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Written Answers

Volume 515: debated on Wednesday 13 May 1953

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Written Answers To Questions

Wednesday, 13th May, 1953

Malaya (Formal Education)

40.

asked the Secretary of State for the Colonies for how many children of school age there are no school facilities or formal education in Malaya.

The compulsory school age in the Federation of Malaya is from six to twelve years. In September, 1951, it was estimated that 400,000 children between those ages were getting no formal education, but during the next year nearly 100,000 more children were enrolled in the schools and the number is still rising.

Kenya Railway Workers (Political Association)

asked the Secretary of State for the Colonies why the Kenya Electors Union is proscribed to Kenya railwaymen and railway shopmen.

The staff of the East African Railways and Harbours Administration, in common with other Government servants, are not permitted to belong to Kenya political associations.

West Indies (University College)

asked the Secretary of State for the Colonies the present number of staff and students in the different faculties at the University of the British West Indies.

At the beginning of the current session at the University College of the West Indies there were 76 students and 14 staff in the Faculty of Arts; 64 students and 19 staff in the Faculty of Natural Sciences; and 114 students and 21 staff in the Faculty of Medicine.Further information about the College, which is of course an autonomous institution, may be obtained from the Inter-University Council for Higher Education in the Colonies.

Trade And Commerce

Television Films (Overseas Market)

48.

asked the President of the Board of Trade if he is aware of the potential market for television films overseas; and what steps his Department are taking to ensure that this country secures a share of this trade.

I am aware that there is a large potential market for films from television stations in a number of countries. We will, of course, do anything in our power to assist producers who try to cater for this demand.

Match Industry (Commission's Report)

asked the President of the Board of Trade when the Monopolies Commission's report on the supply and export of matches and the supply of match-making machinery will be published; and if he will make a statement about the report's contents.

The report was published today.The Commission have found that conditions to which the Monopolies and Restrictive Practices (Inquiry and Control) Act, 1948, applies prevail as respects both the supply and export of matches and the supply of match-making machinery. About 87 per cent. of all matches (including imports) supplied in the United Kingdom are supplied by the group of firms controlled by the British Match Corporation Ltd. (B.M.C.). Agreements restricting competition in relation to exports are operative as respects all matches produced by the group; and about 86 per cent. of all match-making machinery supplied in the United Kingdom is supplied to members of the group.Describing the relationship between B.M.C. and the Swedish Match Co. (Swedish Match), whose world-wide match-manufacturing interests (allied to production of match-making machinery) include a 30 per cent. interest in B.M.C.'s equity capital, the Commission report that trading agreements between the two "partners" provide for the sharing of certain markets, including the British Isles, and, in effect, assign all other markets (except the United States of America) to one party or the other. One of these complementary agreements—the Trading Agreement (British Isles)—provides for B.M.C. subsidiaries to have the sole agency for imports supplied to this market from the Continental factories controlled by Swedish Match, with the right to determine the prices at which these matches are sold; for division of sales in an agreed ratio between these imports and matches produced by B.M.C.'s manufacturing subsidiaries; and for payment of compensation on either party's excess sales.The agreements provide for a full exchange of technical information, and B.M.C. are to enjoy access on the most favourable terms to machinery from Swedish Match: such machinery must not be supplied to firms competing with B.M.C. either here or overseas.In the home market, about two-thirds of the supplies of matches are at present home produced and one-third imported. Of the home production, B.M.C. and its associates contribute about 95 per cent:; and as sole selling agents for Swedish Match, B.M.C. companies import and distribute about 85 per cent. of the imports. B.M.C. also has important interests in firms supplying materials and machinery for match manufacture.The Commission conclude that the arrangements they describe

"form a complete and integrated monopoly"

and need to be judged as a whole. They give full weight to B.M.C.'s arguments in support of their contention that the system was built up to prevent the possible collapse of the British match industry and has been advantageous not only to the shareholders of B.M.C, but also to the nation; and, as regards the arrangements for markets outside the British Isles (governed by the provisions of the Trading Agreement (Overseas)), the Commission say (paragraph 209) that it seems to them "extremely doubtful" whether free competition in these markets would increase this country's earnings from the match trade. Thus they

"cannot say that the Trading Agreement (Overseas) considered by itself is operating against the public interest."

Nevertheless, they find that the present system as a whole

"operates, and is likely to operate, against the public interest as respects the supply both of matches and match-making machinery."

They base this conclusion on the following main grounds:

  • (i) the absence of competition amongst manufacturers within the United Kingdom, and between these manufacturers and the principal importers to this market, has resulted in profits, prices and at times costs being higher than they would otherwise have been;
  • (ii) the development of competition by independent British match manufacturers has been hampered by inability to buy machinery from manufacturers controlled by Swedish Match and by local under-selling of competitors, and differential pricing of materials on the part of B.M.C.;
  • (iii) subject to limitations imposed at times by import licensing, the decision as to the proportion of the United Kingdom market to be supplied from imports rests, in effect, with B.M.C.;
  • (iv) payments are made to Swedish Match as a method of reducing supplies of foreign matches to this country;
  • (v) payments are made to a Finnish manufacturer to prevent the supply of matchmaking machinery.
  • The Commission are not satisfied that, even if they were practicable, the measures which would be necessary to obtain effective free competition would bring benefits to the public commensurate with the disturbance that would be caused, or that the results would prove lasting. In particular, the majority of the Commission are not satisfied that, on balance, they would be justified in making any recommendation which would involve a serious risk of the present agreements being terminated. In the Commission's view, the alternative is to set up machinery for regulating the monopoly in the public interest.

    They recommend that the Government should assume a continuing responsibility for the supervision of the costs and prices of manufacturers, importers, and distributors of matches; and that maximum prices (related to the costs of the lowest cost domestic factory and conforming to other principles set out in the report) should be fixed for both home-produced and imported matches at all stages of distribution. Other recommendations are:

  • (a) B.M.C. subsidiaries should charge the same prices for materials to all United Kingdom match manufacturers, subject only to a reasonable (and uniform) extra charge for purchases in small quantities;
  • (b) full details of changes in the existing agreements, and of any new agreements, should be lodged with the Board of Trade, together with the annual statements of settlement between B.M.C. and Swedish Match;
  • (c) B.M.C.'s contribution towards sums paid to the Finnish company for refraining from supplying machinery should cease, and no further agreements of this kind should be entered into;
  • (d) B.M.C.'s offer to release Swedish Match from its undertaking not to manufacture match-making machinery in the United Kingdom, and to make certain other detailed changes in the existing agreements, should be accepted.
  • In an Addendum to the Report, Professor Allen, Mr. Gallie and Mrs. Robinson express grave doubt whether price control can stimulate improvements in the industry, and say that in their opinion it is wrong that B.M.C. and Swedish Match decide, in effect, what proportion of the home market is to be supplied by home production. They suggest for further examination by the Government the question whether the public interest would not be better served by abolition of the quota arrangements between B.M.C. and Swedish Match, and deliberate promotion of competition between suppliers—to be brought about by creating a purchasing agency under Government sponsorship to act as exclusive purchaser either of all matches (home-produced and imported) or else of imported matches only.

    Civil Service (Salary Comparisons)

    asked the Chancellor of the Exchequer if he will give details of a grade of civil servant who was in 1911 receiving £400 per annum salary, and what rate of salary this graded officer received in 1937, 1946 and 1953, respectively.

    The grade of staff clerk in 1911 received £400 p.a. at the maximum of his scale. Useful comparisons are not possible owing to reorganisations, particularly that of 1920, but the present grade of higher executive officer may, subject to certain substantial qualifications, be taken as approximately equivalent to the former grade of staff clerk. The maximum of the scale in the years mentioned was as follows:

    £s.
    1911 (Staff clerk)4000
    1937 (Higher executive officer)6500
    1946 (Higher executive officer)7400
    1953 (Higher executive officer)93310

    Ministry Of Food

    Slaughterhouse Facilities, Norfolk

    asked the Minister of Food what steps are being taken to remedy the shortage of slaughterhouse facilities in Norfolk; and whether he will authorise the reopening of a number of smaller slaughterhouses to ease the situation until more permanent facilities have been provided.

    The shortage arises only in the spring, when the winterfed cattle are marketed. Surplus animals are then sent elsewhere for slaughter, and I not think it is necessary for my Department to use some of the smaller slaughterhouses in Norfolk. The ques-of slaughtering facilities in production and consuming areas is being considered by the Inter-Departmental Committee on slaughterhouse siting.

    Barley Imports (Average Costs)

    asked the Minister of Food the average cost of barley imported by his Department in the first four months of 1953, 1952 and 1951, respectively.

    For the months in question the average c.i.f. cost per ton of 2,240 lb. was:

    £s.d.
    195330198
    195237810
    195128171
    The imports to which these figures relate represent purchases made in earlier periods. Barley was bought during the first four months of 1953 at prices considerably lower than the average cost of imports in that period.

    Post Office

    Money Orders (Irregular Issue)

    asked the Assistant Postmaster-General under what circumstances it was possible for a sub-postmistress at Harrogate to misuse public money for which she was recently convicted; what was the financial check involved; why such discrepancies were not discovered for many years; and what new steps have been taken to protect the public purse.

    The case referred to involved the irregular issue of money orders without payment, rendered possible by the modified check imposed by the manpower shortage during and after the war. A new system has now been introduced which will enable any similar fraud to be detected promptly, and indeed led to the discovery of this case.

    Parcel Rates Increase (Estimated Revenue)

    asked the Assistant Postmaster-General the estimated revenue in a full year from the latest increase in parcel postage rates.

    Coronation (Additional Expenditure)

    asked the Assistant Postmaster-General what additional expenditure he is incurring in connection with the Coronation.

    Additional expenditure on special services falling on the Post Office Vote is estimated at £11,000.

    Housing

    Local Authorities (Army Huts)

    asked the Minister of Housing and Local Government how many local authorities, by categories, are still responsible for army hutments used for domestic housing; and how many huts are involved.

    The information referred to in the first part of the Question is as follows:

    Metropolitan borough councils2
    County borough councils36
    Borough councils98
    Urban district councils133
    Rural district councils180
    These figures relate to England and Wales.I have no figures for the number of huts involved; but my hon. Friend will find figures for the number of families accommodated in such huts on pages 3 and 9 of the quarterly Housing Return for March, 1953.

    Resale Price Control

    asked the Minister of Housing and Local Government if he is yet able to state the Government's intentions as to extending or not beyond December, 1953, the control of house-selling prices provided for in the Housing Act, 1949.

    I am sorry that I cannot at present add to the answer I gave the hon. and gallant Member for Norfolk, Central (Brigadier Medlicott) on 14th April.