HC Deb 16 April 1953 vol 514 cc343-6
1. Mr. Nabarro

asked the President of the Board of Trade what consultations have taken place between representatives of the National Coal Board and his Department in regard to the granting of United Kingdom import licences for more than £500,000 of machinery and equipment which the National Coal Board have ordered in West Germany for the Kinneil new pit, West Lothian; and what is now the policy of his Department on the importation by nationalised undertakings of German-manufactured products.

The President of the Board of Trade (Mr. Peter Thorneycroft)

Mining machinery can be imported from Western Germany under open general licence; no separate import licences were, therefore, necessary in this case. No consultation on this matter between representatives of the National Coal Board and my Department were required, and none has taken place.

Our import licensing arrangements apply to private concerns and nationalised undertakings alike.

Mr. Nabarro

In consideration of the fact that the United Kingdom has a large accumulated deficit on European Payments Union account, including Western Germany, is it not rather startling that these large orders have been placed in Germany for mining equipment which could well have been made by British engineering firms if they had not been fully engaged on defence work?

Mr. Thorneycroft

Nearly all types of machinery were left on open general licence even when the restrictions were imposed in November, 1951, and March, 1952. It would be a very great reversal of policy now to withdraw it.

Mr. Edelman

Will the President make it quite clear that there is no fundamental objection in principle to trade with Germany, provided that it prospers the national interest?

Mr. Thorneycroft

In this matter, of course, there is no distinction between private or publicly-owned concerns. They are free to buy on open general licence where they will.

Mr. Shinwell

Has the right hon. Gentleman ascertained whether the Coal Board could purchase the machinery in this country, at what price, whether the price was reasonable, or if there were some physical difficulties in the way?

Mr. Thorneycroft

It would be quite inappropriate of me to make any such inquiry from the Coal Board or any private concern using their own commercial judgment.

Mr. Shinwell

While it is, perhaps, not the responsibility of the right hon. Gentleman to approach the Coal Board, would not his right hon. Friend the Minister of Fuel and Power be justified in so doing?

Mr. Thorneycroft

Perhaps the right hon. Gentleman will put down a Question.

9. Mr. Nabarro

asked the Chancellor of the Exchequer why the National Coal Board have been able to obtain his permission for purchase of West German marks during the next two years, for acquisition of more than £500,000 of machinery and equipment for sinking a new pit at Kinneil, West Lothian; and what consideration was given by the Treasury to the claims of three British engineering firms to manufacture the equipment before consent was granted to the National Coal Board for purchase of the foreign exchange.

The Economic Secretary to the Treasury (Mr. R. Maudling)

The machinery and equipment in question can be imported from Western Germany under open general licence so that the National Coal Board was not required to obtain permission for the foreign currency expenditure involved.

The second part of the Question does not therefore arise.

Mr. Nabarro

Is my hon. Friend aware that a number of British engineering firms tendered for this equipment, giving delivery dates comparable with those offered by the Germans and good prices? In view of our foreign exchange position and our balance of payments, why should these orders for heavy engineering equipment be placed by a nationalised undertaking with our principal overseas competitors? It is thoroughly reprehensible.

Mr. Maudling

The Treasury responsibility is for exchange control, and I think my hon. Friend will agree that where there is an open general licence it is reasonable that there should be an automatic allocation of foreign exchange. So far as the more particular questions are concerned, I would refer my hon. Friend to what has already been said this afternoon by my right hon. Friend the President of the Board of Trade.

Mr. T. Brown

Is not the hon. Gentleman aware that the time factor in this case is of paramount importance and that the sooner we can get the machinery we need with which to develop that coalfield, the sooner coal production will be increased?

Mr. Maudling

I am aware that that is a factor which may be of great importance. It is not, of course, for the Treasury, as in the matter of the exchange control, to interfere with the day to day working of the Coal Board.

Mr. G. R. Strauss

Is the hon. Gentleman aware that if he accepts the arguments of his hon. Friend the Member for Kidderminster (Mr. Nabarro), he will be supporting the action of the American authorities in turning down the electrical contract?

Mr. Maudling

I always try to accept the arguments of my hon. Friend when they are good ones. I think the argument of the right hon. Gentleman is a trifle abstruse.

Mr. Shepherd

Is it not a fact that the machinery ordered on this occasion was for a type of gear not previously used in this country of which the Germans had considerable experience? Is there not a good deal of justification for taking advantage of their experience?

Mr. Maudling

I think that that question would be more properly addressed to my right hon. Friend the Minister of Fuel and Power.

Mr. Nabarro

As I am thoroughly dissatisfied with the answer given by my hon. Friend, I beg to give notice that I shall raise the matter on the Adjournment as soon as possible.