§ 84. Sir P. Hannonasked the Minister of Supply if he will make a statement on the circumstances in which his Department announced substantial increases in the selling prices of copper, lead, tin and zinc on 1st January, which made it impossible for merchants to cover themselves at old prices; if the situation has been reconsidered; and if, in future, full notice will be given of changes in prices which will prevent losses to merchants.
§ Mr. WilmotThe increases in the Ministry's selling prices of copper, lead and zinc took account of the sharp increases in prices outside the United Kingdom. There was no increase in the price of tin. Under the old system of granting licences to purchase buyers were given an option on metal without any obligation to purchase and after a rise in price could exercise the option at the old price. Owing to the general instability of world prices, it became necessary to relate prices at which my Department sells in the United Kingdom more closely to the price we have to pay in buying overseas. The option was, therefore, no longer justified and applications for licences must, in future, be firm orders for metal at current prices. The old arrangement will apply in the case of valid licences issued before 31st December, 1946.