§ Mr. A. Edward Daviesasked the Minister of Supply whether he will make a statement respecting the general shortage of steel supplies; and what action he is taking to deal with the position.
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§ Mr. WilmotThe shortage of steel supplies is mainly due to an abnormal demand and a severe short-fall in imports. Action has been taken to increase home production by importing more of the richer foreign ores, subsidising marginal high cost production and special transport costs, and by using surplus electric furnace capacity to produce carbon steel. Shortage of fuel is likely to limit the extent to which production, which is already at an almost record high level, can be expanded. As regards imports we are trying to get increased supplies from producers in the U.S.A., Canada and on the Continent, but owing to the great demand in America and the severe shortage on the Continent, I doubt whether much relief can be expected from imports before the second half of next year.