HC Deb 22 July 1969 vol 787 cc1479-80
32. Mr. Dempsey

asked the Minister of Power what estimate he has made of the effect on exports and employment of the decision by the British Steel Corporation to increase the price of steel bars by 24 per cent.; and if he will make a statement.

Mr. Mason

The product my hon. Friend has in mind is a very specialised type of bar with a limited sale. I have no reason to believe that the increase in its price will have any general economic effect.

Mr. Dempsey

Is my right hon. Friend aware that recently the Scottish Region of British Railways gave a contract to an Italian concern to build a steamer and that one of the reasons for it was that Italian steel is 10 per cent. cheaper than ours? If steel bars are increased by this amount, will it not seriously affect the competitiveness of British steel?

Mr. Mason

I am not aware of the comparison which my hon. Friend makes.

This is a special product. It has a very limited sale. It is technically difficult to make. There are 2,500 tons made a year. I know that the firm concerned is in my hon. Friend's constituency. I have asked the British Steel Corporation to contact my hon. Friend.

Sir G. Nabarro

Is not this a general problem? Does the right hon. Gentleman recall that when I tackled him about steel prices a couple of months ago he said that the average increase was about 9 per cent., whereas in this instance it is 24 per cent., which represents an invitation to continental producers to flood our market with foreign steel to the detriment of British steel?

Mr. Mason

The hon. Gentleman is responsible for ridiculous exaggerations. This is a very special type of product of which only 2,500 tons are made out of a total production in Britain of about 26 or 27 million tons.