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Steel Industry
15. Mr. Barry Jones: To ask the President of the Board of Trade what special measures he proposes to assist the United Kingdom steel industry; and if he will make a statement. [7903]
Mr. Eggar: My Department is working with the industry on a number of initiatives aimed at improving further the competitiveness of an industry, the performance of which since privatisation has been among the world's best.
Mr. Jones: In view of the wretched trade figures, why do the Government not give priority to steel exports, and specifically manufactured goods? Does the right hon. Gentleman accept that the steel industry and, specifically, steel workers have made a great contribution to Britain's enterprise, ensuring productivity, flexibility and profitability? Why does not the Minister, on the Government's behalf, acknowledge the great sacrifices made by steel communities in terms of redundancies and closures and acknowledge that the industry needs more Government support with exports?
Mr. Eggar: The lesson of the past 20 years in the steel industry is that when the state owns it and intervenes it is
a blinking disaster, but that when it goes into the private sector after privatisation it is extremely successful. Let me spell it out for the hon. Gentleman. Between 1975 and 1985, every individual in this country subsidised British Steel to the tune of £135. Since privatisation in 1986, British Steel has contributed £220 million in corporation tax to the Exchequer. Privatised British Steel has been a success; state-owned British Steel was a disaster.
Mr. Michael Brown: To underline what my right hon. Friend has said, may I inform him that, on Monday, I visited Humber power station, which is under construction in my constituency? Will he note that that gas-fired power station was given the go-ahead by Her Majesty's Government and that every piece of steel that I saw there had been produced by British Steel, Scunthorpe? Is not the answer to the question of the hon. Member for Alyn and Deeside (Mr. Jones) that we must ensure that there are customers such as Humber Power, which buys steel because of its price and quality?
Mr. Eggar: I absolutely agree with my hon. Friend. The changes that have been made to the previously state-owned sector have turned around what was a serious position for the providers of our infrastructure, electricity and gas. From lagging behind the rest of the world in efficiency, they have become world leaders. That has benefited the British steel industry and British industry as a whole because it has reduced energy costs overall.
Mr. Hardy: Does the Minister understand that part of the cost and loss of the nationalised industry was due to the investment decisions of Lord Walker and a former Conservative Government, who instructed it to pursue a policy investment that would realise a 30 million tonne a year capacity?
Will the right hon. Gentleman focus his mind on the serious problem that steel production may be moving down from the top of the cycle--he must realise that it is a cyclical industry--and accept that it is therefore imperative that the Government prevent our European neighbours from continuing the unfair trading practices that they enjoyed for several years until the cycle improved?
Mr. Eggar:
The hon. Gentleman is rewriting history with his view of the investment pattern of British Steel.
I find it surprising that the hon. Gentleman, who knows a great deal about the industry, has not welcomed British Steel's investment announcement of another £65 million for the Llanwern mill. He has also not welcomed the fact that British Steel used to take 13 man hours to produce a tonne of liquid steel, whereas now it takes only four man hours. That is the scale of achievement by a privatised British Steel and the hon. Gentleman should pay tribute to it.
16. Mr. Fabricant:
To ask the President of the Board of Trade what plans he has to promote the manufacture and marketing of digital terrestrial television converters and digital audio broadcast receivers; and if he will make a statement. [7904]
Mr. Ian Taylor:
We are creating the regulatory framework in which digital terrestrial services can flourish in the United Kingdom. Applicants for multiplex
The Government have put in place a practical plan that will ensure that analogue services are switched off at the earliest achievable date. That will create a significant market opportunity for the industry, with perhaps about
£8 billion in replacement televisions alone.
Mr. Fabricant:
I thank my hon. Friend for his long, detailed and helpful answer. Does he agree that this country has led the world in introducing a liberalised policy for broadcasting and broadcasting technology? Does he recall that the Labour party opposed the introduction of ITV, opposed the introduction of satellite broadcasting and opposed the introduction of Channel 4 and Channel 5 television? Does he agree that the last thing we want is a Government stakeholder in companies such as British Telecom?
Mr. Taylor:
There is no doubt that the policies of the Labour party would drive a stake through the competitive nature of the telecoms industry that is so vital if we are to deliver the information society at prices that the customer can afford.
In this digital age for television, I very much welcome the Broadcasting Bill. It will give Britain the opportunity to be the first country in the European Union to move to digital television. If things go well and investments improve, the Bill will give me a fairly rapid opportunity to retrieve the analogue spectrum, which I can
then redeploy for further broadcasting and telecommunications activities.
Mr. Miller:
Towards the end of the Minister's response, he mentioned the radio spectrum. Which Departments have provided him with information on the potential release of the parts of the spectrum that they currently control? Will he expand on his comment about the distribution of the analogue spectrum when some of the terrestrial television companies release it?
Mr. Taylor:
The Radiocommunications Agency, which reports to me, is responsible for the management of all the spectrum in this country. It is doing an efficient job, including clawing back underused spectrum from Departments such as the Ministry of Defence. We are also considering the way in which the emergency services deliver their use of the spectrum.
It is clear that the new mobile services, the new fixed-link service and the results of the recent competition to use parts of the spectrum to deliver multimedia services in rural areas will all require very close and detailed management of the spectrum. I am confident that as analogue is switched off and the public move to digital-- which has enormous benefits for them--I shall be able to claw back and use the analogue spectrum on what are known as television bands 4 and 5. In those areas, some of it will be used for digital, but the majority will be redeployed with great value to telecommunications and further broadcasting activities.
I want that to happen as soon as possible. We have undertaken to review it within five years or when there is 50 per cent. coverage in the United Kingdom. The details are in the Broadcasting Bill.
Mr. Ian Bruce:
My hon. Friend will know that the all-party cable and satellite television group meets
Mr. Taylor:
I hear what my hon. Friend says. A terrific amount of investment will be required to move into the digital age. There are not that many players in the game with the required capital, but alliances that we cannot predict at the moment may take us into this exciting new market. The Broadcasting Bill--on which the Department of Trade and Industry, as well as the Department of National Heritage, has had considerable impact--gives the maximum flexibility to incomers who wish for the first time to be involved in digital transmission and the control of multiplexes. It also gives existing terrestrial broadcasters the opportunity to do what they can to make the most of their enormous content and production facilities. ITV, BBC and Channel 4 will have to notify us within a certain period whether they wish to take that opportunity. It is absolutely right that they should be given that opportunity if we are to develop a competitive marketplace.
18. Mr. Canavan:
To ask the President of the Board of Trade if he will meet the chairmen of the privatised utilities to discuss fuel supply. [7906]
Mr. Eggar:
I have no present plans to meet the chairmen of the privatised utilities.
Mr. Canavan:
When the Minister eventually gets round to meeting them, will he discuss the widespread incidence of fuel poverty? Although the chairmen may say that there has been a decrease in fuel disconnections by the fuel companies in recent years, there has been an increase in self-disconnection by people who simply cannot afford to pay their fuel bills, including pensioners who are at risk of hypothermia, especially during severe weather such as that recently experienced in Scotland. Will the Minister urge his ministerial colleagues to reduce VAT on domestic fuel and introduce a much fairer system of cold weather payments to help to eradicate fuel poverty?
Mr. Eggar:
I am grateful to the hon. Gentleman for the tribute that he has paid to the privatised utilities for the way in which they have reduced significantly the number of cut-offs of domestic consumers. A number of the English regional electricity companies have not cut off any individual consumer now for some months. I am sure that the hon. Gentleman would also be the first to pay tribute to the Government and the electricity companies
Mr. Jacques Arnold:
What has been the reduction in the real cost to consumers of gas and electricity since privatisation?
Mr. Eggar:
Gas prices have fallen by about 23 per cent. in real terms since privatisation. Customers can look forward to further significant reductions as a result of the introduction of competition in gas. The latest offer being made to consumers in the south-west gas trial area is a further reduction of 25.2 per cent., as against the British Gas standard tariff, if they sign up and buy gas from one particular company. That is as a result of the introduction of competition and the sustained Government policy of privatisation and giving choice to consumers.
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