Vol. 458 No. 5
20 Mrs. O'Rourke asked the Minister for Enterprise and Employment if he has raised the conflict between the claims of the British Government at the EU and the comments by the Chairman of British Steel, that the company has no plan for plant closures in the medium term; the contingency plans, if any, he has in place in the event of the Irish Steel plan being rejected by the EU; and the current position of ISPAT on the Irish Steel deal. [17332/95]
30 Miss Quill asked the Minister for Enterprise and Employment the steps, if any, he proposes to initiate to break the deadlock on the Irish Steel package; and if he will make a statement on the matter. [17242/95]
39 Mr. B. Ahern asked the Minister for Enterprise and Employment the plans, if any, he has to make personal contact with the British Prime Minister to unblock EU approval for the plan for the future of Irish Steel. [16913/95]
I propose to take Questions Nos. 20, 30 and 39 together. The Government proposes to pursue high level political contacts with the UK over the question of UK demands for caps on European sales of Irish Steel over the coming days. I propose seeking a further meeting with British Ministers this week in an effort to unblock UK objections to the State aid recommended by the EU Commission for Irish Steel and supported by other member states at the Industry Council on 6 and 7 November 1995. While we and the UK have not yet reached agreement, which is extremely disappointing, I am still hopeful that if a more reasonable approach is adopted by the UK authorities, a formula can be found which would resolve the matter and enable the UK to join the other member states of the European Union and the EU Commission and give assent to the modest State aid involved in the Irish Steel case.
The distance between the UK's demand for a cap on European sales and the basic minimum figure that the company will accept is very small. I sincerely hope that we can reach an accommodation on those tonnes with the UK. The gap between the UK and Ireland is small and with goodwill on the part of the UK to appreciate the special circumstances attaching to Irish Steel I remain hopeful that a deal can be reached. I will do everything within my power to convince the UK of the genuineness of the Irish Steel case for State aid which could not have any major adverse impact on any steel plant in the UK.
As regards the specific points made by Deputy O'Rourke, it had been speculated in the UK media that if the Irish Steel package was approved it would lead to the closure of a British Steel plant in Shelton, near Stoke-on-Trent. I made it clear to Minister Eggar that this was not a credible position — a small increase in production by Irish steel could not have a major impact on a plant in the UK which is estimated to have an annual output of 400,000 tonnes. The idea that approval by the UK of the Irish Steel package would close down production in Shelton is a fallacy. I understand from Irish Steel that its annual production of lines that are also produced at Shelton amounts to only 34,000 tonnes. Shelton makes heavy sections, while Irish Steel makes medium sections. They are not really in the same market.
At this stage I do not want to contemplate the Irish Steel plan being rejected by the EU simply because one member state holds up approval because of the legal necessity to obtain unanimity for the proposal. ISPAT is being kept informed of all developments about our efforts to overcome UK objections and has indicated that it is also anxious for a resolution.
In the Minister's absence, the Minister of State, Deputy Rabbitte, dealt very admirably with this matter. The Minister said he had shafted the two arguments which had been put forward in the British media. The fact they were willing to put them forward shows the line of thought and action which they are pursuing. The Minister also said he will have further meetings this week with his opposite number. When will those meetings take place? Have the meetings between the Minister's officials and British officials moved closer to reaching agreement than when we last discussed this matter? This morning I heard on the BBC that the EU is considering taking the UK to court over a subvention to the Jaguar car company. Perhaps that is something on which the Minister could do a deal.
The situation in relation to Jaguar has not escaped my notice. Some progress has been made through official contacts, but not enough to narrow the differences which remain. I do not know what day I will meet Mr. Eggar, but I hope to do so before the end of the week. The stand being taken by the British Government causes me concern. I believe it is putting unreasonable obstacles in the way. Through the detailed work we are doing I hope we can demonstrate that the Irish Steel case will not be disruptive to its market on the scale suggested.
Will the Minister put to one side any proposals to down size, to use the jargon, or to lessen the tonnage and, therefore, employment in Irish Steel? Will the Minister give an assurance that he will not take that route to satisfy the British?
As I explained to the House previously, to secure agreement of 14 of the 15 member states we have had to look at issue such as the destination of sales. I have adopted the position that we cannot agree to anything which would damage the viability of ISPAT and that must be the bottom line when dealing with any proposals.
Will the Minister take Question No. 23, which is on the same topic?
