§ 56. Mr. Ellis Smithasked the Minister of Supply if it is intended to bring about the maximum efficiency in the steel industry, the maximum output at the minimum of costs and in the price of steel; and what steps are being taken to apply this policy.
§ The Minister of Supply (Sir Andrew Duncan)Yes, Sir; the Government are fully alive to the importance of the highest efficiency in steel production and the lowest possible costs and prices, and are giving active consideration to the best methods by which these objects may be achieved.
§ Mr. SmithDoes that mean that an investigation is being made into the position of the steel industry with a view to 1227 preparing a plan to ensure the maximum efficiency after the war?
§ Sir A. DuncanYes, Sir, we are conducting such an investigation.
Mr. Craik HendersonIn arriving at minimum prices, is it not necessary to keep in view the price of coal?
§ Sir A. DuncanThe price of coal must always be kept in mind as affecting the price of steel.
§ 57. Mr. Ellis Smithasked the Minister of Supply the average rate of profit made in the steel industry; the average rate in the engineering industry; and the average rate of profit allowed under the Ministry's costed contracts.
§ Sir A. DuncanIn the latest period for which complete figures are available, the average return in the heavy steel industry was 9.6 per cent. on employed capital. The corresponding figure for the whole of the industry, including alloys and highly finished products, was 11.1 per cent. Comparable figures for the engineering industry as such are not available. The average return currently earned on Ministry of Supply costed contracts is equivalent to 9.43 per cent. on employed capital.
§ 58. Mr. Ellis Smithasked the Minister of Supply the average cost during the war years of structural steel in Britain and Australia at British prices; and the average amount of coal necessary to produce a ton of steel in Britain and in the U.S.A.
§ Sir A. DuncanComparative basis prices for structural steel delivered in Australia and Great Britain are: Australia, 13 Australian pounds a ton, which at the present rate of exchange would yield £10 8s. sterling; Great Britain, £14 3s. a ton. The amount of coal required on the average to produce a ton of heavy steel in Great Britain, as compared with U.S.A., is in the ratio of 2 to 1½ the difference being mainly due to the higher grade ore available in the U.S.A.
§ Mr. SmithDoes not this reply disclose a serious state of affairs, indicating that we are not using our coal to the best advantage in this country?
§ Sir A. DuncanNo, Sir, on the contrary. My reply relates entirely to the relativity of coal to ore.
§ Sir Granville GibsonDoes it not indicate that coal has got to altogether too high a price?