HC Deb 07 February 1956 vol 548 cc1495-6
37. Mr. J. Hynd

asked the Chancellor of the Exchequer whether he is aware that the impact of the Government's credit restrictions on the motor car industry is now affecting the steel industry in Sheffield, where the resulting slowing down of orders for parts has given rise to disquiet; and what action he proposes to take.

Mr. H. Macmillan

I am not aware that the state of the steel industry's order books, whether in Sheffield or elsewhere, gives cause for disquiet of this kind.

Mr. Hynd

Has not the Chancellor had his attention drawn to the very important and disquieting statement by the Chairman of the Sheffield Chamber of Commerce about the slowing down of orders, which already affects Sheffield, for which the motor car industry is the biggest customer? Is he aware that if it is his policy to try to reduce pressure for increased wages by creating a buffer of unemployment he will create more trouble than it is worth?

Mr. Macmillan

I do not, of course, accept the second part of the hon. Member's supplementary question, which is really a statement. It was recently brought to my notice by a meeting of both sides of the industry that the chief anxiety which we have about steel today does not lie in demand but whether supply will be adequate to meet the demand.