§ 25. Mr. Palmerasked the Paymaster-General what steps will be taken to ensure that sufficient supplies of steel will be available to make possible the carrying through of the expanded nuclear power programme in relation to other national needs.
§ Mr. MaudlingThe prospective availability of steel supplies was taken fully into account in framing the programme, and my noble Friend intends to keep the position under constant review in consultation with the Iron and Steel Board and the Electricity Authorities.
§ Mr. PalmerWould not the right hon. Gentleman say that the capital expansion of the steel industry has been very disappointing since denationalisation?
§ Mr. MaudlingNo, I should say exactly the opposite.
§ Mr. ChetwyndIs it not a fact that the capacity of the steel industry at the moment as applied for the use of steel for atomic power plants is very inadequate? What steps are being taken to put that right, as a great deal depends upon it?
§ Mr. MaudlingI think it would be fair to say that there is a severe shortage of steel plate, which is a world-wide shortage affecting all countries equally.
§ 26. Mr. G. Darlingasked the Paymaster-General if he will estimate the demands for steel for the atomic power programme, railways modernisation, shipbuilding, including new oil tankers, oil storage plants, coal-mining developments, road building, electricity expansion, other public schemes, and the needs of steel-using manufacturing industries over the next 10 years; and what is being done to increase steel production to meet all these demands.
§ Mr. MaudlingI would ask the hon. Member to await the presentation of the report of the Iron and Steel Board to which I referred in answer to the Question by the hon. Member for Loughborough (Mr. Cronin) on 4th March.
§ Mr. DarlingIs the right hon. Gentleman aware that most of the people engaged in these expansion programmes are now complaining very much indeed about the shortage of steel and it looks as though some of the projects, particularly in railway modernisation, may have to be slowed down to a great extent? Will he also bear in mind that now that the steel industry is operating only on a profit motive there may be some expansion of the industry necessary for this work which may not be taken in hand because it is not immediately profitable? What is he going to do about that?
§ Mr. MaudlingI think the steel shortage is not so much general as particular, being centred on plates and heavy sections. As I said earlier, the sudden expansion of a demand for heavy plate in particular has come as a surprise to the steel industries of the world. It is very easy in these matters by calling on hindsight to say what is right, but it is not so easy in advance.
§ Mr. WarbeyIn view of this admitted and potential shortage of heavy plate, will the right hon. Gentleman see not only that the steel industry does its job in this country but that, if necessary, allocations will be made so that the atomic power programme gets what is necessary in preference, for example, to any reckless programme of building super-tankers?
§ Mr. MaudlingI think the steel industry has been doing a magnificent job. If anyone thinks there should be more steel plate at the moment, they should 786 have said so four or five years ago when it was necessary to install the plant. As for allocations, I think all experience shows that any system of physical controls is more likely to create shortages than to solve them.
§ Mr. DarlingIn view of the urgency of this problem and the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter again.