HC Deb 20 June 1955 vol 542 cc1023-5
37. Mr. Chetwynd

asked the Minister of Supply whether he will direct the Iron and Steel Board to make an inquiry into the practice of steel firms quoting identical prices for structural steel contracts.

The Parliamentary Secretary to the Ministry of Supply (Mr. F. J. Erroll)

No, Sir. I think the hon. Member's point was covered by the statement made on 16th June by my right hon. Friend the President of the Board of Trade, when he said that he expected very shortly to make a reference to the Monopolies Commission on the supply of steel frames for buildings.

Mr. Chetwynd

Why should we have to wait perhaps two or three years before we get that report and then another year for the Government to consider it when, under nationalisation, the Minister could give directions such as these at any time? Does not this prove the case which we made when steel was being denationalised—that this board is a complete sham and is made to do nothing at all?

Mr. Erroll

No, Sir. The Minister could not give directions because the production of structural steel products is outside the purview of the Iron and Steel Board, and it is appropriate for the Monopolies Commission to examine the reference which is about to be made to it.

Mr. G. R. Strauss

Is the Minister aware that at least four or five of the leading firms which make structural steel, and certainly four of the firms quoting prices for the L.C.C. recently, had been publicly owned before denationalisation, and that under nationalisation the Minister would have had a perfect right to give to these companies such instructions as he wanted, instructing them not to carry out such anti-social activities and not to exploit the public? Is not my hon. Friend perfectly right, therefore, in saying that it is denationalisation which has prevented the Government from interfering with these practices?

Mr. Erroll

The right hon. Gentleman had an opportunity of investigating those matters for himself when he was Minister.

Mr. Stokes

Would it not have been possible to suggest to the Minister of Housing and Local Government that where public tenders turn out to be identical, as they so frequently do, he could advise local authorities to insist on a costs certificate on profit and to deduct anything about a certain profit from the tender price? That would be an easy way out of the difficulty.

Mr. Erroll

I think that that hobby-horse of the right hon. Gentleman will be examined by the Monopolies Commission.

Mr. Stokes

I hope it will.