HC Deb 12 July 1976 vol 915 cc20-1
17. Mr. Michael Marshall

asked the Secretary of State for Trade what recent representations he has received from special steels producers in connection with alleged dumping of steel bars from Japan.

Mr. Meacher

My Department is considering a number of allegations that special steels are being dumped by various countries, including Japan, and I recently met a delegation from Sheffield to discuss this issue.

Mr. Marshall

Is the Minister aware that this is a very serious and important question? Is he further aware that the recent announcement by his Department that it would have a special inquiry into the dumping of special steels, to be followed shortly afterwards by a disclaimer saying that there would not be a special inquiry, was a fiasco? Before the Minister moves on to another Government Department, will he make sure that this matter is looked at carefully? If the Government cannot make a case for antidumping action on this subject, they will not be able to make one for anything.

Mr. Meacher

I appreciate the seriousness of this issue, which was emphasised to me by the delegation. I appreciate that the special steels industry is operating at only 35 per cent. of capacity. However, because the industry had difficulty in finding precise evidence of the domestic fair market price in Japan, my Department undertook its own investigation. It did a detailed analysis of imports over a three-month period. We sent details of the result to the industry on 6th May. We did not receive the industry's comments until 23rd June, and in the light of those comments we are urgently considering what our decision will be. I can assure the hon. Gentleman that he will have a decision very shortly.

Mr. Flannery

Will my hon. Friend accept from me that the special steels industry is by far the most profitable part of the steel industry? We in Sheffield deeply regret that it is not under public ownership, but we are deeply concerned nevertheless about dumping from Japan. My hon. Friends and I from Sheffield are constantly having meetings with those concerned in the city to stop this dumping.

Mr. Meacher

I accept all that my hon. Friend says. In spite of the complexity of this case, because of the switching between alloys of different sizes and shapes and because actual market prices are not necessarily published about steel prices in Japan, I assure him of a very early decision.

Mr. John H. Osborn

What information does the Minister have about foreign steel company warehouses in Britain in general and Sheffield in particular, and about the extent to which they are selling from stock at low market prices in this country?

Mr. Meacher

The question of whether they are selling below market price and not in accordance with the GATT criteria is one important factor which the inquiry will ascertain. But I am well aware of the substantial stocks of foreign steel now held by stockholders in and around Sheffield.