§ 16 . Mr. Bruce-Gardyneasked the Secretary of State for Prices and Consumer Protection whether she has yet concluded her investigation of the effect on user industries of the diversion of supplies of polypropylene and polystyrene from the United Kingdom to export markets through the activities of the Price Commission.
§ Mr. MaclennanAs I said on 30th April, we will take into account in our review of the Price Code the diversion of supplies from the home market if this is shown to be caused by the code. Evidence sent to my Department so far does not suggest any general diversion of plastic materials away from the United Kingdom as a result of the price disparities between the United Kingdom and overseas markets. I am nevertheless continuing to keep a close watch on the position.
§ Mr. Bruce-GardyneMay I suggest that the hon. Gentleman gets out of his Department and finds out what is going on in the real world outside? Is he aware that Shell Chemicals is only one of hundreds of firms which are obliged to export raw materials and semi-manufactures to obtain the margins they need for future reinvestment, as advised by the Chancellor of the 19 Exchequer? What conceivable constructive purpose is served by driving British firms to export goods which subsequently have to be reimported, except to bolster the deficit on the balance of payments?
§ Mr. MaclennanOnce again the hon. Gentleman is long on words and short on evidence. He has not submitted one line of evidence to my Department or to me to substantiate his assertions. My information, which I think is entirely reliable, is that the main factors causing the shortages to which the hon. Gentleman referred have been the steep rise in demand coupled with some plant breakdowns.
§ Sir John HallIf the Minister wants evidence, may I quote the evidence of my own group of companies, which has been told specifically by Shell Chemicals that it will cease supplying this market because it can supply so much more profitably in the European market? Will the hon. Gentleman bear in mind that my company, amongst others which have written to me quite recently, is finding such a shortage of polyesters in the United Kingdom market that it is now being forced to buy from overseas at a much higher price?
§ Mr. MaclennanI am aware of the letter from Shell which has been received by companies, but that letter does not, any more than the intervention of the hon. Member for South Angus (Mr. Bruce-Gardyne), carry evidence of the problem to which we are referring. [Interruption.] I not only have read the letter but have it here. I am perfectly prepared to study evidence carefully when it is submitted. Such evidence will be taken into consideration in the review of the Price Code which we are initiating and which we are hoping to complete during the summer.
§ Mr. Peter WalkerAs the hon. Gentleman says that he has possession of the letter, which has caused considerable concern to numerous companies throughout the country, has he taken any action to call in Shell to give him a detailed explanation of it?
§ Mr. MaclennanShell is making a resubmission to the Price Commission. It has indicated to those to whom it has addressed the letter that it is not in a position to make a final statement about the 20 matter until the Price Commission has decided on its resubmission.
§ Mr. Bruce-GardyneIn view of the ludicrous nature of the Minister's reply, I beg to give notice that I shall raise the matter again at an early opportunity.