HC Deb 24 May 1938 vol 336 cc1029-31
56. Commander Bower

asked the President of the Board of Trade to what extent the British Iron and Steel Federation has directly or indirectly committed itself to the purchase of foreign pig-iron and scrap, and over what period these quantities are likely to be delivered; what is the prospective output of pig-iron in this country; and the prospective consumption of pig-iron and scrap over the same period?

Mr. Stanley

I am informed that delivery of foreign pig iron purchased by the British Iron and Steel Federation was completed by the end of March last, and that the Federation is not committed to further purchases. As regards foreign scrap, a relatively small balance of the purchases made to meet the acute shortage which developed last year is expected to be delivered by July, and no further commitments have been made. In regard to the last part of the question, it is impossible to forecast with any precision the future demand for, and therefore the output of, pig iron, but it is estimated that home and Empire supplies will be adequate to meet any probable demand in the near future, and no difficulty is expected in obtaining adequate supplies of scrap.

Commander Bower

Is it not a fact that the very short-sighted policy of the federation in making these large purchases is responsible for enormous numbers of blast furnaces being blown out at the present time, and for men being thrown out of employment?

Mr. Stanley

I do not think I could accept that description of the action of the Iron and Steel Federation, but the matter is one that can obviously be raised in the Debate on my Vote this afternoon.

Mr. David Grenfell

Is it not the case that this House supported import duties on imported steel on condition that the Iron and Steel Federation reorganised the steel trade and made provision for expansion of production and development at home to meet home needs?

Mr. Stanley

Yes, Sir, that is quite true. The federation have carried out a considerable amount of reorganisation. As the hon. Gentleman knows, the output last year was expanded enormously, and this particular condition was, I think, judged by most Members of the House to be wise at the time it was made, when there was an acute shortage of steel.

Miss Wilkinson

Does not this mean that the British Iron and Steel Federation are keeping up their own profits at the expense of the exclusion of new people from coming into the industry to fill up production?

Mr. Stanley

That does not seem to have much to do with the question on the Paper.

Mr. Kirkwood

Is the right hon. Gentleman aware that shipbuilding is being held up because of a shortage of light ship plates, which could be rolled at Jarrow at the moment; and if, on making inquiries, he finds that that is the case, will he push on with a steelworks that can meet the demand?

Mr. Stanley

If the hon. Gentleman will let me have particulars of that case, I shall be glad to look into it.

Miss Wilkinson

You have had the particulars over and over again.

Mr. Stanley

I understood the hon. Member to be referring to the case of a particular shipbuilder who is short of plates, and I told the hon. Member that, if he will let me have particulars, I shall be glad to look into it.

Mr. Kirkwood

It is not only the shipbuilder, but many.

Mr. Liddall

Is my right hon. Friend aware that ship plates can be got at Scunthorpe?

62. Mr. R. Acland

asked the President of the Board of Trade whether the Board has looked into the question of the number of firms in the iron and steel industry now making use of the uniform cost system worked out by the standing cost committee of the Industrial Research Council at the instance of the Iron and Steel Federation; and, if so, what is the position at the latest convenient date?

Mr. Stanley

I am informed by the British Iron and Steel Federation that they are satisfied that progress continues to be made in the adoption of the uniform cost system, either wholly or in part according to the particular needs of individual firms.

63. Mr. Acland

asked the President of the Board of Trade whether the council of the British Iron and Steel Federation has established a central stabilization fund; if so, on what basis and by whom are contributions paid to the fund; and how much has been expended out of the funds, and on what objects?

Mr. Stanley

I am informed that the fund to which the hon. Member refers has not yet been established, but arrangements have been made to defray, by means of a levy on the industry, the cost of the schemes carried out last year to meet the emergency created by the sudden expansion of demand.

64. Mr. Acland

asked the President of the Board of Trade whether any money has been spent since last November by the British Iron and Steel Federation in order to keep high-cost steel-producing plants in operation without necessitating a general rise in the price level of steel?

Mr. Stanley

I am informed that, apart from the arrangement referred to in my reply to a question by the hon. Member for Dundee (Mr. Foot) on 2nd November last, it has not been necessary for the British Iron and Steel Federation to make arrangements to keep any high-cost steel-producing plants in operation.