§ 76. Mr. HOLMESasked the President of the Board of Trade whether the Government has been buying the total British spelter output at £60 per ton and selling it to merchants a £38 per ton; what has been the total loss in these transactions; whether this arrangement has now been terminated; and whether any and, if so, what substituted arrangement has been made?
The FINANCIAL SECRETARY to the MINISTRY of MUNITIONS (Mr. Hope)During the War the Government have been buying the total British spelter output. The purchase price was fixed at £56 per ton, and the selling price at £57. Various increases in wages had as they became operative to be added to the £56 basis buying price, and these raised such price to about £60 a ton. These advances were not added to the selling price because the total Ministry purchases showed a clear average profit when reselling at £57. By the 3rd February, a gradual decline in the world's price following the Armistice necessitated a lower selling price which has finally 1107 fallen to £38. As, however, the Ministry supply the smelters with the bulk of their raw material in the form of zinc concentrates, at a price based on a £56 value of spelter, it cannot be said that they are incurring the loss indicated by the fact of apparently buying at £56 and selling at £38. In view of the price charged for zinc concentrates the smelters are at the present moment making no profits. By a decision of the Cabinet the contracts have been continued until the 5th November, in view of the importance of sustaining this vital key industry during the present period of transition.