§ 1. Mr. Edward Daviesasked the Minister of Supply to what extent steel supplies have improved during the last six months; what is the total amount expected to be for this year; and how far it is estimated that this will fall short of requirements.
§ The Minister of Supply (Mr. Duncan Sandys)In the six months, March to August, 1952, total steel supplies from all sources available for home consumption and exports were 8.49 million ingot tons compared with 8.36 million ingot tons in the corresponding period of 1951.
Total supplies in 1952 should be rather above 18 million ingot tons. Although this is about one million tons above the rate in 1951, it still falls short of present requirements.
§ Mr. DaviesWill the right hon. Gentleman kindly tell us what the prospect is for the steel-making materials to which reference in made in the Economic Survey, namely, hard coke, iron ore and scrap iron, which will enable him to increase his production?
§ Mr. SandysThat is a different question.
§ Mr. StokesCan the right hon. Gentleman at least assure us that the high-grade iron ore programme arranged last year has been kept to?
§ Mr. SandysCertainly, Sir.
§ 3. Mr. Nabarroasked the Minister of Supply if he will make a statement upon the prospects of discontinuing steel rationing.
§ Mr. SandysThe steel allocation scheme will be brought to an end immediately it ceases to be necessary. But it is still too early to say when that will be.
§ Mr. NabarroWould my right hon. Friend bear in mind that in certain classes and grades of steel, notably mild steel and strip, there is already keen competition among steel manufacturers to sell this material, and that there is every indication that supply is equalling demand? Would he examine that aspect of the matter?
§ Mr. SandysYes, Sir. I am well aware that the steel position is easier, but I think my hon. Friend knows that there is still difficulty in obtaining sufficient quantities of certain types of steel, particularly plates for shipbuilding and boiler-making.
§ Mr. StokesWould the right hon. Gentleman, in view of his answer to the first Question, give an assurance that the steel rationing scheme will not come to an end until he is satisfied that there is more than enough steel available?
§ Mr. SandysIt is always unwise to bring a rationing scheme to an end until it is quite certain that there is more than enough.
§ Lieut.-Colonel LiptonTell that to the Minister of Food.
§ 4. Mr. Nabarroasked the Minister of Supply what quantities of steel have now arrived from the United States of America against the proposed supply of 1,000,000 tons during 1952; and whether the full estimated quantity will be made available to United Kingdom manufacturers and Government Departments and factories by 31st December, 1952.
§ Mr. SandysThe quantities specified in the Washington Agreement related to deliveries at works in America or elsewhere. By 31st October about 600,000 tons of steel, pig iron and scrap had arrived in the United Kingdom. A further 200,000 tons is expected to arrive by the end of the year.
§ Mr. NabarroIn view of the present rate of production of the steel industry, can my right hon. Friend say whether he has any intention, or whether negotiations have commenced, for further 567 supplies of American steel next year, or is our indigenous manufactured output sufficient for foreseeable needs?
§ Mr. SandysOur supplies from home production will certainly not be enough to meet all our needs. We shall have to import some steel from abroad, including some from America, next year.
§ 13. Mr. Edward Daviesasked the Minister of Supply how much steel will be imported during the current year; and what countries are the sources of supply.
§ Mr. SandysDuring 1952 we expect to import steel equivalent to 2 million ingot tons mainly from Western Europe, North America and Japan.