§ 2. Mr. Benceasked the Minister of Power if he will give a direction in the national interest to the Iron and Steel Board under Section 10(1) of the Iron and Steel Act, 1953, authorising the Board to reduce the maximum price of steel to be charged by producers to the shipbuilding industry.
§ Mr. BenceIs the hon. Gentleman aware that British shipbuilders are paying to the British steel industry higher prices than Continental shipbuilders are paying for Continental steel, which makes the British shipbuilders' competitive position much inferior to that of the continental shipbuilding industries? Really, could he not, as he has power to do, reduce the maximum price which steel manufacturers charge for steel? Could he tell me whether individual steel companies in this country are at liberty to reduce the prices of steel or give discounts to particular customers for heavy bulk purchases, or are they bound by the price fixed by the Steel Board?
§ Mr. PeytonThe price fixed by the Steel Board is the maximum price. The Board did reduce the maximum price to shipbuilders by about £1 a ton in December last year. It has recently carried out one of its normal reviews of steel prices and has concluded that no further reduction is necessary. I see no reason to disagree.
§ Mr. BenceBut surely, a £1 a ton reduction in December, 1963, while Continental steel prices are far lower than ours! Really, could not the hon. Gentleman take some action to break this monopoly ring in the steel industry and force it to be more competitive with Continental manufacturers, in order to give that help which our shipbuilding industry needs?
§ Mr. PeytonI would reject any suggestion that British steel prices are not competitive. Of course, prices change from time to time in relation to Continental prices.