HL Deb 28 March 1973 vol 340 cc1047-8

2.45 p.m.

LORD HEWLETT

My Lords, I beg leave 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 they will consider extending the period of import duty relief upon steel (announced on March 20) from three to six months.

EARL FERRERS

My Lords, a decision whether to extend beyond the end of June the exemption from import duty of certain sheet steel will be taken during April in the light of the estimates which will then be available of supply and demand in the third quarter of 1973.

LORD HEWLETT

My Lords, while thanking my noble friend for that Answer, may I call his attention to the fact that—

SEVERAL NOBLE LORDS: Question!

LORD HEWLETT

My Lords, is my noble friend aware that it is now more than six months since representations were made that the import levy should be relieved in respect of supplies of steel, so badly held up for a domestic appliance industry which is severely impoverished so far as raw material supplies are concerned? Would my noble friend not agree that it is unfair to expect expansion to be achieved without the necessary raw materials?

EARL FERRERS

My Lords, I understand my noble friend's concern. In fact, of course, the tariff on imported steel will be removed under an Order to be placed in another place in the near future, and it will be then considered, next month, whether this Order should be continued for a further period. My noble friend will be aware that there have been troubles in the works where this material is being made, and we have to wait for the British Steel Corporation's forecast for the third quarter to find out whether or not the production which is required will be provided.

LORD HEWLETT

My Lords, is the Minister not aware of the fact that representations were made as long as six months ago? Now there is a world shortage of steel; prices are ever increasing and we are not able, apparently, in this country to satisfy the demand of a very important export industry.

EARL FERRERS

My Lords, I am aware that representations were made some months ago, and an investigation was then made to discern what the problem was. But of course these were merely representations from the point of view of lowering the tariff; there was not a ban on the import of steel.

LORD HEWLETT

My Lords, with every respect, am I entitled to ask the Minister whether he would agree that this matter has become bogged down in the Ministry? I addressed myself to the Secretary of State on this issue in late November and was assured that the matter would receive urgent attention. March 20 was the day on which the import duty relief was given, and by now the lead time on delivery of imported steel is six months.

EARL FERRERS

My Lords, I could not agree with my noble friend that his letter became bogged down in the Ministry. It is merely that the Ministry took a different view from that expressed in my noble friend's letter. But I assure him (and I am not being frivolous here) that Her Majesty's Government are concerned about this matter. That is the reason why they have reduced the tariff on imported steel. I accept that it may not be as early as my noble friend would have liked, but it has been done now and we wish to see the imports of steel, such as are necessary, able to come in.