Colin MacKay, STV
Mrs Thatcher, Prime Minister, were you able to give any hope that the Gartcosh plant will be reprieved?
MT
I can't give any hope about the Gartcosh plant because that's a matter for British Steel Corporation. When it comes to the five main steel plants … the decision to close any … point out to the people in there just exactly what we have done to show and demonstrate our faith in Ravenscraig. Because we have too little business. We are hungry for business. We are determined, as was announced, to keep Ravenscraig open during this planning period of British Steel Corporation. Then we have to look at the next one. In order to do that, we gave permission to BSC to spend well in excess of £100 million to purchase Alpha Steel in South Wales in order to buy its quota to help to keep Ravenscraig going. Now that is an earnest of our faith in Ravenscraig, not only of its importance to Scotland, but an earnest of how much we thought of them when they kept steel production going during the coal strike.
Glyn Mathias, ITN
So are you guaranteeing a long-term future for Ravenscraig now?
MT
We can guarantee only—short of something terrible happening—each planning period of British Steel Corporation. That is what we do. Without that decision to purchase Alpha Steel, to purchase that quota, it would have been very difficult. Now that meant a £100 million—well over £100 million—less to spend somewhere else. It does mean that Alpha Steel stops that particular production. That is the earnest of our faith and that is why, that is why, guarantees were given, short of something terrible and unforeseen happening to Ravenscraig, in this planning period of BSC. When it comes up to the next plan, we'll have a look at it. …
Questioner 3
[inaudible]
MT
No I'm sorry, I haven't seen the Glasgow Herald. I left London very early this morning.
Questioner 3
Prime Minister, can I ask you, were you able to give the STUC any reassurances on the steel industry in Scotland?
MT
I hope that we have given the reassurance which we have publicly given. There are five steel plants. At the moment we haven't enough production to keep them all going flat out—they are only going at about 65 per cent. But nevertheless we have indicated our faith in Ravenscraig, our understanding of its importance in Scotland, by purchasing Alpha Steel in South Wales in order to purchase its steel quota, in order to enable us to keep Ravenscraig going. Now that's not merely an expression of intention. It is well in [end p1] excess, substantially in excess, of £100 million, which could have gone—perhaps to inward investment or elsewhere—to help keep Ravenscraig going. That is a very practical expression of how strongly we feel about it, not only what we feel about it, but what we have done.
Questioner 3
So it won't close?
MT
So Ravenscraig have been given the undertaking to keep going for three years up to 1988, that is the present planning period for British Steel Corporation. We hope during that period we can get more business, and then of course a new plan comes up and we consider it again. But this is what we've done, not only to say yes we believe in Ravenscraig, well in excess of £100 million, which quota comes from a firm in South Wales, to help. Part of that … [Word inaudible] … will go to Port Talbot, Llanwern, that's another, two others of our great steel plants. And part … will help to keep Ravenscraig going. So that's very practical expression. I did point out to the STUC—look, all who of you who represent … [Word inaudible] … you've forgotten one thing. We are hungry for business. We are hungry for business. And if we can get more business, we can fill our factories. So we've got to go out and try and get new products and better markets. And then there is no problem. Now, on the whole politicians don't do that, except that we give as far as selling overseas is concerned. If we can get more business, then we can keep all of them going flat out. In the meantime we are spreading the business over the five plants.
Questioner 3
Were you able to say anything about Gartcosh?
MT
No, that is a matter for British Steel Corporation. We are … we have over-capacity of coal [Word inaudible] but I do not regard … I believe the Gartcosh and Ravenscraig things are separate. We have done everything we can to keep Ravenscraig going and I'm sure it'll take full advantage of its opportunities. Our understanding of the importance of Ravenscraig to the Scottish economy and … an expression of how we felt at how they kept going during the miners' strike. Thank you.
Questioner 3
Prime Minister, thank you … .
MT
Thank you. [Piper begins to play, cars start. Tape ends.]