§ Mr. Kenneth Clarkeasked the Secretary of State for Industry what assessment the 617W Government have made of the likely impact of the 50 per cent. price increase in naphtha in the latter part of 1978 on the prospects for the British chemical industry.
§ Mr. Les HuckfieldIt is still too early to say whether the recent substantial increases in naphtha prices will be maintained. It would, therefore, be premature to attempt to estimate the longer term impact on the United Kingdom industry and on the pattern of international chemical trade. However, the Government maintain their belief that the industry, which will increasingly be able to draw on North Sea feedstocks, will remain healthy and competitive. Meanwhile, the Government will continue to monitor the effect of naphtha price movements in close co-operation with British companies.