§ 26. Mr. Sorensenasked the President of the Board of Trade what further developments have taken place this year in this country in the commercial production of synthetic rubber; what quantity is now on the market; and what is the estimated production during 1957.
§ Mr. ErrollProduction of synthetic rubber on a commercial scale has not yet begun, but two special purpose synthetic rubber plants with a total capacity of 14,000 tons a year are expected to be in commercial production early next year and a third such plant in the summer of 1957. Production of general purpose synthetic rubber is expected in 1958.
§ Mr. SorensenIs the Minister aware that last year I was informed that the plant was about to be in operation? What has happened meanwhile? Has it been found that the plant is not suitable, or what is the position?
§ Mr. ErrollI understand that it is a very complicated plant to bring into operation. It is essentially a matter for the operators themselves to bring it in.
§ Mr. Gordon WalkerWill the Minister tell us how the price of this synthetic rubber compares with that of the raw rubber which we get from Commonwealth countries?
§ Mr. ErrollNo. I could not without notice.
§ 28. Mr. Awberyasked the President of the Board of Trade what effect the imports and manufactures in Great Britain of synthetic rubber are having upon our trade in natural rubber with Malaya.
§ Mr. ErrollImports of natural rubber are not affected by synthetic rubber production in this country, which has not yet begun on a commercial scale. It is not expected that Malayan exports of natural rubber will be adversely affected by consumption of synthetic in this country because world demand for natural rubber is sufficient to absorb total supplies. Retained imports of natural rubber into the United Kingdom rose steadily in the years 1953 to 1955 in spite of a sharp rise in imports of synthetic rubber. Retained imports of natural 217 rubber have fallen this year mainly as a result of the recession in the car industry.
§ Mr. AwberySince there is likely in the near future to be an increase in the production of synthetic rubber which will have an effect on our imports and will naturally affect the economic position in Malaya, will the Minister give an undertaking that when the increase in production arises, the damage to Malaya will fall gradually instead of in one dose?
§ Mr. ErrollIt does not follow that the production of synthetic rubber will damage the exports from Malaya. Indeed, synthetic rubber has been imported into this country without causing any damage so far.