§ Mr. Arthur Lewisasked the Secretary of State for Trade and Industry when he last agreed to a 5 per cent. increase in the 227W price of steel and to what extent he estimates increases followed in consequence in the prices of goods and services generally; by how much an additional 5 per cent. increase in steel prices would increase these prices; and to what extent the British Steel Corporation is expected to make a loss or profit during the current financial year.
§ Mr. John DaviesSteel price increases do not require my agreement except that I have power to give directions to the corporation if the Iron and Steel Consumers' Council makes representations to me. The last occasion for an average increase of this precise amount was in October, 1970, but the House will be aware that B.S.C. announced an average increase of about 4½ per cent. this mornning. The extent to which other prices are affected by a 5 per cent. increase in steel prices cannot be determined because of the varying degree to which consumers my absorb it. The financial regime for the B.S.C. limits its loss for 1971–72 to £100 million without allowing for the effects of the coal strike; it is too early to say what the actual outcome will be.