HC Deb 11 March 1952 vol 497 cc1239-41
17. Mr. Gilbert Longden

asked 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. Cooper

asked 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. Eccles

Yes, 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.

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. Longden

Can the right hon. Gentleman tell the House what saving of manpower this will entail?

Mr. Eccles

It will entail savings, but I need notice of that question to give any hon. Friend an accurate answer.

Squadron Leader Cooper

Whilst 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. Eccles

No, Sir; only the materials I mentioned.

Mr. E. Shinwell

Before 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. Eccles

Yes, that was one of the considerations.

Mr. C. W. Gibson

In 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. Eccles

Under 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 Brown

But 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 supply to prevent the rate of profit rising as it would have done but for the voluntary price control?

Mr. Eccles

Delivery dates for plasterboard, when I took office, were anything up to six months and are now down to immediate supply.

Mr. Frederick Mulley

Will 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. Eccles

I shall watch the situation, but I have confidence that these industries will conduct their affairs with responsibility.

Mr. Brown

May 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. Eccles

When 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.