HC Deb 21 May 1971 vol 817 cc377-8W
Mr. Chichester-Clark

asked the Secretary of State for the Environment by how much cement prices have risen in the last 12 months; and whether he will make a statement.

Mr. Amery

£1.99 per metric ton. The Cement Makers' Federation announced at the end of last month an increase of£1.40 per ton from 10th May. The present gross realised price (the average of all delivered prices) is£7.86 a tonne, and this increase is therefore about 18 per cent.

The Cement Maker's Federation has given an unconditional undertaking that there will be no further increase in the price of Portland Cement for 12 months.

In making the recent increase the Federation had two aims: the first to restore the return on capital approximately to 10 per cent. considered by the Restrictive Practices Court as a reasonable rate in cement manufacture; the second to hold that price for a year ahead.

The effect on construction costs of the latest rise in cement prices will be an increase of about 1 per cent. on material costs or roughly ½ per cent. on total building costs. These are average and the percentage will vary with different types of work.