§ 22. Sir G. Nabarroasked the Minister of Power whether he will now make a statement on revised steel prices and their estimated effects on steel imports which continue to rise.
§ 29. Mr. Biffenasked the Minister of Power if he will make a statement on the recent recommendations by the National Board for Prices and Incomes on steel price increases.
§ Mr. MasonOn the general issue I have nothing to add to the statement I made in the House last Thursday. As regards imports, the Corporation expects the price increases to have little effect, since comparable or greater increases have already occurred abroad.—[Vol. 784, c. 1679]
§ Sir G. NabarroWhy is the Minister conspiring—[HON. MEMBERS: "Oh."]—"conspiring", I said—with the British Steel Corporation to frustrate the policy of his own Government in the matter of import substitution? Is he not aware that iron and steel imports account for hundreds of millions of £s annually, much of which could be substituted by home-produced steel if his own policy in pricing were realistic and strictly applicable to our current position?
§ Mr. MasonIt is not possible to find import substitution for the variety of steel products that enter this country, but the hon. Gentleman should know that a good percentage of what is imported is re-rolled and re-exported.
§ Mr. BiffenIs the Minister aware that there will be widespread support for his disregarding the recommendations of 241 the National Board for Prices and Incomes on the actual implementation of the scaling down of the proposed increase but that this raises the much more important question as to whether that detailed application was the recommendation of Booz-Allen, the consultants employed by the Board, or was a recommendation superimposed by the Board's permanent staff on the consultants' findings?
§ Mr. MasonI do not see any reason why we should drag through this House the report by Booz-Allen, the consultants who looked into this question. I do not think that it would be right and proper.
§ Mr. John MendelsonDoes not my right hon. Friend agree that action is needed with regard to imports of steel? Why are the Government and the Corporation not proceeding with a policy of stocking steel at times of less demand in accordance with the recommendation of the Standing Committee which considered the nationalisation Bill, on which the Minister promised to act?
§ Mr. MasonThis is under consideration. On stocking, my hon. Friend must know that in my statement last week on the pricing of small extras we agreed that we would encourage the Corporation to make longer runs and therefore increase its efficiency in that respect and that in regard to short orders we would encourage stockholders and stockists to take more. That is a useful first step.
§ Mr. HooleyDoes not the solution to the import problem rest in having adequate home capacity? Can my right hon. Friend give an assurance that the reduction in the requested increase following the acceptance of the National Board's recommendation will not in any way adversely affect the forward investment programme of the Corporation?
§ Mr. MasonThis is what we must try to avoid. My hon. Friend is right on the question of home capacity. One of the problems is that the Corporation must quickly iron out many of the bottlenecks in production and thereby be able to cut back on imports.
§ Sir K. JosephAs the Minister seems implicitly to accept that there was a conflict between the advice of the con- 242 sultants Booz-Allen and the recommendation of the Prices and Incomes Board, will he lay the report of Booz-Allen before the House?
§ Mr. MasonI have not got the report. I am only aware of it. I have not seen the Booz-Allen report, but I am generally aware of what it contains. It is not within my province to lay that report before the House.