HC Deb 06 February 1978 vol 943 cc1002-3
11. Mr. Michael Marshall

asked the Secretary of State for Trade what evaluation he has made of recent measures proposed by the Government to prevent the dumping of steel products in the United Kingdom; and if he will make a statement.

Mr. Dell

The measures approved by the Council of Ministers for the European Coal and Steel Community as a whole are being implemented by the Commission. I am satisfied with the progress in the imposition of provisional antidumping duties, and I am following carefully the Commission's negotiations with the major supplying countries.

Mr. Marshall

Will the Secretary of State expand on that answer?

Mr. Dell

I will do so at considerable length if the hon. Gentleman wishes. As the hon. Gentleman is no doubt aware, the Community has decided that in the first instance provisional duties can be placed on imports on the application of member countries where the price of those imports is below minimum reference prices established by the Commission. This is regarded as being, for the most part, an interim situation. During this interim period the Commission will be negotiating with our major supplying countries on the price of supply and the quantities of supply. We hope that in two or three months the position on that matter will become clearer.

Mr. Hooley

Will my right hon. Friend say what usful information has so far emerged from the system of surveillance licensing, especially in special steel, which was introduced about six months ago?

Mr. Dell

Surveillance licensing has the simple effect of telling us what licences are being applied for. We made clear when introducing the system that we did not expect it to have exactly the value which those who made representations to us thought that it would have. Nevertheless, we thought that on an experimental basis we should introduce it. We introduced the system, and we are now getting that sort of information which is being studied. The system which has been set up by the Council of Ministers as a result of the decisions of December and January will greatly help the steel industry of the United Kingdom and of the Community to sustain itself in the present time of very great difficulty.

Mr. John H. Osborn

Is it not a fact that the reference pricing system was very unstable at the end of last year? Is the Minister satisfied that Commissioner Davignon has been able to achieve order within the European steel industry, let alone deal with competition from outside?

Mr. Dell

Yes. One of the problems with the reference pricing system last year was that the prices tended to be undermined by the prices of imports. One of the purposes of these negotiations with major suppliers is to ensure that there is a reasonable relationship between the minimum reference prices and the prices of imports. I hope that that will be achieved. There are at the moment problems about certain products manufactured in the United Kingdom because those prices are higher than the typical prices within Europe. I have discussed that with Commissioner Davignon and I hope that some way of dealing with the problem will be found.