HC Deb 06 February 1964 vol 688 cc1323-5
24. Mr. Hooson

asked the Secretary of State for Industry, Trade and Regional Development if he is aware of the international cartel in nitrogen known as Nitrex S.A. of Zurich; and what information he has as to how many manufacturers of nitrogen in the United Kingdom are members of this cartel.

Mr. du Cann

So far as I am aware no United Kingdom manufacturers of nitrogen are members of this group.

Mr. Hooson

Is not the Minister aware that it is virtually impossible for merchants in this country to buy nitrogen on the Continent below the wholesale prices of manufacturers in this country? Is he aware that a Hampshire merchant has been in touch with the Department pointing out that he wished to buy from Italy but the Italian firm was prevented from selling it through pressure brought by Nitrex S.A.? Is there not evidence that firms are working in this country, as it were, by means of a gentlemen's agreement with Nitrex S.A.?

Mr. du Cann

I am not clear that the facts are as the hon. and learned Member has stated, but in view of his remarks I shall certainly pay close attention to the matter.

25. Mr. Hooson

asked the Secretary of State for Industry, Trade and Regional Development if he is aware that a firm, the name of which has been sent to him, has entered into an agreement with Norwegian nitrogen manufacturers so that Norwegian nitrogen which now benefits from the European Free Trade Area tariff reductions will not compete with its products in British markets; and whether he will raise the matter with the European Free Trade Area Council in view of the fact that the agreement contravenes article 15 of the European Free Trade Area Convention.

Mr. du Cann

I am not aware that such an agreement exists. If the hon. Member has any evidence of it I shall be glad to consider it.

Mr. Hooson

Is not the Minister aware that the price of Norwegian nitrogen on the world market is £13 per ton c.i.f. European ports? It is impossible to buy that nitrogen in this country because they simply will not sell to this country. Is there not evidence which ought to be investigated that there is an agreement between nitrogen manufacturers in this country and Norwegian firms which are members of Nitrex S.A. to prevent the import of nitrogen to this country?

Mr. du Cann

The hon. and learned Member may like to know that E.F.T.A. members are about to start a review of the Convention and to consider whether amendments to it are needed.

Mr. Hooson

Would the hon. Gentleman agree that in view of the fact that the high price of fertiliser is an important item of farm costs, and it is important to reduce farm costs, this matter needs investigating immediately? Will he give an undertaking that in the anti-monopoly Bill to be introduced in this House there will be adequate clauses dealing with international cartels?

Mr. du Cann

The hon. and learned Member, with his great experience of the law, will know how very difficult, if not impossible, it is for United Kingdom legislation to control the activities of firms in other countries.

Mr. Jay

If a United Kingdom manufacturer has entered this agreement, would it not be a registrable agreement under the 1956 Act? Therefore, could not the Minister look into it?

Mr. du Cann

I have already said in answer to the first Question on this subject that I am not aware that such an agreement exists.