to spend some time on, because it deals with the needs allowance, which forms the basis of benefit calculations. There is a slight awkwardness on timing here. It is not until July that all the necessary information is available for my right hon. Friend the Secretary of State for the Environment to decide whether, and by what amounts, the needs allowance shall be increased from the following November. He also has, by statute, to consult the Advisory Committee on Rent Rebates and Rent Allowances on his proposals.

The rates which appear in the draft regulation are those which he proposes to use from next November, but before making the appropriate regulations he will naturally consider carefully the views of his advisory committee. Should he decide to amend the rates, it would be necessary, in turn, for us to decide whether to bring forward an amending housing benefit regulation in the autumn. Clearly it is desirable that we should adopt, at the start of housing benefit, the existing needs allowances, and continue them for the full year until November 1983.

However, one new figure will not appear in my right hon. Friend's regulation, and that is the 75p per week which will be added to the needs allowance, where the eligible person or his partner or both of them are of pensionable age. I announced in Committee that I propose to make this addition with the twin objectives of reducing the number of losers and the number of topping-up cases—to use the latest jargon, "housing benefit supplement" cases. I am pleased to say that it has proved possible to make this addition from April 1983, and so reduce the number of losers at the start of housing benefit.

Will the Minister enlighten us further about the needs allowance scheme? Is he saying that the needs allowance for this year is being extended for a longer period than would normally happen? If so, how much money are the Government saving?

No. Perhaps I did not make myself clear. For this first year, we are to continue along the lines of the announcement of my right hon. Friend the Secretary of State for the Environment. He has to consult ACRRRA before he can make his regulations stating the figures for the needs allowance. He does not get the information that he needs until July. Therefore, he has not yet consulted ACRRRA. I have put in the figures that I hope will become the allowances in November and that ACRRRA will accept. In other words, the figures are based on the information that we have just received. That will assist the House considerably more than if I had given last year's figures.

If, for some reason, ACRRRA decides that it will not accept the new figures for the needs allowance and, as a result of the consultations between my right hon. Friend the Secretary of State for the Environment and ACRRRA, it is necessary to alter the figures I shall then have to introduce a regulation amending the figures now before the House. That is all that I am saying. It will still be November to November. I hope that what I have said makes the situation a little clearer.

Regulations 16 and 17 deal with eligible rates and eligible rent. No change has been made in the former, but we have been able to make two important improvements in the latter, affecting furniture and service charges. First, it was strongly represented in Committee, by both Labour and Conservative Members, that deductions should not be made for furniture when determining the amount of eligible rent. We agreed to consider the arguments made in the context of available resources. The money required, around £1 million, has now been found, and I am therefore pleased to include this feature in the regulation. Secondly, regulation 17, in conjunction with schedule 3, makes the majority of service charges eligible for assistance. I know that both these changes are welcomed by the local authority associations and the voluntary organisations.

Regulations 18 and 19 are concerned with a particularly difficult area of harmonisation, that of non-dependant deductions. Both schemes, that is the current rebate allowances schemes and supplementary benefit, provide for deductions to be made in respect of non-dependant members of a household when calculating the claimant's benefit entitlement. However, the circumstances in which deductions are taken are different, and the supplementary benefit levels of deductions are appreciably higher than those taken under the current schemes.

Clearly under housing benefit there had to be a consistency of treatment. It seemed to me that the existing local authority schemes had a better structure than the supplementary benefit scheme, and I have adopted it. Therefore, no deductions will be made for 16 and 17-year-olds, whether in or out of work even though, in the latter case, they are under supplementary benefit. A modified deduction will be taken from those aged 18 to 20 years. A full deduction will be made from those aged 21 to pensionable age. A reduced deduction will be made for those of pensionable age. Receipt of supplementary benefit results in a reduced contribution.

In one respect I have not adopted the local authority structure. Currently, two deductions are made where there is a non-dependant couple in the household unless they are of pensionable age or receiving supplementary benefit. It seemed fairer to me to follow the supplementary benefit practice of taking only one deduction in respect of that family unit. I hope that the House will welcome that improvement in the local authority schemes.

Will the Minister confirm that that is the cheapest option that was put to him and that it is particularly unfair on the 16 to 17-year-old youngster whose parents are in work?