HC Deb 04 February 1969 vol 777 cc199-200
27. Mr. Edward M. Taylor

asked the Minister of Power what representations he has received from the shipbuilding industry regarding the price of steel; and what reply he has sent.

The Parliamentary Secretary to the Ministry of Power (Mr. Reginald Freeson)

My right hon. Friend has received a copy of the representations addressed to my right hon. Friend the Minister of Technology on behalf of the Shipbuilding and Shiprepairing Council, and has noted them.

Mr. Taylor

Is the hon. Gentleman aware that there is serious concern that the industry, with knife-edge prosperity created by recent legislation, might be threatened by this increase in steel prices, which comprise 20 per cent. of the costs of the yards? Is he further aware that this is particularly serious in the case of yards like Clydeside, where we can build sophisticated ships and where an increase, which was not an overall increase but a specialist increase, would have serious effects?

Mr. Freeson

As the hon. Gentleman knows, the proposed price increases have been referred to the National Board for Prices and Incomes, which is examining them, and the shipbuilders will be submitting evidence. I also understand that the Iron and Steel Consumers' Council will be looking at the proposals. It is open to the shipbuilders to submit evidence to the Council as well.

Mr. James Hamilton

Is my hon. Friend aware that there is grave concern in the steel construction industry about this increase, which will have a very serious effect on our exports which are urgently required to help the balance of payments?

Mr. Freeson

I am aware of the concern expressed on this proposal by the shipbuilders. It is for the N.B.P.I. to give very careful consideration to it. On the question of the relationship between the two industries, apart from these price increases, they have had discussions together on possible co-operation, and I hope that they will continue them.

Mr. Patrick Jenkin

Will the Minister draw to the attention of the N.B.P.I. the undoubted fact that the price schedules published by the British Steel Corporation show a substantially greater increase in those products like plate and heavy steel sections where there is no competition than for special steels and similar products where they are in competition with the private sector?

Mr. Freeson

I have no doubt that the shipbuilders will draw the attention of the N.B.P.I. to that kind of representation as well as to all other views which they have on this matter.