HC Deb 16 March 1937 vol 321 cc1823-6
5. Sir Percy Harris

asked the President of the Board of Trade whether he is aware of the announcement that the British Iron and Steel Federation intend to raise prices of their products from 1st June to an unspecified figure; and what action he proposes to take to prevent the needs of the Government being exploited by the manufacturers of iron and steel?

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

I understand that for various reasons, including the rising prices of raw materials, the British Iron and Steel Federation are making investigation into the cost of production of various steel products and that increases in prices may become necessary. The Federation are acting in consultation with the Import Duties Advisory Committee.

Sir P. Harris

Can the Parliamentary Secretary say whether the profits of these iron and steel manufacturers are subject to the same supervision and control by Government auditors as other manufacturers of munitions? Is it not a fact that most of the iron and steel is being used for munition purposes, and should they not therefore be subject to the same control?

Dr. Burgin

I hope the hon. Member will kindly put that question on the Paper. My own impression is that a great deal of the steel is required for industrial purposes and, therefore, does not fall within the category he mentions.

Mr. Liddall

Is not the Parliamentary Secretary satisfied that not one of our iron and steel manufacturers wishes to exploit the present situation?

Mr. Banfield

Is the hon. Member aware of the complaint of numerous small manufacturers who are being deliberately squeezed out by the Iron and Steel Federation?

Dr. Burgin

No, Sir, I am not aware of that. I am aware that there is a world shortage of steel and that a great many people would like to have more steel than they can get. So would the Government.

Mr. Holdsworth

Would it not help the situation if there were free importation into this country?

Dr. Burgin

I do not think it would make the slightest difference.

6. Sir P. Harris

asked the President of the Board of Trade whether any arrangements are being made to secure that users of steel for commercial purposes both receive supplies of the necessary raw materials and obtain them at a reasonable price?

Dr. Burgin

I Mould refer the hon. Member to the replies given him on this subject on 23rd February and 2nd March.

Sir P. Harris

Is the hon. Member not aware that the situation has become very much worse since those replies were given, and that owing to the lack of action on the part of the Government many industries, especially those engaged in the export trade, are in danger of closing down because they are unable to get the necessary raw materials for their industry?

Dr. Burgin

I entirely demur to the suggestion that it is due to lack of action or to any specific action that has been taken. There is a world shortage of steel. Users of steel are going short, and every effort is being made to remedy the situation.

Sir P. Harris

Is the hon. Member aware that, owing to the action of the Government in encouraging the cartel in the last few years, there has not been the natural development in the industry there would have been?

Dr. Burgin

That is quite incorrect. There has been greater development in the industry than in any previous period of our history.

Mr. H. G. Williams

Has the Parliamentary Secretary considered to what extent the situation is aggravated by the civil war in Spain preventing supplies of iron ore reaching this country?

14. Mr. N. Maclean

asked the President of the Board of Trade whether he is aware of the complaints of ship-repairing firms on the Clyde of their inability to obtain steel; whether he is aware that contracts are being lost to these firms owing to the shortage of steel; and what steps are being taken to speed up the production of steel?

Dr. Burgin

The answer to the first and second parts of the question is in the negative. With regard to the last part, I have nothing to add to the answer which was given on 23rd February to the hon. Member for South-West Bethnal Green (Sir P. Harris).

Mr. Maclean

Is it not the case that this shortage is causing loss of contracts to firms on Clydeside, and will the hon. Member not do something to enable these firms to carry out the contracts they have already entered into and those which they have obtained?

Dr. Burgin

If the hon. Member has any particulars as to loss of contracts, I shall be glad if he will forward them to the Department. I am not aware that contracts are being lost. I am aware that there is a shortage of steel, that the shortage is universal, not limited to this country, but applies to all countries.

Mr. Maclean

Since the Parliamentary Secretary has knowledge of the shortage of steel, does he not agree that there will be loss of contracts because of the shortage, and, therefore, what steps is he taking to eliminate the shortage and make it possible for these firms to carry out their contracts?

Mr. James Griffiths

May I ask whether this shortage is not partly due to the fact that General Franco has captured part of Spain, and that the supply of iron ore is being diverted to Germany which normally came to this country?

Dr. Burgin

That is, no doubt, an important factor, but perhaps this question can be more appropriately debated on Friday when there is to be a Debate on this particular topic.