HC Deb 19 February 1935 vol 298 cc179-81
44. Mr. D. GRENFELL

asked the Secretary of State for the Colonies whether he is watching developments in the tin market; and whether he proposes to take any action to protect the public against speculative pool operations in this essential commodity?

The SECRETARY of STATE for the COLONIES (Sir Philip Cunliffe-Lister)

His Majesty's Government watch developments in the tin market, but do not consider that any action on their part is called for. One of the advantages of a complete and elastic scheme such as the tin regulation scheme is that it largely eliminates the opportunity for, and risk of speculation, both by providing a means of adjusting supply to demand and by securing as far as possible that the fullest information regarding stocks and supplies is available to the public. In fact the price of tin has remained remarkably stable for many months with the result that speculation has, I understand, greatly diminished. In addition in the tin scheme there exists a buffer pool under the control of the participating Governments which can be used as an additional safeguard against serious fluctuations in price. The hon. Member will recollect that the World Economic Conference reviewed the operation of the tin scheme and expressed their full approval of the scheme and its operation.

Mr. GRENFELL

Is the right hon. Gentleman aware of the very grave injury which the high price for tin means to the tinplate industry in South Wales?

Sir P. CUNLIFFE-LISTER

Not in the least. I have always understood from the consumers of tin that the essential thing for them is a stable price, and I have not heard any objection from consumers that the price is unreasonable. What is important is that at a World Economic Conference, in which every single country was represented, producers and consumers, went into this question most thoroughly and thought that the scheme was not only reasonable but essential.

Mr. GRENFELL

Are His Majesty's Government in favour of all these arrangements for keeping tin at a high price?

Sir P. CUNLIFFE-LISTER

His Majesty's Government to-day are in exactly the same position with regard to this scheme as His Majesty's Labour Government were when the scheme was adopted.

Lieut.-Commander AGNEW

Is my right hon. Friend aware of the great benefits which have accrued to home producers of tin as a result of this tin restriction scheme?

Sir P. CUNLIFFE-LISTER

Yes, Sir.

Major NATHAN

May I ask whether the right hon. Gentleman has any information as to the operations of this buffer pool to which he referred to in his reply?

Sir P. CUNLIFFE-LISTER

The whole of the facts have been fully stated regarding this buffer pool. The pool has to collect, I think, 8,000 tons of tin, which every producer has the right to produce, and which will then be under the control of the Governments concerned.

Major NATHAN

Will the right hon. Gentleman say, if he can, what are the financial results of the pool?

Sir P. CUNLIFFE-LISTER

No, Sir. It is obvious that if you are to have a buffer pool controlled by Governments in order to prevent speculations, you cannot disclose the exact position of the pool from day to day.

Mr. WILMOT

Is it not a fact that this tin scheme operates gravely to the dis advantage of British Empire producers of tin and entirely to the advantage of high cost producers in foreign countries?

Sir P. CUNLIFFE-LISTER

No statement could conceivably be farther from the truth. The Labour Government followed, if I may say so, an absolutely sound policy in this matter, and decided that before initiating the scheme they must be satisfied that it had the support of the great majority of producers, and that it was in the interests of the producers of tin within the British Empire. They fully satisfied themselves on that, and the scheme was endorsed by the World Economic Conference. For once a consistent policy has been carried out by all Governments.

53. Mr. GRENFELL

asked the Secretary of State for the Colonies whether he has received any representations against the attempts being made to create a complete monopoly in tin; and whether he proposes to take any action to prevent this essential commodity coming under the control of one powerful group?

Sir P. CUNLIFFE-LISTER

No, Sir; no representations have been received, and the area of production of tin is so wide that it is almost inconceivable that it should come under a single control.

Mr. GRENFELL

Is it not the case that the price of tin is twice the cost of production in certain parts of the world; and does the right hon. Gentleman not consider that that price is unduly high?

Sir P. CUNLIFFE-LISTER

I should not dream of answering the first part of the hon. Gentleman's question without notice. Obviously, the cost of production must vary from mine to mine. If you take the price of tin generally to-day and compare it with the prices of other commodities, you will find that, to take coal for instance, in which the hon. Gentleman is interested, in terms of 1913, coal I think is 126 and tin 114.