§ 15. Mr. Wilkesasked the President of the Board of Trade why his Department refuses to disclose to industrialists the 317 basis of the present allocation of urea and butyl alcohol; why British Resin Products, Limited, Vale Road East, Tonbridge, Kent, are receiving under the present allocation greater quantities of these substances than development area projects such as British Paints, Limited, Britannic Works, Portland Road, Newcastle-on-Tyne; and, as greater quantities of urea have been produced than anticipated, whether this increased production has been allocated to firms within the development areas.
§ Sir S. CrippsWhen a shortage of urea and butyl alcohol developed early in 1946 monthly allocations to consumers were stabilised at the quantities they were then receiving. This basis of allocation is well known to synthetic resin manufacturers generally. There was a small increase in urea production in the second half of 1946 but it was insufficient to offset the drain on stocks. Allocations remained constant until early in 1947, when, owing to the exhaustion of stocks, all consumers suffered a pro rata reduction except for firms taking only small quantities.
§ Mr. WilkesIs my right hon. and learned Friend aware that this firm, outside the development areas mentioned in the Question, is not, so far as is known, a firm which used these substances in prewar days; and, according to information, they apparently now receive a larger allocation than any firm within the development areas who have recently started up?
§ Sir S. CrippsThe hon. Member will see in the answer to the Question that the stabilisation took place in 1946, and, as a matter of fact, the firm with which he is concerned, British Paints Ltd., has not suffered any reduction because it is a small firm.
§ 25. Mr. Wilkesasked the President of the Board of Trade whether, in view of the fact that the price of home produced urea is £31 per ton as compared with £76 per ton for imported German urea, he will create, as previously done in the case of phenol, a urea pool of both imported and home produced urea at a uniform price level to spread the cost; and whether he is aware that in default of such a pool new development area projects will be placed at a disadvantage in competing with prewar users outside the 318 development areas who, on the basis of their prewar urea consumption, receive much larger allocations of home produced urea at the lower price.
§ Sir S. CrippsA small consignment of urea has arrived from Germany after protracted negotiations. There is at present no certainty as to continuing supplies but, if the position improves in this respect, I will certainly consider whether some pooling arrangement could be reached.
§ Mr. WilkesWill my right hon. and learned Friend bear in mind that firms within the development areas had to refuse allocations of this German exported urea because it was not at competitive prices?
§ Sir S. CrippsIt is expensive compared with others, but with the shortage of urea we are trying to get everything we can.