§ Mr. Elwyn Jonesasked the Minister of Supply whether he is now in a position to give particulars of the amounts of any subsidies to iron and steel firms during the last three years, specifying the names of-the firms and the amounts of the subsidies.
§ Mr. G. R. StraussUp to 31st March, 1946, subsidies were paid through the medium of a Central Fund created during the war to stabilise iron and steel prices. The Central Fund was financed partly by the industry itself and partly82W from public funds and the amounts paid from public funds to individual companies cannot, therefore, be accurately assessed. I append details of direct subsidies paid to individual firms during the financial years 1946–47 and 1947–48. The greater part of the subsidies to the industry are paid in bulk in respect of (i) freight on foreign iron ore; (ii) loss on imports of scrap; (iii) the difference between the import cost and sale prices of imported iron and steel. These imports are centralised and it is impossible to, assess the benefit derived by individual firms.
83WI would add that the payments de tailed below were made to companies who were required either to undertake production unsuited to their capacity and therefore uneconomical, or to
SUBSIDIES PAID TO FIRMS DURING THE FINANCIAL YEARS 1946–47 AND 1947–48 1. Payments to home ore producers to secure additional production from uneconomic mines. Firm Amount paid from 1st April, 1946, to 31st March, 1947 Amount paid from 1st April, 1947, to 31st March, 1948 Total for2 years £ £ £ Barrow Haematite Steel Co. Ltd. … … 34,825 29,926 64,751 Beckermet Mining Co. Ltd. … … 89,386 107,138 196,524 Dorman Long & Co. Ltd. … … 336,373 410,933 747,306 Glamorgan Haematite Iron Co. Ltd. … … 14,750 23,714 38,464 Hodbarrow Mining Co. Ltd. … … 38,321 47,219 85,540 Millom & Askam Haematite Iron Co. Ltd. … … 52,097 55,520 107,617 Pease & Partners Ltd. … … 68,608 32,267 100,875 Skinningrove Iron Co. Ltd. … … — 47,994 47,994 Ullcoats Mining Co. Ltd. … … 29,663 37,211 66,874 664,023 791,922 1,455,945 2. Payments to foundry pig iron makers for the production of basic pig iron essential for steel making.
Firm Amount paid from 1st April, 1946, to 31st March, 1947 Amount paid from 1st January, 1947, to 31st March, 1948 Total for2 years £ £ £ Staveley Coal & Iron Co. Ltd. … … … 3,209 10,186 13,395 Stanton Ironworks Co. Ltd. … … … 160,995 126,790 287,785 164,204 136,976 301,180 3. Payments to certain high cost producers of basic pig iron who would have incurred losses at the controlled price. These subsidies have now ceased.
Firm Amount paid from 31st March, 1946 to 31st March, 1947 Amount paid from 31st March, 1946 to 31st March, 1947 Total for 2 years £ £ £ Brymbo Steel Co. Ltd. … … … … 30,702 — 30,702 Goldendale Iron Co. Ltd. … … … … 7,231 — 7,231 Shotts Iron Co. Ltd. … … … … 73,970 469 74,439 111,903 469 112,372 4. Payment to firm required to produce coal blast pig iron outside its normal range to meet the essential demand for this quality.
84W
Firm Amount paid from 31st March, 1946 to 1st April, 1947 Amount paid from 1st April, 1947 to 31st March, 1948 Total for 2 years £ £ £ Round Oak Steel Works Ltd. … … … — 3,826 3,826 continue production which had ceased to be economic and would otherwise have stopped, to meet the need for maximum output in the types and of the qualities required.
85W5. Payments for abnormal carriage charges in diverting steel ingots, slabs and sheet bars, at the direction of the Ministry, from works which would normally use them to more distant works to meet essential production requirements.
Firm Amount paid from 1st April, 1946, to 31st March, 1947 Amount paid from 1st April, 1947, to 31st March, 1948 Total for 2 years £ £ £ Millom & Askam Haematite Iron Co. Ltd. … 1,172 1,597 2,769
6. A subsidy to the Phoenix Tube Company for heat treatment of steel tubes tot the ball bearing industry to enable them to carry out this work at the controlled price. The amount was £3,555. 7. A subsidy to the Blaenavon Co. Ltd., in respect of losses on the production of tyres, wheels and axles to maintain production from November, 1947 to January, 1948. pending consideration by the Government of the future of the Company The amount was £10,826.