HC Deb 13 November 1972 vol 846 cc23-4
18. Mr. Bruce-Gardyne

asked the Secretary of State for Trade and Industry what proposals he has so far received from the British Steel Corporation regarding price increases to avert disruption of the European Community steel market after 1st January, 1973; and if he will make a statement.

56. Sir G. de Freitas

asked the Secretary of State for Trade and Industry whether he has now received proposals from the British Steel Corporation relating to steel prices after 1st January, 1973; and whether he will make a statement.

Mr. Peter Walker

It would not be appropriate to disclose the proposals which the corporation had under consideration prior to the standstill. We are in touch with the European Commission about this issue.

Mr. Bruce-Gardyne

I am grateful for that reply. As the British Steel Corporation's prices will presumably be well below those of its competitors in the Community after 1st January, are there any plans for the quantitative control of BSC exports to Europe as long as the freeze lasts? What estimate has my hon. Friend formed of the immediate price increase which will be required the day the freeze ends in order to eliminate unfair subsidisation of the BSC in competition with other steel firms? Will it be 15 or 20 per cent., or what?

Mr. Walker

There has been no such calculation on the second point. As for the first, this is a matter on which we are now in discussion with the Commission.

Mr. Kaufman

Will the Minister give the House the assurance that regardless of the diktat of the European Coal and Steel Community the British Steel Corporation will be expected to conform with price restraints imposed on other British nationalised industries and that the Government will recompense the corporation for any shortfall in its revenue because of the imposition of that policy?

Mr. Walker

There is no question of a diktat from the Commission on this subject. The Commission is as anxious about measures to be taken to stop inflation as any of the individual Governments concerned. What was the other part of the hon. Member's supplementary question?

Mr. Kaufman

The shortfall.

Mr. Walker

We are in discussion with the nationalised industries on this problem.

Mr. Benn

Can the right hon. Gentleman confirm that the provisions of the schedule to the Counter-Inflation (Temporary Provisions) Bill provide security for the British Steel Corporation so that it could not be proceeded against in the European courts under Section 2 of the European Communities Act?

Mr. Walker

Yes, I will make sure of that.

Mr. Biffen

While appreciating that my right hon. Friend is unable by question and answer at Question Time like this to reveal very much to the House, can he none the less assure us that when we are in Committee on the Counter-Inflation (Temporary Provisions) Bill the House may be fully informed of the nature of the discussions proceeding with both the corporation and with the European Commission on this point, because it touches the very point of the ability of Parliament to learn and to know and to legislate about measures which very much affect government in this country?

Mr. Walker

Yes, I will keep the House informed on the progress of these talks. Exactly when conclusions will be reached it is difficult to say, and, of course, the Committee stage of the Bill is this week.