Cement

HC Deb 05 July 1965 vol 715 cc1096-100

10. Mrs. Renée Short

asked the Minister of Public Building and Works what further plans he has to remedy the periodic shortages of cement in view of the inadequate rise in cement production during the last 10 years.

Mr. C. Pannell

I refer the hon. Lady to my speech on 1st July in the Supply Day debate, which I hope she has read. I read her speech with interest and sympathy.

Mrs. Short

May I assure my right hon. Friend that I have not only read it but I heard it? Is my right hon. Friend aware that up to 1963 the output of the cement monopoly had increased by only 1½ per cent. per annum and that the building programme in the Midlands and many other parts of the country has been affected by this? Is he also aware that the stocks of cement clinker, which is necessary for the production of cement, have been used up and that the production of this is growing only at a very small rate? Will he see that the cement manufacturers use granulated blast furnace slag in order to produce the quantity of cement necessary to deal with our house-building and other building programmes?

Mr. Pannell

The demand has risen rapidly since March as many jobs, particularly in civil engineering, are ahead of schedule. This has caused a gap between supply and demand, even though deliveries are also up.

I remind my hon. Friend that the production of ground cement rose from 11,960,000 tons in 1954 to 16,698,000 tons, in 1964, an increase of about 40 per cent. If I attempted to reply now to the other technical matters to which she referred I should get out of my depth technically, but I am prepared to receive Questions on the subject.

Mr. Monro

Does the Minister realise that because of the very serious shortage of cement in Scotland the road programme and house building are being seriously held up, and will he tell us what he proposes to do in the immediate future?

Mr. Pannell

The question is, "Will I tell the hon. Member what I propose to do?" This is not a nationalised industry. This is a private industry. I can only tell the hon. Member that I have been in constant touch—almost daily touch—with the cement industry, which is doing its best in the matter, and all instances brought to our notice by Members of Parliament are forwarded on to the industry. I would merely refer the hon. Member to the latter part of my Answer, which indicated a tremendous increase in production over a period due to the continual rise in the building and construction industries' programme.

12. Mr. Heffer

asked the Minister of Public Building and Works what steps are being taken to improve the supply of cement in the Merseyside area.

23. Mr. Mapp

asked the Minister of Public Building and Works if he is aware that a major housing project in Oldham is unable to be assured of necessary cement supplies after mid-July; what action he will take; and if he will make a statement.

25. Mr. Cordle

asked the Minister of Public Building and Works what action he will take to remedy the present shortage of cement in Hampshire.

26. Mr. William Hamilton

asked the Minister of Public Building and Works if he is aware of the continuing shortage in the supply of cement, and that this is having a detrimental effect in the building of schools, houses, etc., as well as involving local authorities in financial losses arising from delays in the completion of contracts; and what steps are being taken to solve the problem.

30. Mr. Ioan L. Evans

asked the Minister of Public Building and Works whether he is aware of the shortage of cement in Birmingham; and what measures he is taking to maintain supplies.

Mr. Boyden

There is at present a marginal shortage of cement which is affecting many parts of the country. My right hon. Friend and I have met the cement makers and they have assured us that, until the record increase in capacity which they have in hand is ready, they will continue to import in order to reduce the gap.

Mr. Mapp

Will my hon. Friend bear in mind that in my own town the supply of cement for a major industrial scheme has been cut from 25 tons down to 15 tons? Is he not aware that in the interim, temporary difficult period he must offer some guidance in such cases as to the priorities in the dispersal of the stocks?

Mr. Boyden

Yes. I sympathise with my hon. Friend. My right hon. Friend has written to him about the Shotover estate, to which, presumably he refers. It appears that sufficient supplies are available for working at a reduced rate. The cement manufacturing people have agreed with my right hon. Friend that they will give priority to the housing programme and will also intervene if there is any shortage which is causing serious under-employment.

Mr. David Steel

Can the hon. Gentleman say how he will encourage manufacturers to give priority to housing if the Government are not prepared to take steps to reduce their own building commitments at the present time?

Mr. Boyden

I do not know whether the hon. Gentleman wants a system of rationing and quotas and that sort of thing, but that is what his remarks appear to indicate.

Mr. Hamilton

Can my hon. Friend say on what grounds he replied to the letter which I sent to him from Fife County Council complaining about the shortage of cement—the reply in which he said that the facts put forward by the county council were exaggerated and inaccurate? Can he give an assurance that while the shortage persists manufacturers will not be allowed to exploit the shortage by putting up prices?

Mr. Boyden

I think, perhaps, my right hon. Friend used rather different words—that it was not as bad as feared. As for overcharging, I would be most grateful to my hon. Friend and to any other hon. Member if they would let us know of cases like this, which, of course, are quite scandalous in the existing circumstances.

Sir J. Langford-Holt

Could the hon. Gentleman say, apart from the 10 per cent. import charge, whether there is any restriction at all on imports at present?

Mr. Boyden

No, Sir.

Mr. Ioan L. Evans

Would my hon. Friend, realising the mix-up in the industry, make some concrete proposals to assist local authorities such as the City of Birmingham? The authorities there have a great housing drive which is being held up because of the failure of the industry to meet the demand.

Mr. Boyden

We have given special consideration to Birmingham. If there are special steps which can be taken by us we see that they are passed on, but we think that at present manufacturers are doing their best.

13. Mr. Heffer

asked the Minister of Public Building and Works what steps are being taken to improve the supply of cement; and to what extent cement is being imported from Poland.

Mr. Boyden

The manufacturers are increasing their capacity considerably, and they are also importing cement. Imports from Poland in the first five months of the year amounted to nearly 11,000 tons.

Mr. Heffer

I wonder whether my hon. Friend would indicate whether these imports from Poland are growing? Secondly, is he aware that on Merseyside there have been a number of building operatives who have become redundant as the result of the cement shortage? Would he also take into consideration that our process of industrialisation in the building industry will be seriously curtailed, particularly where cement is the primary product used in industrialisation, unless something is done seriously to increase cement?

Mr. Boyden

Imports from Poland are difficult to compare as a percentage as a big increase this year because there were no imports in the previous year. As to unemployment, I would have thought that anyone engaged in the building industry would have been able to get another job quickly, and I would hope that this would be so. As for holding up industrialisation, there is this risk, but so far we have not seen very much sign of it.

Mr. Boyd-Carpenter

In view of the fact that the hon. Gentleman now speaks encouragingly of imports of cement, is it not utterly illogical to maintain on cement the surcharge whose proclaimed object is to keep it out?

Mr. Boyden

Well, the whole position is quite absurd, of course—that this country is importing cement, as it has been importing cement for a long time, to deal with the industry's difficulties which started under the previous Government, and if the right hon. Gentleman really expects us to do miracles in this time—

Mr. Kershaw

Not really.

Mr. Boyden

—we do not believe that the attitude of hon. and right hon. Members opposite have to the coal industry, for example, is wholly consistent with this.