§ Lieut.-Colonel Liptonasked the Secretary for Overseas Trade, as representing the Chancellor fo the Duchy of Lancaster, what steps he will now take to reduce the price of newsprint.
§ Mr. MackesonThe maximum price of home-produced newsprint has hitherto been controlled by Order, after a periodical review based on the cost of production and the replacement cost of raw material. The newspapers and the mills have now reached agreement on a price of£56 a ton for the current half year. My noble Friend regards this as satisfactory and he is accordingly revoking the existing Order. The power to make a new Order, should the need arise, remains.
The existing arrangements will continue under which newspapers obtain their supplies from the most convenient source and at an equalised price, whether the newsprint is home-produced or imported.
172WAt the same time my noble Friend has accepted the suggestion of the Newsprint Supply Company that the present limitation on the consumption of newsprint known as tonnage rationing should be suspended, while retaining, subject to some slight amendment, the existing control over the number of pages that may be printed. This variation will give greater flexibility to the newspapers so that all newspapers can use the limited supplies of paper as they find most convenient.
The small increase in consumption which this may involve is compatible with the present level of stocks and supplies, but it may well be that imports of newsprint from sources other than Canada will have to be further reduced next year. The new arrangements will be reviewed towards the end of this year, but in the meantime they will provide an up-to-date basis for tonnage rationing should this again prove necessary.