HC Deb 30 June 1952 vol 503 cc5-7
10. Mr. G. R. Strauss

asked the Minister of Supply in what way he is proposing to vary the principles on which the steel allocation scheme is being administered.

Mr. Sandys

No changes are proposed in the principles on which the steel allocation scheme is administered, but increased preference will be given to firms capable of expanding their exports.

Mr. Strauss

Does that mean that the principles being employed by the present Government are those which were employed by the late Government, in that the steel allocation is varied quite materially according to the export performance and prospects of various firms? In other words, there is no change at all.

Mr. Sandys

As I said, there is no change in principles, but we are putting even greater emphasis on exports, particularly exports of goods which have a high conversion value in non-sterling currencies.

Mr. Nabarro

Is my right hon. Friend aware that both sides of British industry generally are very happy and satisfied with the administration of this rationing scheme, and particularly the special applications that are made to his Department for consideration for more export work?

Mr. Ewart

Does the Minister include the shipbuilding industry in his vital exporting industries? If so, would he note that there is a shortage of steel in that industry at present?

Mr. Sandys

There is, of course, a shortage of steel in every industry, but I personally am responsible only for those industries for which the Ministry of Supply is the sponsoring authority.

Major Anstruther-Gray

is my right hon. Friend satisfied that Scottish firms are getting their fair share of this allocation, as I have had some information which leads me to wonder whether they are?

Mr. Sandys

I have had talks with representatives of the Scottish interests and industries and I do not think that it would do Scotland any good to look at the figures too closely. If anything, they are getting more than their fair share.

11. Lieut.-Colonel Lipton

asked the Minister of Supply to what extent he controls and co-ordinates the issue of certificates by other Government Departments permitting the purchase of steel by local authorities, nationalised industries and private firms.

Mr. Sandys

Not at all.

Lieut.-Colonel Lipton

Is the Minister aware that there are vast quantities of chits for steel in circulation and for which there is no steel, and as it is sometimes months before the chits are honoured, does not that indicate—apart from the new priorities which he is seeking to inject into the present system of allocation—that the system of steel allocation certificates is breaking down and is on the verge of collapse?

Mr. Sandys

I think, as my hon. Friend the Member for Kidderminster (Mr. Nabarro) has just said, that it is working surprisingly well.

Lieut.-Colonel Lipton

But does the Minister think so?

12. Mr. Ewart

asked the Minister of Supply what steps he is taking to secure an adequate supply of file steel to the file manufacturing industry.

Mr. Sandys

The file steel manufacturers are in direct touch with the British Iron and Steel Federation, who are doing all they can to help them obtain increased supplies of the special steels they require.

Mr. Ewart

Is the Minister aware that a firm in Sunderland advised me that they are receiving only about 79 per cent. of their paper allocation, and that unless this position is improved they would be facing redundancy at the end of two or three months? Does he realise the importance of this industry, the difficulties they are experiencing in procuring the special type of steel they require, and the part they are playing in the export industry?

Mr. Sandys

Yes, Sir. We fully realise the importance of this industry. As I have explained to the House on numerous occasions, the difficulty is not so much the quantity of steel to match the allocation, but the production of the right type of steel. This industry requires a very special type of alloy steel. We have been taking very active measures in the last few months to increase the output of alloy steel, and there are already signs of an appreciable increase in production.