HC Deb 07 February 1968 vol 758 cc372-3
16. Mr. Marten

asked the President of the Board of Trade if he will make a statement on the Norwegian representations concerning the development of an aluminium smelter industry in Great Britain; and what reply he has sent.

106. Mr. William Hamilton

asked the President of the Board of Trade what is the nature of the representations which have been made by other members of the European Free Trade Association concerning plans for the construction of aluminium smelters in development areas; and what reply he will make.

Mr. Darling

When they met on 24th January, the Norwegian Minister of Commerce and Shipping told my right hon. Friend that he regarded the Government aid involved in the development of such an industry as contrary to the E.F.T.A. Convention. My right hon. Friend explained why Her Majesty's Government took the contrary view. The Norwegian Minister has since announced that his Government will raise this question in the E.F.T.A. Council.

Mr. Marten

As well as being contrary to the E.F.T.A. Convention, is not the proposed development also contrary to the spirit of E.F.T.A.? Would it not be cheaper for this country to import the aluminium from Norway, and will a decision not be taken until the E.F.T.A. Council has met and discussed the matter in May?

Mr. Darling

As to the first point, it certainly would not be to the advantage of this country not to proceed with the proposals for the smelters. The benefits which will accrue to us are very great indeed. On the second point, I do not think that the proposals that have so far been made are contrary even to the spirit of the E.F.T.A. Convention. Thirdly, it is now a question of timing, but I think it very unlikely that any decision will be taken before the E F.T.A. Council has met.

Mr. William Hamilton

Can my right hon. Friend confirm that the Coal Board is already supplying to the electricity boards coal at prices which are now being offered to the proposed aluminium smelter development, and that, in that sense, there cannot be any element of subsidy at all?

Mr. Darling

The objections of the Norwegians are not aimed so much at electricity costs as at the investment grants that would be involved in building the smelters in development areas, but w reject the argument that the investment grants will be contrary to the E F.T.A. Convention.