§ 29. Mr. Manuelasked the Minister of Power if he is aware that in 1961 and1962, when the home use of steel fell substantially, the position was aggravated by a simultaneous reduction in stocks, thus causing a fall in production greatly in excess of the fall in the use of steel; and if he will consult with the Iron and Steel Board with a view to making an arrangement to prevent a recurrence of such avoidable decline in the rate of production and employment in the industry.
§ The Parliamentary Secretary to the Ministry of Power (Mr. John Peyton)Yes, Sir. The Iron and Steel Board has considered the possibility of arrangements to moderate stock fluctuations, but it came to the conclusion, as mentioned in its Annual Report for 1961, that no solution could be found. The margin of steel-making capacity now available should check such tendencies in future.
§ Mr. ManuelIs not the hon. Gentleman aware that there was a fall in production during 1962 compared with 1960 of 3¼million tons? Is the hon. Gentleman further aware that during this period world production of steel rose by 36 million tons, and does he realise that while half a million tons were drawn from stock during 1961, 1million tons were drawn from stock during 1962? Will the hon. Gentleman ask his right hon. Friend to consult the Iron and Steel Board with a view to stopping a recurrence of this during circumstances similar to those we experienced during 1962?
§ Mr. PeytonMy right hon. Friend is aware of the facts, and these matters 636 are constantly discussed with the Iron and Steel Board. What I have said is that now there is surplus steel-making capacity available people tend not to have such heavy stocks, so one hopes that there will not be the fluctuations to which the hon. Gentleman referred.
§ 30. Mr. Lawsonasked the Minister of Power if he is aware that a further reduction in the home use of steel by 940,000 tons in 1962 was accompanied by a reduction in exports and an increase in imports, which together caused a further drop in home steel production of 1,600,000 tons; and what steps he is taking to stimulate increased activity in this industry.
§ Mr. PeytonMy right hon. Friend is aware of the changes in steel production, consumption and trade in 1961 and 1962. The level of activity in the steel industry depends mainly on the level of activity in the economy as a whole, and the House is aware of the far-reaching measures which the Government has taken to stimulate demand.
§ Mr. LawsonIs the hon. Gentleman aware that this great industry suffers perhaps more than any other British industry from the recurring interference of the Government's "stop-go" policy. Does not the hon. Gentleman consider that it is time he and his right hon. and hon. Friends got out of Government and left this industry with a clear "go-ahead" to do what it can do in the interests of Scotland and the nation?
§ Mr. PeytonI can only disagree with everything that the hon. Gentleman has said.