Steel

HC Deb 26 January 1970 vol 794 cc989-92

16. Sir G. Nabarro

asked the Minister of Technology having regard to lengthy deliveries of many classes and specifications of steels and rolled and re-rolled steel products affecting adversely manufacturing industries, what steps he is now taking to expedite steel deliveries generally in the interests of improving export performance in 1970; and whether he will make a statement concerning the [^* Note: See Official Report, 27th January, 1970 Col. 1205.] age into technical difficulties is one of the least attractive methods of the party opposite in all these matters.

The following is the information:

effect of increased steel imports on the United Kingdom balance of payments.

Mr. Harold Lever

I keep in close touch with the industry which is making strenuous efforts to meet demands. Last year, despite the strikes, output was 6 per cent. up and delivery times should improve as new plant becomes fully operational.

The balance of payments cost of extra imports was £16.5 million in the first eleven months of 1969, but the value of exports was still more than twice that of imports. These imports helped to make possible the high level of exports of steel-based manufactured goods.

Sir G. Nabarro

Since strikes last year cost the consumer 750,000 tons of steel, why has nationalisation of steel been characterised, first, by ever-lengthening deliveries, second, by ever-increasing prices, and, third, by ever-increasing imports to meet the requirements of consumers which the industry here cannot fulfil?

Mr. Lever

The hon. Gentleman's talk of ever-increasing deliveries and prices is merely a description of the international steel scene, where there has been a sudden uprush in demand in all countries. All countries face very similar problems to our own. Far from prices having been higher in this country than in others, they have been a great deal lower and will still remain below the prices in Europe.

18. Mr. Lane

asked the Minister of Technology what representations he has received about shortages of supplies of light steel products to the building and construction industry; and what action he has taken.

Mr. Harold Lever

Some firms are experiencing difficulties in obtaining supplies of reinforcement material, but I am satisfied that the steel industry is doing all it can to meet the sudden upsurge in home demand resulting from scarce and expensive foreign supplies. I shall continue to keep a close watch on the situation.

Mr. Lane

While thanking him for that Answer, may I ask the Minister to keep in mind the fact that a number of building firms in East Anglia are experiencing delivery delays of four months or more? Will he give an assurance that when the tempo of building and construction picks up again, after the winter, there will not be a further deterioration in the situation?

Mr. Lever

I hope that the hon. Member is not implying any shortfall in the performance of the Steel Corporation in respect of these articles. The production of these rods is currently 50 per cent. higher than it was last year. It is proceeding at maximum pace. The House should understand that the reason for the difficulty is that a great part of this trade was supplied from abroad when foreign prices were cheaper than those of the Corporation, but the sharp rise in foreign prices led people who normally contracted from abroad for a large part of their supplies to come rather unexpectedly and suddenly on to local production.

Mr. Scott-Hopkins

Notwithstanding the answer which the right hon. Gentleman gave about a rise in production, which I querry, is he aware that most of the steel stockholding companies are at least 50 per cent. down on what they normally hold of this type of material and that this is through lack of supplies from the steel makers? Can he explain that?

Mr. Lever

The hon. Member means lack of supply from their traditional steel makers from abroad, which was normally 32 per cent. higher than is the case this year. It is no good the hon. Member shaking his head. The stockholders' supplies are, of course, down. There has been a huge rush by contractors to buy the cheap rods which are available from the Steel Corporation, instead of depending on overseas supplies. Despite a 50 per cent. increase in production, stocks are down and deliveries are difficult.