HC Deb 03 March 1937 vol 321 cc358-9
52. Mr. Garro Jones

asked the Minister for the Co-ordination of Defence whether the Government have made any forward contracts for the supply of steel and other metals for use in the rearmament programme or whether they have instructed Government contractors to make such purchases at prices now ruling?

Sir T. Inskip

So far as direct supplies of the materials in question are concerned, advance covering arrangements have been made in certain cases. So far as supplies of contractors are concerned, no instructions have been given. Over considerable areas of supply contractors are aware in advance of the probable requirements and can take appropriate action.

Mr. Garro Jones

May the House understand then that the price which the Government are paying for their metals for rearmament is at a figure considerably less than the greatly enhanced prices which are now ruling?

Sir T. Inskip

In a great many cases yes, certainly.

Mr. Alexander

Does the right hon. Gentleman now expect a reduction in the price of the material by the halving of the import duty?

Sir T. Inskip

If the right hon. Member is referring to iron ore, I will consider that and obtain information.

Sir Hugh Seely

Does it cover copper?

67. Mr. David Adams

asked the President of the Board of Trade whether, in view of the abnormal rise in the prices of non-ferrous metals and consequent advance in the cost of materials for armaments, he proposes to formulate a plan for the control of such metals?

The Parliamentary Secretary to the Board of Trade (Dr. Burgin)

My right hon. Friend has consulted the Minister for Co-ordination of Defence, and as at present advised they do not think that such a control is either necessary or desirable.

Mr. Adams

Is the Minister aware that there was again a sharp advance yesterday in the price of base metals?

Dr. Burgin

Yes, certainly, but if you want a commodity and there is a world price at which you can procure it, and if you set up a form of control in your own country so that you may buy it at a lesser price, it results in your not procuring it.

Mr. Adams

Are we to understand from the answer that the method of controlling metals during the War was incorrect?

Mr. Paling

Are the Government going to do nothing in regard to controlling these prices?

Mr. Garro Jones

Has the Minister ever heard of the principle of forward purchases?