HC Deb 07 November 1967 vol 753 cc810-2
9. Mr. Blenkinsop

asked the Minister of Power what directions he proposes to give to the Iron and Steel Board on the price of steel for shipbuilding and ship repair.

23. Mr. Wingfield Digby

asked the Minister of Power whether he is aware that it is cheaper for British shipbuilders to buy British steel in Sweden and brine, it back rather than in this country; and whether he will direct the nationalised steel industry to restore cut steel prices to British shipbuilders, as recommended in the Geddes Report.

Mr. Marsh

My inquiries do not support the suggestion that British shipbuilding steel is available in Sweden or to foreign shipbuilders generally at lower prices than to British shipbuilders. The Corporation is currently discussing the whole question of steel prices with the shipbuilding industry.

Mr. Blenkinsop

Does my right hon. Friend not agree that there is need to clarify the situation? There seem to have been some contradictory statements in the recent past. Does he not also agree that it would be good commercial practice to see that when we have a big industry such as this which makes big calls for steel products special rates should be available to them?

Mr. Marsh

The steel industry obviously is very well aware of the need of ensuring a growing market from the shipbuilding industry and discussions are taking place with the shipbuilding industry.

Mr. Digby

Even if these reports about Swedish prices are inaccurate, is it not a fact that the prices to our shipyards are very high and represent 20 per cent. of costs and are resulting, and will result more and more, in increased shipbuilding prices and perhaps losing valuable tenders for this country?

Mr. Marsh

I think that all the evidence, with respect to the hon. Member, points to the contrary. Our shipyards are getting very good orders indeed and are doing this because their tenders are competitive.

Mr. McMaster

Is the right hon. Gentleman not aware that British shipyards could buy steel abroad if they were allowed for much less than they are now being quoted by the British steel industry and, in view of the unemployment facing our shipyards, could he not do something about it?

Mr. Marsh

I am not quite sure what the hon. Member is suggesting. I have already said that the steel industry is in discussion with the shipbuilding industry to see how best it can help it. Such statements as these being made by hon. Members are not particularly helpful, and are just not borne out by the facts.

Mr. Willey

As the Geddes recommendations were a package deal and as steel prices were an essential requirement of that package deal, will my right hon. Friend ensure that we get an early clarification of this, because there is a good deal of apprehension in the shipbuilding industry?

Mr. Marsh

The shipbuilding industry is already engaged in talks with the Steel Corporation, and the Steel Corporation is already suggesting to the shipbuilding industry ways in which it can co-operate with it. Although we talk about 20 per cent. of shipbuilding costs being for steel, one should not lose sight of the fact that there might be odd margins on either side.

Mr. Edward M. Taylor

Is it not a fact that the Government accepted the Geddes Report and that it calls for special rates for the shipbuilding industry in negotiation with this nationalised steel board? Is the nationalised steel board going to sell the shipyards down the river?

Hon Members

Oh.

Mr. Marsh

I do not think that even the hon. Gentleman would suggest that British shipyards have got into their present state under this Government. That is something which goes back further, and the record of the party opposite is one which one does not really want to brag about. Under public ownership the steel industry is now negotiating in talks with the shipbuilding industry to see how the industries can help each other. The sad thing is that this did not happen long ago.

Mr. McMaster

In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment.