§ LORD BARNBYMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether in regard to any industrial commodities where, in the main, bulk buying practice on Government account continues, the average cost of present holdings is higher than current world market; and, if such be the case, whether current disposal is strictly on replacement price level.]
§ VISCOUNT SWINTONMy Lords, the stocks of the industrial commodities bought and sold by the Ministry of Materials were last valued on 31st March, 1952. At that date the cost was on average some 4½ per cent. below the value at the selling prices then current. Since that date, the selling prices of two commodities have been reduced to below stock cost. In the case of these commodities it is the present practice to base current selling prices on the current average cost of purchases, and stock losses are accepted
§ LORD BARNBYMy Lords, arising out of that reply, of which it was difficult to get the full import, if I correctly understood the noble Viscount I gather 1141 that he referred to prices being reduced below cost price. He did not refer to replacement cost. May I ask the noble Viscount whether he is in fact aware of the concern that exists in the country as to the degree to which Her Majesty's Government are reducing the prices of all raw materials bought with public funds, and whether he could give some further assurance on that matter?
§ VISCOUNT SWINTONMy Lords, this is a matter which I have had under consideration and under discussion for some time. So far as the materials for which the Ministry of Materials is responsible, I think I should be in a position to make a further statement within a few days. The statement will be made in another place and I shall very gladly make it here as soon as I am in a position to do so.
§ LORD BARNBYMy Lords, arising out of that reply, for which I am grateful to the noble Viscount, may I ask him whether he will bear in mind on that occasion, that the Question which I put on the Order Paper referred to all raw materials purchased from public funds? If I understood it correctly, his reply referred only to commodities dealt with by the Ministry of Materials. May I ask him whether at that time he will be able to give also an assurance (for instance, with regard to cotton), that where purchases are made in bulk with public funds and reductions are made possible—in export tax and so on—the full reduction will immediately be passed on to the consumer, thereby opening the way to an unimpeded market policy?
§ VISCOUNT SWINTONMy Lords, the noble Lord has really widened the Question a great deal. When I make my announcement I shall be in a position to speak only in regard to those commodities for which I am responsible. The noble Lord has referred to cotton. As a matter of fact, cotton has been bought not by a Department of Her Majesty's Government but by the Raw Cotton Commission established under the authority of an Act of Parliament. In future under the Hopkins Scheme, the adoption of which I have announced to the House and which 1142 will be in operation shortly, any spinner who contracts out can buy independently of the Commission all his cotton or cotton of any "group." Therefore, obviously, I do not think I can make any further statement on that matter, beyond the full statement which I made to the House when the Hopkins Report was published.
As regards other materials, I certainly shall not include those in the statement I shall make on the negotiations which have taken place with regard to the commodities for which I am personally responsible, the important ones of which are certain of the non-ferrous metals. If the noble Lord desires information about other commodities which are bought in bulk, either directly or on behalf of Her Majesty's Government, perhaps he will be good enough to put a Question on the Order Paper, and I am sure the appropriate Minister will be glad to answer it.
§ LORD BARNBYAgain, while thanking my noble friend for his reply, I would remind him that my Question referred to bulk buying practice on Government account, without drawing any distinction between the agencies of the Government. Perhaps he will bear that in mind in the statement he makes, indicating that it applies to a limited number of commodities.
§ VISCOUNT SWINTONI am sorry, but I must make this clear. I have given an undertaking to the House that as soon as I am in a position to do so I will make a full statement on the policy to be followed in respect of those materials for which the Ministry of Materials is responsible, and my undertaking can go no further than that. No other information will be included in my statement; nor could it be. The noble Lord will have to put down a Question in regard to any other commodity, or set of commodities, about which he wishes information. Then I will undertake that the appropriate Minister will give an appropriate reply.
§ LORD BARNBYPerhaps the noble Viscount will forgive my persistence, but what terminology would be appropriate other than that which is on the Order Paper?