DEARTH OF RAW MATERIALS

Press, Volume LXXXVII, Issue 26362, 5 March 1951, Page 7

DEARTH OF RAW MATERIALS

More Controls Likely In Britain „ , t t LONDON, March 3. Speaking in the House of Commons yesterday, the President of the Board of Trade (Mr Harold Wilson) said that Britain’s grave shortage of raw materials would demand far more use 6f controls, whether atatutory or voluntary. Mr Wilson said that the raw materials supply problem was by far the greatest of the many economic problems facing Britain in 1951. Wider controls would ensure the distribution of materials to guarantee, as far as possible, fair supplies for essential services and industries, the rearmament drive and the export drive. They would also reduce to a minimum the effects on full employment and the cost of living. Mr Wilson said: "That is going to be our policy. This is too grave and too serious a matter to be made the subject of partisan approach as some have attempted to make it.” He said that the real problem was not the additional requirements of rearmament. It was the fall in supplies because of world shortages of materials.

Mr Wilson said a very grave situation would arise if reports were correct that America planned to build a £350,000,000 wool stock-pile. Opposition Criticism Mr Wilson was speaking on an Opposition motion criticising the Government for its late start on its stockpiling programme. He said that the reported American wool stock-pile objective equalled about 35 per cent of the entire annual exportable surplus of the five major producing countries, and 65 per cent, of the grades suggested for the stockpile. Mr Wilson said that the sulphur supply situation was very grave indeed. Unless, supplies, frpjp toe United State* were increased a serious reduction of supplies to general chemical and rayon industries would follow, because supglies to stflß, oil refining, metal exaction, essential food and service industries would have to be maintained at the highest possible level. “I trust* the United States will increase the allocation of sulphur to ui. because they realise the damaging effect on our defence production if our supply does not increase by some 30,000 tons each three months, which is equal to only about 3 per cent of the Uhited States consumption,” he continued.

“There has been no easing of the shortage of paper and pulp. Heavy world buying has continued and prices have increased. I favour international discussions on the paper supply problem. A 1 per cent, reduction in the United States consumption, for example, would enable Britain to restore recent cuts and have six-page instead of four-page papers." There was no limit to the amount of paper and pulp Britain was prepared to import from soft currency sources, and dollars had been allocated for purchases from America. Timber stocks were a great deal better than last year’s. With the improved dollar position arrangements had been made for much greater shipments, and the Government would stick to its policy of ensuring a fair distribution domestically. Mr Wilson described as a “partisan approach to a serious problem, Opposition arguments that private instead of Government bulk buying could have got raw materials more cheaply. Wool, for which there was a free market, was now priced about 12| times the pre-war figure. The wool supply Sroblem would be considered internaonally in Washington next month. It was an international problem and it could not be solved by action by any single country. Conservative Motion Carried Mr Ronald Russell (Conservative), in launching the Opposition attack, declared that the Government had failed to buy materials last year when pricer were much lower, and that zinc, copper, tin and paper and pulp imports had fallen seriously. He added: “The most shattering example is provided by wood pulp and other forms of paper-making material. The total stock of this material tell from 188,000 tons in November. 1949, to 83,000 tons in November, 1950.” Another Conservative, Mr Eric Bullus, suggested that Britain shdu’.d stop exporting newsprint supplies-which went mostly to Commonwealth countries—so as to build up British home Supplies. There was a brief scene at the end of the debate when the Opposition motion was carried by 167 votes to 183. and when the Deputy-Leader of the Opposition (Mr R. A. Eden) asked, amid Conservative cheers, if it would be heeded. As neither party had instructed its members to vote, the result had no Significance, except as a rebuff to the Government.

Mr Wilson said he would draw the attention of the Government Leader (Mr Herbert Morrison) to the vote.