HC Deb 09 May 1939 vol 347 cc264-8
13. Mr. Magnay

asked the President of the Board of Trade whether he is aware that members of the National Association for Rolled and Re-rolled Steel Products, one of the bodies controlled by the British Iron and Steel Federation, have for more than two years been selling certain classes of steel at a lower price to the consumer than to the stockholding merchant; whether he has considered a letter from the London Chamber of Commerce drawing attention to this example of discrimination by manufacturers against merchants, only rendered possible by Government protection; and whether he will take steps to ensure that merchants shall not be subjected in any trade to unfair discrimination consequent upon Government intervention?

Mr. Stanley

I understand that the same basic prices for re-rolled steel products are charged to consumers and to stockholding merchants but that the same rebates on purchases in large quantities are not allowed to merchants as to consumers. The rebates to merchants, however, have already been increased in some respects by agreement with the producers and the question whether any further modification is justified is a matter for discussion between the parties. The merchants are, of course, authorised to charge higher prices than the basic prices on re-sale in smaller quantities. I do not accept the suggestion that the terms on which these products are sold to merchants are a consequence of Government intervention.

14. Mr. Magnay

asked the President of the Board of Trade whether he is aware that the Import Duties Advisory Committee, in its 1937 report, stated, after exhaustive inquiry that, apart from products which were sold in bulk to a relatively small circle of consumers, there was little doubt that an experienced merchanting organisation could carry out the functions of distribution more efficiently and at a lower cost than the individual producer; and whether he is satisfied that the application of this principle in the case of the iron and steel industry has proved advantageous to both producers and consumers?

Mr. Stanley

I have no reason to doubt that the working arrangements between the producers and merchants, under which a wide range of products of the iron and steel industry are sold both direct to the consumer and through merchants, have in the main proved satisfactory both to producers and to consumers.

26. Mr. James Griffiths

asked the President of the Board of Trade the quantity of scrap-iron exported from this country to Germany in the past 12 months; whether this represents an increase on the previous 12 months; whether any difficulties are being experienced in providing our own industries with the scrap-iron they need; and whether stocks are being accumulated for future requirements?

Mr. Stanley

During the twelve months ended March, 1939, exports from the United Kingdom of scrap-iron and steel consigned to Germany amounted to 134,000 tons, compared with 51,000 tons during the preceding twelve months. As has been previously stated, the exports to Germany during recent months were made under contracts entered into some time ago when there was a surplus of scrap available, and there is no intention of entering into further contracts at present; some of the scrap recently exported was of a kind which could not be used here. I understand that the British Iron and Steel Federation have been giving the scrap position their close attention, and that they have made arrangements for the supplies needed to meet current requirements. As regards the last part of the question, the position is kept constantly under review.

Mr. Griffiths

Has the right hon. Gentleman received any representations recently from some steel manufacturers that they have had some difficulty in securing supplies of scrap iron; and were the Board of Trade consulted before this largely increased quantity of scrap iron was exported to Germany in the last few months?

Mr. Stanley

This was under an old contract entered into at a time last year when the steel industry was very depressed and there was no outlet in this country either for scrap or for pig iron. Conditions have now changed. The steel industry is operating at a much greater rate of production, and for that reason this contract was allowed to lapse and has not been renewed.

Mr. Griffiths

Has the right hon. Gentleman received any representations that some firms are finding a difficulty in securing supplies?

Mr. Stanley

I do not think I have received any such representation, but I know that the Iron and Steel Federation have the possible effect of this increased activity in mind, and it is to that I referred when I said in my reply that they had been giving the scrap position their close attention.

Mr. T. Williams

Was there not an obvious lack of foresight on the part of those responsible in allowing so many hundreds of thousands of tons of scrap iron purchased from America to be sold to Germany at a price less than the cost when purchased in America?

Mr. Stanley

I must point out to the hon. Member, as I am sure many of those who know this industry will realise, that there are different kinds of scrap, and it may well be that you are selling to another country scrap which you cannot use yourself at the same time as you are buying scrap from abroad.

Miss Wilkinson

Does not the right hon. Gentleman realise that what is really needed is some kind of central planning for the iron and steel industry, because the thing is getting into such a hopeless muddle that neither the Government nor the iron and steel combine know where they are?

Mr. Stanley

There is central planning.

28. Mr. A. Reed

asked the President of the Board of Trade whether, in these days when dispersed stocks of every type of material are so essential to the national safety, he is aware of the circular issued on 15th September, 1938, by the British Steel Makers' Association, indicating that stockholding merchants may not do trade, excepting with their approval, with Government Departments, a number of public bodies, and a long range of commercial buyers; and what he proposes to do about it?

Mr. Stanley

The resolution to which my hon. Friend refers related only to heavy steel and applied only to merchants who do not hold stocks. I understand that the matter is now under discussion between the merchants and the producers of steel.

Mr. Magnay

Does not my right hon. Friend know that this has been going on more or less for two years, and that six months ago I asked a question on this matter, and I was promised exactly what my right hon. Friend has said to-day?

Mr. Stanley

I think that my hon. Friend's question referred to stockholding merchants, whereas this question refers to a resolution relating to merchants who do not hold stocks.

Miss Wilkinson

Will not the right hon. Gentleman realise that what is needed is some representation of the consuming interests, and that all that is being done is being done by the producers, and that the consumers cannot get the steel?

Mr. Stanley

The consumers, of course, are entitled to make application to the Import Duties Advisory Committee who watch the operation of the iron and steel industry.