§ Mr. Gouldasked the Secretary of State for Trade and Industry what representations he has received concerning the increase in the price of scrap; if he has made any 320W estimate of or has any information about the impact of this on the United Kingdom foundry industry; by how much the price has risen in each quarter since 1982; and what powers he has to introduce a system of export licences.
§ Mr. Norman Lamont[pursuant to the reply, 14 March 1985, c. 206–7]: My Department has received representations from some 60 companies and organisations about the price of ferrous scrap, including a number from owners of foundries.
I am aware that ferrous scrap is an important raw material for the foundry industry and that changes in the price of scrap have a serious effect on its costs. The industry estimates that over the last 12 months this has added 10 per cent. to its production costs.
The following table shows the average price span for one grade of ferrous scrap for the first week of each quarter since 1982.
Date £ per tonne 8 January 1982 39–41 2 April 1982 42–45 2 July 1982 32–34 2 October 1982 24–26 7 January 1983 26–29 8 April 1983 38–43 1 July 1983 38–43 7 October 1983 44–48 6 January 1984 56–59 6 April 1984 53–57 6 July 1984 62–66 5 October 1984 68–72 4 January 1985 67–71 8 March 1985 84–89 Source: Metal bulletin.
Note: The prices given are for No. 1 heavy melting (OA) scrap.
Powers to introduce a system of licences for exports of ferrous scrap to countries other than EC member states exist under the Import, Export and Customs Power (Defence) Act 1939. It would be contrary to the treaty of Paris establishing the European Coal and Steel Community to impose controls on exports to other member states.