§ 13 Mr. Magnayasked the President of the Board of Trade (1) whether he is aware that it has been for some time the policy of the British Iron and Steel Federation to eliminate all 2647 middlemen and merchants from the business of selling, through their agency, the products of iron and steel manufacturers; and will he consider taking action to prevent this in future;
(2) whether he is aware that old-established factors and agents in the business of selling iron and steel products are not permitted by the British Iron and Steel Federation to place orders to factories which are desirous of making and delivering such manufactures until they disclose who are the principals of such agents; and whether he will take steps to put an end to this practice;
(3) whether he is aware that many iron and steel manufacturers are not allowed by the British Iron and Steel Federation, acting through their subsidiary associations, to accept orders from merchants because the latter are not members of their federation, in spite of the fact that many of the factories are working short time, with resulting unemployment; and what action does he propose to take to remedy this situation?
§ Mr. StanleyI am informed that working arrangements exist between the producers and merchants in regard to the distribution of iron and steel products, but difficulties have recently arisen in certain districts with regard to sales of heavy steel. Discussions are proceeding between the National Federation of Iron and Steel Merchants and the British Iron and Steel Federation with a view to an amicable settlement of the points at issue.
§ Mr. KirkwoodIs the right hon. Gentleman aware that the steel-makers and the shipbuilders have been negotiating and that the price proposed by the makers, which is a reduction of 17s. 6d., does not meet the demand of the shipbuilders who desire that it should be 30s.; and what action are the Government prepared to take to meet the discrepancy between the makers and those who are going to be the users of the steel in the shipyards?
§ Mr. StanleyThe point which the hon. Member has raised is quite different from that raised in these questions. As I have informed the House, I am in communication with the shipbuilders with regard to the very difficult position of the shipbuilding industry, and I hope we shall be able to find some solution.
§ Mr. KirkwoodIs it not the case that a fortnight ago I put the same question, and the right hon. Gentleman gave me the same answer?
§ Mr. RadfordMay I ask my right hon. Friend whether the manufacturers of iron and steel are not able to do their business without employing middlemen; and is there any necessity why this additional cost should be put upon the price of the article?
§ Sir Frank SandersonIs it not true that it would be to the general interest of consumers that middlemen should be done away with?
§ Mr. StanleyWe have had experience, quite recently, to show that whereas everybody joins in a general demand for the abolition of middlemen, when you come down to particular cases there is not the same unanimity. I think it will be found in many instances in the steel trade, that the merchants, with their unique experience of the trade, do, in fact, serve a very useful purpose.