§ 44. Mr. A. Edwardsasked the Minister of Supply whether he is aware that by increasing the selling price of steel to absorb the extra cost of imported steel, the Government pay an exorbitant price for British steel; and will he consider selling all steel for Government work at the normal price based on actual British cost of production?
§ The Joint Parliamentary Secretary to the Ministry of Supply (Mr. Harold Macmillan)There are obvious practical advantages in establishing a uniform price for all steel, whether home-produced or imported, and whether or not the steel is ultimately used for work under a Government contract. If all steel were sold at a price based on British cost of production, the higher cost of imported steel would become a charge on national funds which the Government are not prepared to accept. The arrangements made do not involve an exorbitant price for British steel.
§ Mr. EdwardsIs it suggested that the whole cost of this increase does not come from the Government? If so, does the Minister not realise that every time he allows an increase in the price of steel every industry depending on steel must raise its prices, and they come back on the Government?
§ Mr. MacmillanIt would be of more advantage to have a uniform price of steel, whether British or not.
§ Mr. EdwardsCannot the Minister consider having a uniform price based on the price of British steel?
§ Mr. MacmillanThat would involve, as I said in my Answer, an additional cost borne entirely on Government charges which they are not prepared to accept.
§ Mr. EdwardsDoes the Minister not realise that when he puts this price on, 766 there is a profit on the increased price which comes back as an increased price to him?