§ 18. Mr. J. MASONasked the Minister of Munitions whether he has taken any, and, if so, what steps to compensate, by an increase of the controlled price or otherwise, the producers of steel for the increased cost of production consequent on the increased cost of labour and coal; and whether he will give an assurance that no subsidy has been paid or promised to such producers?
§ The FINANCIAL SECRETARY to the MINISTRY of MUNITIONS (Sir Worthington Evans)Certain subsidies are given to steel makers to compensate for the increased cost of labour and coal. Rebates are also paid by steel makers to the Ministry in certain cases, These subsidies and rebates enable the price of steel to be stabilised, and thus prevent the necessity of frequently revising contracts involving the use of steel.
§ Mr. MASONWill my hon. Friend say whether the effect of this subsidising is not really to conceal the cost of the material?
§ Sir W. EVANSIt does equalise the price, and the advantage gained from the 800 equalisation of the price is incomparably greater than any danger that arises from concealing the fluctuations in price.
§ 2. Mr. MASONasked the First Lord of the Admiralty whether he is aware that the premises of steel workers are becoming blocked with plates for shipping which the railways are unable to accept for carriage because the shipyards are not ready to receive them; whether, under these circumstances, he proposes to urge the steel works to increase their rolling power; and whether such works may be allowed temporarily to manufacture other forms of steel which can be delivered and steel for export for munitions to France?
§ The PARLIAMENTARY SECRETARY to the ADMIRALTY (Dr. Macnamara)While it is true that some time ago there was difficulty on the North-East Coast of England in obtaining conveyance from the steel works to the shipyards of certain quantities of plates for shipbuilding, the situation has now materially improved. The difficulty of obtaining carriage was largely due to lack of wagons, although in certain cases also to lack of means in the shipyards to unload wagons already delivered. It is still necessary that the rolling power of the steel works should be increased wherever possible, looking both to our present and future needs. In reference to the last part of the question, it is. understood that all the most urgent uses for steel are always kept fully in view by the Steel Allocation Committee in deciding upon the forms of steel which the steel firms should manufacture.