HC Deb 06 June 1939 vol 348 cc194-5
20. Mr. Stokes

asked the President of the Board of Trade whether he is aware that the scrap-iron merchants in this country, who are refraining for patriotic reasons from exporting scrap which, in many cases is their normal business, are being penalised by the British steel ring, who are buying scrap-steel at a much higher price from foreigners than they will agree to pay their own countrymen for similar material; and whether he approves of the subsidy paid to the steel industry to help in its recovery being used in this way rather than being spent in this country, in which case the Exchequer would benefit by a decrease in unemployment?

Mr. Stanley

There is an arrangement between the British Iron and Steel Federation and the Scrap Merchants' Federation, under which the latter have agreed to offer the former all available scrap in this country at a price which is settled between the two bodies. Under this arrangement material is sold for export only when it is not required for use in this country. In spite of this arrangement, home supplies of scrap have recently proved insufficient, and I understand that it has been necessary to negotiate purchases abroad. I am not aware of the price paid for imported scrap, or that the steel industry is receiving a subsidy.

Mr. Stokes

Is the Minister not aware that, under this arrangement between the steel federation and the scrap merchant, the British Iron and Steel Federation have actually suspended some of the contracts with some of the scrap merchants in this country and are purchasing scrap at 50 per cent. above the home price?

Mr. Stanley

I am certainly not aware that the Iron and Steel Federation have suspended contracts with the scrap merchants in this country.

Mr. Stokes

If I send the right hon. Gentleman full particulars will he look into them?

Mr. Stanley

Yes, Sir.

Mr. R. C. Morrison

Would the right hon. Gentleman accept the possibility of allowing local authorities to organise the collection of scrap, as they can produce enormous amounts at very reasonable prices?

Mr. R. Gibson

Are the old British ships that are being sold abroad being used as scrap?