HC Deb 23 November 1954 vol 533 cc1028-30
11. Mr. Nabarro

asked the Chancellor of the Exchequer, in view of the recent decisions of the National Coal Board to buy German colliery equipment costing more than £00,000, despite British manufacturers having tendered competitive prices and approximately equal deliveries, and to buy heavy opencast mining machinery in the United States of America notwithstanding Messrs. Ran-some and Rapier, of Ipswich, having offered equivalent British machinery on competitive terms, and also the proposal of the British Overseas Airways Corporation to purchase for dollars, United States DC-7D airliners for trans-Atlantic routes, in preference to Bristol Britannia aircraft, what steps he is taking to assure, by exchange control means or otherwise, that the nationalised industries pursue a policy calculated to maintain British industrial prestige and interests upon international markets by buying British.

Mr. R. A. Butler

The Government's policy is that the nationalised industries should be guided by normal commercial considerations in their purchasing policy, subject only to such restrictions as are necessary to protect the balance of payments.

Mr. Nabarro

Does not my right hon. Friend appreciate that the foreigner believes that the policy of British nationalised industries is inspired and endorsed by Her Majesty's Government, and that the practice which is developing, of nationalised industries purchasing large quantities of expensive engineering equipment—and now aircraft—oversea, is undermining British industrial prestige oversea, affecting our export trade, and having a very adverse effect upon our prospects? Cannot my right hon. Friend—[HON. MEMBERS: "Speech."]—without interfering with the autonomy——

Mr. Shurmer

On a point of order. In view of the desirability of short supplementary questions, would it not be desirable for Questions to be short also? This Question takes in four matters.

Mr. Speaker

I am always against prolixity.

Mr. Nabarro

Cannot my right hon. Friend, without interfering with the autonomy enjoyed by the nationalised industries, influence their policy to buy British?

Mr. Butler

The answer to my hon. Friend is that he is exaggerating the extent of these purchases. Naturally, the preference should be given, if possible, to British goods, but there is one case here of some machinery for a pithead at Kinneil in West Lothian, and another case of DC-7D aircraft for B.O.A.C. On that matter I would refer him to the debate of 15th November, from which he will see that the matter is not quite as he has put it. There is the third matter, depending on the relative delivery dates of the British firms and the foreign firms. I cannot interfere when it is a question of an open general licence, unless it is a matter affecting the balance of payments.

Mr. Stokes

I suppose it is hardly necessary for me to declare my interest in this Question, as it is stated in the Question, but may I ask whether the right hon. Gentleman is aware that in that case the fault did not lie with the National Coal Board but in the appalling dilatoriness of the Minister of Fuel and Power and the Minister of Agriculture in coming to a decision as to which ground should be made available for opencast working? Is he aware that that is what we want to see hurried up?

Mr. Butler

As that is a matter relating to the activities and responsibilities of two of my colleagues, I should like to investigate it before replying further to the right hon. Gentleman.

Mr. Gaitskell

Does the right hon. Gentleman realise that in refusing to bully the nationalised industries into paying more than they need, and in encouraging them to serve the consumers to the best advantage, he has the support of this side of the House?

Mr. Butler

Yes, but I would point out that while I have stated Government policy, which, I think, should remain as it is, there is undoubtedly anxiety on these matters. For example, they were raised recently at a meeting of the National Advisory Productivity Council for Industry. Therefore we have to investigate them to see that there is absolute fairness, and that in turn makes our rule all the more fair.