HC Deb 05 December 1949 vol 470 cc1504-6
8. Mr. Edelman

asked the Minister of Supply what is the balance of advantage to the British motor industry in the export of steel to France and the import of steel from France carried out under the authority of his Department.

Mr. G. R. Strauss

Under agreements with the French steel industry, we have, during the past year, received substantial quantities of pig iron and steel which have enabled larger allocations of steel to be made to the steel using industries, including the motor industry, than would otherwise have been possible. In exchange, we have exported to France certain limited and much smaller quantities of semi-manufactured steel, including black sheet and blackplate. At the request of the French, 3,000 tons of finished automobile sheet, representing less than I per cent. of the total quantity of high quality sheet steel allocated to British users this year, was later substituted for a larger amount of black sheet and blackplate covered by the original agreement.

I regret that in my reply to the hon. Member for King's Norton (Mr. Blackburn) on 21st November, I misinformed the House when I said that no finished automobile sheet steel had been exported to France.

Mr. Edelman

Will my right hon. Friend make it clear that these transactions have, on balance, served to maintain full employment in the motor industry, and will he rebut the suggestion of Mr. Lord, of Austin's, that even one hour of production has been lost through this arrangement?

Mr. Strauss

There is no doubt at all that this arrangement, on the whole, has been beneficial to British industry. I cannot understand how it can be alleged that the shipping of some steel to France has retarded the British motor industry.

Mr. Blackburn

With all respect to my right hon. Friend, is it not a fact, as Mr. Lord told me on two occasions, that automobile body sheet steel was being exported and that the Minister has now generously admitted that Mr. Lord was right and he himself was wrong? Will he make a clear statement to the trade in order to satisfy them that this arrangement is, on the whole, in favour of this country?

Mr. Strauss

That is what I have just said in reply to my hon. Friend the Member for West Coventry (Mr. Edelman).

Mr. Manningham-Buller

Is the export of sheet steel still continuing?

Mr. Strauss

No, Sir; it was a specific quantity of 3,000 tons, the order for which has now been completed.

Mr. Erroll

Can the right hon. Gentleman explain why, doubtless inadvertently, he misinformed the House last Monday week?

Mr. Strauss

This is a complicated business. There have been two agreements with the French industry, and I regret that owing to an oversight in my Department I did not give the correct figures. I cannot say more.