§ Mr. Normanton
asked the Secretary of State for Trade and Industry whether he is now in a position to make a statement on the British Steel Corporation's proposal to increase steel prices.
§ Mr. John Davies
The Government have accepted the Corporation's need to raise additional revenue. They have also given careful consideration to a report on the proposed increase from the Iron and Steel Consumers' Council. In the light of this, we have accepted that an average increase of 14 per cent. would 459W be damaging to the competitive position of British industry, and I am accordingly directing the Corporation to limit the increases in steel prices which it proposed to an average of 7 per cent. This will sharpen the situation in which the Corporation will need to achieve its intended financial performance for 1971–72 and will be an important factor to be taken into account in the profound review of the Corporation's affairs which I have already announced.