§ 13. Mr. Bruce-Gardyneasked the Secretary of State for Trade and Industry what discussions he has had with steel users in Eastern Scotland regarding the extent to which they may pass on the increase in the prices of their raw materials during phase 2, and with the European Commission regarding the compatibility of this increase with the rules of the ECSC Treaty.
§ The Under-Secretary of State for Trade and Industry (Mr. Peter Emery)None, Sir, in either case. The first issue is a matter for the Price Commission to deter mine in accordance with its responsibilities under the Counter-Inflation Act 1973; the second is for the British Steel Corporation.
§ Mr. Bruce-GardyneI hope that my hon. Friend will forgive me if I say that I do not find that answer altogether satisfactory. Will he assure us that customers of the steel industry in Eastern Scotland who are facing cost increases running into double figure percentages will be allowed to pass on those cost increases to the full to their customers during phase 2 without being told by the Price Commission, in excess of the authority given it by this House, that they are acting illegally in so doing? Has he yet heard from the Commission in Brussels 784 whether the new pricing schedules are in conformity with the treaty?
§ Mr. EmeryIn selecting its basing points, the BSC has been concerned to reduce to a minimum the disturbance to its customers. As for east Scotland, Glasgow is the basing point of a wider variety of products than anywhere else in the kingdom. This is not expected to cause greater increases than 4 per cent. in the price of any products in east Scotland. Thus, when it comes to passing on prices, the position will be exactly the same under stage 2 for firms in east Scotland as anywhere else. The commission has been notified and we have had no comment.
§ Mr. DouglasDoes the Minister agree that there are still considerable misgivings in the steel-using industry about the stocking of steel in advance of the price increase, in order to take advantage of that increase? Will he have this situation thoroughly investigated?
§ Mr. EmeryIt has been drawn to my attention, not only in regard to Scotland, that there has been some concern. I am examining that question at the moment.