TRADING IN ZINC (Hansard, 23 October 1952)

§ LORD SHEPHERD
My Lords, I beg to ask Her Majesty's Government the Question of which I have given private notice—namely, have Her Majesty's Government any statement to make about the termination of public trade in zinc?

§ THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT SWINTON)
My Lords, I am much obliged to the noble Lord for putting this Question. The Government have decided that private trading in zinc can be restored as soon as the necessary arrangements can be made by the Ministry of Materials and the trade. Discussions with the trade and other interests concerned will take place at once, and it is hoped that it will be possible to give effect to the decision on October I, 1953.^* A further announcement about the date will be made as soon as possible. From the date of reversion the private import and sale of virgin zinc will be permitted, and the London Metal Exchange will reopen for transactions in zinc. The Ministry of Materials will cease to trade in zinc, except to the extent necessary to wind up its trading operations. I should like to take the occasion of this statement to pay grateful tribute to the great help we have had from our suppliers at home, in the Commonwealth and overseas in meeting the supply difficulties in past years.

§ LORD SHEPHERD
My Lords, I thank the noble Viscount for the statement that he has just made to the House. Naturally, we do not desire to debate this question to-day, but owing to a number of these events now taking place, it is possible that before long we should like the House to review the whole question. Perhaps I may say just two things. The Government, holding the view which they do in matters of trading, have taken a course of action which is within their rights. The noble Viscount will not be 914 surprised to know that we hold another view—namely, that in times of shortage these materials should be organised internationally, so that there should be fair distribution. Perhaps the noble Viscount will permit me to put to him three questions, the replies to which may be of help to the House as a whole. First of all, is this new departure a sign of growing and better supplies, or of falling demand? Secondly, will arrangements be made to assume control of zinc, should high, prices make it necessary later? Thirdly, will the Government ensure a stockpile to make the interests of this country quite safe in times of emergency, or as a means of easing prices should they get out of hand?

§ VISCOUNT SWINTON
My Lords, I will gladly answer those questions. I may say, of course, that if the noble Lord and his friends would like a debate on these matters we shall be only too glad to facilitate it—indeed, I should welcome an opportunity of expounding the excellence of the policy which we are pursuing. I am a little surprised at the noble Lord saying that this is altogether novel and revolutionary on our part. I think he must have forgotten that when his Government were in power they set me the admirable example of returning tin to the London Metal Exchange—a singularly successful operation. I have been very glad to follow suit in the matter of lead, and now, I hope, at the beginning of next year, in the matter of zinc. The noble Lord said that he was in favour of maintaining control when supplies were short. So should I be. But supplies of this commodity are not at all short at the present time. The supplies and prospect of supplies are ample. In regard to rising prices, the noble Lord cannot have followed what has taken place. If he would look at the chart showing what has happened to lead since it was freed and returned to the London Metal Exchange, he would see that the price has fallen markedly, and I have no reason to suppose that the same sort of thing will not happen in the case of zinc. The noble Lord certainly need be under no anxiety that supplies, both in existence and in prospect, are not ample, and so far as keeping an adequate stock is concerned, the stocks which the Government hold, or will certainly hold at the time when the Market resumes its operations, will be large.

§ LORD SHEPHERD
I thank the noble Viscount for the full answer that he has given, and I appreciate the points that he has made. I did, however, ask him whether this operation and the possible fall in price was due to increasing and plentiful supplies, or to a regrettable decline in demand.

§ VISCOUNT SWINTON
I think it is due to both. There has been a decline in demand in the engineering industry, but there are some signs that that is changing a little. Certainly world supplies are ample to meet the demand, and, that being so, I think we should all agree that it is much more in the interests of us all that we should have a free market and free dealing in the commodity.

LORD STRABOLGI
Is the noble Viscount aware that, apart from political theories, which of course I share with my noble friend below me, this news will be very welcome to the dealers in zinc in Mincing Lane and elsewhere? I should like to ask, first, whether zinc is to be considered as a strategic material, and its sale to the East European countries therefore restricted, or whether it will be treated as an ordinary commodity to be traded in as freely as possible. Secondly, may I ask the noble Viscount whether he is in a position to take steps to see that the necessary export licences are given without delay. The machinery does work well, generally speaking, but he will be aware that in certain cases there are rather inordinate delays which affect our export trade.

§ VISCOUNT SWINTON
My Lords, I take note of the fact that the noble Lord's political principles in no way accord with his commercial practices—that is quite as it should be. As regards this being a strategic material and the question of its export to certain countries, I think I should like to see a Question on the Order Paper before giving an answer. With respect to licences for this trade, which it is intended should be free, I think the machinery works extremely well; it is automatic so far as licences for lead are concerned, and certainly it is our intention that once the market for zinc is freed the whole business should be as free and automatic as possible.
I must ask your Lordships to forgive me, but I must take the earliest opportunity of correcting something which I 916 have just said. I am informed that I stated that the date we hoped to bring the reversion to private trading in zinc into force was October 1,1953. Quite obviously, that was a slip of the tongue. The date should be January 1,1953. I cannot think how I came to read it out wrongly. I am grateful for the opportunity of making the correction, and I am obliged for having had the matter brought to my notice by the Lord Chancellor and also from another source.