HC Deb 22 November 1954 vol 533 cc757-9
17. Mr. Nabarro

asked the Minister of Supply what restrictions, allocations or rationing arrangements are still maintained by his Department on steel, steel products and tinplate; what these arrangements cost per annum; and whether he will end them at an early date.

Mr. Selwyn Lloyd

Tinplate is the only iron and steel product the distribution of which is still under statutory control by my Department. The cost of the control is less than £6,000 a year. It will be removed as soon as the supply position justifies it.

Mr. Nabarro

In view of the continuing high level of demand from all over the world for tinplate, will my right hon. and learned Friend have special regard to the position of the old hand-mills in South Wales, many of which are destined to be scrapped shortly, and in view of that high level of demand, will he not keep these in operation so far as possible within the course of the next two or three years?

Mr. Lloyd

The answer is "Yes." We shall have to rely on the production of the hand-mills for at least a year or two to meet current needs.

20. Mr. Nabarro

asked the Minister of Supply whether he is aware of the lengthening deliveries to industry of steel and rolled and re-rolled steel products, in view of substantially Increased and increasing industrial output; whether he will state the estimated output of the British steel industry for each of the years 1954 and 1955; and whether he has formed an estimate as to whether total steel production in those years will match the needs of continuously expanding industrial output, without appreciable lengthening further of steel delivery times or increased imports.

Mr. Selwyn Lloyd

I am aware that difficulties have been experienced recently in meeting fully the demands for certain types of finished steel. The matter is receiving the constant attention of the Iron and Steel Board. The production of steel by the British steel industry in 1953 was equivalent to 17.61 million ingot tons. The board informs me that production in 1954 is expected to be approximately 18½ million ingot tons and, in 1955, 19¼ million ingot tons, or possibly more. On present indications, it seems likely that certain types of finished steel will have to be imported in 1955, but the quantities should only be marginal.

Mr. Nabarro

Will my right hon. and learned Friend have special regard to the very substantial expansion plans recently announced by many major engineering companies in this country, notably branches of the motor industry, all of which will cause a very large increase in demand for certain steel products, notably sheet steel, and can he assure the House that in the passage of the next two or three years the expansion of sheet steel production facilities will approximately be commensurate with the increased demands from expanding enginering works, notably in the motor industry?

Mr. Lloyd

We are having regard to the expanding demands. The total production of sheet steel in 1954 will be about 2 million tons, which is 11 per cent. higher than in 1953. We hope that production will continue to increase.

Mr. Callaghan

Is the Minister aware that firms using rolled steel sections are having to import Belgian steel on which there is a duty of 25 per cent., and will he consider relieving steel imports of this duty temporarily, as I understand was done in 1951–52?

Mr. Lloyd

I think that it is the case that the import duty on steel sheet is at present suspended. I will certainly examine the hon. Member's request.

Viscount Hinchingbrooke

Does not this steadily rising level of production in this industry show with what contempt managers and workers alike treat the threat of re-nationalisation?

Mr. Bottomley

Will the Minister not agree that it was the policy of my right hon. Friend which enabled the 18 million tons production to be reached?

Mr. Lloyd

I think that it is better on the whole that we should regard this expanding production as not related to party politics.