§ 17. Mr. Gilbert Longdenasked the Minister of Works what changes there have recently been in the price control arrangements for the building materials for which his Department is the production Department.
§ 18. Squadron Leader A. E. Cooperasked the Minister of Works what changes in prices for building materials controlled by his Department are contemplated; and if he will make a statement.
§ Mr. EcclesYes, Sir. I was anxious to remove price controls where they have outlived their usefulness, and therefore have consulted the producers of building materials concerned.
Most of these industries would have been granted increases of price to cover increased costs of coal, freight, raw materials, etc. They have now given assurances that they will keep such increases to a minimum and will establish prices which will remain firm during 1952 unless there are further major increases in cost.
1240 On the basis of these assurances I have removed price control from plasterboard, Gypsum rock, building plasters, sanitary fireclay, asbestos cement, lead sheet and pipe, sanitary earthenware, cement (ordinary Portland and rapid hardening), and certain types of flat glass.
§ Mr. LongdenCan the right hon. Gentleman tell the House what saving of manpower this will entail?
§ Mr. EcclesIt will entail savings, but I need notice of that question to give any hon. Friend an accurate answer.
§ Squadron Leader CooperWhilst thanking my right hon. Friend for this encouraging statement, may I ask him to tell the House whether metal windows and like fittings are included in this de-control?
§ Mr. EcclesNo, Sir; only the materials I mentioned.
§ Mr. E. ShinwellBefore removing price control, did the Minister ascertain whether there was a plentiful supply of these materials and whether in future there would be a plentiful supply?
§ Mr. EcclesYes, that was one of the considerations.
§ Mr. C. W. GibsonIn view of the statement in "The Times" recently that the cost of house-building materials had risen by 25 per cent. during the last 12 months, does not the Minister think that he has taken a dangerous step? Ought we not rather to make sure by controls that these prices are kept down in the interests of cheaper house building?
§ Mr. EcclesUnder the old system I should have had to grant increases at least equal to those which have taken place. My own view is that the supply of these articles is more likely to come forward when the industries are freer.
§ Mr. George BrownBut is not the right hon. Gentleman aware, on the information of his own Department, that a great struggle has gone on to keep the rate of profit in the industries he has mentioned down to anything like a reasonable figure over the last few years? Plasterboard supplies are controlled by the supply of raw material, particularly paper. How can he assure the House that there will be a sufficient increase in 1241 supply to prevent the rate of profit rising as it would have done but for the voluntary price control?
§ Mr. EcclesDelivery dates for plasterboard, when I took office, were anything up to six months and are now down to immediate supply.
§ Mr. Frederick MulleyWill the Minister give the House an assurance that if the prices of these materials are put up beyond a reasonable amount because of increased costs—if, for instance, the plasterboard people do what they did last year and break a voluntary agreement—will he take steps immediately to re-impose price control?
§ Mr. EcclesI shall watch the situation, but I have confidence that these industries will conduct their affairs with responsibility.
§ Mr. BrownMay I ask the Minister whether he is being fair with the House in saying that the delivery date was six months when he took office, since the general ban on building which he has now imposed was not there? How will he ensure that there will be ample supplies when he re-opens the building programme properly, or does he never intend to make the supplies match the real programme?
§ Mr. EcclesWhen the right hon. Gentleman was in office he failed to secure adequate supplies of paper liner for the plasterboard industry. I have now secured those supplies and the situation is easier.