HC Deb 16 June 1955 vol 542 cc747-8
32 and 33. Mr. G. R. Strauss

asked the Chancellor of the Exchequer (1) what steps he has taken to ensure that companies whose shares are held by the lion and Steel Holding and Realisation Agency do not participate in price-fixing rings in tendering for structural steel erections or similar activities;

(2) how many of the companies recently quoting the same price for delivery and erection of structural steel to the London County Council are under the control of the Iron and Steel Holding Realisation Agency.

Mr. H. Brooke

It is the normal practice for matters of a commercial character to be left to the discretion of the companies themselves, so that companies whose shares are held by the Agency are, as far as possible, on the same footing as privately-owned companies. I am informed that one such company put in a quotation to the London County Council on the occasion in question.

Mr. Strauss

Is the Minister aware that under the nationalisation provisions which we brought in any Government could give directions to the steel industry on any matter of public and national interest? Does he not agree that this recent practice, as shown by these tenders, is an exploitation of the public? Is not the fact that these firms are putting in identical tenders one of the inevitable and consequential evils resulting from the denationalisation of the steel industry?

Mr. Brooke

The relationship between the Government and the steel industry has been deliberately altered by this House during the term of the last Parliament. I am not aware of any practice of this kind in the industry which did not exist in the time when the steel industry was nationalised.

Mr. Strauss

Is the right hon. Gentleman aware that if such practice had come to light—and it was never reported and I do not know that it existed—it could have been immediately stopped by Parliament through the Minister of Supply ordering the industry not to do anything so contrary to the public interest?

Mr. Brooke

I think that what the right hon. Gentleman is now saying is that he was not knowledgeable enough to carry out his duties.

Mr. Stokes

While not disagreeing with what my right hon. Friend implied in his question, may I ask the right hon. Gentleman whether the public interest would be more properly safeguarded if in these cases when identical tenders are put in, for reasons which I perfectly understand, the successful tenderer was bound ultimately to submit a certificate of costs showing the amount of profit which he had made and, if there were more than a certain amount, it should be deducted from the contract price?

Mr. Brooke

The President of the Board of Trade told the House a few minutes ago that he proposed to refer some of these matters to the Monopolies Commission. The best thing is for the Monopolies Commission to investigate the whole subject.