7. Mr. Leeasked the Minister of Power how the level of steel imports to the latest convenient date in 1960 compares with steel imports for a comparable period during 1959.
§ Mr. WoodSteel imports in January and February, 1960, amounted to 112,000 tons, against 33,419 tons in the corresponding period last year.
Mr. LeeDoes not the right hon. Gentleman agree that if this continues it will make a very great difference to our balance of payments problem? Is it the case that among the imports which he has mentioned there is a very large percentage of sheet steel? If so, why is it that the British steel industry has not managed to keep abreast of our suggestions for the expansion of the industry?
§ Mr. WoodThe imports of sheet and coil for re-rolling account for about 94,000 tons out of the total of 112,000 tons. If this shows anything, it is justification for the judgment of the Iron and Steel Board in the moves it took at the end of 1958, and also the arrangements which were made under the 1953 Act.
Mr. LeeIs it not remarkable that we should hear of an increase in the importation of sheet steel of that magnitude? Apparently the Government are now bent upon disrupting a great nationalised section of the steel industry which is about to embark upon a very big programme of sheet steel production.
§ Mr. WoodWhat the Government have done is to give loans, which have been extensively discussed in the House, and they are intended to meet precisely the shortage to which the hon. Gentleman is drawing our attention
8. Mr. Leeasked the Minister of Power what other types of steel products in addition to sheet are in short supply; and what action he is taking to increase home capacity.
§ Mr. WoodThe Iron and Steel Board has had a few reports from steel users about shortage of supplies of cold-rolled strip, wire rod and certain types of billets. The Board expects the output of these products to increase sufficiently during the year to match the expected increase in consumption, and it is watching the position carefully
Mr. LeeWe are grateful to hear that, but can the right hon. Gentleman say which firms will increase their output to take care of the problem?
§ Mr. WoodI could not say that without notice. I can say that the additional output in 1960 of the three products which I have mentioned is likely to vary between 15 and 23 per cent.
§ Mr. ChetwyndCan the right hon. Gentleman say how far the shortage is being artificially created through stock holders building up stocks for future use in order to obtain higher prices?
§ Mr. WoodI cannot answer that question. There may be some of that element in it, but it is difficult to be precise about it.