HC Deb 25 March 1974 vol 871 cc13-4
11. Mr. Lambie

asked the Secretary of State for Industry if he will take steps to ban the export of PVC.

Mr. Meacher

I see no straightforward justification for this.

Mr. Lambie

In view of that answer, will the Government look again at the growing practice of exporting substantial quantities of PVC while the plastics industry finds itself having to import these quantities back from the Continent at greatly increased prices? Will my hon. Friend look again at this policy? While the Government maintain control of the export of steel and yet discriminate against the plastics industry, will he look again at the position of the exports of PVC?

Mr. Meacher

In answer to the second part of my hon. Friend's question, I do not think that the parellel with steel is a correct one. In the case of steel, as a result of the three-day working week the country was facing no less than national breakdown. In the case of PVC, however, I do not think that it is the lack of export restrictions which is causing the difficulties but rather the simultaneous world-wide and domestic increase in demand for plastics, and particularly PVC, and also a number of serious plant failures particularly at the BP chemicals plant at Baglan Bay and the ethylene cracker there. I do not expect that demand will increase in 1974 at the same rate as in 1973, and I hone that the problems at these plants will be resolved in the near future.

Mr. Bruce-Gardyne

If the hon. Gentleman is concerned about the export of PVC and other commodities required for the home market, why does he not study the effect of profit margin controls, which apply exclusively in the home market and not to exports at a time when exporting is highly profitable? If he tackled that, he might begin to make progress.

Mr. Meacher

If one were to take the hon. Gentleman's advice for action on exports I think that there would be considerable difficulties, first concerning retaliation and, secondly, because we might need a derogation from the EEC, which is one of the problems we inherited.