§ Mr. J. Cooperasked the President of the Board of Trade the present prices of softwood timber as compared to the prices prevailing on 1st March last when price control was removed.
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§ Sir H. ShawcrossI have not enough information about the prices currently being paid for the many species and grades of softwood to give in detail the comparison of prices asked for, but such information as I have indicates that the increase in the general level of softwood prices since price control was removed is of the order of 60 per cent.
I should make it clear, however, that the former statutory maximum prices, which had been last fixed in April, 1950, were substantially below replacement costs at the time of their removal on the 1st March last, and a considerable increase in selling prices was essential to enable United Kingdom importers to pay the prices required by overseas suppliers for their timber. Without such an increase, the United Kingdom would not have obtained the timber.
Since 1st March, the f.o.b. overseas price of softwood has risen still further and freight rates have continued to increase.
In view of these considerations, I have no grounds for thinking that importers and merchants in this country are charging more than a reasonable profit margin, but, as my hon. Friend the Secretary for Overseas Trade stated on 10th April, the Timber Trade Federation is setting up a special committee, including representatives of the major consuming interests, to deal with any price and distribution problems that may arise, and I can assure my hon. Friend that I personally shall continue to watch the position closely.