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Ministry Of Materials

Volume 524: debated on Monday 1 March 1954

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Canadian Newsprint

3.

asked the Minister of State, Board of Trade, as representing the Minister of Materials, with what newspaper representatives and newsprint manufacturers he has been discussing the import of additional Canadian newsprint.

The discussions have been with the Board of the Newsprint Supply Company. My noble Friend has had no discussions on this with newsprint manufacturers either at home or abroad, but I understand that there have been discussions between the Newsprint Supply Company and their various suppliers.

Is the Minister aware that better results would have been achieved if negotiations with all the interested parties had been commenced earlier, and before many millions of dollars had been wasted on Canadian barley, which we could easily have done without, so that that money could have been spent on newsprint which we very much need?

I am not sure that I can accept the conclusions which the hon. and gallant Gentleman arrives at on that point.

Can my right hon. Friend give an assurance that the President of the Board of Trade will be prepared to meet the Canadian newsprint manufacturers when he goes to Canada in May of this year?

I cannot give my hon. and gallant Friend an assurance on that point, because I have no idea at the moment what my right hon. Friend's programme will be.

Residual Trading Stocks (Disposal)

4.

asked the Minister of State, Board of Trade, as representing the Minister of Materials, what materials he now holds for disposal; and how long it will take to dispose of them.

Apart from materials in which public trading at present continues, the Ministry of Materials holds residual trading stocks of aluminium, copper, lead, zinc, magnesium, sulphur and pyrites, timber, hemp and mica. While the bulk of these is expected to be disposed of by sale or transfer to the strategic reserves in 1954–55, in the interests of the taxpayer it is necessary to avoid too hasty sales and consequent losses. Moreover, the termination of public trading has left or will leave the Government, for some years ahead, with certain purchase and disposal commitments for a number of commodities.

While it may be embarrassing to release too much information about these stocks, can the Minister perhaps give us a little more information? Can he say, for instance, what is the total tonnage of all the stocks held, or what was their purchase price?

I very much doubt whether it would be in the public interest —if we are to obtain the best results from the liquidation of these stocks—for me to give the hon. and gallant Gentleman the specific information which he suggests.

As the right hon. Gentleman knows, public trading in tungsten ore is continuing for the present, but I may have an observation to make in a moment which will be related to what he has in mind.

Tungsten Ores (Private Trading)

5.

asked the Minister of State, Board of Trade, as representing the Minister of Materials, how long he proposes to continue public trading in tungsten ore.

My noble Friend has decided to restore private trading in tungsten ores and concentrates on 1st April, 1954. His decision was taken after consultation with the trade. Private imports from all sources except the dollar area will be permitted from this date, but in order to ensure a smooth transition from public to private trading and so that the Ministry's surplus stocks may be disposed of with the minimum of disturbance to the market, arrangements are being made with the co-operation of the trade under which in the early months of private trading consumers will continue to meet a substantial part of their requirements by purchases from Ministry stocks.

The Ministry of Materials will shortly be communicating with consumers individually about the detailed application of the arrangements. It is contemplated that the proportion of purchases from the Ministry will be reduced as the normal channels of supply are re-established. The arrangements will be kept under review in consultation as "necessary with the trade.

Is the Minister aware that the Government's view is in keeping with All Fools Day? Tungsten ore is in short supply, and handing it over to private enterprise will mean intense competition and the pushing up of the price, which would not otherwise take place.

I assure the right hon. Gentleman that the whole situation has been very carefully considered and that the Government are satisfied that no undue risks are involved.

Can the right hon. Gentleman given an assurance that he will not be blackmailed by the private buyers of this ore in the same way as the Minister of Transport has been blackmailed by the Road Haulage Association in connection with buses and lorries?

I can give the assurance that the Government will see that this matter is dealt with in the interests of the country as a whole.

Departmental Functions

61.

asked the Minister of State, Board of Trade, as representing the Minister of Materials, whether he will state the nature of the remaining functions of the Ministry, in view of the reversion of more than 95 per cent, of State trading in raw commodities to private traders, since October, 1951.

The wide variety of tasks of the Ministry, which are by no means confined to public trading, cannot be fully described in this reply. The abandonment of much of public trading and distribution controls has already been reflected in considerable reductions in the staff of the Ministry, and this process is continuing. The liquidation, however, of public trading positions involving many millions of pounds, if it is to be conducted with due regard for the interests of the taxpayer, must make substantial demands on the staff of the Ministry for some time. So, too, must the efficient management and custody of our immensely valuable strategic stockpile.

While recognising the the merit of the processes that my right hon. Friend is now carrying through, may I ask him to confirm that it is the ultimate goal of the Government to wind up this Ministry, which is, surely, symbolic of shortages, not of surpluses, which exist in the world today in most of the raw commodities?

My hon. Friend has made a good start to the week already, and I believe that he will have no anxieties in watching how the future unfolds, but I hope he will not mind letting the future come one day at a time.